BBYNEUTRAL

BBY Return on Equity (ROE) Analysis

43.1%

Higher than 94% of Consumer Cyclical sector peers

Updated 30h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholders’ equity, and Best Buy’s current 39.1% means it earns $0.391 for every dollar of equity invested.

Sector Performance

94th percentile

BBY

43.1%

Sector Median

6.4%

Sector Avg

-38.1%

Prior Period

39.1%(Aug 2026)

↑ Improving

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Deep Analysis

That level far exceeds its consumer cyclical sector median of 8.6%, placing the stock in the 95th percentile among sector peers. Trend data is not available: the year-over-year change is N/A, and the quarter-over-quarter change is N/A, so no directional movement can be assessed. The combination of an exceptionally high ROE with an unknown trend suggests strong current profitability but leaves the sustainability of that performance unverified. This level alone signals low near-term operational risk, yet the missing trend data prevents assigning a bullish edge. This metric supports the overall NEUTRAL verdict because while the high ROE is a positive, the absence of trend information does not justify upgrading the stock beyond neutral.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about BBY?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does BBY's Return on Equity (ROE) compare to its sector?

BBY's Return on Equity (ROE) of 43.1% compares to a Consumer Cyclical sector median of 6.4%, placing it in the 94th percentile.

Who are BBY's closest peers by Return on Equity (ROE)?

The closest Consumer Cyclical peers by Return on Equity (ROE) include: BWA (8.1%), TSLA (4.7%), AMCR (4.4%), JACK (8.6%), KMX (3.6%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.