Best Buy Stock Analysis (NYSE:BBY)
Best Buy Analysis Video
View Best Buy stock analysis video. This is our BBY analyst opinion covering the buy and sell arguments for BBY stock.
Best Buy Co Inc Stock Rating (3.7/5)
Our Best Buy stock opinion is based on fundamentals of the company. This Best Buy stock analysis is based on latest Q3 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.
Should you buy BBY stock?
- BBY stock is trading at an earnings multiple of 14.6 which is better than the industry average of 19.8.
- BBY stock is trading at a favorable price to sales multiple of 0.4 as against the Retail-Consumer Electricals industry average multiple of 0.8.
- Best Buy generates a high return on invested capital of 31.8%.
- Return On Equity (ROE) which is a measure of the company's profitability, looks great for Best Buy at 25%.
Should you sell BBY stock?
- Sales declined by annually over the last 5 years.
- The company has an operating cash flow which is 0.6 times the net income. This is not a healthy sign.
- The company has negative Free Cash Flows (FCF), with a negative FCF margin of -0.7%.