Best Buy Co (BBY) AI Stock Analysis

• Market Cap: $14.47B
• Dividend Yield: 6.89%
• Average Volume (3M): 3.49M
• Price to Earnings (P/E): 16.7
• Beta (1Y): 1.01
• Revenue Growth: -3.23%
• EPS Growth: -28.11%
• Country: US
• Employees: 85,000
• Sector: Consumer Cyclical
• Sector Strength: 71
• Industry: Specialty Retail
• EPS (TTM): 1.15
• Shares Outstanding: 211,346,700
• 10 Day Avg. Volume: 3,567,043
• 30 Day Avg. Volume: 3,494,629
• PEG Ratio: -3.76
• Price to Book (P/B): 5.30
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.62
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 0.10
• Enterprise Value/Gross Profit: 1.86
• Enterprise Value/Ebitda: 1.80
• 1Y Price Target: $80.12
• Price Target Upside: 17.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19

• Rating: 67 Neutral
• Price Target: $75.00 ▲(9.55%Upside)

Best Buy's overall stock score is driven by its solid cash flow generation and attractive dividend yield, which are partially offset by declining revenue and profitability. The neutral technical indicators suggest a cautious outlook. The company's ability to adapt to market challenges and leverage strategic initiatives in ads and marketplace will be crucial for future growth.

Positive Factors

Marketplace Growth

The supplier feedback on BBY's upcoming Marketplace launch is encouraging, and a growing Marketplace business should translate to better growth in BBY Ads.

Operational Efficiency

A shift to a more data-driven and cost-efficient shipping solution is expected to shorten delivery times and reduce shipping expenses, supporting EBIT% expansion.

Sourcing Strategy

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

Negative Factors

Competitive Pressure

Appliance sales have underperformed compared to competitors like HD and LOW, and COST has become more aggressive in appliance services.

Consumer Electronics Challenge

There is a lack of innovation in the Consumer Electronics category, particularly for TVs, which could worsen with Walmart's acquisition of Vizio.

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 demonstrates strong cash flow generation, but faces challenges with declining revenue and profitability, along with increasing leverage and reduced return on equity. The company needs to address these areas to enhance financial stability.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 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	2.86B	3.88B	3.51B
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	4.08B
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: 68.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 68.46 is below the 20-day moving average (MA) of 69.58, below the 50-day MA of 69.76, and below the 200-day MA of 77.74, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 47.66 is Neutral, neither overbought nor oversold. The STOCH value of 22.66 is Neutral, 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	81 Outperform	$22.59B	20.79	51.10%	1.34%	1.64%	8.57%
EBAY	77 Outperform	$37.69B	19.54	36.48%	1.70%	2.04%	-15.61%
CHWY	74 Outperform	$15.43B	41.63	76.24%	―	7.64%	369.79%
ETSY	73 Outperform	$6.56B	44.65	-39.97%	―	2.18%	-32.87%
BBY	67 Neutral	$14.47B	16.73	30.21%	6.89%	-3.23%	-28.11%
Sector *	61 Neutral	€6.00B	12.28	-11.12%	4.07%	3.79%	-34.20%
GME	54 Neutral	$10.85B	52.60	6.62%	―	-25.30%	479.26%

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.

The most recent analyst rating on (BBY) stock is a Buy with a $115.00 price target. To see the full list of analyst forecasts on Best Buy Co stock, see the BBY Stock Forecast page.

Best Buy Co 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.