BBYBest Buy
Is the business good?
The checks split: 8 of 9 health tests passed and earnings fully cash-backed (2.0×), but margins compressing.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is BBY?
Best Buy earns 64% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 55 points above what the capital costs: growth creates value
- Cash conversion
- 1.98×
Cash conversion · 2.70× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.33%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2021 | 5.1% |
| FY2022 | 5.9% |
| FY2023 | 3.9% |
| FY2024 | 3.6% |
| FY2025 | 3.0% |
| FY2026 | 3.3% |
Details›
- Free cash flow, trailing twelve months
- $1.77B
- Net income, trailing twelve months
- $1.27B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 64%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Specialty Retail
The closest names by size in the same industry