Best Buy Stock Analysis, Valuation (NYSE:BBY)

Add to My Stocks
$78.25 $0.53 (0.67%) BBY stock closing price May 18, 2018 (Closing)
Watch Robo Advisor Video of BBY Stock Analysis
Best Buy
Updated on : May 18, 2018
previous close
BBY 78.3 (0%)
S&P 500 2713 (0%)
Closing Price On: May 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:
5.4%
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:
1.74%
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 :
0.8
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%
Double Tap To Exit Full Screen
0:00
/

Best Buy Stock Analysis

3494 5 2

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 3.4/5

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.
  • BBY stock is trading at an earnings multiple of 17.4 which is better than the industry average of 20.3.
  • When compared with the Retail-Consumer Electricals industry average PS ratio of 0.8, the price-to-sales ratio of 0.5 for BBY stock is attractive.
  • Best Buy generates a high return on invested capital of 35.8%.
  • The LTM ROE of 23.5% for Best Buy is attractive.

Should you sell BBY stock?

  • The company saw an average annual sales decline of -3.2% in sales 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.