Best Buy Co (BBY) AI Stock Analysis

• Market Cap: $15.13B
• Dividend Yield: 5.31%
• Average Volume (3M): 3.96M
• Price to Earnings (P/E): 17.5
• Beta (1Y): 1.00
• Revenue Growth: -3.23%
• EPS Growth: -28.11%
• Country: US
• Employees: 85,000
• Sector: Consumer Cyclical
• Sector Strength: 56
• Industry: Specialty Retail
• EPS (TTM): 1.15
• Shares Outstanding: 211,346,700
• 10 Day Avg. Volume: 3,880,220
• 30 Day Avg. Volume: 3,963,952
• PEG Ratio: -3.68
• Price to Book (P/B): 5.18
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.36
• Enterprise Value/Market Cap: 1.14
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 1.83
• Enterprise Value/Ebitda: 1.77
• 1Y Price Target: $80.53
• Price Target Upside: 12.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 71 Outperform
• Price Target: $78.00 ▲(8.95%Upside)

Best Buy's strong cash flow generation and attractive dividend yield are positive factors that support the stock. However, declining revenue, profitability, and technical indicators signal potential challenges. Strategic initiatives in online sales and customer satisfaction improvements offer some optimism for future growth.

Positive Factors

Digital Marketplace Expansion

Best Buy has surpassed initial expectations for its year-end seller count in its marketplace, signaling robust interest and opportunities for enhanced SKU breadth and high-margin commissions.

Improved Gross Margin

Domestic gross margin increased to 23.5%, above the Goldman Sachs estimate, driven by improved financial performance in the company’s service category, such as its membership offerings.

Sourcing Diversification

China sourcing exposure has significantly decreased as vendors leverage alternative sourcing options, and this trend is expected to continue.

Negative Factors

Industry Demand

Industry demand remains subdued and tariffs are a continuing overhang, resulting in relatively flat comps.

Sales Performance

Sales decreased 0.9% year-over-year to $8.8 billion and enterprise comparable sales decreased 0.7% year-over-year, below the Goldman Sachs estimate and consensus.

Tariff Impact

Tariff risk remains an overhang, resulting in lowered '25 guidance.

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 makes money primarily through the sale of consumer electronics and related products. Its revenue streams include sales from its physical retail locations and online platform, which together account for the majority of its income. The company also generates revenue through its services segment, which includes installation, repair, technical support, and membership programs such as Total Tech Support and Geek Squad services. Additionally, Best Buy benefits from vendor partnerships that enable it to offer exclusive products and promotions, as well as financing agreements that provide customers with flexible payment options. Key factors contributing to its earnings include strategic pricing, customer loyalty programs, and ongoing investments in enhancing its digital capabilities.

Best Buy Co Financial Statement Overview

Summary

Best Buy is experiencing a decline in revenue and net profitability, with operational efficiency also under pressure. Despite these challenges, the company maintains solid cash flow generation relative to net income. However, increasing leverage and declining return on equity pose potential risks going forward. The company needs to address revenue growth and profitability to improve its financial standing.

Income Statement

Best Buy's revenue has been on a declining trend from $51.76 billion in 2022 to $41.45 billion in TTM 2025, indicating a -0.19% revenue growth in the most recent period. The company maintains a stable gross profit margin around 22.6% to 23.2%. However, net profit margin decreased to 2.13% in TTM 2025 from 4.74% in 2022, reflecting a decline in profitability. EBIT and EBITDA margins also show downward trends, highlighting potential operational challenges.

Balance Sheet

Best Buy's balance sheet shows a decreasing trend in stockholders' equity from $3.02 billion in 2022 to $2.76 billion in TTM 2025. The debt-to-equity ratio worsened to 1.47 in TTM 2025 from 1.30 in 2022, indicating an increase in leverage. However, the equity ratio remains relatively stable around 19.5%. Return on equity decreased from 81.2% in 2022 to 32.0% in TTM 2025, reflecting reduced efficiency in using equity capital.

Cash Flow

Operating cash flow to net income ratio remains strong at 2.24 in TTM 2025, showing solid cash generation relative to net income. Free cash flow growth was -9.8% in TTM 2025, indicating challenges in maintaining cash flow levels. The free cash flow to net income ratio improved to 1.42, suggesting a better conversion of earnings into cash.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	41.45B	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	2.10B	2.21B	2.60B	2.86B	3.88B	3.51B
Net Income	883.00M	927.00M	1.24B	1.42B	2.45B	1.80B
Balance Sheet
Total Assets	14.13B	14.78B	14.97B	15.80B	17.50B	19.07B
Cash, Cash Equivalents and Short-Term Investments	1.15B	1.58B	1.45B	1.87B	2.94B	5.49B
Total Debt	4.05B	4.05B	3.98B	3.98B	3.94B	4.08B
Total Liabilities	11.37B	11.97B	11.91B	13.01B	14.48B	14.48B
Stockholders Equity	2.76B	2.81B	3.05B	2.79B	3.02B	4.59B
Cash Flow
Free Cash Flow	1.26B	1.39B	675.00M	894.00M	2.52B	4.21B
Operating Cash Flow	1.98B	2.10B	1.47B	1.82B	3.25B	4.93B
Investing Cash Flow	-703.00M	-704.00M	-781.00M	-962.00M	-1.37B	-788.00M
Financing Cash Flow	-1.36B	-1.31B	-1.14B	-1.81B	-4.30B	-876.00M

Best Buy Co Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 71.59
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• 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 71.59 is above the 20-day moving average (MA) of 69.55, above the 50-day MA of 68.71, and below the 200-day MA of 79.54, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 57.09 is Neutral, neither overbought nor oversold. The STOCH value of 71.02 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
WSM	80 Outperform	$20.81B	19.15	51.10%	1.56%	1.64%	8.57%
VIPS	78 Outperform	$7.76B	7.84	19.00%	3.19%	-5.90%	-11.16%
DG	77 Outperform	$25.41B	22.02	15.69%	2.04%	4.77%	-23.73%
BBY	71 Outperform	$15.13B	17.50	30.21%	5.31%	-3.23%	-28.11%
Sector *	62 Neutral	$16.76B	11.38	-7.38%	2.96%	1.59%	-23.30%
DLTR	58 Neutral	$21.18B	―	19.25%	―	-20.46%	-202.26%
GME	54 Neutral	$10.71B	51.93	6.62%	―	-25.30%	479.26%

Best Buy Co Corporate Events

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.

The most recent analyst rating on (BBY) stock is a Buy with a $102.00 price target. To see the full list of analyst forecasts on Best Buy Co stock, see the BBY Stock Forecast page.

Best Buy Co Secures New $1.25 Billion Credit Facility

On April 18, 2025, Best Buy Co., Inc. entered into a new $1.25 billion five-year senior unsecured revolving credit facility agreement with U.S. Bank and a syndicate of lenders, replacing a previous facility set to expire in 2028. This new agreement, which terminates in April 2030, maintains similar terms to the previous facility and includes variable interest rates based on Best Buy’s senior unsecured debt rating, along with customary covenants and default provisions.