Best Buy Co (BBY) AI Stock Analysis

• Market Cap: $15.22B
• Dividend Yield: 5.32%
• Average Volume (3M): 4.13M
• Price to Earnings (P/E): 24.0
• Beta (1Y): 1.08
• Revenue Growth: -0.95%
• EPS Growth: -48.28%
• Country: US
• Employees: 85,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 1.40
• Shares Outstanding: 209,535,110
• 10 Day Avg. Volume: 4,758,334
• 30 Day Avg. Volume: 4,126,416
• PEG Ratio: -0.82
• Price to Book (P/B): 6.58
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 13.27
• Enterprise Value/Market Cap: 1.32
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 2.14
• Enterprise Value/Ebitda: 12.68
• 1Y Price Target: $83.25
• Price Target Upside: 16.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 6.3
• Revenue Forecast (FY): $41.84B

• Rating: 62 Neutral
• Price Target: $77.00 ▲(7.77% Upside)

Best Buy's overall stock score reflects a stable financial position with strong earnings growth and strategic initiatives. However, technical indicators suggest bearish momentum, and valuation metrics indicate potential overvaluation. The high dividend yield and positive earnings call sentiment are significant positives, but challenges in certain product categories and high leverage remain concerns.

Positive Factors

Revenue Growth

The positive revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Marketplace Launch

The marketplace launch expands product offerings and enhances online presence, driving future growth and profitability.

Board Appointment

The appointment strengthens strategic focus on digital commerce and omnichannel experiences, aligning with growth objectives.

Negative Factors

Declining Net Profit Margins

Declining net profit margins indicate reduced efficiency in cost management, potentially impacting long-term profitability.

High Leverage

Significant leverage poses financial risk, limiting flexibility and increasing vulnerability to market volatility.

Challenges in Appliance Market

Challenges in the appliance market could hinder sales growth and affect promotional strategies, impacting revenue.

Best Buy Co Business Overview & Revenue Model

Company Description

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. The company's stores also offer appliances, such as dishwashers, laundry, ovens, refrigerators, blenders, coffee makers, and vacuums; entertainment products consisting of drones, peripherals, movies, music, and toys, as well as gaming hardware and software, and virtual reality and other software products; and other products, such as baby, food and beverage, luggage, outdoor living, and sporting goods. In addition, it provides consultation, delivery, design, health-related, installation, memberships, repair, set-up, technical support, and warranty-related services. The company offers its products through stores and websites under the Best Buy, Best Buy Ads, Best Buy Business, Best Buy Health, CST, Current Health, Geek Squad, Lively, Magnolia, Best Buy Mobile, Pacific Kitchen, Home, and Yardbird, as well as domain names bestbuy.com, currenthealth.com, lively.com, yardbird.com, and bestbuy.ca. As of January 30, 2022, it had 1,144 stores. The company was formerly known as Sound of Music, Inc. The company was incorporated in 1966 and is headquartered in Richfield, Minnesota.

How the Company Makes Money

Best Buy generates revenue primarily through the sale of consumer electronics, appliances, and related services. The company's key revenue streams include product sales from its retail stores and e-commerce platform, as well as service revenues from Geek Squad and warranty plans. Best Buy's partnerships with major electronics manufacturers allow it to offer a diverse range of products, while its omnichannel strategy enhances customer accessibility and convenience. Additionally, the company benefits from its ability to leverage its loyalty program, which encourages repeat purchases and customer retention, contributing to its overall earnings.

Best Buy Co Financial Statement Overview

Summary

Best Buy demonstrates a stable financial position with consistent gross profit margins and improving cash flow. However, declining net profit margins and high leverage pose potential risks. The company needs to address revenue growth challenges and manage debt levels to enhance financial health.

Income Statement

Best Buy's income statement shows a mixed performance. The TTM gross profit margin is stable at around 22.5%, indicating consistent profitability in core operations. However, the net profit margin has declined to 1.54% from 2.23% annually, reflecting reduced bottom-line efficiency. Revenue growth is positive in the TTM period, but historical annual data shows a declining trend, which could be a concern for future growth.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.28 in the TTM, indicating significant leverage, which poses a risk in volatile markets. Return on equity has decreased to 22.44% from 33.01% annually, suggesting reduced efficiency in generating returns on shareholders' equity. The equity ratio remains moderate, providing some stability.

Cash Flow

Cash flow analysis shows a positive trend with a TTM free cash flow growth rate of 11.98%, indicating improved cash generation. The operating cash flow to net income ratio is stable, suggesting good cash conversion. However, the free cash flow to net income ratio has slightly decreased, which could impact future investments.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	41.53B	43.45B	46.30B	51.76B	47.26B
Gross Profit	9.38B	9.60B	9.91B	11.64B	10.57B
EBITDA	2.21B	2.60B	2.74B	3.92B	3.27B
Net Income	927.00M	1.24B	1.42B	2.45B	1.80B
Balance Sheet
Total Assets	14.78B	14.97B	15.80B	17.50B	19.07B
Cash, Cash Equivalents and Short-Term Investments	1.58B	1.45B	1.87B	2.94B	5.49B
Total Debt	4.05B	3.98B	3.98B	3.94B	3.99B
Total Liabilities	11.97B	11.91B	13.01B	14.48B	14.48B
Stockholders Equity	2.81B	3.05B	2.79B	3.02B	4.59B
Cash Flow
Free Cash Flow	1.39B	675.00M	894.00M	2.52B	4.21B
Operating Cash Flow	2.10B	1.47B	1.82B	3.25B	4.93B
Investing Cash Flow	-704.00M	-781.00M	-962.00M	-1.37B	-788.00M
Financing Cash Flow	-1.31B	-1.14B	-1.81B	-4.30B	-876.00M

Best Buy Co Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 71.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBY, the sentiment is Negative. The current price of 71.45 is below the 20-day moving average (MA) of 74.12, below the 50-day MA of 76.52, and above the 200-day MA of 70.43, indicating a neutral trend. The MACD of -1.24 indicates Positive momentum. The RSI at 39.61 is Neutral, neither overbought nor oversold. The STOCH value of 10.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BBY.

Best Buy Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WSM	75 Outperform	$22.15B	20.40	56.92%	1.37%	5.10%	7.59%
EBAY	70 Outperform	$36.91B	17.77	42.43%	1.40%	4.89%	17.30%
GME	66 Neutral	$9.98B	28.01	8.35%	―	-12.13%	426.82%
BBY	62 Neutral	$15.22B	23.97	22.49%	5.32%	-0.95%	-48.28%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ETSY	57 Neutral	$5.31B	36.95	―	―	1.98%	-20.98%
CHWY	54 Neutral	$13.84B	67.71	59.58%	―	9.80%	-46.84%

Best Buy Co Corporate Events

Best Buy Appoints Dylan Jadeja to Board of Directors

On December 1, 2025, Best Buy Co., Inc. announced the appointment of Dylan Jadeja, CEO of Riot Games, to its Board of Directors, effective immediately. Jadeja brings extensive experience in strategy, finance, and the gaming industry, which is expected to enhance Best Buy’s focus on digital commerce and omnichannel customer experiences. This move aligns with Best Buy’s mission to evolve as a technology-driven company, potentially impacting its growth and market positioning.

Best Buy Appoints Meghan Frank to Board

On September 10, 2025, Best Buy Co., Inc. appointed Meghan C. Frank, the Chief Financial Officer of lululemon athletica inc., to its Board of Directors. Frank, who brings over two decades of experience in retail, finance, and planning, will serve on the Board’s Audit Committee and Nominating, Corporate Governance and Public Policy Committee. Her appointment is expected to enhance Best Buy’s strategic direction and growth, as she contributes her expertise in guiding retail and consumer brands.