Best Buy Co (BBY) AI Stock Analysis

• Market Cap: $15.20B
• Dividend Yield: 5.11%
• Average Volume (3M): 3.68M
• Price to Earnings (P/E): 19.9
• Beta (1Y): 1.03
• Revenue Growth: -2.21%
• EPS Growth: -37.30%
• Country: US
• Employees: 85,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 1.28
• Shares Outstanding: 210,101,270
• 10 Day Avg. Volume: 3,471,121
• 30 Day Avg. Volume: 3,678,339
• 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: 1.04
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 1.68
• Enterprise Value/Ebitda: 8.08
• 1Y Price Target: $79.65
• Price Target Upside: 7.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 71 Outperform
• Price Target: $82.00 ▲(10.53% Upside)

Best Buy's overall stock score reflects a balanced view of its financial performance, technical indicators, valuation, and earnings call insights. The company's strong revenue growth and positive earnings call sentiment are significant strengths. However, high leverage and declining profitability margins pose risks. The technical outlook is moderately positive, and the valuation is fair, supported by a strong dividend yield.

Positive Factors

Strong Online Performance

The sustained growth in online sales highlights Best Buy's successful adaptation to e-commerce trends, enhancing its market reach and customer convenience, which is crucial for long-term competitiveness in the retail sector.

Vendor Partnerships

Strategic partnerships with leading brands enhance product offerings and in-store experiences, driving customer traffic and sales, which strengthens Best Buy's competitive position in the retail market.

Launch of Best Buy Marketplace

The marketplace expansion significantly increases product variety and vendor participation, potentially boosting sales and customer engagement, positioning Best Buy for sustained growth in the digital retail space.

Negative Factors

High Leverage

High leverage can strain financial flexibility and increase risk, especially if profitability does not improve, potentially impacting Best Buy's ability to invest in growth opportunities or weather economic downturns.

Declines in Key Product Categories

Declining sales in major product categories could indicate shifting consumer preferences or increased competition, potentially affecting revenue stability and requiring strategic adjustments to product offerings.

International Profit Margin Pressure

Decreased international profit margins suggest challenges in maintaining pricing power or cost control abroad, which could impact overall profitability and necessitate strategic adjustments in international operations.

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 and appliances, which includes products from major brands as well as its private label offerings. The company's revenue model is multifaceted, with key streams including in-store sales, online sales, and services provided through Geek Squad. In addition, Best Buy benefits from a robust e-commerce platform that has seen significant growth, particularly in response to changing consumer behaviors. The company also engages in strategic partnerships with leading tech brands, which not only enhance its product offerings but also drive traffic to its stores and online platforms. Seasonal promotions, loyalty programs, and financing options further contribute to its earnings by attracting and retaining customers.

Best Buy Co Financial Statement Overview

Summary

Best Buy's financial statements present a mixed picture. While there is a positive revenue growth trajectory, profitability margins and cash conversion efficiency have declined. The balance sheet shows high leverage, which could pose risks if profitability does not improve. Overall, the company demonstrates resilience but faces challenges in maintaining operational efficiency and cash flow stability.

Income Statement

Best Buy's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) data indicates a gross profit margin of 22.54% and a net profit margin of 1.87%, which are relatively stable but lower than previous years. The revenue growth rate is positive at 36.2%, indicating a strong recovery from prior declines. However, EBIT and EBITDA margins have decreased, suggesting pressure on operating efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio is 1.26, indicating a high level of leverage, though it has improved from previous periods. Return on equity is 26.16%, showing decent profitability. The equity ratio is not provided, but the overall leverage suggests potential risks if earnings do not improve.

Cash Flow

Cash flow analysis reveals some challenges. The free cash flow growth rate is positive at 7.64%, but the operating cash flow to net income ratio is low at 0.24, indicating potential issues in converting income to cash. The free cash flow to net income ratio is 0.66, reflecting moderate cash generation relative to net income.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	41.60B	41.53B	43.45B	46.30B	51.76B	47.26B
Gross Profit	9.37B	9.38B	9.60B	9.91B	11.64B	10.57B
EBITDA	1.96B	2.21B	2.60B	2.74B	3.92B	3.27B
Net Income	778.00M	927.00M	1.24B	1.42B	2.45B	1.80B
Balance Sheet
Total Assets	15.25B	14.78B	14.97B	15.80B	17.50B	19.07B
Cash, Cash Equivalents and Short-Term Investments	1.88B	1.58B	1.45B	1.87B	2.94B	5.49B
Total Debt	4.08B	4.05B	3.98B	3.98B	3.94B	3.99B
Total Liabilities	12.54B	11.97B	11.91B	13.01B	14.48B	14.48B
Stockholders Equity	2.72B	2.81B	3.05B	2.79B	3.02B	4.59B
Cash Flow
Free Cash Flow	1.35B	1.39B	675.00M	894.00M	2.52B	4.21B
Operating Cash Flow	2.06B	2.10B	1.47B	1.82B	3.25B	4.93B
Investing Cash Flow	-721.00M	-704.00M	-781.00M	-962.00M	-1.37B	-788.00M
Financing Cash Flow	-1.33B	-1.31B	-1.14B	-1.81B	-4.30B	-876.00M

Best Buy Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.19
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BBY, the sentiment is Positive. The current price of 74.19 is above the 20-day moving average (MA) of 74.19, above the 50-day MA of 70.81, and above the 200-day MA of 72.99, indicating a bullish trend. The MACD of 0.53 indicates Positive momentum. The RSI at 54.15 is Neutral, neither overbought nor oversold. The STOCH value of 34.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BBY.

Best Buy Co Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EBAY	77 Outperform	42.67B	20.63	45.99%	1.22%	3.05%	-10.82%
WSM	76 Outperform	24.41B	22.03	51.76%	1.22%	3.28%	9.29%
BBY	71 Outperform	$15.20B	19.93	26.72%	5.11%	-2.21%	-37.30%
CHWY	68 Neutral	15.51B	107.08	38.76%	―	9.04%	-56.79%
GME	64 Neutral	11.75B	34.55	6.95%	―	-15.48%	528.37%
ETSY	59 Neutral	6.35B	50.86	-14.58%	―	2.38%	-38.88%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Best Buy Co Corporate Events

Best Buy Co Executive Damien Harmon to Step Down

Best Buy Co., Inc. announced that Damien Harmon, the Senior Executive Vice President of Channel & Customer Experiences & Enterprise Services, will step down from his role effective July 18, 2025, to pursue other interests. The company has decided not to fill his position, opting instead to distribute his responsibilities among the CEO and other executive leaders, which may impact the company’s operational dynamics and leadership structure.

Best Buy Co Shareholders Meeting Decisions June 2025

On June 13, 2025, Best Buy Co., Inc. held its Regular Meeting of Shareholders where several key decisions were made. Shareholders elected directors for a one-year term, ratified the appointment of Deloitte & Touche LLP as the independent registered public accounting firm, and approved executive compensation and an amendment to the 2020 Omnibus Incentive Plan. However, several shareholder proposals, including those on shareholder rights, CEI participation, LGBTQIA+ inclusion efforts, and climate transition plans, were rejected.