Best Buy Stock Analysis, Valuation (NYSE:BBY)

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$75.4 $2.65 (3.64%) BBY stock closing price Apr 18, 2018 (Closing)
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Best Buy
Updated on : Apr 18, 2018
previous close
BBY 75.4 (0%)
S&P 500 2708.6 (0%)
Closing Price On: Apr 18, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Retail-Consumer Electricals
Sector :
Retail-Wholesale
5 Quarter Revenue
Revenue Growth
2018-Q4
$billion
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
-3.2%
Operating Profit
Operating Margin:
4.4%
Sector Average:
5.5%
5 Quarter Net Profit
Net Margins
2018-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$938M
Net Income:
$364M
Dividend Yield
BBY dividend yield:
1.8%
PROS      CONS
Recent Growth
Cash Flow
ROIC
ROE
PE Valuation
PS Valuation
Long Term Growth
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
BBY PS :
0.5
Industry PS :
0.7
Sector:   Retail-Wholesale.   *PE adjusted for one time items.
Other Metrics
Return on Invested Capital:
35.8%
Return on Equity:
23.5%
Free Cash Flow Margin:
4.8%
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Best Buy Stock Analysis

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Investors can watch the Amigobulls Best Buy stock analysis video here. Our analyst opinion covering the buy and sell arguments for BBY stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Best Buy Co Inc Stock Rating 3.3/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for BBY stock analysis. Best Buy valuation forms a crucial part of our stock analysis. Based on a company's historical fundamentals we arrive at Best Buy stock rating which is indicative of the company's financial performance.

Should you buy BBY stock?

  • Best Buy sales grew by 14% year on year in 2018 Q4.
  • The company has an operating cash flow which is 2.6 times the net income. We see this as a positive signal.
  • The price to earnings multiple of 16.8 is attractive when compared with the industry average PE ratio of 20.
  • The lower PS ratio 0.5 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 35.8%
  • Best Buy has a good Return On Equity (ROE) of 23.5%.

Should you sell BBY stock?

  • Sales declined by -3.2% annually over the last 5 years.

Comments on this video and Best Buy stock

Amigobulls Best Buy stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of BBY stock. Fundamentals of a company give detailed information which helps in making invesment decisions.

Among the financials of the company, Best Buy revenue growth along with the profit or net income give a clear picture of the financial health. Investors could make use of BBY technical analysis to check whether the fundamental story is reflected in the market sentiment.