Best Buy Stock Analysis (NYSE:BBY)

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$46.15 $0.59 (1.29%) BBY stock closing price Feb 27, 2017 (Closing)
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Best Buy
Updated on : Feb 27, 2017
previous close
BBY 46.2 (0%)
S&P 500 2369.8 (0%)
Closing Price On: Feb 27, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Consumer Electricals
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2017-Q3
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-4.8%
Operating Profit
Operating Margin:
4.4%
Sector Average:
5.5%
5 Quarter Net Profit
Net Margins
2017-Q3
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$107M
Net Income:
$194M
Dividend Yield
BBY dividend yield:
3.29%
PROS      CONS
ROIC
ROE
PE Valuation
PS Valuation
Long Term Growth
Cash Flow
FCF Margin
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
BBY PS :
0.4
Industry PS :
0.8
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
31.8%
Return on Equity:
25%
Free Cash Flow Margin:
-0.7%
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Best Buy Analysis Video

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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%.

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