company background image
BBY

Best Buy NYSE:BBY Stock Report

Last Price

US$81.33

Market Cap

US$18.1b

7D

3.6%

1Y

-29.5%

Updated

15 Aug, 2022

Data

Company Financials +
BBY fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance2/6
Financial Health4/6
Dividends6/6

BBY Stock Overview

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

Best Buy Co., Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Best Buy
Historical stock prices
Current Share PriceUS$81.33
52 Week HighUS$141.97
52 Week LowUS$64.29
Beta1.52
1 Month Change12.23%
3 Month Change-3.75%
1 Year Change-29.50%
3 Year Change22.74%
5 Year Change34.54%
Change since IPO35,034.78%

Recent News & Updates

Aug 02
Is Now The Time To Look At Buying Best Buy Co., Inc. (NYSE:BBY)?

Is Now The Time To Look At Buying Best Buy Co., Inc. (NYSE:BBY)?

Best Buy Co., Inc. ( NYSE:BBY ) saw a decent share price growth in the teens level on the NYSE over the last few...

Jul 24

Best Buy: It Has Been So Bad That It's Starting To Look Good

Best Buy stock has been decimated in 2022, falling nearly 46% from its November highs. However, we believe the worst seems to be over. Analysts are still pessimistic about retailers' prospects in 2022. Companies like Best Buy with significant discretionary spending could face further headwinds. However, the market is forward-looking. If Best Buy can execute well from here, things should get easier through FY23. Our price action analysis suggests a long-term bottom could have formed two weeks ago. BBY's valuation is also reasonable after its massive collapse. Therefore, we rate BBY as a Buy. However, it's short-term overbought. So, investors can consider a retracement first before adding exposure. Thesis Leading retailer Best Buy Co., Inc. (BBY) stock has been battered since forming its highs in November 2021. The market has set up the massive de-rating in BBY, as it anticipated slowing growth in 2022. Given its significant exposure to consumer discretionary spending, we believe the de-rating is justified. The company's weak performance was palpable, as it lapped highly challenging and unsustainable comps driven by the surge in 2020-21. Moreover, the worsening macro headwinds, exacerbated by high inflation, interest rate hikes, and high energy costs, sent BBY down nearly 46% from its November 2021 highs. Notwithstanding, we believe the worst seems to be over. Our analysis suggests that Best Buy's revenue and profitability growth could recover moving forward after hitting its nadir last quarter. Our price action analysis also suggests that BBY could have staged its long-term bottom two weeks ago. Notwithstanding, it appears overbought in the short term, as it recovered markedly from its June lows. However, our valuation model indicates that BBY is still reasonably valued if it can execute its recovery cadence well. Therefore, we believe investors who have been waiting for a potential bottom to add BBY can consider adding exposure. Accordingly, we rate BBY as a Buy. Perfect Storm In Retail Decimated Best Buy Retailers have been undergoing some of the most challenging headwinds since the COVID pandemic, driven by the culmination of a series of upheavals. The geopolitical conflict, surging inflation exacerbated by high energy costs, and a hawkish Fed had all come together to create a perfect storm. Best Buy revenue by product category share % (Company filings) As a result, retailers with significant exposure to consumer discretionary spending have suffered tremendously. As seen above, consumer electronics and PC/mobile devices accounted for 72% of Best Buy's revenue in FQ1'23. It also led to a series of downgrades by the Street recently, as analysts anticipated further challenges. BofA (BAC) cautioned in a recent note (edited): We believe retail will continue to feel the impact of US consumers shifting their spending habits and budgets to prioritize non-discretionary categories (such as gas, groceries, and home & auto maintenance) over discretionary categories (such as consumer electronics and hobbies). For Best Buy, we caution that there's increasing uncertainty around 2023 earnings, and therefore its valuation looks incrementally less attractive. - Barron's In addition, Morgan Stanley (MS) also slashed its retail outlook for 2022, as it added (edited): Inflation is running well above our expectations entering the year, and it's outpacing disposable income growth. The result is a higher proportion of consumers' incomes is being spent on necessities like food (which is seeing 10%+ inflation) and rent, while dollars are being pulled away from discretionary purchasing. Therefore, the Street is getting increasingly negative on retail. Notwithstanding, we urge investors to use independent analysis and not just rely on the Street's commentary. Best Buy Should Perform Better Moving Forward Best Buy domestic comparable sales change % (Company filings) Those massive revenue gains, as seen in its comps sales growth in FY21-22, were unsustainable. Therefore, we believe the de-rating by the market is well-deserved, as investors normalize their expectations of BBY's growth cadence ahead. Best Buy revenue change % and adjusted EBIT change % consensus estimates (S&P Cap IQ)

Shareholder Returns

BBYUS Specialty RetailUS Market
7D3.6%3.3%3.6%
1Y-29.5%-28.7%-9.6%

Return vs Industry: BBY underperformed the US Specialty Retail industry which returned -28.5% over the past year.

Return vs Market: BBY underperformed the US Market which returned -10.2% over the past year.

Price Volatility

Is BBY's price volatile compared to industry and market?
BBY volatility
BBY Average Weekly Movement6.9%
Specialty Retail Industry Average Movement9.0%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: BBY is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: BBY's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
196676,125Corie 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 products, such as desktops, notebooks, and peripherals; mobile phones comprising related mobile network carrier commissions; networking products; tablets covering e-readers; 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 Co., Inc. Fundamentals Summary

How do Best Buy's earnings and revenue compare to its market cap?
BBY fundamental statistics
Market CapUS$18.08b
Earnings (TTM)US$2.20b
Revenue (TTM)US$50.77b

8.3x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BBY income statement (TTM)
RevenueUS$50.77b
Cost of RevenueUS$39.49b
Gross ProfitUS$11.28b
Other ExpensesUS$9.08b
EarningsUS$2.20b

Last Reported Earnings

Apr 30, 2022

Next Earnings Date

Aug 30, 2022

Earnings per share (EPS)9.77
Gross Margin22.21%
Net Profit Margin4.33%
Debt/Equity Ratio41.3%

How did BBY perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

35%

Payout Ratio