Best Buy Co., Inc (BBY) – Innovating in-store shopping experience

Best Buy Co., Inc (BBY) Equity Report (Q2FY24)

Stock Performance: Best Buy stock gave returns of -15.4% and -10.2% in the period of three months and one year. The stock has a 52-week high of $93.32 and a 52-week low of $64.07. The stock gave returns of -45.6% and CAGR of -18.4% over a period of three years. The stock had a 200-day Moving Average of $76.58 and a 50-day Moving Average of $70.28.

Quarter Performance: In Q2FY24, revenue of BBY declined by 7% to $9.58bn, compared to $10.33bn in Q2FY23 and the comparable sales declined 6.2% as it continued to operate in a consumer electronics industry that is challenged from the pull-forward of demand in prior years, increased spending outside the home in areas such as travel and entertainment, and various macroeconomic pressures, including high inflation and rising interest rates

Guidance: In FY24, BBY expects revenue of $43.8bn to $44.5bn and comparable sales is expected to decline in the range of 4.6% to 6.0%. Enterprise non-GAAP operating income rate is expected in the range of 3.9% to 4.1%. Non-GAAP effective income tax rate is expected to be 24.5% and non-GAAP diluted EPS is expected to be in the range of $6 to $6.40. Capital expenditures of the company is expected to be approximately $850mn in FY24.

Highlights

BBY has introduced three membership tier which includes My Best Buy, My Best Buy Plus, and My Best Buy Total. These changes were launched in late June and has already shown positive signs, including increased paid membership sign-ups compared to the previous year.

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Highlights

Valuation

– Enterprise Value
– CrispIdea Forecast
– CrispIdea Segment Forecast
– Economic Value Added Analysis
– Discounted Cash Flow Analysis
– P/E Analysis
– Peer Valuation
– CrispIdea Forecast Relative to Consensus
– Consensus History and Surprise
– Consensus Momentum

Actual & Historical Performance

– Income Statement
– Balance Sheet
– Cash Flow
– 10 Year Historical Performance
– Ratio Analysis
– Du Pont Analysis
– ROIC & ROCE Analysis
– Segment Performance
– Key Metrics
– M&A Deals

Peer Performance

– Summary
– Profitability
– Growth
– Price Performance

Ownership

Stock Price Performance

Crispidea Coverage

No of Pages: 42

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