BBY

Best Buy Co

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Consumer Cyclical

industry

Specialty Retail

Exchange

NYSE

County of HQ

United States

Next Earnings Date

06/04/26

Business Summary

Best Buy operates as a large-scale specialty electronics retailer, monetizing consumer demand for devices, appliances, and connected ecosystems through both physical stores and online channels. The company generates cash by leveraging vendor relationships, inventory turnover, and service attach rates, converting product cycles into recurring traffic. Its moat is operational rather than technological — scale purchasing power, brand recognition, and national footprint create barriers smaller competitors cannot easily replicate. While margins depend on execution, disciplined capital allocation and product cycle leverage are the core drivers of sustained cash flow.

VALUATION

P/E

12.4

Market Cap ($M USD)

$13,042

Forward P/E

8.8

PEG

1.1

PRICE TO SALES

0.3

PRICE TO BOOK

4.4

EV / EBITDA

6.8

5-Year Average P/E

DIVIDEND

Yield

6.10%

Annual Payout

$3.84

Payout Ratio

75.10%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

6.50%

Financial Health & Profitability

Earnings Per Share

$5.06

Next Year EPS Growth Estimate

$7.06

Next Year Revenue Growth Estimate

1.60%

Return on Equity (ROE)

36.10%

Operating Margin

4.20%

Debt-to-Equity

1.4

Piotroski F-Score

7

Altman Z-Score

4.2

Return on Invested Capital (ROIC)

15.80%%

Current Ratio

1.1

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 12.4x earnings and just 8.8x forward earnings, BBY screens as statistically cheap, especially with a 4.2 Altman Z-Score signaling low bankruptcy risk. The market is pricing in contraction, evidenced by EPS falling from 6.8 to an estimated 5.06 next year, yet the valuation already reflects that slowdown. A PEG of 1.1 suggests the stock is not egregiously undervalued on growth-adjusted terms, but the discount multiple relative to earnings combined with financial stability implies the market is cautious rather than fearful. This is not a distressed retailer — it is a slowing one — and the valuation suggests muted expectations rather than structural collapse.

AI Exposure / Tech Reliance

Operating in Specialty Retail within Consumer Cyclical, BBY sits at the front line of consumer electronics distribution, a category deeply tied to AI hardware refresh cycles. As AI drives demand for upgraded devices, peripherals, and smart home ecosystems, the company benefits from product turnover rather than software disruption. The real question is execution in omnichannel retail, not technological obsolescence.

The Bull Case

A GARP investor sees a company generating 15.80% ROIC with a Piotroski F-Score of 7, indicating solid operational health and improving fundamentals. The 36.10% operating margin is robust for retail, supporting durable cash generation even in slower sales environments. Institutional ownership at 74.05% signals that serious capital already views this as a credible operator, while a Price/Sales ratio of 0.3 suggests the market is undervaluing each dollar of revenue. Add a current ratio of 1.1 and a manageable liquidity profile, and you have a profitable operator trading at a compressed forward multiple with stable capital backing.

The Bear Case

The red flags are impossible to ignore: Debt/Equity at 4.20% signals leverage pressure relative to equity, and EPS is projected to decline from 6.8 to 5.06, confirming negative earnings momentum. A PEG of 1.1 is not cheap enough to justify shrinking earnings, and 6.50% short interest suggests a meaningful cohort is betting against the turnaround. Return on Equity at 1.60% is strikingly low relative to the 15.80% ROIC, raising questions about capital structure efficiency. With only a 1.4 yield and payout metrics that appear stretched relative to earnings, income investors are not being paid aggressively to wait.

Market Sentiment & Smart Money

Short Interest %

14.20%

Analyst Consensus

2.46

Average Analyst Price Target

$74.05

Institutional Ownership %

100.50%

1-Year Beta

1.06

Insider Buying % (6 Mo)

7.60%%

Distance to 52-Week High

73.40%%

Distance to 52-Week Low

108.90%%