Best Buy (BBY)
Consumer Discretionary · $19.8B market cap · SEC CIK 0000764478
fundamentals score out of 100
Next reports on Nov 23, 2026, with analysts expecting $1.50 in earnings per share.
The case for BBY
- Earns 43% back on shareholder equity.
- Earnings per share up 65.8%.
- Pays a 5.3% dividend while you wait.
- Reasonably priced at 15.6× earnings.
- A PEG of 0.24: a P/E of 15.6× is low for EPS growing 66%.
- Barely leveraged. Debt is 0.37× equity.
The case against
- Revenue has shrunk 2.5% a year over five years.
- Net margin of 3.0% leaves very little room for error.
- Revenue grew only 1.4%, roughly the pace of inflation.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Discretionary companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 72 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 32 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 39 |
| Momentumhow the price has behaved lately | 88 |
| Stabilityhow violently it moves, what it owes and what it pays you | 64 |
- Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.
Key numbers
| Price / earnings | 15.6× |
|---|---|
| Price / book | 5.64× |
| Price / sales | 0.5× |
| Revenue growth (YoY) | +1.4% |
| EPS growth (YoY) | +65.8% |
| Gross margin | 23% |
| Operating margin | 4% |
| Net margin | 3% |
| Return on equity | 43% |
| Debt / equity | 0.37× |
| Current ratio | 1.12 |
| Dividend yield | 5.29% |
| Beta | 1.27 |
| 52-week range | $55.10 – $95.85 |
| Position in that range | 97% of the way up |
| 3-month return | +24.7% |
| 1-year return | +29.1% |
Five years of financials, as filed
Pulled from Best Buy's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $41.7B | $41.5B | $43.5B | $46.3B | $51.8B |
| Gross profit | $9.4B | $9.4B | $9.6B | $9.9B | $11.6B |
| Operating income | $1.4B | $1.3B | $1.6B | $1.8B | $3.0B |
| Net income | $1.1B | $927M | $1.2B | $1.4B | $2.5B |
| Operating cash flow | $2.0B | $2.1B | $1.5B | $1.8B | $3.3B |
| Capital expenditure | $704M | $706M | $795M | $930M | $737M |
| Total assets | $14.7B | $14.8B | $15.0B | $15.8B | $17.5B |
| Shareholder equity | $3.0B | $2.8B | $3.1B | $2.8B | $3.0B |
| Cash | $1.7B | $1.6B | $1.4B | $1.9B | $2.9B |
| Long-term debt | — | $1.1B | $1.2B | $1.2B | $1.2B |
| Free cash flow | $1.3B | $1.4B | $675M | $894M | $2.5B |
| Gross margin | 22.5% | 22.6% | 22.1% | 21.4% | 22.5% |
| Operating margin | 3.3% | 3.0% | 3.6% | 3.9% | 5.9% |
| Net margin | 2.6% | 2.2% | 2.9% | 3.1% | 4.7% |
| Diluted shares | 212M | 217M | 219M | 226M | 249M |
Share count is down 14.9% over 4 years. Buybacks have been shrinking the pie.
What Best Buy says it does
Unless the context otherwise requires, the terms "we," "us," "our" and the "company" in this Annual Report on Form 10-K refer to Best Buy Co., Inc. and, as applicable, its consolidated subsidiaries. Any references to our website addresses do not constitute incorporation by reference of the information contained on the websites. Description of Business We were incorporated in the state of Minnesota in 1966. We are driven by our purpose to enrich lives through technology and our vision to personalize and humanize technology solutions for every stage of life. We accomplish this by leveraging our unique combination of tech expertise and a human touch to meet our customers’ everyday needs, whether they come to us online, visit our stores or invite us into their homes. We have operations in the U.S. and Canada. Segments and Geographic Areas We have two reportable segments: Domestic and International. The Domestic segment is comprised of our…
Risk factors BBY lists in its 10-K
- Macroeconomic pressures may adversely affect consumer spending and our financial results
- Geopolitical pressures may adversely impact our supply chain, the cost of our products or revenues and financial results
- Catastrophic events could adversely affect our operating results
- Many of the products we sell are highly susceptible to technological advancement, product life-cycle fluctuations and changes in consumer preferences
- If we fail to attract, retain and engage qualified employees, our operations and profitability may be negatively impacted. In addition, changes in market compensation rates could adversely affect our profitability
- Our focus on services exposes us to certain risks that could have a material adverse impact on our revenue, profitability and reputation
- Our reliance on key vendors and mobile network carriers subjects us to various risks and uncertainties which could affect our revenue and profitability
- Demand for the products and services we sell could decline if we fail to maintain positive brand perception and recognition
- Failure to effectively identify, manage and execute enterprise-wide strategies could have a negative impact on our business
- Failure to effectively manage our infrastructure, real estate portfolio and market segmentation strategy may negatively impact our business
- Interruptions and other factors affecting our supply chain may adversely affect our business
- We utilize third-party vendors for certain aspects of our operations, and any material disruption in our relationships or their services may have an adverse impact on our business
- We rely heavily on our information technology systems for key business processes. Any failure or interruption in these systems could have a material adverse impact on our business
- Regulatory, Compliance and Legal Risks