In the latest of negative reports for Best Buy, analysts say the company is ripe for a buy out.
“…the world’s largest seller of consumer electronics is now valued at just 3.6 times its free cash flow (BBY), the cheapest of any retailer worth more than $1 billion,” said Bloomberg.
Best Buy still produces more free cash flow than any comparable store and it has more cash than debt, which makes it an attractive LBO target, analysts told Bloomberg.
Best Buy has been reeling from a one-two punch. There’s no longer a hit, high margin product like TVs to fuel sales. And competition has grown fierce from Amazon and Walmart. Same store sales have fallen in 5 of the 6 past quarters.