Best Buy Co (BSP:BBYY34) Operating Margin %: 4.04% (As of Apr. 2026) — 10% Below Median


BSP:BBYY34 Best Buy Co Inc BSP:BBYY34
64 GF Score
Price R$389.94
GF Value R$365.91
Valuation Fairly Valued
! 6 Warning Signs
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What is Best Buy Co Operating Margin %?

Best Buy Co BSP:BBYY34 64 Operating Margin % is 4.04% as of Apr. 2026, which is 10% below its 10-year median of 4.47. GuruFocus rates BSP:BBYY34 with a GF Score™ of 64/100 and a GF Value™ of R$365.91 (Fairly Valued). The stock has 6 warning signs investors should review. Among 1,128 Retail - Cyclical companies, Best Buy Co ranks better than 52.04% on this metric.

Operating Margin % is calculated as Operating Income divided by its Revenue. Best Buy Co's Operating Income for the three months ended in Apr. 2026 was R$1,817 Mil. Best Buy Co's Revenue for the three months ended in Apr. 2026 was R$44,983 Mil. Therefore, Best Buy Co's Operating Margin % for the quarter that ended in Apr. 2026 was 4.04%.

Warning Sign:

Best Buy Co Inc operating margin has been in a 5-year decline. The average rate of decline per year is -6.8%.

The historical rank and industry rank for Best Buy Co's Operating Margin % or its related term are showing as below:

BSP:BBYY34' s Operating Margin % Range Over the Past 10 Years
Min: 3.97   Med: 4.47   Max: 5.81
Current: 4.26


BSP:BBYY34's Operating Margin % is ranked better than
52.04% of 1128 companies
in the Retail - Cyclical industry
Industry Median: 3.905 vs BSP:BBYY34: 4.26

Best Buy Co's 5-Year Average Operating Margin % Growth Rate was -6.80% per year.

Best Buy Co's Operating Income for the three months ended in Apr. 2026 was R$1,817 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was R$9,491 Mil.


Best Buy Co  (BSP:BBYY34) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Best Buy Co Operating Margin % Related Terms


Best Buy Co Operating Margin % Historical Data

* Premium members only.

The historical data trend for Best Buy Co's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Best Buy Co Operating Margin % Chart

Best Buy Co Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24 Jan25 Jan26
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.81 4.19 3.97 4.18 4.20

Best Buy Co Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.74 3.87 3.76 5.02 4.04

BSP:BBYY34 vs TSCO, FIVE, DKS: Operating Margin % Comparison

For the Specialty Retail subindustry, Best Buy Co's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Best Buy Co Operating Margin % vs Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Best Buy Co's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Best Buy Co's Operating Margin % falls into.


BSP:BBYY34
64GF Score
Best Buy Co Inc BSP:BBYY34
Operating Margin % is just one metric. See GF Score™, valuation, warning signs, and more.
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Best Buy Co Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Best Buy Co's Operating Margin % for the fiscal year that ended in Jan. 2026 is calculated as

Operating Margin %=Operating Income (A: Jan. 2026 ) / Revenue (A: Jan. 2026 )
=9330.3 / 222279.736
=4.20 %

Best Buy Co's Operating Margin % for the quarter that ended in Apr. 2026 is calculated as

Operating Margin %=Operating Income (Q: Apr. 2026 ) / Revenue (Q: Apr. 2026 )
=1817.238 / 44982.93
=4.04 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Margin % →
What does a Operating Margin % of 4.04% mean?
Best Buy Co (BSP:BBYY34) has a Operating Margin % of 4.04% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Best Buy Co and its competitors. This is 10% below median its historical median of 4.47. Over the past decade, Best Buy Co's Operating Margin % has ranged from 3.97 to 5.81. According to the industry distribution chart, Best Buy Co ranks #541 out of 1128 companies in the Retail - Cyclical industry, placing it in the top 48%.
Is Best Buy Co's Operating Margin % too high?
Best Buy Co's current Operating Margin % of 4.04% is 10% below median its 10-year median of 4.47. Over the past 10 years, this metric has ranged from a low of 3.97 to a high of 5.81. The Retail - Cyclical industry median Operating Margin % is 3.91. Best Buy Co's value of 4.04% is 3.5% above this industry median. Based on the distribution chart, Best Buy Co ranks #541 out of 1128 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Best Buy Co has a GF Score™ of 64/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Best Buy Co's Operating Margin % compare to TSCO and FIVE?
According to the Retail - Cyclical industry distribution chart, Best Buy Co ranks #541 out of 1128 companies for Operating Margin %. This puts Best Buy Co in the upper half of its industry. The industry median Operating Margin % is 3.91. Best Buy Co's value of 4.04% is 3.5% above this benchmark. Historically, Best Buy Co's own Operating Margin % has ranged from 3.97 to 5.81 over the past decade. While the company's 10-year median is 4.47 vs. the industry median of 3.91, Best Buy Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Retail - Cyclical company?
The median Operating Margin % among Retail - Cyclical companies is 3.91, based on 1,128 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Best Buy Co's current Operating Margin % of 4.04% is 3.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Best Buy Co and its competitors. For the Retail - Cyclical industry, the median Operating Margin % is 3.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Best Buy Co's current Operating Margin % is 4.04%, which is 10% below median its own 10-year median of 4.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Best Buy Co stock overvalued right now?
Based on GuruFocus' analysis, Best Buy Co (BSP:BBYY34) is currently considered Fairly Valued. The stock's GF Value™ is R$365.91, compared to a current price of R$389.94 — trading 6.6% above its estimated fair value. The current Operating Margin % is 4.04%, which is 10% below median its 10-year median of 4.47 and 3.5% above the Retail - Cyclical industry median of 3.91. Best Buy Co's overall GF Score™ is 64/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Best Buy Co (BSP:BBYY34), the current Operating Margin % is 4.04% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Best Buy Co (BSP:BBYY34) Overvalued in 2026?

Based on GuruFocus' analysis, Best Buy Co stock appears to be overvalued. The current stock price of R$389.94 is trading 6.6% above its estimated GF Value™ of R$365.91. GuruFocus considers Best Buy Co to be Fairly Valued.

Key valuation signals for BSP:BBYY34:

  • Operating Margin %: 4.04% (10% below median its 10-year median of 4.47)
  • GF Value™: R$365.91 vs. price of R$389.94 (6.6% above fair value)
  • GF Score™: 64/100 with 6 warning signs
  • Industry Position: 3.5% above the Retail - Cyclical median (#541 of 1128)

No single metric tells the full story. See the BSP:BBYY34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Best Buy Co Business Description

Address 7601 Penn Avenue South, Richfield, MN, USA, 55423
Best Buy Co Inc is a pure-play consumer electronics retailer in the USA. It has two reportable segments: Domestic and International. The Domestic and International segments have offerings in six revenue categories. Computing and Mobile Phones, Consumer Electronics, Appliances, Entertainment, Services, and Other. The company has approximately 1,068 stores throughout its Domestic and International segments. It also have vendor store-within-a-store concepts to allow closer vendor partnerships and a higher quality customer experience. The company generates majority of its revenue from the Domestic segment.
64GF Score

Get the complete analysis for BSP:BBYY34

Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

R$389.94
Price
R$365.91
GF Value