Is the business good?
How good a business is BBY?
Best Buy earns 49% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
49%
Return on invested capital · cost of capital 9.0% · 40 points above what the capital costs: growth creates value
- Cash conversion
- 1.40×
Cash conversion · 1.42× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −0.80%
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
- $1.60B
- Net income, trailing twelve months
- $1.14B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 49%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Specialty Retail
Ranks #2 of 18 by Smart Score