Skip to Content

Best Buy Co Inc BBY

Morningstar Rating
$77.92 −2.96 (3.66%)
View Full Chart
Unlock our analysis with Morningstar Investor

Company Report

Best Buy Earnings: Retailer Works Hard to Defray Stout Pressure as Industry Eyes a Recovery in 2024

Narrow-moat Best Buy is taking steps to defend its share in core consumer electronics categories but continues to limp through a challenging macroeconomic environment that has applied strong downward pressure to its sales and profits. While it's encouraging to hear that the firm expects top-line growth by the second half of 2024, excluding calendar 2023's extra week, its full-year outlook for $42 billion in sales at the midpoint falls about 4% behind our prior forecast, leading us to take in our $92 fair value estimate by an expected low-single-digit percentage.

Price vs Fair Value

BBY is trading within a range we consider fairly valued.
Price
$77.92
Fair Value
$58.00
Uncertainty
High
1-Star Price
$637.50
5-Star Price
$43.50
Economic Moat
Qkgbcz
Capital Allocation
Qmssjmm

Bulls Say, Bears Say

Bulls

With digital sales volumes projected to equilibrate at roughly double pre-COVID-19 levels, Best Buy should better compete for online volumes that it historically ceded to online competitors.

Bears

Service and accessory attach rates remain higher in in-store channels, posing a modest headwind as the digital mix remains permanently higher.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if BBY is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$80.88
Day Range
$77.5281.78
52-Week Range
$62.3086.11
Bid/Ask
$78.00 / $78.20
Market Cap
$16.78 Bil
Volume/Avg
4.9 Mil / 2.8 Mil

Key Statistics

Price/Earnings (Normalized)
12.43
Price/Sales
0.39
Dividend Yield (Trailing)
4.72%
Dividend Yield (Forward)
4.83%
Total Yield
6.64%

Company Profile

With $46.3 billion in consolidated fiscal 2023 sales, Best Buy is the largest pure-play consumer electronics retailer in the U.S., boasting roughly 8.5% share of the U.S. market and north of 35% share of offline sales, per our calculations, CTA, and Euromonitor data. The firm generates the bulk of its sales in-store, with mobile phones and tablets, computers, and appliances representing its three largest categories. Recent investments in e-commerce fulfillment, accelerated by the COVID-19 pandemic, have seen the U.S. e-commerce channel roughly double from prepandemic levels, with management estimating that it will represent a mid-30% proportion of sales moving forward.
Sector
Consumer Cyclical
Industry
Specialty Retail
Stock Style Box
Mid Value
Total Number of Employees
90,000

Competitors

Valuation

Metric
BBY
WMT
AMZN
Price/Earnings (Normalized)
12.4326.9462.74
Price/Book Value
5.505.669.17
Price/Sales
0.390.743.25
Price/Cash Flow
7.5614.1019.38
Price/Earnings
BBY
WMT
AMZN

Financial Strength

Metric
BBY
WMT
AMZN
Quick Ratio
0.150.200.70
Current Ratio
0.990.850.98
Interest Coverage
33.969.757.45
Quick Ratio
BBY
WMT
AMZN

Profitability

Metric
BBY
WMT
AMZN
Return on Assets (Normalized)
8.97%6.56%9.11%
Return on Equity (Normalized)
50.24%21.56%26.76%
Return on Invested Capital (Normalized)
21.47%12.12%14.52%
Return on Assets
BBY
WMT
AMZN
See how this stock stacks up to its competitors with Morningstar Investor

Specialty Retail Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
ORLY
O'Reilly Automotive IncFvld$64.1 Bil
AZO
AutoZone IncWss$52.6 Bil
TSCO
Tractor Supply CoJylwc$27.2 Bil
ULTA
Ulta Beauty IncLdwky$26.7 Bil
GPC
Genuine Parts CoTlzdbvm$20.8 Bil
WSM
Williams-Sonoma IncDzrn$15.2 Bil
DKS
Dick's Sporting Goods IncSgxv$14.8 Bil
BBWI
Bath & Body Works IncTqzqqnc$10.3 Bil
RH
RH Class ARkdd$5.1 Bil

Sponsor Center