Best Buy Co., Inc. (BBY)

FairStock Score: 70/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses priced with a margin of safety. Best Buy is understandable—it sells technology products in a competitive retail market. In fiscal Q2 2027, the quarter ended 2026-08-01, revenue was $9.8B, net income $315.0M and diluted EPS $1.48; in fiscal Q2 2026, the quarter ended 2025-08-02, those were $9.4B, $186.0M and $0.87. That rebound is real, and trailing free cash flow of $1.8B produces an 8.6% FCF yield at the $97.95 close on 2026-10-26. Yet the annual record is uneven: FY2026, ended 2026-01-31, had revenue of $41.7B and net income of $1.1B, while FY2024, ended 2024-02-03, had $43.5B and $1.2B. FairStock's computed Lynch category is SLOW GROWER — Shrinking: profit -9.9% a year over five years, revenue -2.5%. Retail rarely enjoys a durable moat; customers comparison-shop and margins are thin—fiscal Q2 2027 net margin was 3.22%. Financial health is mixed: Piotroski 8/9 and ROE of 43.13% look strong, but D/E is 1.30, ROCE only 7.25%, and Altman Z 1.98. At the stated close, FairStock shows P/E 16.30 and EV/EBITDA 8.85, undemanding on current earnings, but P/B 6.47 and a Graham Number of $45.23 mean the price is 120.80% above that asset-based yardstick. Call it a fair, cyclical retailer with improving cash returns, not a classic bargain.

In plain English: Best Buy sells computers, phones, TVs and other electronics through stores and online. The latest quarter showed sales and profit higher than a year earlier, and cash generation looks solid, but the longer record is uneven and the company carries meaningful debt. At $97.95, the shares look more fair than cheap against the company's profit and assets.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2027 10-Q (period ended 2026-08-01) · fiscal Q1 2027 10-Q (period ended 2026-05-02) · fiscal Q3 2026 10-Q (period ended 2025-11-01) · fiscal Q2 2026 10-Q (period ended 2025-08-02) · FY2026 10-K (period ended 2026-01-31) · FY2025 10-K (period ended 2025-02-01) · FY2024 10-K (period ended 2024-02-03)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer