NYSE:BBY

Stock Analysis Report

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Market Cap

US$27.0b

Last Updated

2021/06/21 06:34 UTC

Data Sources

Company Financials +

Executive Summary

Best Buy Co., Inc. retails technology products in the United States and Canada. More Details


Snowflake Analysis

Solid track record with excellent balance sheet and pays a dividend.


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 not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BBY's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-5.6%

BBY

-4.2%

US Specialty Retail

-1.9%

US Market


1 Year Return

27.0%

BBY

65.0%

US Specialty Retail

38.2%

US Market

Return vs Industry: BBY underperformed the US Specialty Retail industry which returned 65% over the past year.

Return vs Market: BBY underperformed the US Market which returned 38.2% over the past year.


Shareholder returns

BBYIndustryMarket
7 Day-5.6%-4.2%-1.9%
30 Day-6.4%-1.1%1.0%
90 Day-9.4%-1.1%3.8%
1 Year29.9%27.0%66.1%65.0%40.4%38.2%
3 Year55.3%43.3%76.9%70.6%57.5%47.8%
5 Year317.7%266.5%112.8%98.1%127.2%101.7%

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

Valuation

Is Best Buy undervalued compared to its fair value and its price relative to the market?

1.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BBY ($107.63) is trading below our estimate of fair value ($109.32)

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 (12.4x) compared to the US Specialty Retail industry average (13.3x).

PE vs Market: BBY is good value based on its PE Ratio (12.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: BBY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BBY is overvalued based on its PB Ratio (6.5x) compared to the US Specialty Retail industry average (3x).


Future Growth

How is Best Buy forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?

-0.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBY's earnings are forecast to decline over the next 3 years (-0.9% per year).

Earnings vs Market: BBY's earnings are forecast to decline over the next 3 years (-0.9% per year).

High Growth Earnings: BBY's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BBY's revenue (0.9% per year) is forecast to grow slower than the US market (9.5% per year).

High Growth Revenue: BBY's revenue (0.9% 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 (74%).


Past Performance

How has Best Buy performed over the past 5 years?

13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BBY has high quality earnings.

Growing Profit Margin: BBY's current net profit margins (4.4%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: BBY's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: BBY's earnings growth over the past year (55.6%) exceeds its 5-year average (13.4% per year).

Earnings vs Industry: BBY earnings growth over the past year (55.6%) underperformed the Specialty Retail industry 122.1%.


Return on Equity

High ROE: BBY's Return on Equity (53.7%) is considered outstanding.


Financial Health

How is Best Buy's financial position?


Financial Position Analysis

Short Term Liabilities: BBY's short term assets ($11.3B) exceed its short term liabilities ($9.6B).

Long Term Liabilities: BBY's short term assets ($11.3B) exceed its long term liabilities ($3.9B).


Debt to Equity History and Analysis

Debt Level: BBY's debt to equity ratio (31.6%) is considered satisfactory.

Reducing Debt: BBY's debt to equity ratio has increased from 26.3% to 31.6% over the past 5 years.

Debt Coverage: BBY's debt is well covered by operating cash flow (320.3%).

Interest Coverage: BBY's interest payments on its debt are well covered by EBIT (441.4x coverage).


Balance Sheet


Dividend

What is Best Buy current dividend yield, its reliability and sustainability?

2.60%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BBY's dividend (2.6%) is higher than the bottom 25% of dividend payers in the US market (1.31%).

High Dividend: BBY's dividend (2.6%) is low compared to the top 25% of dividend payers in the US market (3.49%).


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 (28.9%), 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 (33.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Corie Barry (45 yo)

2yrs

Tenure

US$12,033,503

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 ($USD12.03M) is about average for companies of similar size in the US market ($USD11.36M).

Compensation vs Earnings: Corie's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BBY's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: BBY's board of directors are considered experienced (3.3 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


Number of Employees


Location

  • Best Buy Co., Inc.
  • 7601 Penn Avenue South
  • Richfield
  • Minnesota
  • 55423
  • United States

Listings


Biography

Best Buy Co., Inc. retails technology products in the United States and Canada. The company operates in two segments, Domestic and International. Its stores provide computing and mobile phones, such as com...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/21 06:34
End of Day Share Price2021/06/18 00:00
Earnings2021/05/01
Annual Earnings2021/01/30


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.