NYSE:BBY

Stock Analysis Report

Executive Summary

Best Buy Co., Inc. operates as a retailer of technology products, services, and solutions in the United States, Canada, and Mexico.

Rewards

Trading at 40.6% below its fair value

Earnings grew by 40.1% over the past year

Pays a high and reliable dividend of 2.39%

Risk Analysis

No risks detected for BBY from our risk checks.


Snowflake Analysis

Outstanding 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.9%

BBY

1.9%

US Specialty Retail

0.8%

US Market


1 Year Return

42.1%

BBY

25.2%

US Specialty Retail

17.8%

US Market

Return vs Industry: BBY exceeded the US Specialty Retail industry which returned 25.2% over the past year.

Return vs Market: BBY exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

BBYIndustryMarket
7 Day5.9%1.9%0.8%
30 Day9.9%3.0%1.8%
90 Day23.5%6.7%4.1%
1 Year45.3%42.1%27.2%25.2%20.4%17.8%
3 Year87.0%73.9%36.7%29.6%45.9%36.4%
5 Year161.4%123.7%48.5%35.8%68.1%49.6%

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?

40.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BBY ($83.83) is trading below our estimate of fair value ($141.09)

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


Price To Earnings Ratio

PE vs Industry: BBY is good value based on its PE Ratio (14.6x) compared to the Specialty Retail industry average (16x).

PE vs Market: BBY is good value based on its PE Ratio (14.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: BBY is poor value based on its PEG Ratio (9.5x)


Price to Book Ratio

PB vs Industry: BBY is overvalued based on its PB Ratio (7x) compared to the US Specialty Retail industry average (1.5x).


Next Steps

Future Growth

How is Best Buy forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

1.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BBY's forecast earnings growth (1.5% per year) is below the savings rate (1.7%).

Earnings vs Market: BBY's earnings (1.5% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: BBY's earnings are forecast to grow, but not significantly.

Revenue vs Market: BBY's revenue (2% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: BBY's revenue (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 (50%).


Next Steps

Past Performance

How has Best Buy performed over the past 5 years?

9.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BBY has high quality earnings.

Growing Profit Margin: BBY's current net profit margins (3.5%) are higher than last year (2.5%).


Past Earnings Growth Analysis

Earnings Trend: BBY's earnings have grown by 9.4% per year over the past 5 years.

Accelerating Growth: BBY's earnings growth over the past year (40.1%) exceeds its 5-year average (9.4% per year).

Earnings vs Industry: BBY earnings growth over the past year (40.1%) exceeded the Specialty Retail industry 3.8%.


Return on Equity

High ROE: BBY's Return on Equity (49%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Best Buy's financial position?


Financial Position Analysis

Short Term Liabilities: BBY's short term assets ($10.2B) exceed its short term liabilities ($9.7B).

Long Term Liabilities: BBY's short term assets ($10.2B) exceed its long term liabilities ($4.1B).


Debt to Equity History and Analysis

Debt Level: BBY's debt to equity ratio (38.8%) is considered satisfactory.

Reducing Debt: BBY's debt to equity ratio has increased from 32.7% to 38.8% over the past 5 years.

Debt Coverage: BBY's debt is well covered by operating cash flow (184.3%).

Interest Coverage: BBY's interest payments on its debt are well covered by EBIT (91.2x coverage).


Balance Sheet

Inventory Level: BBY has a high level of physical assets or inventory.

Debt Coverage by Assets: BBY's debt is covered by short term assets (assets are 8.4x debt).


Next Steps

Dividend

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

2.39%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Best Buy before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years2.7%

Current dividend yield vs market & industry

Notable Dividend: BBY's dividend (2.39%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: BBY's dividend (2.39%) is low compared to the top 25% of dividend payers in the US market (3.72%).


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 (34.9%), 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 (34.2% payout ratio).


Next Steps

Management

What is the CEO of Best Buy's salary, the management and board of directors tenure and is there insider trading?

0.6yrs

Average management tenure


CEO

Corie Barry (44yo)

0.5yrs

Tenure

US$5,919,680

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 ($USD5.92M) is below average for companies of similar size in the US market ($USD10.94M).

Compensation vs Earnings: Corie's compensation has increased by more than 20% in the past year.


Management Age and Tenure

0.6yrs

Average Tenure

48yo

Average Age

Experienced Management: BBY's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Age and Tenure

5.2yrs

Average Tenure

58.5yo

Average Age

Experienced Board: BBY's board of directors are considered experienced (5.2 years average tenure).


Insider Trading

Insider Buying: BBY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$2,212,32502 Dec 19
R. Mohan
EntityIndividual
Role
President
President & COO
Shares27,446
Max PriceUS$82.36
SellUS$161,82302 Dec 19
Todd Hartman
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares2,000
Max PriceUS$80.91
SellUS$90,93002 Dec 19
Mathew Watson
EntityIndividual
Role
Chief Accounting Officer
Senior VP of Finance
Shares1,105
Max PriceUS$82.29
SellUS$70,29101 Oct 19
Mathew Watson
EntityIndividual
Role
Chief Accounting Officer
Senior VP of Finance
Shares1,033
Max PriceUS$68.50
SellUS$32,407,63222 Jul 19
Richard Schulze
EntityIndividual
Shares430,600
Max PriceUS$75.30
SellUS$5,213,31018 Jul 19
Richard Schulze
EntityIndividual
Shares69,400
Max PriceUS$75.12
SellUS$24,135,14510 Jul 19
Richard M. Schulze Family Foundation, Endowment Arm
EntityCompany
Shares334,921
Max PriceUS$73.00
SellUS$6,045,37010 Jul 19
Richard Schulze
EntityIndividual
Shares83,891
Max PriceUS$73.00
SellUS$11,896,55608 Jul 19
Richard M. Schulze Family Foundation, Endowment Arm
EntityCompany
Shares165,079
Max PriceUS$72.07
SellUS$2,962,55308 Jul 19
Richard Schulze
EntityIndividual
Shares41,109
Max PriceUS$72.07
SellUS$173,30205 Jun 19
Kamy Scarlett
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer & President of U.S. Retail Stores
Shares2,694
Max PriceUS$64.33
SellUS$172,79430 May 19
R. Mohan
EntityIndividual
Role
President
President & COO
Shares2,620
Max PriceUS$65.95
SellUS$19,12128 May 19
Mathew Watson
EntityIndividual
Role
Chief Accounting Officer
Senior VP of Finance
Shares285
Max PriceUS$67.09
SellUS$199,62410 May 19
Brian Tilzer
EntityIndividual
Role
Chief Technology Officer
Chief Digital & Technology Officer
Shares2,739
Max PriceUS$72.88
SellUS$12,651,51218 Apr 19
Hubert Joly
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares171,711
Max PriceUS$73.68
SellUS$2,217,45018 Apr 19
R. Mohan
EntityIndividual
Role
President
President & COO
Shares30,000
Max PriceUS$73.92
SellUS$3,057,82418 Mar 19
R. Mohan
EntityIndividual
Role
President
President & COO
Shares44,619
Max PriceUS$68.88
SellUS$322,53918 Mar 19
Kamy Scarlett
EntityIndividual
Role
Head of Human Resources
Chief Human Resources Officer & President of U.S. Retail Stores
Shares4,703
Max PriceUS$68.88
SellUS$1,670,94218 Mar 19
Keith Nelsen
EntityIndividual
Shares24,374
Max PriceUS$68.88
SellUS$9,534,81218 Mar 19
Hubert Joly
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares139,133
Max PriceUS$68.88
SellUS$136,48418 Mar 19
Mathew Watson
EntityIndividual
Role
Chief Accounting Officer
Senior VP of Finance
Shares1,990
Max PriceUS$68.88
SellUS$1,904,85818 Mar 19
Corie Barry
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares27,788
Max PriceUS$68.88
SellUS$26,13914 Mar 19
Mathew Watson
EntityIndividual
Role
Chief Accounting Officer
Senior VP of Finance
Shares380
Max PriceUS$68.79
SellUS$16,623,90013 Mar 19
Richard M. Schulze Family Foundation, Endowment Arm
EntityCompany
Shares241,377
Max PriceUS$68.87
SellUS$16,615,01113 Mar 19
Richard Schulze
EntityIndividual
Shares241,180
Max PriceUS$68.89
SellUS$17,723,99905 Mar 19
Richard Schulze
EntityIndividual
Shares258,820
Max PriceUS$69.53
SellUS$17,713,34105 Mar 19
Richard M. Schulze Family Foundation, Endowment Arm
EntityCompany
Shares258,623
Max PriceUS$69.55
SellUS$69,99401 Mar 19
Mathew Watson
EntityIndividual
Role
Chief Accounting Officer
Senior VP of Finance
Shares1,000
Max PriceUS$69.99

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Todd Hartman

    Executive VP

    • Tenure: 0.7yrs
  • Hubert Joly (60yo)

    Executive Chairman

    • Tenure: 4.5yrs
    • Compensation: US$17.38m
  • Mike Mohan (51yo)

    President & COO

    • Tenure: 0.5yrs
    • Compensation: US$6.69m
  • Matt Furman (48yo)

    Chief Communications & Public Affairs Officer

    • Tenure: 0yrs
  • Mollie O'Brien

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Brian Tilzer (48yo)

    Chief Digital & Technology Officer

    • Tenure: 1.6yrs
  • Mathew Watson (48yo)

    Senior VP of Finance

    • Tenure: 4.7yrs
  • Corie Barry (44yo)

    CEO & Director

    • Tenure: 0.5yrs
    • Compensation: US$5.92m
  • Kamy Scarlett (55yo)

    Chief Human Resources Officer & President of U.S. Retail Stores

    • Tenure: 2.5yrs
    • Compensation: US$4.20m
  • Matt Bilunas

    Chief Financial Officer

    • Tenure: 0.4yrs

Board Members

  • David Kenny (57yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$285.07k
  • Russ Fradin (63yo)

    Independent Director

    • Tenure: 6.7yrs
    • Compensation: US$405.07k
  • Hubert Joly (60yo)

    Executive Chairman

    • Tenure: 4.5yrs
    • Compensation: US$17.38m
  • Lisa Caputo (55yo)

    Independent Director

    • Tenure: 10yrs
    • Compensation: US$285.07k
  • Kathy Higgins Victor (62yo)

    Independent Director

    • Tenure: 20.1yrs
    • Compensation: US$300.07k
  • J. Doyle (56yo)

    Lead Independent Director

    • Tenure: 0.5yrs
    • Compensation: US$291.12k
  • Claudia Munce (60yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$285.07k
  • Karen McLoughlin (54yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$285.07k
  • Tommy Millner (65yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$310.07k
  • Corie Barry (44yo)

    CEO & Director

    • Tenure: 0.5yrs
    • Compensation: US$5.92m

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$21.447b
  • Shares outstanding: 258.78m
  • Website: https://www.bestbuy.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BBYNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 1985
BBY *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 1985
BUYDB (Deutsche Boerse AG)YesCommon StockDEEURApr 1985
BBYSWX (SIX Swiss Exchange)YesCommon StockCHCHFApr 1985
0R18LSE (London Stock Exchange)YesCommon StockGBUSDApr 1985
BUYETLX (Eurotlx)YesCommon StockITEURApr 1985
BBYY34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EA REP 1 COM SHS USD0.10BRBRLJul 2016

Biography

Best Buy Co., Inc. operates as a retailer of technology products, services, and solutions in the United States, Canada, and Mexico. The company operates in two segments, Domestic and International. Its sto ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 23:32
End of Day Share Price2019/12/11 00:00
Earnings2019/11/02
Annual Earnings2019/02/02


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.