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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 1.75
BBY's Cash to Debt is ranked higher than
65% of the 1083 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.50 vs. BBY: 1.75 )
BBY' s 10-Year Cash to Debt Range
Min: 0.25   Max: 24.49
Current: 1.75

0.25
24.49
Equity to Asset 0.28
BBY's Equity to Asset is ranked lower than
55% of the 1073 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.52 vs. BBY: 0.28 )
BBY' s 10-Year Equity to Asset Range
Min: 0.23   Max: 0.46
Current: 0.28

0.23
0.46
Interest Coverage 11.40
BBY's Interest Coverage is ranked higher than
57% of the 771 Companies
in the Global Specialty Retail industry.

( Industry Median: 34.17 vs. BBY: 11.40 )
BBY' s 10-Year Interest Coverage Range
Min: 1.06   Max: 908
Current: 11.4

1.06
908
F-Score: 6
Z-Score: 4.34
M-Score: -3.23
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating margin (%) 2.69
BBY's Operating margin (%) is ranked higher than
60% of the 1067 Companies
in the Global Specialty Retail industry.

( Industry Median: 5.56 vs. BBY: 2.69 )
BBY' s 10-Year Operating margin (%) Range
Min: 0.68   Max: 5.56
Current: 2.69

0.68
5.56
Net-margin (%) 1.25
BBY's Net-margin (%) is ranked higher than
56% of the 1066 Companies
in the Global Specialty Retail industry.

( Industry Median: 3.93 vs. BBY: 1.25 )
BBY' s 10-Year Net-margin (%) Range
Min: -2.43   Max: 3.83
Current: 1.25

-2.43
3.83
ROE (%) 13.35
BBY's ROE (%) is ranked higher than
81% of the 1049 Companies
in the Global Specialty Retail industry.

( Industry Median: 9.28 vs. BBY: 13.35 )
BBY' s 10-Year ROE (%) Range
Min: -32.87   Max: 31.67
Current: 13.35

-32.87
31.67
ROA (%) 3.80
BBY's ROA (%) is ranked higher than
68% of the 1065 Companies
in the Global Specialty Retail industry.

( Industry Median: 4.71 vs. BBY: 3.80 )
BBY' s 10-Year ROA (%) Range
Min: -7.69   Max: 11.59
Current: 3.8

-7.69
11.59
ROC (Joel Greenblatt) (%) 40.85
BBY's ROC (Joel Greenblatt) (%) is ranked higher than
85% of the 1066 Companies
in the Global Specialty Retail industry.

( Industry Median: 20.96 vs. BBY: 40.85 )
BBY' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 5.55   Max: 82.91
Current: 40.85

5.55
82.91
Revenue Growth (%) 1.60
BBY's Revenue Growth (%) is ranked higher than
62% of the 786 Companies
in the Global Specialty Retail industry.

( Industry Median: 6.50 vs. BBY: 1.60 )
BBY' s 10-Year Revenue Growth (%) Range
Min: 1.6   Max: 20.3
Current: 1.6

1.6
20.3
EBITDA Growth (%) -10.10
BBY's EBITDA Growth (%) is ranked higher than
56% of the 671 Companies
in the Global Specialty Retail industry.

( Industry Median: 9.40 vs. BBY: -10.10 )
BBY' s 10-Year EBITDA Growth (%) Range
Min: -10.1   Max: 62
Current: -10.1

-10.1
62
EPS Growth (%) -13.70
BBY's EPS Growth (%) is ranked higher than
55% of the 621 Companies
in the Global Specialty Retail industry.

( Industry Median: 11.60 vs. BBY: -13.70 )
BBY' s 10-Year EPS Growth (%) Range
Min: -13.7   Max: 467.2
Current: -13.7

-13.7
467.2
» BBY's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

BBY Guru Trades in Q1 2013

Steven Cohen 1,427,255 sh (New)
Mark Hillman 74,523 sh (+4.39%)
John Hussman 2,250 sh (unchged)
David Dreman Sold Out
Pioneer Investments Sold Out
HOTCHKIS & WILEY Sold Out
Paul Tudor Jones Sold Out
Eric Mindich Sold Out
Jeremy Grantham 346,787 sh (-0.27%)
John Buckingham 11,449 sh (-6.76%)
Mario Gabelli 71,400 sh (-24.68%)
NWQ Managers 307,536 sh (-86.54%)
» More
Q2 2013

BBY Guru Trades in Q2 2013

Louis Moore Bacon 55,000 sh (New)
Columbia Wanger 281,000 sh (New)
Steven Cohen 1,843,380 sh (+29.16%)
John Hussman 2,250 sh (unchged)
Mark Hillman Sold Out
John Buckingham Sold Out
Jeremy Grantham 327,910 sh (-5.44%)
Mario Gabelli 43,500 sh (-39.08%)
NWQ Managers 121,931 sh (-60.35%)
» More
Q3 2013

BBY Guru Trades in Q3 2013

Joel Greenblatt 6,496 sh (New)
Charles Brandes 6,950 sh (New)
Louis Moore Bacon 247,500 sh (+350%)
Steven Cohen 2,508,844 sh (+36.1%)
Jeremy Grantham 334,429 sh (+1.99%)
Columbia Wanger 281,000 sh (unchged)
John Hussman Sold Out
Mario Gabelli 33,500 sh (-22.99%)
NWQ Managers 37,724 sh (-69.06%)
» More
Q4 2013

BBY Guru Trades in Q4 2013

Jim Simons 683,000 sh (New)
David Dreman 3,900 sh (New)
Paul Tudor Jones 7,700 sh (New)
Joel Greenblatt 206,299 sh (+3075.79%)
Louis Moore Bacon 312,000 sh (+26.06%)
Charles Brandes 6,950 sh (unchged)
Jeremy Grantham 330,974 sh (-1.03%)
NWQ Managers 36,598 sh (-2.98%)
Columbia Wanger 261,000 sh (-7.12%)
Steven Cohen 705,928 sh (-71.86%)
Mario Gabelli 8,500 sh (-74.63%)
» More
» Details

Insider Trades

Latest Guru Trades with BBY

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2013-12-31 Add 3075.79%0.19%$35.67 - $44.33 $ 24.27-41%206299
David Dreman 2013-12-31 New Buy0.01%$35.67 - $44.33 $ 24.27-41%3900
Mario Gabelli 2013-12-31 Reduce -74.63%0.01%$35.67 - $44.33 $ 24.27-41%8500
Joel Greenblatt 2013-09-30 New Buy0.01%$28.47 - $39.1 $ 24.27-27%6496
Mario Gabelli 2013-09-30 Reduce -22.99%$28.47 - $39.1 $ 24.27-27%33500
Charles Brandes 2013-09-30 New Buy$28.47 - $39.1 $ 24.27-27%6950
John Hussman 2013-09-30 Sold Out $28.47 - $39.1 $ 24.27-27%0
Mario Gabelli 2013-06-30 Reduce -39.08%$21.64 - $28.06 $ 24.27-6%43500
David Dreman 2013-03-31 Sold Out 0.07%$11.59 - $23.2 $ 24.2743%0
Mario Gabelli 2013-03-31 Reduce -24.68%$11.59 - $23.2 $ 24.2743%71400
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

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Guru Investment Theses on Best Buy Co Inc

David Einhorn on Best Buy (BBY) - Jul 24, 2012

Best Buy (BBY) was particularly irksome. We thought that the core debate was whether or not the company could compete with Amazon. The answer at this point is that maybe it can and maybe it can't. (Despite the consensus view, our store surveys have repeatedly shown that there is no price benefit for consumers to browse at BBY and then purchase at Amazon.) There has been some deterioration in BBY's domestic performance, which we attribute to a lack of a "must have" consumer electronics product, rather than an erosion of BBY's competitive position. While we held the shares, three unexpected problems emerged: First, BBY depleted $1.3 billion of its cash resources by paying a double-digit multiple for Carphone Warehouse's share of the Best Buy Mobile profit stream. The market promptly revalued those earnings to BBY's mid-single digit multiple. Second, in the most recent quarter, BBY's international profits collapsed. In particular, comparable sales in its Chinese business fell 28% as the Chinese economy appears to have hit a wall. Finally, the company dismissed its CEO over his personal conduct, and also removed the Chairman for failing to respond properly to the CEO's misbehavior. As a result, the company has an interim CEO and is trying to come up with a strategy. We worried that this could lead to additional business disruption so we exited with a loss.
Check out David Einhorn latest stock trades

Top Ranked Articles about Best Buy Co Inc

John Hussman Selling Update
Guru John Hussman was a very active trader in the third quarter. The updated portfolio of Hussman Econometrics Advisors has 207 stocks, 27 of them new, a total value at $1.8 billion, with a quarter-over-quarter turnover of 22%. The portfolio is weighted with top three sectors: healthcare at 20.5%, consumer defensive at 16.7% and consumer cyclical at 15.4%. Dr. John Hussman is averaging a 12-month return of 14.42%. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 16.40
BBY's P/E(ttm) is ranked higher than
67% of the 887 Companies
in the Global Specialty Retail industry.

( Industry Median: 17.80 vs. BBY: 16.40 )
BBY' s 10-Year P/E(ttm) Range
Min: 6.43   Max: 76.6
Current: 16.4

6.43
76.6
P/B 2.10
BBY's P/B is ranked higher than
52% of the 1036 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.71 vs. BBY: 2.10 )
BBY' s 10-Year P/B Range
Min: 1.09   Max: 6.68
Current: 2.1

1.09
6.68
P/S 0.20
BBY's P/S is ranked higher than
85% of the 1107 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.74 vs. BBY: 0.20 )
BBY' s 10-Year P/S Range
Min: 0.08   Max: 0.95
Current: 0.2

0.08
0.95
PFCF 16.30
BBY's PFCF is ranked higher than
69% of the 593 Companies
in the Global Specialty Retail industry.

( Industry Median: 19.33 vs. BBY: 16.30 )
BBY' s 10-Year PFCF Range
Min: 3.52   Max: 95.21
Current: 16.3

3.52
95.21
EV-to-EBIT 6.50
BBY's EV-to-EBIT is ranked higher than
86% of the 968 Companies
in the Global Specialty Retail industry.

( Industry Median: 13.34 vs. BBY: 6.50 )
BBY' s 10-Year EV-to-EBIT Range
Min: 4.2   Max: 21.9
Current: 6.5

4.2
21.9
PEG 74.10
BBY's PEG is ranked lower than
75% of the 521 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.29 vs. BBY: 74.10 )
BBY' s 10-Year PEG Range
Min: 0.38   Max: 74.3
Current: 74.1

0.38
74.3
Shiller P/E 15.80
BBY's Shiller P/E is ranked higher than
75% of the 541 Companies
in the Global Specialty Retail industry.

( Industry Median: 20.92 vs. BBY: 15.80 )
BBY' s 10-Year Shiller P/E Range
Min: 6.07   Max: 49.8
Current: 15.8

6.07
49.8

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.80
BBY's Dividend Yield is ranked higher than
70% of the 745 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.00 vs. BBY: 2.80 )
BBY' s 10-Year Dividend Yield Range
Min: 0.48   Max: 5.76
Current: 2.8

0.48
5.76
Dividend Payout 0.34
BBY's Dividend Payout is ranked higher than
62% of the 633 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.33 vs. BBY: 0.34 )
BBY' s 10-Year Dividend Payout Range
Min: 0.13   Max: 0.44
Current: 0.34

0.13
0.44
Dividend growth (3y) 6.70
BBY's Dividend growth (3y) is ranked higher than
73% of the 392 Companies
in the Global Specialty Retail industry.

( Industry Median: 8.70 vs. BBY: 6.70 )
BBY' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 20.7
Current: 6.7

0
20.7
Yield on cost (5-Year) 3.71
BBY's Yield on cost (5-Year) is ranked higher than
71% of the 770 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.31 vs. BBY: 3.71 )
BBY' s 10-Year Yield on cost (5-Year) Range
Min: 0.64   Max: 7.64
Current: 3.71

0.64
7.64
Share Buyback Rate 6.70
BBY's Share Buyback Rate is ranked higher than
97% of the 655 Companies
in the Global Specialty Retail industry.

( Industry Median: -0.60 vs. BBY: 6.70 )
BBY' s 10-Year Share Buyback Rate Range
Min: 6.7   Max: -7.7
Current: 6.7

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 2.50
BBY's Price/Tangible Book is ranked higher than
51% of the 937 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.00 vs. BBY: 2.50 )
BBY' s 10-Year Price/Tangible Book Range
Min: 0.89   Max: 10.6
Current: 2.5

0.89
10.6
Price/DCF (Projected) 0.70
BBY's Price/DCF (Projected) is ranked higher than
88% of the 551 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.20 vs. BBY: 0.70 )
BBY' s 10-Year Price/DCF (Projected) Range
Min: 0.4   Max: 3.39
Current: 0.7

0.4
3.39
Price/Median PS Value 0.40
BBY's Price/Median PS Value is ranked higher than
94% of the 1015 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.00 vs. BBY: 0.40 )
BBY' s 10-Year Price/Median PS Value Range
Min: 0.07   Max: 2.16
Current: 0.4

0.07
2.16
Price/Graham Number 1.20
BBY's Price/Graham Number is ranked higher than
66% of the 775 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.40 vs. BBY: 1.20 )
BBY' s 10-Year Price/Graham Number Range
Min: 1.05   Max: 4.34
Current: 1.2

1.05
4.34
Earnings Yield (Greenblatt) 15.40
BBY's Earnings Yield (Greenblatt) is ranked higher than
87% of the 983 Companies
in the Global Specialty Retail industry.

( Industry Median: 7.40 vs. BBY: 15.40 )
BBY' s 10-Year Earnings Yield (Greenblatt) Range
Min: 4.6   Max: 23.9
Current: 15.4

4.6
23.9
Forward Rate of Return (Yacktman) -5.54
BBY's Forward Rate of Return (Yacktman) is ranked higher than
50% of the 727 Companies
in the Global Specialty Retail industry.

( Industry Median: 10.63 vs. BBY: -5.54 )
BBY' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -7.5   Max: 35.2
Current: -5.54

-7.5
35.2

Business Description

Industry: Retail - Apparel & Specialty » Specialty Retail
Compare:TSCO, AMZN, EBAY, FIVE, AZO » details
Traded in other countries:BUY.Germany
Best Buy Co. Inc., was incorporated in the state of Minnesota in 1966 as Sound of Music, Inc. In 1983, it changed its name to Best Buy Co., Inc. The Company is a multi-national retailer of consumer electronics, computing and mobile phone products, entertainment products, appliances and related services. The company operates retail stores and call centers and conduct online retail operations under a variety of brand names such as Best Buy (BestBuy.com, BestBuy.ca), Best Buy Mobile (BestBuyMobile.com), The Carphone Warehouse (CarphoneWarehouse.com), Five Star, Future Shop (FutureShop.ca), Geek Squad, Magnolia Audio Video, Pacific Sales and The Phone House (PhoneHouse.com). It operates two reportable segments: Domestic and International. The Domestic segment is comprised of the operations in all states, districts and territories of the U.S., operating under various brand names including, but not limited to, Best Buy, Best Buy Mobile, Geek Squad, Magnolia Audio Video and Pacific Sales. The International segment is comprised of: all Canada operations, operating under the brand names Best Buy, Best Buy Mobile, Cell Shop, Connect Pro, Future Shop and Geek Squad; all Europe operations, operating under the brand names The Carphone Warehouse, The Phone House and Geek Squad; all China operations, operating under the brand name Five Star and all Mexico operations, operating under the brand names Best Buy and Geek Squad. The Company's main competitors are consumer electronics retailers including vendors who offer their products direct to the consumer, internet-based businesses, wholesale clubs, discount chains and home-improvement superstores. The Company is subject to the reporting requirements of the Exchange Act and its rules and regulations.

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