Best Buy Co (BBY) AI Stock Analysis

• Market Cap: $17.01B
• Dividend Yield: 4.76%
• Average Volume (3M): 3.56M
• Price to Earnings (P/E): 26.7
• Beta (1Y): 1.09
• 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: 210,101,270
• 10 Day Avg. Volume: 4,004,068
• 30 Day Avg. Volume: 3,557,721
• 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: 1.21
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 2.19
• Enterprise Value/Ebitda: 12.95
• 1Y Price Target: $83.24
• Price Target Upside: 2.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): 6.3
• Revenue Forecast (FY): $41.82B

• Rating: 69 Neutral
• Price Target: $87.00 ▲(7.43% Upside)

Best Buy's overall stock score reflects a stable financial position with strong cash flow and improved leverage. The positive sentiment from the earnings call, driven by revenue growth and strategic initiatives, is a significant strength. However, the high valuation and mixed technical indicators suggest caution. Continued focus on operational efficiency and strategic investments will be key to sustaining growth.

Positive Factors

Revenue Growth

The positive revenue growth and better-than-expected sales indicate strong market demand and effective sales strategies, supporting long-term business expansion.

Marketplace Launch

The successful launch of the marketplace enhances product variety and online presence, potentially increasing customer engagement and revenue streams.

Strategic Initiatives

Investments in strategic areas like omnichannel retailing and employee experience are likely to improve operational efficiency and customer satisfaction, driving sustainable growth.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, especially if profitability does not improve, potentially impacting long-term stability.

Decline in Product Categories

Declining sales in key product categories could indicate shifting consumer preferences or competitive pressures, potentially affecting future revenue.

Cash Conversion Efficiency

Low cash conversion efficiency suggests challenges in turning income into cash, which could impact liquidity and the ability to fund operations and growth initiatives.

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. Its revenue model is supported by several key streams: retail sales from physical stores and e-commerce, service revenues from Geek Squad, and warranty and protection plan sales. The company also benefits from partnerships with major technology brands, allowing it to offer exclusive products and promotions. Seasonal sales events, such as Black Friday and holiday promotions, significantly contribute to the company's earnings. Furthermore, Best Buy's membership programs, like Totaltech, provide additional recurring revenue through subscription fees, enhancing customer loyalty and driving sales.

Best Buy Co Financial Statement Overview

Summary

Best Buy demonstrates a stable financial position with strengths in cash flow generation and improved leverage. However, challenges in profitability and operational efficiency persist, as seen in declining profit margins. Continued focus on cost management and revenue growth will be crucial for future performance.

Income Statement

Best Buy's income statement shows a mixed performance. The TTM gross profit margin is stable at 22.49%, but the net profit margin has decreased to 1.54% from 2.23% in the previous year, indicating pressure on profitability. Revenue growth is positive at 0.55% TTM, reversing the negative trend from the previous year. However, EBIT and EBITDA margins have declined, reflecting challenges in operational efficiency.

Balance Sheet

The balance sheet reflects a moderate financial position. The debt-to-equity ratio has improved to 1.28 TTM from 1.44, indicating better leverage management. Return on equity has decreased to 22.44% TTM from 33.01%, suggesting reduced profitability. The equity ratio remains stable, showing a balanced asset structure.

Cash Flow

Cash flow analysis reveals a strong performance with a 12% growth in free cash flow TTM, indicating robust cash generation. The operating cash flow to net income ratio is healthy at 0.22, and the free cash flow to net income ratio is 0.68, reflecting efficient cash utilization despite a slight decrease from the previous year.

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: Positive
• Last Price: 80.98
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 80.98 is above the 20-day moving average (MA) of 78.01, above the 50-day MA of 77.69, and above the 200-day MA of 72.11, indicating a bullish trend. The MACD of -0.32 indicates Negative momentum. The RSI at 59.95 is Neutral, neither overbought nor oversold. The STOCH value of 70.10 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	75 Outperform	$21.62B	19.91	56.92%	1.41%	5.10%	7.59%
EBAY	70 Outperform	$37.29B	17.95	42.43%	1.41%	4.89%	17.30%
BBY	69 Neutral	$17.01B	26.74	22.49%	4.76%	-0.95%	-48.28%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ETSY	55 Neutral	$5.35B	37.86	―	―	1.98%	-20.98%
CHWY	54 Neutral	$14.20B	96.56	34.48%	―	9.04%	-56.79%
GME	53 Neutral	$9.69B	29.57	7.58%	―	-15.48%	528.37%

Best Buy Co Corporate Events

Best Buy Reports Strong Q3 Results and Raises Guidance

Best Buy Co., Inc. is a leading retailer of consumer electronics and appliances, operating both online and through physical stores, with a strong presence in the domestic and international markets.

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.

The most recent analyst rating on (BBY) stock is a Hold with a $70.00 price target. To see the full list of analyst forecasts on Best Buy Co stock, see the BBY Stock Forecast page.

Best Buy’s Currency Strategy: Navigating $31 Million Revenue Impact Amidst Exchange Rate Fluctuations

Best Buy Co. faces foreign currency exchange rate risk due to its international operations, particularly influenced by the U.S. dollar’s strength against the Canadian dollar. The company employs foreign currency forward contracts to mitigate exposure, aiming to stabilize net earnings and cash flows. Despite these efforts, foreign exchange rate fluctuations led to an unfavorable impact of $31 million on revenue in the first half of fiscal 2026, although the effect on net earnings was not significant. Best Buy’s strategy includes both hedging and non-hedging derivatives to manage this risk effectively.

Best Buy’s Strong Q2 Earnings Highlight Growth Amid Challenges

The recent earnings call for Best Buy Co. reflected a positive sentiment, highlighting better-than-expected results and strong growth in key segments such as gaming and computing. The company also reported robust online sales and successful vendor partnerships, although challenges persist with declines in certain product categories and concerns about tariffs.

Best Buy Reports Strong Q2 Sales Growth

Best Buy Co., Inc. is a leading retailer specializing in consumer electronics, computing, and mobile products, with a strong presence in both domestic and international markets.