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GuruFocus Financial Strength Rank measures how strong a companyย’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 0.543
BBY's Cash to Debt is ranked lower than
83% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.99 vs. BBY: 0.543 )
BBY' s 10-Year Cash to Debt Range
Min: 0.26   Max: 24.49
Current: 0.54

0.26
24.49
Equity to Asset 0.128
BBY's Equity to Asset is ranked lower than
90% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.42 vs. BBY: 0.128 )
BBY' s 10-Year Equity to Asset Range
Min: 0.12   Max: 0.42
Current: 0.13

0.12
0.42
Interest Coverage 8.1
BBY's Interest Coverage is ranked lower than
78% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 71.00 vs. BBY: 8.1 )
BBY' s 10-Year Interest Coverage Range
Min: 8   Max: No Debt
Current: 8.1

F-Score: 4
Z-Score: 3.66
M-Score: -2.7
GuruFocus Profitability Rank ranks how profitable a company is and how likely the companyย’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.
ย•ย•3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rankย•

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 : 5/10

vs
industry
vs
history
Operating margin (%) 2.10
BBY's Operating margin (%) is ranked lower than
72% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 3.20 vs. BBY: 2.10 )
BBY' s 10-Year Operating margin (%) Range
Min: 2.1   Max: 5.6
Current: 2.1

2.1
5.6
Net-margin (%) -2.4
BBY's Net-margin (%) is ranked lower than
70% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.15 vs. BBY: -2.4 )
BBY' s 10-Year Net-margin (%) Range
Min: -2.4   Max: 3.8
Current: -2.4

-2.4
3.8
ROE (%) -32.9
BBY's ROE (%) is ranked lower than
71% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 6.00 vs. BBY: -32.9 )
BBY' s 10-Year ROE (%) Range
Min: -32.9   Max: 31.7
Current: -32.9

-32.9
31.7
ROA (%) -7.7
BBY's ROA (%) is ranked lower than
72% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.80 vs. BBY: -7.7 )
BBY' s 10-Year ROA (%) Range
Min: -7.7   Max: 11.6
Current: -7.7

-7.7
11.6
ROC (Joel Greenblatt) (%) 25.60
BBY's ROC (Joel Greenblatt) (%) is ranked lower than
66% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 10.80 vs. BBY: 25.60 )
BBY' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 25.6   Max: 129.5
Current: 25.6

25.6
129.5
Revenue Growth (%) 6.8
BBY's Revenue Growth (%) is ranked higher than
85% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.90 vs. BBY: 6.8 )
BBY' s 10-Year Revenue Growth (%) Range
Min: 6.8   Max: 17.3
Current: 6.8

6.8
17.3
EBITDA Growth (%) -3.2
BBY's EBITDA Growth (%) is ranked higher than
75% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 6.10 vs. BBY: -3.2 )
BBY' s 10-Year EBITDA Growth (%) Range
Min: -3.2   Max: 28.7
Current: -3.2

-3.2
28.7
ยป BBY's 10-Y Financials

Financials


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

» Details

Guru Trades

Q2 2012

BBY Guru Trades in Q2 2012

NWQ Managers 9,610,088 sh (New)
Ray Dalio 1,237,022 sh (+352.91%)
Steven Cohen 1,605,079 sh (+348.91%)
Bill Nygren 4,740,000 sh (+64.01%)
Mario Gabelli 31,500 sh (+13.72%)
John Hussman 2,401,500 sh (+6.66%)
John Burbank 92,000 sh (unchged)
Manning & Napier Advisors, Inc Sold Out
Jim Simons Sold Out
Joel Greenblatt Sold Out
Jeremy Grantham 491,010 sh (-0.12%)
John Buckingham 17,544 sh (-5.74%)
David Dreman 658,029 sh (-13.09%)
Mark Hillman 10,640 sh (-44.13%)
David Einhorn 1,209,000 sh (-84.33%)
» More
Q3 2012

BBY Guru Trades in Q3 2012

Jean-Marie Eveillard 268,295 sh (New)
Mark Hillman 97,240 sh (+813.91%)
Mario Gabelli 118,600 sh (+276.51%)
Jean-Marie Eveillard 1,731 sh (unchged)
Eric Mindich 1,500,000 sh (unchged)
Louis Moore Bacon 150,000 sh (unchged)
Bill Nygren Sold Out
Ray Dalio Sold Out
David Einhorn Sold Out
Jeremy Grantham 461,710 sh (-5.97%)
NWQ Managers 8,842,934 sh (-7.98%)
John Buckingham 14,214 sh (-18.98%)
David Dreman 486,132 sh (-26.12%)
Steven Cohen 801,605 sh (-50.06%)
John Hussman 1,001,500 sh (-58.3%)
» More
Q4 2012

BBY Guru Trades in Q4 2012

Paul Tudor Jones 29,900 sh (New)
Pioneer Investments 930,763 sh (New)
HOTCHKIS & WILEY 1,742,600 sh (New)
Eric Mindich 1,623,750 sh (New)
Jeremy Grantham 347,710 sh (unchged)
Steven Cohen Sold Out
Jean-Marie Eveillard Sold Out
John Buckingham 12,279 sh (-13.61%)
Mario Gabelli 94,800 sh (-20.07%)
Mark Hillman 71,386 sh (-26.59%)
David Dreman 194,839 sh (-59.92%)
NWQ Managers 2,285,344 sh (-74.16%)
John Hussman 2,250 sh (-99.78%)
» More
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)
Eric Mindich Sold Out
David Dreman Sold Out
HOTCHKIS & WILEY Sold Out
Paul Tudor Jones Sold Out
Pioneer Investments 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
» Details

Insider Trades

Latest Guru Trades with BBY

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Mark Hillman 2013-03-31 Add 4.39%0.24%$11.59 - $23.2 $ 26.958%74523
NWQ Managers 2013-03-31 Reduce -86.54%0.19%$11.59 - $23.2 $ 26.958%307536
HOTCHKIS & WILEY 2013-03-31 Sold Out 0.12%$11.59 - $23.2 $ 26.958%0
David Dreman 2013-03-31 Sold Out 0.07%$11.59 - $23.2 $ 26.958%0
Mario Gabelli 2013-03-31 Reduce -24.68%$11.59 - $23.2 $ 26.958%71400
Mark Hillman 2012-12-31 Reduce -26.59%0.9%$11.29 - $18.4 $ 26.986%71386
NWQ Managers 2012-12-31 Reduce -74.16%0.82%$11.29 - $18.4 $ 26.986%2285344
John Hussman 2012-12-31 Reduce -99.78%0.42%$11.29 - $18.4 $ 26.986%2250
David Dreman 2012-12-31 Reduce -59.92%0.13%$11.29 - $18.4 $ 26.986%194839
HOTCHKIS & WILEY 2012-12-31 New Buy0.12%$11.29 - $18.4 $ 26.986%1742600
Jean-Marie Eveillard 2012-12-31 Sold Out 0.02%$11.29 - $18.4 $ 26.986%0
Mario Gabelli 2012-12-31 Reduce -20.07%$11.29 - $18.4 $ 26.986%94800
Mark Hillman 2012-09-30 Add 813.91%3.03%$16.94 - $22.62 $ 26.943%97240
Bill Nygren 2012-09-30 Sold Out 1.7%$16.94 - $22.62 $ 26.943%0
John Hussman 2012-09-30 Reduce -58.3%0.55%$16.94 - $22.62 $ 26.943%1001500
David Einhorn 2012-09-30 Sold Out 0.4%$16.94 - $22.62 $ 26.943%0
Ray Dalio 2012-09-30 Sold Out 0.39%$16.94 - $22.62 $ 26.943%0
David Dreman 2012-09-30 Reduce -26.12%0.08%$16.94 - $22.62 $ 26.943%486132
Jean-Marie Eveillard 2012-09-30 New Buy0.02%$16.94 - $22.62 $ 26.943%268295
Mario Gabelli 2012-09-30 Add 276.51%0.01%$16.94 - $22.62 $ 26.943%118600
David Einhorn 2012-06-30 Reduce -84.33%2.78%$17.96 - $23.74 $ 26.932%1209000
NWQ Managers 2012-06-30 New Buy1.6%$17.96 - $23.74 $ 26.932%9610088
Bill Nygren 2012-06-30 Add 64.01%0.66%$17.96 - $23.74 $ 26.932%4740000
Ray Dalio 2012-06-30 Add 352.91%0.3%$17.96 - $23.74 $ 26.932%1237022
Mark Hillman 2012-06-30 Reduce -44.13%0.17%$17.96 - $23.74 $ 26.932%10640
Joel Greenblatt 2012-06-30 Sold Out 0.14%$17.96 - $23.74 $ 26.932%0
Premium More recent guru trades are included for Premium Members only!!

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

Best Buy Founder Returns to His Company  - Best Buy Founder Returns To His Company
Best Buy (BBY) is the worldโ€™s largest consumer electronics retailer with stores in the U.S., Canada, China, Europe and Mexico. The company also maintains its status as the 11th largest online retailer in the U.S. and Canada. But with online competition like Amazon (AMZN), the company has been stuck in a rut that it cannot seem to make its way out of. Best Buy has been in a five-year decline with an average rate of decline per year being -37.8%. In June 2012 Best Buy Founder (and largest shareholder), Richard Schulze, resigned from the board of directors in order to seek out the possibility of taking the suffering company private. During this time Best Buy named Hubert Joly as president and CEO, a decision Schulze was none too happy about. Read more...
How Active Were 2012โ€™s Worst CEOs in Insider Trades?  - How Active Were 2012โ€™s Worst CEOs In Insider Trades?
Earlier this month, Bloomberg Businessweek published a list of chief executives thought to be the worst in 2012, based off of a list conjured by Dartmouth College professor, Sydney Finkelstein. Read more...
Nygren Buys UnitedHealth, Principal Financial and Cummins Inc., Sells Diageo and Best Buy Bill Nygren - Nygren Buys UnitedHealth, Principal Financial And Cummins Inc., Sells Diageo And Best Buy
The Oak Mark Fund, managed by Bill Nygren along with Kevin Grant, has reported updates to the companyโ€™s stock portfolio for the third quarter, consisting of 23 transactions: Read more...
David Einhorn Buys Computer Sciences, General Motors, Yahoo!, Sells Apple, Seagate, Best Buy David Einhorn - David Einhorn Buys Computer Sciences, General Motors, Yahoo!, Sells Apple, Seagate, Best Buy
Renowned hedge fund manager David Einhorn just reported his third quarter portfolio. Einhorn made him fame with a few high profiled shorts that worked out nicely for him. Most recently he shorted Chipotle Mexican Grill and Green Mountain Coffee Roasters. When the news broke out, both stocks were hammered. This is the third quarter portfolio of David Einhorn. He bought into new positions in Computer Sciences Corporation, Yahoo, Babcock & Wilcox Co, and Aecom Technology. He also added to his positions in HMOS such as Aetna Inc, Cigna Corp. Among his sales, the most notable ones are Apple (AAPL) and Best Buy (BBY) He reduced his position in Apple by 25%, although it is still his largest position. He dumped Best Buy completely. Read more...
Seth Klarmanโ€™s Investment Framework Seth Klarman - Seth Klarmanโ€™s Investment Framework
Margin of safety and risk aversion is Seth Klarmanโ€™s central
investment tenet. And risk aversion begins with defining a margin of safety for
your investments. In his book Margin of
Safety, Klarman outlines three of the best ways to build a winning stock
portfolio: Read more...
The State of U.S. Ecommerce  - The State Of U.S. Ecommerce
Comscore recently hosted an event entitled โ€œThe State of the U.S. Online Retail Economy in Q2 2012โ€, with data based upon a global panel of 2 million online users (1M in the United States and 1M scattered around the globe). As Iโ€™ve promised some readers, I will soon add my two cents on why I believe Best Buy (BBY) is in a situation that is materially different than that of office supply chain leader Staples (SPLS); this article will highlight some of those differences in terms of consumer behavior (which is tough to pull out in a lot of instances due to the lack of transparency into sales by category at Amazon). Read more...
David Einhorn on Best Buy (BBY)
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. Read more...
Revealed - Mystery Company Valuation  - Revealed - Mystery Company Valuation
Last week I posted a comparative valuation of two unnamed companies. It wasn't hard for you to guess which the companies were, which reminds me that I will have to come up with harder cases if this is to remain a blind valuation exercise. Read more...
Weekly CEO Buys Highlight: BBY, WTI, PULS, ESSX, DDMG
According to GuruFocus Insider Data, these are the largest CEO buys during the past week. The overall trend of CEOs is illustrated in the chart below: Read more...

Ratios

vs
industry
vs
history
P/B 2.43
BBY's P/B is ranked lower than
51% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.40 vs. BBY: 2.43 )
BBY' s 10-Year P/B Range
Min: 1.09   Max: 16.55
Current: 2.43

1.09
16.55
P/S 0.18
BBY's P/S is ranked higher than
93% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.50 vs. BBY: 0.18 )
BBY' s 10-Year P/S Range
Min: 0.08   Max: 1.46
Current: 0.18

0.08
1.46
PFCF 13.45
BBY's PFCF is ranked higher than
82% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 14.90 vs. BBY: 13.45 )
BBY' s 10-Year PFCF Range
Min: 3.52   Max: 294.76
Current: 13.45

3.52
294.76
EV-to-EBIT 57.06
BBY's EV-to-EBIT is ranked higher than
80% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 12.56 vs. BBY: 57.06 )
BBY' s 10-Year EV-to-EBIT Range
Min: 4.7   Max: 59
Current: 57.06

4.7
59
Shiller P/E 19.67
BBY's Shiller P/E is ranked higher than
96% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 17.09 vs. BBY: 19.67 )
BBY' s 10-Year Shiller P/E Range
Min: 6.1   Max: 40.31
Current: 19.67

6.1
40.31

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 2.49
BBY's Dividend Yield is ranked higher than
95% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.86 vs. BBY: 2.49 )
BBY' s 10-Year Dividend Yield Range
Min: 0.48   Max: 5.76
Current: 2.49

0.48
5.76
Dividend growth (3y) 3.5
BBY's Dividend growth (3y) is ranked higher than
93% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: -0.50 vs. BBY: 3.5 )
BBY' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 15.2
Current: 3.5

0
15.2
Yield on cost (5-Year) 3.63
BBY's Yield on cost (5-Year) is ranked higher than
96% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.93 vs. BBY: 3.63 )
BBY' s 10-Year Yield on cost (5-Year) Range
Min: 0.67   Max: 8.04
Current: 3.63

0.67
8.04
Share Buyback Rate 3.5
BBY's Share Buyback Rate is ranked higher than
94% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: -0.40 vs. BBY: 3.5 )
BBY' s 10-Year Share Buyback Rate Range
Min: 4.3   Max: -1.1
Current: 3.5

Valuation & Return

vs
industry
vs
history
Price/Net Current Asset Value 2
BBY's Price/Net Current Asset Value is ranked higher than
56% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 5.70 vs. BBY: 2 )
BBY' s 10-Year Price/Net Current Asset Value Range
Min: 2   Max: 15.9
Current: 2

2
15.9
Price/Tangible Book 4.4
BBY's Price/Tangible Book is ranked higher than
78% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 2.30 vs. BBY: 4.4 )
BBY' s 10-Year Price/Tangible Book Range
Min: 3.5   Max: 10.6
Current: 4.4

3.5
10.6
Price/DCF (Projected) 0.4
BBY's Price/DCF (Projected) is ranked higher than
69% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.00 vs. BBY: 0.4 )
BBY' s 10-Year Price/DCF (Projected) Range
Min: 0.4   Max: 1.8
Current: 0.4

0.4
1.8
Price/Median PS Value 0.3
BBY's Price/Median PS Value is ranked higher than
53% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 0.80 vs. BBY: 0.3 )
BBY' s 10-Year Price/Median PS Value Range
Min: 0.3   Max: 1.7
Current: 0.3

0.3
1.7
Price/Graham Number 2.3
BBY's Price/Graham Number is ranked lower than
78% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 1.60 vs. BBY: 2.3 )
BBY' s 10-Year Price/Graham Number Range
Min: 1.3   Max: 4
Current: 2.3

1.3
4
Earnings Yield (Greenblatt) 1.80
BBY's Earnings Yield (Greenblatt) is ranked higher than
86% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 8.60 vs. BBY: 1.80 )
BBY' s 10-Year Earnings Yield (Greenblatt) Range
Min: 1.7   Max: 21.1
Current: 1.8

1.7
21.1
Forward Rate of Return (Yacktman) 3.88
BBY's Forward Rate of Return (Yacktman) is ranked higher than
94% of the 493 Companies
in the Global Specialty Retail industry.

( Industry Median: 10.22 vs. BBY: 3.88 )
BBY' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 6.1   Max: 32.1
Current: 3.88

6.1
32.1

Business Description

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 all operations within the U.S. and its territories. The International segment is comprised of all operations outside the U.S. and its territories. 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.
Company Website
SEC Reports
Industry: Specialty Retail
Compare:TSCO, AMZN, EBAY, FIVE, AZO
Traded in other countries:BUY.Germany

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