Best Buy Co.

BBY

Specialty Retail · Consumer Cyclical

Price

$85.41

+0.12 (+0.14%)

Market Cap

$18.00B

Winston Score

Winston is serious

Mixed quality — meaningful strengths and weaknesses.

Share count falling — buybacks

−14.9% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 249.3M (2022) → 212.1M (2026)

Best Buy is a retail chain that sells consumer electronics and appliances in physical stores and online. Its main products include TVs, laptops, smartphones, home appliances, and video games. It serves everyday shoppers across the United States and Canada, making it the largest specialty electronics retailer in North America.

Best Buy makes money primarily through product sales, but also earns fees from its Geek Squad repair and installation services and its membership subscription program, Best Buy Total. The company operates roughly 1,000 stores, almost entirely in the U.S., and its moat comes from its large store footprint, knowledgeable staff, and the ability to let customers see and touch products before buying — something online-only rivals cannot offer. The main risk is ongoing pressure from e-commerce competitors like Amazon, which can often undercut Best Buy on price, while weak consumer spending on big-ticket electronics could further squeeze its already thin operating margins.

Winston Score History

Politician Trades

18 trades / 12mo

9 Congressional buys and 9 sells on BBY in the last 12 months.

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Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-1.0% YoY

YoY Growth Rate

Revenue declining

EPS Growth

+365.5% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (4%)

Research and development spending

Insider Activity

6.6%ownership

→ Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$1.7B cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Revenue declining

Best Buy Co.'s revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Gross Margin

20.9%

Thin — 20.9% gross margin

Operating Margin

2.3%

Thin — 2.3% operating margin

ROCE

6.5%

Weak — 6.5% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY

+11.2%

Steady sales growth (11.2% YoY)

EPS YoY

-18.4%

Earnings shrinking (-18.4% YoY)

Earnings per share down more than 10%. Either a bad year, or a real decline.

EPS Consistency

2/8 quarters

Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion

352%

Turns 352% of profit into real cash

FCF Margin

5.9%

Thin free cash flow (5.9%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity

0.61

Moderate — manageable debt (0.61)

Interest Cover

17.27x

Comfortably covers interest (17.3x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)

18.4x

Fair value — P/E 18.4

P/E in the normal range. Price is roughly $15 for every $1 of yearly profit.

P/E vs Forward

+7.3

GROWING

Earnings expected to grow meaningfully — cheaper on forward P/E (18.4 → 11.0)

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Dividends

Dividend Yield

4.49%

Healthy income — 4.49% yield

Generous yield. Worth checking whether the payout is sustainable.

Dividend Growth

+1.1%

Dividend flat

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