ScoreWhy is Best Buy Co., Inc. ?
1
High Management Efficiency with a high ROCE of 88.59%
2
Company has a low Debt to Equity ratio (avg) at times
3
Poor long term growth as Operating profit has grown by an annual rate -3.64% of over the last 5 years
4
Flat results in Jul 25
- OPERATING CASH FLOW(Y) Lowest at USD 2,064 MM
- ROCE(HY) Lowest at 26.72%
- INVENTORY TURNOVER RATIO(HY) Lowest at 5.6 times
5
With ROCE of 51.18%, it has a very attractive valuation with a 4.74 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -13.90%, its profits have fallen by -11.7%
6
High Institutional Holdings at 90.99%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
7
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -13.90% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you buy?
- Overall Portfolio exposure to Best Buy Co., Inc. should be less than 10%
- Overall Portfolio exposure to Electronics & Appliances should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Electronics & Appliances)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Best Buy Co., Inc. for you?
High Risk, Low Return
Absolute
Risk Adjusted
Volatility
Best Buy Co., Inc.
10.29%
-0.32
43.45%
S&P 500
25.41%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
-2.48%
EBIT Growth (5y)
-7.52%
EBIT to Interest (avg)
59.69
Debt to EBITDA (avg)
Net Debt is too low
Net Debt to Equity (avg)
0.05
Sales to Capital Employed (avg)
9.05
Tax Ratio
26.09%
Dividend Payout Ratio
75.40%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
88.59%
ROE (avg)
55.65%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
4.44
EV to EBIT
7.29
EV to EBITDA
4.94
EV to Capital Employed
5.01
EV to Sales
0.31
PEG Ratio
0.58
Dividend Yield
6.20%
ROCE (Latest)
68.76%
ROE (Latest)
45.39%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend7What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 2,303 MM
DIVIDEND PER SHARE(HY)
Highest at USD 50.74
RAW MATERIAL COST(Y)
Fallen by -0.85% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 62.8 %
0What is not working for the Company
NO KEY NEGATIVE TRIGGERS
Here's what is working for Best Buy Co., Inc.
Operating Cash Flow
Highest at USD 2,303 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Dividend per share
Highest at USD 50.74 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Debt-Equity Ratio
Lowest at 62.8 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -0.85% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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