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Fundamental analysis: Best Buy Co., Inc. (BBY)

Awarener score: 7.9

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 5.5

• Business has been shrinking. It's been below average when measured against peer companies.
• Best Buy Co., Inc. business trend stability is very good. The higher the stability, the lower the risk. It looks well ranked against rivals.

Margins score: 5.7

• BBY profit margins -on goods and services sold- are usually meagre. They stand worse than most rival companies.
• Business profit on sales tends to be good. It's similar to competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually hardly sufficient. They remain close to average when compared to peers.
• Earnings -before income taxes and interests on loans taken- tend to be sufficient in relation to total revenues. They're still slightly better than similar companies.
• Profits -before income taxes- are usually sufficient considering total sales, and remain similar to rivals.
• Total net profit tends to be sufficient when confronted to sales. Company stands similar to comparable firms.

Growth score: 3.1

• Best Buy Co., Inc. profit growth -on goods and services sold- has been almost stagnant. It's been in a weak position compared to competitors.
• In recent years, earnings growth -on operations- have been almost stagnant, which has been mediocre against comparable firms.
• Profits growth -available to repay debt and purchase properties- have been almost stagnant, which compares weak when measured against peer enterprises.
• Growth on earnings -before income taxes and interests on loans taken- have been almost stagnant. It turns to be in a weak position compared to similar stocks.
• In past years, growth on profits -before income taxes- was almost stagnant. It was mediocre against rivals.
• In the previous years, growth on total net profit has been almost null, and weak when measured against peer companies.
• Earnings per share have grown at a very low rhythm in past years. It's been in a weak position compared to industry peers.

Miscellaneous score: 5.0

• BBY had to pay some income taxes in relation to profits made in the past years. It's been well ranked against peers.
• The company does not report R&D expenses. It's meaningless to measure in relation to competitors.
• We have insufficient data to estimate how effective is research and development effort. It stands unknown against rival companies.

Profitability score: 9.8

• Best Buy Co., Inc. usually gets huge returns on the resources it controls. It proves more than average in relation to peer firms.
• The company normally gets huge proceeds -on the resources directly invested in the business-. They remain impressive in relation to similar companies.
• Profitability -in relation to owned resources- is usually paramount. It ranks top tier when measured against competitors.
• In the past, got excellent returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's encouraging in relation to comparable enterprises.

Usage of Funds score: 6.8

• BBY usually uses a large portion of genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is large. It stands encouraging in relation to rival firms.
• The company is usually replacing the property, plant, and equipment that gets old, keeping its operating capabilities up to date, which is almost average when measured against industry peers.
• In the past twelve months it paid very good dividends, considering the current stock price. It came well ranked against competitors.
• Has increased dividend payments in the past years. Business prospects may have improved. The company has behaved lacking compared to similar firms.
• Dividend payments usually represent a modest portion of genuine funds generation and shouldn't be at risk. Sustainability looks somewhat worse than comparable companies.
• The company usually significantly reduces the pool of investors, resulting in fewer mouths feeding on the pie of profits. It remains excellent in relation to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you 're interested in a technical explanation. It stands impressive in relation to rivals.
• The company uses a large portion of genuine fund generation to reward investors, which can probably be sustained for as long as business doesn't turn sour. It still looks below average when measured against competitors.

Balance Sheet score: 6.4

• Best Buy Co., Inc. intangible assets (like brands and goodwill) represent a portion of resources controlled, according to accounting books. There could be difficulties in liquidating them if the company ever gets in financial distress. It happens to be below average when measured against peer companies.
• The company has somewhat lower short-term resources than short-term obligations. Unless it's part of the business model, there might some liquidity concerns. It turns to be in a very weak position compared to similar firms.
• A significant part of resources controlled were provided for with financial debt. Creditors have almost as many claims on the company as shareholders. It remains somewhat better than rival firms.
• Most controlled resources can be made into cash reasonably quick, which is good for liquidity and risk. It looks encouraging in relation to rivals.
• For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's lacking compared to peer firms.
• For every dollar of short-term obligations, the company has few cents of cash and equivalents, which is slightly worse than similar enterprises.
• Usually, sales are mostly on cash. It still ranks almost average when measured against peers.
• Normally has approximately somewhat less than two months of sales worth in inventory. It comes up as in good shape compared to competitors.
• On average, it takes less than three months from the purchase to charging customers. It happens to be better than most peers.
• On average pays suppliers longer than two months after the purchase. It ranks encouraging in relation to industry peers.
• The company pays its suppliers almost when charging its customers, so there's very little money invested in working capital. It's excellent in relation to similar companies.
• Net interest expenses consume a non-significant portion of usual business earnings, and are therefore extremely easily to bear. It stands well ranked against rival firms.
• Business earnings have usually been very good when measured against loans taken. Cutting back reinvesting in the business, it could take less than two years to repay the obligations with current profitability. It ranks top tier when measured against comparable enterprises.
• Revenues are very good in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. Low property, plant, and equipment requirements allows the company to keep more money to reward stockholders in the long run. It looks excellent in relation to similar firms.
• Resource exploitation is huge considering yearly sales, which is great. This metric is normally tied to the industry where the firm belongs. It's still top-notch against peer companies.

Valuation score: 7.0

• Best Buy Co., Inc. looks reasonable in relation to profits and financial position. It happens to be encouraging in relation to competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains lacking compared to peers.
• In the past twelve months, the company generated some good free funds in relation to the stock price, which stands top-notch against similar companies.
• The company usually generates much more genuine funds to cover up for its business needs. Surplus cash may be used to repay loans, to eventually buy new businesses, or to reward investors. Considering the financial position and stock price, at the current price the share might be very interesting. It's still top tier when measured against industry firms.
• In the past twelve months, the company has significantly rewarded investors, considering both dividends and share on the pie of earnings. It came up impressive in relation to peer ventures.
• The company is somewhat indebted, loan repayment needs to be taken into account. It looks slightly better than similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation might be reasonable. It ranks almost average when measured against peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a low relationship. One common cause includes profitability being poor. It looks rather normal in relation to rival firms.
• The relation between the stock price and accounting book value is really high, which may be good or bad depending on context. Run again in analytic mode if you want to dig deeper. The company remains mediocre against peer firms.
• In the past twelve months, the operating business earned good money when compared to the current stock price and financial position. It happens to be more than average in relation to industry peers.
• In an alternate metric of bang for the buck, the company has usually shown an excellent earnings power ability when measured against the current stock price and financial position. Further analysis is recommended, as the stock might currently be undervalued. It's still excellent in relation to peer companies.

Total score: 6.1

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Awarener score: 7.9

Conclusion

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