Best Buy Stock Analysis (NYSE:BBY)

Add to My Stocks
$44.62 $0.4 (0.89%) BBY stock closing price Mar 23, 2017 (Closing)
Watch Robo Advisor Video of BBY Stock Analysis
Best Buy
Updated on : Mar 23, 2017
previous close
BBY 44.6 (0%)
S&P 500 2346 (0%)
Closing Price On: Mar 23, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Consumer Electricals
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2017-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-5%
Operating Profit
Operating Margin:
4.7%
Sector Average:
7.3%
5 Quarter Net Profit
Net Margins
2017-Q4
%
LTM Margin
Compared to the industry
Debt/Equity Ratio
Debt:
1.37B
Debt/Equity Ratio:
 0.29
Compared to the industry
Cash Flow
Operating cash flow:
$1.15B
Net Income:
$607M
Dividend Yield
BBY dividend yield:
3.52%
PROS      CONS
Cash Flow
ROIC
ROE
FCF Margin
PE Valuation
PS Valuation
Long Term Growth
High Debt Burden
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
BBY PS :
0.4
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
37.5%
Return on Equity:
27.8%
Free Cash Flow Margin:
7.5%
Double Tap To Exit Full Screen
0:00
/

Best Buy Analysis Video

3241 5 2

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 (4/5)

Our Best Buy stock opinion is based on fundamentals of the company. This Best Buy stock analysis is based on latest Q4 earnings for 2017. The stock price analysis takes into account a company's valuation metrics.

Should you buy BBY stock?

  • The operating cash flow looks good at 1.9 times the net income.
  • BBY stock is trading at an earnings multiple of 12.5 which is better than the industry average of 18.7.
  • The lower PS ratio 0.4 for BBY stock versus Retail-Consumer Electricals industry average of 0.7 is a positive for the company.
  • Best Buy has an attractive ROIC (Return on Invested Capital) of 37.5%
  • Best Buy has a good Return On Equity (ROE) of 27.8%.
  • The company has a good Free Cash Flow (FCF) margin of 7.5%.

Should you sell BBY stock?

  • Sales declined by -5% annually over the last 5 years.
  • Best Buy is debt laden and has a high debt/equity ratio of  0.29.

Comments on this video and Best Buy stock