With $43.5 billion in consolidated 2023 sales, Best Buy is the largest pure-play consumer electronics retailer in the U.S., boasting roughly 8.3% share of the North American market and north of 33% share of offline sales in the region, per our calculations, CTA, and Euromonitor data. The firm generates the bulk of its sales in-store, with mobile phones and tablets, computers, and appliances representing its three largest categories. Recent investments in e-commerce fulfillment, accelerated by the COVID-19 pandemic, have seen the U.S. e-commerce channel roughly double from prepandemic levels, with management estimating that it will represent a mid-30% proportion of sales moving forward.

Financial Strength

7/10

Name	Current	Vs Industry
Cash-To-Debt	0.36
Equity-to-Asset	0.2
Debt-to-Equity	1.3
Debt-to-EBITDA	1.53
Interest Coverage	33.21
Piotroski F-Score	7/9	0 1 2 3 4 5 6 7 8 9
Altman Z-Score	4.31	Distress Grey Safe
Beneish M-Score	-2.66	Manipulator Not Manipulator
WACC vs ROIC		WACC ROIC

Growth Rank

6/10

	Name	Current	Vs Industry		Vs History
	3-Year Revenue Growth Rate	3.4
	3-Year EBITDA Growth Rate	-1.5
	3-Year EPS without NRI Growth Rate	-7
	3-Year FCF Growth Rate	-42.2
	3-Year Book Growth Rate	-7.4
	Future 3-5Y EPS without NRI Growth Rate	-1.1
	Future 3-5Y Total Revenue Growth Rate	-0.45

Momentum Rank

8/10

	Name	Current	Vs Industry		Vs History
	5-Day RSI	42.18
	9-Day RSI	41.59
	14-Day RSI	44.1
	6-1 Month Momentum %	25.66
	12-1 Month Momentum %	14.03

Liquidity Ratio

	Name	Current	Vs Industry		Vs History
	Current Ratio	1
	Quick Ratio	0.37
	Cash Ratio	0.18
	Days Inventory	61.53
	Days Sales Outstanding	7.89
	Days Payable	59.96

Dividend & Buy Back

	Name	Current	Vs Industry		Vs History
	Dividend Yield %	4.9
	Dividend Payout Ratio	0.58
	3-Year Dividend Growth Rate	18.7
	Forward Dividend Yield %	5
	5-Year Yield-on-Cost %	10.79
	3-Year Average Share Buyback Ratio	5.7
	Shareholder Yield %	7.33

Profitability Rank

8/10

	Name	Current	Vs Industry		Vs History
	Gross Margin %	22.1
	Operating Margin %	3.98
	Net Margin %	2.86
	FCF Margin %	1.54
	ROE %	43.43
	ROA %	7.99
	ROIC %	14.21
	ROC (Joel Greenblatt) %	32.95
	ROCE %	24.3
	Years of Profitability over Past 10-Year	10

GF Value Rank

7/10

	Name	Current	Vs Industry		Vs History
	PE Ratio	12.66
	Forward PE Ratio	11.95
	PE Ratio without NRI	11.29
	Shiller PE Ratio	11.72
	Price-to-Owner-Earnings	23.62
	PEG Ratio	2.35
	PS Ratio	0.36
	PB Ratio	5.08
	Price-to-Tangible-Book	9.29
	Price-to-Free-Cash-Flow	22.95
	Price-to-Operating-Cash-Flow	10.63
	EV-to-EBIT	10.83
	EV-to-Forward-EBIT	11.25
	EV-to-EBITDA	6.98
	EV-to-Forward-EBITDA	7.51
	EV-to-Revenue	0.42
	EV-to-Forward-Revenue	0.44
	EV-to-FCF	26.84
	Price-to-Projected-FCF	0.63
	Price-to-DCF (Earnings Based)	0.53
	Price-to-DCF (FCF Based)	1.52
	Price-to-Median-PS-Value	0.9
	Price-to-Graham-Number	2.16
	Earnings Yield (Greenblatt) %	9.23
	FCF Yield %	4.33
	Forward Rate of Return (Yacktman) %	16.47

GF Value: €76

FRA:BUY

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