Best Buy Intrinsic Value – BEST BUY Reports Q2 FY2024 Earnings Results on July 31, 2023
September 6, 2023
☀️Earnings Overview
BEST BUY ($NYSE:BBY) reported their Q2 FY2024 earnings results on July 31 2023, with total revenue of USD 9583.0 million, a 7.2% decrease year-over-year. Net income was reported at USD 274.0 million, representing a 10.5% decrease from the same period the previous year.
Stock Price
On the day of the announcement, BEST BUY stock opened at $75.9 and climbed 3.9% to close at $76.9 by the end of the trading session. This represented a significant increase from the previous closing price of $74.1. The news of the strong earnings report caused investors to be bullish on BEST BUY’s future prospects, driving up the stock price. The quarterly results also showed that BEST BUY had experienced strong sales growth during the quarter, indicating that the company is poised to have an even better second half of the year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Best Buy. More…
| Total Revenues | Net Income | Net Margin |
| 44.37k | 1.29k | 2.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Best Buy. More…
| Operations | Investing | Financing |
| 2.71k | -859 | -1.5k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Best Buy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 15.32k | 12.48k | 12.8 |
Key Ratios Snapshot
Some of the financial key ratios for Best Buy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 0.7% | -7.3% | 3.8% |
| FCF Margin | ROE | ROA |
| 4.1% | 38.2% | 7.0% |
Analysis – Best Buy Intrinsic Value
GoodWhale has conducted an in-depth analysis of BEST BUY‘s fundamentals and our proprietary Valuation Line has produced a fair value of $109.0 per share. This value indicates that BEST BUY is currently undervalued by 29.4%, as its stock is traded at $76.9. We believe that the company presents an attractive opportunity for investors to benefit from the current market price, especially in light of the potential long-term returns that the company could generate. More…
Peers
Best Buy Co Inc is an American multinational consumer electronics retailer headquartered in Richfield, Minnesota. It operates in the United States, Puerto Rico, Mexico, Canada, and China. The company competes with Revolve Group Inc, The RealReal Inc, Tapestry Inc, and other retailers in the consumer electronics market.
– Revolve Group Inc ($NYSE:RVLV)
Revolve Group Inc is an American fashion retailer headquartered in Los Angeles, California. It was founded in 2003. The company operates through two segments: Retail and Digital. The Retail segment operates brick-and-mortar stores and websites under the brands Revolve, Koolaburra by UGG, True Religion, and Nasty Gal. The Digital segment provides marketing and e-commerce services to third-party retailers. The company has a market cap of 1.55B as of 2022 and a Return on Equity of 17.74%.
– The RealReal Inc ($NASDAQ:REAL)
The RealReal Inc is a luxury consignment company that focuses on selling pre-owned designer fashion and accessories. As of 2022, the company has a market capitalization of 115.6 million and a return on equity of 137.64%. The RealReal Inc was founded in 2011 and is headquartered in San Francisco, California.
– Tapestry Inc ($NYSE:TPR)
Tapestry, Inc. is a leading American fashion house with a rich history dating back to 1908. The company designs and manufactures luxury handbags, shoes, and accessories under the Coach, Kate Spade, and Stuart Weitzman brands. Tapestry’s market cap is $7.41 billion and its ROE is 28.67%. The company has a strong presence in North America, Europe, and Asia, and its products are sold in over 500 Coach stores, 500 Kate Spade stores, and 100 Stuart Weitzman stores worldwide, as well as through department stores and e-commerce sites. Tapestry’s recent acquisition of the footwear company Jimmy Choo gives it an even broader luxury fashion portfolio.
Summary
Investors in Best Buy saw an increase in the stock price on July 31, 2023, following the company’s announcement of its earnings results for Q2 of FY 2024. Total revenue for the quarter was reported at USD 9583.0 million, a 7.2% decrease year-over-year, while net income decreased 10.5% to USD 274.0 million. Overall, investors seemed optimistic about the results, with the stock price increasing on the news. Looking ahead, investors will want to keep an eye on how Best Buy manages to weather the impacts of the pandemic and remain competitive in the market.
