company background image
BBY

Best BuyNYSE:BBY Stock Report

Last Price

US$94.90

Market Cap

US$22.8b

7D

-7.5%

1Y

-17.1%

Updated

20 Jan, 2022

Data

Company Financials +
BBY fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
Financial Health5/6
Dividends5/6

BBY Stock Overview

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

Best Buy Competitors

GameStop

NYSE:GME

US$7.8b

Simply

OTCPK:SIMP

US$29.3m

hhgregg

OTCPK:HGGG.Q

US$55.6k

Apple

NasdaqGS:AAPL

US$2.7t

Price History & Performance

Summary of all time highs, changes and price drops for Best Buy
Historical stock prices
Current Share PriceUS$94.90
52 Week HighUS$141.97
52 Week LowUS$94.54
Beta1.56
1 Month Change-2.65%
3 Month Change-19.84%
1 Year Change-17.12%
3 Year Change64.76%
5 Year Change109.82%
Change since IPO40,897.06%

Recent News & Updates

Jan 14
Does Best Buy (NYSE:BBY) Deserve A Spot On Your Watchlist?

Does Best Buy (NYSE:BBY) Deserve A Spot On Your Watchlist?

It's only natural that many investors, especially those who are new to the game, prefer to buy shares in 'sexy' stocks...

Jan 03

Best Buy: Surviving The Retail Apocalypse

The changes and investments made by Best Buy's management have begun to pay off. Best Buy's swiftly growing dividend instills confidence in the underlying fundamentals of the business. I believe the weakness experienced by shares of Best Buy since reporting Q3 earnings, has presented savvy investors the chance to accumulate shares of a quality business at a great price.

Jan 02
Best Buy (NYSE:BBY) Is Investing Its Capital With Increasing Efficiency

Best Buy (NYSE:BBY) Is Investing Its Capital With Increasing Efficiency

Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...

Shareholder Returns

BBYUS Specialty RetailUS Market
7D-7.5%-7.5%-4.0%
1Y-17.1%-6.0%6.6%

Return vs Industry: BBY underperformed the US Specialty Retail industry which returned -2.6% over the past year.

Return vs Market: BBY underperformed the US Market which returned 7.7% over the past year.

Price Volatility

Is BBY's price volatile compared to industry and market?
BBY volatility
BBY Average Weekly Movement5.4%
Specialty Retail Industry Average Movement7.4%
Market Average Movement6.6%
10% most volatile stocks in US Market15.7%
10% least volatile stocks in US Market2.4%

Stable Share Price: BBY is not significantly more volatile than the rest 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.

About the Company

FoundedEmployeesCEOWebsite
196679,050Corie Barryhttps://investors.bestbuy.com/investor-relations/overview/default.aspx

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 computing covering desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions, networking products, tablets covering e-readers, and wearables, such as smartwatches; and consumer electronics consisting of digital imaging, health and fitness, home theater, portable audio comprising headphones and portable speakers, and smart home products.

Best Buy Fundamentals Summary

How do Best Buy's earnings and revenue compare to its market cap?
BBY fundamental statistics
Market CapUS$22.83b
Earnings (TTM)US$2.64b
Revenue (TTM)US$52.33b

8.6x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BBY income statement (TTM)
RevenueUS$52.33b
Cost of RevenueUS$40.48b
Gross ProfitUS$11.85b
ExpensesUS$9.21b
EarningsUS$2.64b

Last Reported Earnings

Oct 30, 2021

Next Earnings Date

Mar 03, 2022

Earnings per share (EPS)10.99
Gross Margin22.65%
Net Profit Margin5.05%
Debt/Equity Ratio28.0%

How did BBY perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

27%

Payout Ratio

Valuation

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

40.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BBY ($94.9) is trading below our estimate of fair value ($159.16)

Significantly Below Fair Value: BBY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BBY is poor value based on its PE Ratio (8.6x) compared to the US Specialty Retail industry average (8.3x).

PE vs Market: BBY is good value based on its PE Ratio (8.6x) compared to the US market (16.9x).


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 (5.3x) compared to the US Specialty Retail industry average (2.7x).


Future Growth

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

-4.3%

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 (-4.3% per year).

Earnings vs Market: BBY's earnings are forecast to decline over the next 3 years (-4.3% per year).

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

Revenue vs Market: BBY's revenue (0.3% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: BBY's revenue (0.3% 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 (109.6%).


Past Performance

How has Best Buy performed over the past 5 years?

17.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BBY has a high level of non-cash earnings.

Growing Profit Margin: BBY's current net profit margins (5.1%) are higher than last year (3.8%).


Past Earnings Growth Analysis

Earnings Trend: BBY's earnings have grown by 17.4% per year over the past 5 years.

Accelerating Growth: BBY's earnings growth over the past year (53.2%) exceeds its 5-year average (17.4% per year).

Earnings vs Industry: BBY earnings growth over the past year (53.2%) underperformed the Specialty Retail industry 151.5%.


Return on Equity

High ROE: BBY's Return on Equity (61.8%) is considered outstanding.


Financial Health

How is Best Buy's financial position?


Financial Position Analysis

Short Term Liabilities: BBY's short term assets ($13.5B) exceed its short term liabilities ($11.9B).

Long Term Liabilities: BBY's short term assets ($13.5B) exceed its long term liabilities ($3.9B).


Debt to Equity History and Analysis

Debt Level: BBY has more cash than its total debt.

Reducing Debt: BBY's debt to equity ratio has increased from 27.1% to 28% over the past 5 years.

Debt Coverage: BBY's debt is well covered by operating cash flow (173.9%).

Interest Coverage: BBY's interest payments on its debt are well covered by EBIT (1119.3x coverage).


Balance Sheet


Dividend

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

2.95%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BBY's dividend (2.95%) is higher than the bottom 25% of dividend payers in the US market (1.34%).

High Dividend: BBY's dividend (2.95%) 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 (26.7%), 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 (30.4% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Corie Barry (46 yo)

2.58yrs

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 ($USD12.03M) is about average for companies of similar size in the US market ($USD11.31M).

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 (3.7 years average tenure).


Board Members

Experienced Board: BBY's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BBY insiders have bought more shares than they have sold 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 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/20 23:53
End of Day Share Price2022/01/20 00:00
Earnings2021/10/30
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.