Fundamental analysis · SEC EDGAR · TTM through 02/05/2026

Fundamental analysis of Best Buy Co Inc

BBY · NYSE · Consumer

Fundamental quality

DEMANDING

52

out of 100

Best Buy Co Inc earns a fundamental-quality score of 52 out of 100, profiling it as a company with demanding fundamentals. Its score rests mainly on its financial strength (net debt -0.25× EBITDA). Its weakest area is its growth (revenue -2.3%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Best Buy is the last big survivor of the electronics store: TVs, computers and appliances with human advice and its Geek Squad tech service. It survived Amazon by matching prices and turning its stores into delivery warehouses.

What will shape its future

  • The electronics replacement cycle: the pandemic buying wave still shapes its calendar.
  • New AI products (computers, gadgets), the hope of a fresh reason to buy.
  • Its membership and services, the attempt to make a sporadic-purchase business recurring.

Breakdown by area

I.Growth
21

EPS growth: -4.4% · Revenue growth: -2.3%

II.Profitability
56

Net margin: 2.7% · ROE: 37.1% · ROIC: 45%

III.Financial health
74

Net debt/EBITDA: -0.25x · FCF: 3.8%

Source: SEC EDGAR · TTM through 02/05/2026

The score includes +2 for dividend strength: 8 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 98 Consumer companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 35%
ROEbeats 82%
Growthbeats 3%
Cash generationbeats 33%
Less debtbeats 81%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Best Buy Co Inc strengths

  • Outstanding return on equity (ROE of 37.1%): it puts shareholder capital to good use.
  • Net cash position: more cash than debt.
  • Positive free cash flow year after year, a self-funding business.

Best Buy Co Inc risks and weaknesses

  • Declining revenue (-2.3% annualized).
  • Declining earnings per share (-4.4% annualized).
  • Thin margins (net margin of 2.7%), little cushion for setbacks.

Best Buy Co Inc historical evolution

YearRevenueNet incomeFree cash flowNet debt
202147,2621,7984,214-4,227
202251,7612,4542,515-1,707
202346,2981,419894-698
202443,4521,241675-282
202541,5289271,392-424
202641,6911,0691,258-562

Between 2021 and 2026, revenue went from $47,262M to $41,691M (-12%) and net income went from $1,798M to $1,069M (-41%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended May 2, 2026, versus the quarter ended May 3, 2025 (SEC filings):

  • Revenue+1.9%
  • Net income+36.6%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$3.8

per share, yearly

74.9% of earnings

Payout

8 straight years raising it

Growth

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Best Buy Co Inc cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Best Buy Co Inc a good company to invest in?

In terms of business quality, Best Buy Co Inc scores 52 out of 100 in our analysis, placing it as a company with demanding fundamentals. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Best Buy Co Inc a profitable company?

Best Buy Co Inc is profitable, with a net margin of 2.7%, though a thin one.

Does Best Buy Co Inc have a lot of debt?

No. Best Buy Co Inc has a net cash position: more cash than debt.

Is Best Buy Co Inc growing?

Its revenue has fallen 2.3% annualized in recent years.

Does Best Buy Co Inc generate cash?

Yes. It converts about 3.8% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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