BBYBest Buy
Is the business good?
The checks split: 8 of 9 health tests passed and earnings fully cash-backed (2.0×), but returns that lean on debt.
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Leverage-amplified, a high assets-to-equity ratio does much of the work. ROE 34% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is BBY?
Best Buy earns 64% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 55 points above what the capital costs: growth creates value
- Operating margin
- 4.0%
Operating margin · Specialty Retail median 8.0% · 12 months to Q2 2027
- Cash conversion
- 1.98×
Cash conversion · 2.70× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.33%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2021 | 5.1% |
| FY2022 | 5.9% |
| FY2023 | 3.9% |
| FY2024 | 3.6% |
| FY2025 | 3.0% |
| FY2026 | 3.3% |
Details›
- Gross margin12 months to Q2 2027
- 23%
- Operating margin12 months to Q2 2027
- 4.0%
- Net margin12 months to Q2 2027
- 3.0%
- Free cash flow margin
- 4.2%
- Revenue, trailing twelve months
- $42.2B
- Free cash flow, trailing twelve months
- $1.77B
- Net income, trailing twelve months
- $1.27B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 64%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Specialty Retail
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