Best Buy (BBY) Stock Analysis
This is a peer-relative look at Best Buy (BBY): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Consumer Discretionary Distribution & Retail peers, so every number reads in context rather than in isolation.
Company Profile
| Profile Item | BBY |
|---|---|
| Name | Best Buy Co., Inc. |
| Country/Region | United States |
| GICS Sector | Consumer Discretionary |
| GICS Industry Group | Consumer Discretionary Distribution & Retail |
| GICS Industry | Specialty Retail |
| GICS Sub-Industry | Computer & Electronics Retail |
| Market Capitalization | 20.90 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | April 18, 1985 |
| Security Type | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | Current stock: BBY | Industry group median |
|---|---|---|
| Total Return (1Y) | 41.84% | 9.80% |
| Total Return (3Y, Annualized) | 25.12% | 9.74% |
| Total Return (5Y, Annualized) | 0.22% | -0.72% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | Current stock: BBY | Industry group median |
|---|---|---|
| Volatility (1Y, Annualized) | 39.78% | 48.29% |
| Beta (5Y) | 1.14 | 1.08 |
| Max Drawdown (5Y) | -52.60% | -68.45% |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | Current stock: BBY | Industry group median |
|---|---|---|
| Sharpe Ratio (1Y) | 0.94 | 0.10 |
| Sortino Ratio (1Y) | 1.61 | 0.16 |
Profitability
ROE (TTM)
Best Buy (BBY) posts ROE of 43.13%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.
BBY
Consumer Discretionary Distribution & Retail industry group
43.13%
Group distribution
- Max
- 62.17%
- BBY
- 43.13%
- Q3
- 29.44%
- Median
- 15.69%
- Q1
- 6.73%
- Min
- -12.16%
Largest peers
- HD
- 104.30%
- TJX
- 62.17%
- BBY
- 43.13%
- AMZN
- 27.42%
- PDD
- 22.75%
- BABA
- 6.36%
- LOW
- --
Net Margin (TTM)
Best Buy (BBY) keeps 3.01% of revenue as net profit, roughly in line with the peer group’s normal net margin range. Its full cost stack is taking a typical share of sales for the industry.
BBY
Consumer Discretionary Distribution & Retail industry group
3.01%
Group distribution
- Max
- 16.94%
- Q3
- 8.69%
- Median
- 3.55%
- BBY
- 3.01%
- Q1
- 1.14%
- Min
- -9.41%
Largest peers
- PDD
- 20.43%
- AMZN
- 16.90%
- TJX
- 9.73%
- HD
- 8.41%
- LOW
- 7.35%
- BABA
- 7.04%
- BBY
- 3.01%
Operating Margin (TTM)
Best Buy (BBY) turns 3.90% of revenue into operating profit, roughly in line with the peer group’s normal operating margin range. Its core cost structure looks typical for the industry.
BBY
Consumer Discretionary Distribution & Retail industry group
3.90%
Group distribution
- Max
- 21.45%
- Q3
- 10.89%
- Median
- 5.57%
- BBY
- 3.90%
- Q1
- 2.28%
- Min
- -7.12%
Largest peers
- PDD
- 24.71%
- AMZN
- 13.90%
- LOW
- 13.37%
- HD
- 12.86%
- TJX
- 10.91%
- BABA
- 7.30%
- BBY
- 3.90%
Profitability Metrics
| Metric | Current stock: BBY | Industry group median |
|---|---|---|
| ROE (TTM) | 43.13% | 15.69% |
| ROA (TTM) | 7.25% | 5.18% |
| Net Margin (TTM) | 3.01% | 3.55% |
| Operating Margin (TTM) | 3.90% | 5.57% |
| Gross Margin (TTM) | 22.60% | 38.87% |
Growth
Revenue Growth
Best Buy (BBY) grew revenue 0.39%, in the lower peer quartile. The top line is expanding more slowly than at most peers, which can reflect softer demand, lost share, or weaker pricing.
EPS Growth
Best Buy (BBY) grew earnings per share 17.76%, in the upper peer quartile. Per-share profits are compounding faster than at most industry peers.
Growth Metrics
| Metric | Current stock: BBY | Industry group median |
|---|---|---|
| Revenue Growth (YoY) | 0.39% | 5.64% |
| Revenue Growth (3Y CAGR) | -3.43% | 3.32% |
| EPS Growth (YoY) | 17.76% | 0.28% |
| EPS Growth (3Y CAGR) | -7.12% | -5.08% |
Financial Strength
Current Ratio (MRQ)
Best Buy (BBY) has current ratio of 1.12, in the healthier middle range for its industry. The short-term asset cushion looks balanced relative to peers rather than stretched thin.
BBY
Consumer Discretionary Distribution & Retail industry group
1.12
Group distribution
- Max
- 2.62
- Q3
- 1.75
- Median
- 1.35
- BBY
- 1.12
- Q1
- 1.00
- Min
- 0.48
Largest peers
- PDD
- 2.62
- BABA
- 1.36
- TJX
- 1.15
- BBY
- 1.12
- LOW
- 1.11
- HD
- 1.08
- AMZN
- 0.99
Debt / Equity (MRQ)
Best Buy (BBY) has debt-to-equity ratio of 1.30, roughly in line with the peer group’s normal leverage range. Its mix of debt and equity looks typical for the industry.
BBY
Consumer Discretionary Distribution & Retail industry group
1.30
Group distribution
- Max
- 3.93
- Q3
- 2.14
- BBY
- 1.30
- Median
- 1.25
- Q1
- 0.73
- Min
- 0.01
Largest peers
- HD
- 3.80
- TJX
- 1.34
- BBY
- 1.30
- AMZN
- 0.50
- BABA
- 0.24
- PDD
- 0.01
- LOW
- --
Financial Strength Metrics
| Metric | Current stock: BBY | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | 1.12 | 1.35 |
| Debt / Equity (MRQ) | 1.30 | 1.25 |
| Net Debt / EBITDA | 0.66 | 2.50 |
Dividends
Dividend Yield (TTM)
Best Buy (BBY) has dividend yield of 3.84%, in the upper peer-yield quartile while still inside the industry range. The dividend offers more cash income per dollar of share price than most peers, though payout coverage still matters.
BBY
Consumer Discretionary Distribution & Retail industry group
3.84%
Group distribution
- Max
- 5.84%
- BBY
- 3.84%
- Q3
- 2.50%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- BABA
- 6.70%
- BBY
- 3.84%
- LOW
- 2.13%
- HD
- 1.32%
- TJX
- 1.31%
- AMZN
- 0.00%
- PDD
- 0.00%
Dividend Payout Ratio (TTM)
Best Buy (BBY) has payout ratio of 63.56%, above the industry’s usual payout band. A larger share of earnings is going to dividends, so the cushion narrows if profit weakens.
BBY
Consumer Discretionary Distribution & Retail industry group
63.56%
Group distribution
- Max
- 72.73%
- BBY
- 63.56%
- Q3
- 32.44%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- HD
- 64.80%
- BBY
- 63.56%
- LOW
- 41.00%
- TJX
- 32.50%
- BABA
- 25.44%
- AMZN
- 0.00%
- PDD
- 0.00%
Dividend Metrics
| Metric | Current stock: BBY | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 3.84% | 0.00% |
| Dividend Payout Ratio (TTM) | 63.56% | 0.00% |
Valuation
P/E Ratio (TTM)
Best Buy (BBY) trades at P/E ratio of 16.58, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
BBY
Consumer Discretionary Distribution & Retail industry group
16.58
Group distribution
- Max
- 40.50
- Q3
- 24.26
- Median
- 19.23
- BBY
- 16.58
- Q1
- 12.64
- Min
- 4.67
Largest peers
- BABA
- 26.50
- TJX
- 25.06
- HD
- 24.04
- AMZN
- 20.96
- LOW
- 18.98
- BBY
- 16.58
- PDD
- 9.34
P/S Ratio (TTM)
Best Buy (BBY) trades at 0.50 on P/S ratio, roughly in the peer group’s normal range. The market is not making a strong cheap-or-rich statement about its revenue base.
BBY
Consumer Discretionary Distribution & Retail industry group
0.50
Group distribution
- Max
- 4.32
- Q3
- 1.99
- Median
- 0.70
- BBY
- 0.50
- Q1
- 0.26
- Min
- 0.03
Largest peers
- AMZN
- 3.52
- TJX
- 2.39
- HD
- 2.03
- LOW
- 1.39
- BBY
- 0.50
- PDD
- 0.26
- BABA
- 0.26
P/B Ratio (MRQ)
Best Buy (BBY) trades at 6.59 on P/B ratio, in the higher book-value quartile. The market is paying a premium to book, so stronger ROE, cleaner assets, or a better growth profile need to justify it.
BBY
Consumer Discretionary Distribution & Retail industry group
6.59
Group distribution
- Max
- 10.96
- BBY
- 6.59
- Q3
- 5.26
- Median
- 2.16
- Q1
- 1.08
- Min
- -4.45
Largest peers
- HD
- 20.63
- TJX
- 13.99
- BBY
- 6.59
- AMZN
- 4.57
- PDD
- 1.74
- BABA
- 1.63
- LOW
- -16.94
Valuation Metrics
| Metric | Current stock: BBY | Industry group median |
|---|---|---|
| P/E Ratio (TTM) | 16.58 | 19.23 |
| P/S Ratio (TTM) | 0.50 | 0.70 |
| P/B Ratio (MRQ) | 6.59 | 2.16 |
| Free Cash Flow Yield (TTM) | 6.72% | 3.57% |