Best Buy
Market Cap
US$28.9b
Last Updated
2021/01/19 23:58 UTC
Data Sources
Company Financials +
Executive Summary
Best Buy Co., Inc. retails technology products in the United States, Canada, and Mexico. More Details
Rewards
Risk Analysis
Snowflake Analysis
Solid track record established dividend payer.
Similar Companies
Share Price & News
How has Best Buy's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BBY is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: BBY's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-2.7%
BBY
-1.6%
US Specialty Retail
0.3%
US Market
1 Year Return
23.7%
BBY
32.8%
US Specialty Retail
21.1%
US Market
Return vs Industry: BBY underperformed the US Specialty Retail industry which returned 33.6% over the past year.
Return vs Market: BBY exceeded the US Market which returned 19.5% over the past year.
Shareholder returns
| BBY | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.7% | -1.6% | 0.3% |
| 30 Day | 9.5% | 5.7% | 3.3% |
| 90 Day | -6.0% | 15.3% | 14.2% |
| 1 Year | 27.0%23.7% | 34.0%32.8% | 23.8%21.1% |
| 3 Year | 56.0%44.0% | 71.5%64.2% | 45.0%35.4% |
| 5 Year | 362.5%298.1% | 112.8%96.9% | 127.7%102.3% |
Long-Term Price Volatility Vs. Market
How volatile is Best Buy's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Are Investors Overlooking Returns On Capital At Best Buy (NYSE:BBY)?1 week ago | Simply Wall St
What To Know Before Buying Best Buy Co., Inc. (NYSE:BBY) For Its Dividend3 weeks ago | Simply Wall St
Could The Market Be Wrong About Best Buy Co., Inc. (NYSE:BBY) Given Its Attractive Financial Prospects?Valuation
Is Best Buy undervalued compared to its fair value and its price relative to the market?
8.6%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BBY ($111.62) is trading below our estimate of fair value ($122.13)
Significantly Below Fair Value: BBY is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: BBY is good value based on its PE Ratio (16.8x) compared to the US Specialty Retail industry average (19.5x).
PE vs Market: BBY is good value based on its PE Ratio (16.8x) compared to the US market (21x).
Price to Earnings Growth Ratio
PEG Ratio: BBY is poor value based on its PEG Ratio (2.8x)
Price to Book Ratio
PB vs Industry: BBY is overvalued based on its PB Ratio (7x) compared to the US Specialty Retail industry average (2.8x).
Next Steps
Future Growth
How is Best Buy forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
6.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BBY's forecast earnings growth (6% per year) is above the savings rate (2%).
Earnings vs Market: BBY's earnings (6% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: BBY's earnings are forecast to grow, but not significantly.
Revenue vs Market: BBY's revenue (1.2% per year) is forecast to grow slower than the US market (10.3% per year).
High Growth Revenue: BBY's revenue (1.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BBY's Return on Equity is forecast to be very high in 3 years time (80.6%).
Next Steps
Past Performance
How has Best Buy performed over the past 5 years?
12.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BBY has high quality earnings.
Growing Profit Margin: BBY's current net profit margins (3.8%) are higher than last year (3.5%).
Past Earnings Growth Analysis
Earnings Trend: BBY's earnings have grown by 12.3% per year over the past 5 years.
Accelerating Growth: BBY's earnings growth over the past year (12.8%) exceeds its 5-year average (12.3% per year).
Earnings vs Industry: BBY earnings growth over the past year (12.8%) underperformed the Specialty Retail industry 15.3%.
Return on Equity
High ROE: BBY's Return on Equity (42.3%) is considered outstanding.
Next Steps
Financial Health
How is Best Buy's financial position?
Financial Position Analysis
Short Term Liabilities: BBY's short term assets ($14.6B) exceed its short term liabilities ($12.9B).
Long Term Liabilities: BBY's short term assets ($14.6B) exceed its long term liabilities ($4.2B).
Debt to Equity History and Analysis
Debt Level: BBY's debt to equity ratio (46.2%) is considered high.
Reducing Debt: BBY's debt to equity ratio has increased from 32.5% to 46.2% over the past 5 years.
Debt Coverage: BBY's debt is well covered by operating cash flow (293%).
Interest Coverage: BBY's interest payments on its debt are well covered by EBIT (99.7x coverage).
Balance Sheet
Next Steps
Dividend
What is Best Buy current dividend yield, its reliability and sustainability?
1.97%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BBY's dividend (1.97%) is higher than the bottom 25% of dividend payers in the US market (1.39%).
High Dividend: BBY's dividend (1.97%) is low compared to the top 25% of dividend payers in the US market (3.85%).
Stability and Growth of Payments
Stable Dividend: BBY's dividends per share have been stable in the past 10 years.
Growing Dividend: BBY's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (33.1%), BBY's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BBY's dividends in 3 years are forecast to be well covered by earnings (30.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.6yrs
Average management tenure
CEO
Corie Barry (45 yo)
1.58yrs
Tenure
US$11,440,663
Compensation
Ms. Corie Sue Barry has been the Chief Executive Officer and Director at Best Buy Co., Inc. since June 11, 2019. Ms. Barry served as Chief Financial Officer at Best Buy Co., Inc. from 2016 to June 11, 2019...
CEO Compensation Analysis
Compensation vs Market: Corie's total compensation ($USD11.44M) is about average for companies of similar size in the US market ($USD10.55M).
Compensation vs Earnings: Corie's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.58yrs | US$11.44m | 0.063% $ 18.2m | |
| President & COO | 1.58yrs | US$11.22m | 0.048% $ 13.8m | |
| Consultant | 1.58yrs | US$14.24m | 0.18% $ 51.8m | |
| Chief Financial Officer | 1.5yrs | US$3.88m | 0.0082% $ 2.4m | |
| Chief Human Resources Officer | 3.58yrs | US$6.02m | 0.021% $ 6.2m | |
| Chief Strategy Officer | 1.58yrs | US$2.95m | 0.016% $ 4.5m | |
| Senior VP of Finance | 5.75yrs | no data | 0.0080% $ 2.3m | |
| Chief Digital & Technology Officer | 2.67yrs | no data | 0.0069% $ 2.0m | |
| Vice President of Investor Relations | no data | no data | no data | |
| Executive VP | 1.75yrs | no data | 0.013% $ 3.8m | |
| Chief Compliance Officer | 0.25yr | no data | no data | |
| Chief Communications & Public Affairs Officer | 9yrs | no data | 0.021% $ 6.1m |
1.6yrs
Average Tenure
49yo
Average Age
Experienced Management: BBY's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.58yrs | US$11.44m | 0.063% $ 18.2m | |
| Independent Director | 7.33yrs | US$303.02k | 0% $ 0 | |
| Independent Director | 11.08yrs | US$290.05k | 0.0039% $ 1.1m | |
| Independent Chairman | 0.58yr | US$360.16k | 0% $ 0 | |
| Independent Director | 2.83yrs | US$290.05k | 0% $ 0 | |
| Independent Director | 4.83yrs | US$290.05k | 0% $ 0 | |
| Independent Director | 2.08yrs | US$290.05k | 0% $ 0 | |
| Independent Director | 5.33yrs | US$299.78k | 0% $ 0 | |
| Independent Director | 7yrs | US$315.05k | 0% $ 0 | |
| Director | no data | no data | 0% $ 0 |
4.8yrs
Average Tenure
55.5yo
Average Age
Experienced Board: BBY's board of directors are considered experienced (4.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: BBY insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Best Buy Co., Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Best Buy Co., Inc.
- Ticker: BBY
- Exchange: NYSE
- Founded: 1966
- Industry: Computer and Electronics Retail
- Sector: Retail
- Market Cap: US$28.903b
- Shares outstanding: 258.94m
- Website: https://investors.bestbuy.com/investor-relations/overview/default.aspx
Number of Employees
Location
- Best Buy Co., Inc.
- 7601 Penn Avenue South
- Richfield
- Minnesota
- 55423
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BBY | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Apr 1985 |
| BBY * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Apr 1985 |
| BUY | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Apr 1985 |
| BBY | SWX (SIX Swiss Exchange) | Yes | Common Stock | CH | CHF | Apr 1985 |
| 0R18 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Apr 1985 |
| BBYY34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EA REP 1 COM SHS USD0.10 | BR | BRL | Jul 2016 |
Biography
Best Buy Co., Inc. retails technology products in the United States, Canada, and Mexico. The company operates in two segments, Domestic and International. Its stores provide computing and mobile phones, su...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/19 23:58 |
| End of Day Share Price | 2021/01/19 00:00 |
| Earnings | 2020/10/31 |
| Annual Earnings | 2020/02/01 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.