CluenexBest Buy Co Inc BBY
Best Buy Co Inc scores average on business quality (5.1 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Best Buy Co Inc does
Best Buy sells consumer electronics, appliances, and related services directly to retail shoppers through its physical stores and digital channels, generating revenue from hardware sales and support memberships. The business is navigating flat top-line trends while shifting focus toward omnichannel fulfillment and services.
- What it does best
Best Buy stands out for its unmatched physical footprint and Geek Squad support network that online-only rivals struggle to replicate. It maintains a 22.7% gross margin, outperforming GameStop's 37.9% gross margin on a much larger retail scale.
- The main risk
The primary threat is stagnant top-line demand, with revenue hovering around $42.2 billion and falling short of historical peaks above $51 billion as consumers pull back on discretionary tech upgrades.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins sit thin at 4.4% alongside an FCF margin of 26% of net income, pointing to a compressed profit picture where scale does little to drive margin expansion.
The moat relies on physical retail convenience and Geek Squad service integration for everyday consumers, though a gross margin ranking in the bottom quartile of its sector limits true pricing power.
Revenue growth crawls at 0.4%, showing a stalled top line compared to historical periods when sales exceeded $51 billion.
Net debt sits at a negative $562 million with interest coverage at 41.2x, making debt costs a rounding error. Free cash flow reached $1.8 billion, keeping the balance sheet getting stronger.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
1 sold $10.7M outside pre-planned sales.
Our sealed record on BBY
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Best Buy Co Inc scores average on the Cluenex quality check (5.1 of 10), measured against its own industry. Profitability is weak, moat fair, growth slow and financial health strong.
In the last 90 days of SEC Form 4 filings: 1 sold $10.7M outside pre-planned sales.
Nov 23, 2026.
See BBY today
- Today's verdict on BBY, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Best Buy Co Inc (BBY)”, https://cluenex.com/stocks/bby/, data as of Oct 10, 2026.