NYSE:BKS

Stock Analysis Report

Executive Summary

Barnes & Noble, Inc., a retail bookseller, sells content, digital media, and educational products in the United States.

Snowflake

Fundamentals

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Barnes & Noble's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-0.5%

BKS

4.9%

US Specialty Retail

2.3%

US Market


1 Year Return

9.1%

BKS

4.4%

US Specialty Retail

5.6%

US Market


Shareholder returns

BKSIndustryMarket
7 Day-0.5%4.9%2.3%
30 Day-1.2%2.1%-1.0%
90 Day25.3%3.3%-0.7%
1 Year19.6%9.1%6.2%4.4%7.9%5.6%
3 Year-35.0%-49.5%41.0%33.8%45.6%36.3%
5 Year-40.0%-71.3%59.5%45.4%65.8%47.6%

Price Volatility Vs. Market

How volatile is Barnes & Noble's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Barnes & Noble undervalued compared to its fair value and its price relative to the market?

128.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: BKS ($6.49) is trading above our estimate of fair value ($6.26)

Significantly Undervalued: BKS is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BKS is poor value based on its PE Ratio (128.8x) compared to the Specialty Retail industry average (15.1x).

PE vs Market: BKS is poor value based on its PE Ratio (128.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: BKS is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: BKS is good value based on its PB Ratio (1.1x) compared to the US Specialty Retail industry average (1.3x).


Next Steps

Future Growth

How is Barnes & Noble forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

56.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BKS's forecast earnings growth (56% per year) is above the savings rate (2.7%).

Earnings vs Market: BKS's earnings (56% per year) are forecast to grow faster than the US market (14.5% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BKS's revenue is expected to decline over the next 3 years (-1.3% per year).

High Growth Revenue: BKS's revenue is forecast to decline over the next 3 years (-1.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Information is not available.


Next Steps

Past Performance

How has Barnes & Noble performed over the past 5 years?

-28.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BKS has become profitable over the past 5 years, growing earnings by -28.7% per year.

Accelerating Growth: BKS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: BKS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Specialty Retail industry (8.3%).


Return on Equity

High ROE: BKS's Return on Equity (0.8%) is considered low.


Return on Assets

ROA vs Industry: BKS's Return on Assets is below or equal to the Specialty Retail industry average last year.


Return on Capital Employed

ROCE Improving: BKS has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Barnes & Noble's financial position?


Financial Position Analysis

Short Term Liabilities: BKS's short term assets ($1.1B) exceeds its short term liabilities ($902.6M)

Long Term Liabilities: BKS's short term assets (1.1B) exceeds its long term liabilities (358.6M)


Debt to Equity History and Analysis

Debt Level: BKS's debt to equity ratio (45.8%) is considered high

Reducing Debt: BKS's debt to equity ratio has increased from 21.5% to 45.8% over the past 5 years.

Debt Coverage: BKS's debt is well covered by operating cash flow (52%).

Interest Coverage: BKS's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet

Information is not available.

Information is not available.


Next Steps

Dividend

What is Barnes & Noble's current dividend yield, its reliability and sustainability?

9.24%

Current Dividend Yield


Dividend Yield vs Market

company9.2%marketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BKS's dividend (9.24%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: BKS's dividend (9.24%) is in the top 25% of dividend payers in the US market (3.76%)

Stable Dividend: BKS's dividend payments have been volatile in the past 10 years.

Growing Dividend: BKS's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (1190.9%), BKS's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of Barnes & Noble's salary, the management and board of directors tenure and is there insider trading?

5.7yrs

Average management tenure


CEO

Barnes & Noble has no CEO, or we have no data on them.


Management Age and Tenure

5.7yrs

Average Tenure

55.5yo

Average Age

Experienced Management: BKS's management team is seasoned and experienced (5.7 years average tenure).


Board Age and Tenure

4.2yrs

Average Tenure

70.5yo

Average Age

Experienced Board: BKS's board of directors are considered experienced (4.2 years average tenure).


Insider Trading

Insider Buying: BKS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

BuyUS$607,19313 Jun 19
Schottenfeld Management Corp
EntityCompany
Shares125,000
Max PriceUS$4.97
SellUS$49,44513 Jun 19
Phase Five Capital Management, LLC
EntityCompany
Shares11,190
Max PriceUS$4.42
SellUS$792,91513 Jun 19
Schottenfeld Management Corp
EntityCompany
Shares173,772
Max PriceUS$5.01
SellUS$792,14313 Jun 19
CCUR Holdings, Inc.
EntityCompany
Shares119,949
Max PriceUS$6.60
SellUS$1,745,63613 Jun 19
Steven Singer
EntityIndividual
Shares264,413
Max PriceUS$6.62
SellUS$1,092,77513 Jun 19
Schottenfeld Group Holdings Lp
EntityCompany
Shares175,000
Max PriceUS$6.55
BuyUS$589,25713 Jun 19
Schottenfeld Group Holdings Lp
EntityCompany
Shares127,500
Max PriceUS$5.09

Ownership Breakdown


Management Team

  • Len Riggio (78yo)

    Founder & Executive Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: US$163.07k
  • David Deason (60yo)

    Consultant

    • Tenure: 22.6yrs
    • Compensation: US$1.58m
  • Michelle Smith (66yo)

    Vice President of Human Resources

    • Tenure: 22.8yrs
  • Mary Keating (61yo)

    Senior Vice President of Corporate Communications & Public Affairs

    • Tenure: 21.6yrs
    • Compensation: US$1.03m
  • Brad Feuer (51yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 5.7yrs
  • Andy Milevoj

    Vice President of Investor Relations & Corporate Finance

    • Tenure: 2.1yrs
  • Bill Wood (48yo)

    Executive VP & President of Digital

    • Tenure: 1yrs
    • Compensation: US$1.14m
  • Peter Herpich (49yo)

    VP, Corporate Controller & Principal Accounting Officer

    • Tenure: 5.8yrs
  • Joe Gorman (48yo)

    Executive Vice President of Operations

    • Tenure: 0.4yrs
  • Carlo Pochintesta

    Chief Information Officer

    • Tenure: 0.4yrs

Board Members

  • Len Riggio (78yo)

    Founder & Executive Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: US$163.07k
  • Patricia Higgins (69yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$242.50k
  • William Dillard (74yo)

    Independent Director

    • Tenure: 25.8yrs
    • Compensation: US$209.58k
  • Scott Cowen (72yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$221.25k
  • George Campbell (73yo)

    Independent Director

    • Tenure: 11.6yrs
    • Compensation: US$228.75k
  • Irwin Simon (61yo)

    Independent Director

    • Tenure: 0.8yrs
  • Paul Guenther (79yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$223.75k
  • Mark Carleton (59yo)

    Independent Director

    • Tenure: 7.9yrs
    • Compensation: US$207.50k
  • Al Ferrara (68yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$212.50k
  • Kim Van Der Zon (58yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$210.83k

Company Information

Barnes & Noble, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Barnes & Noble, Inc.
  • Ticker: BKS
  • Exchange: NYSE
  • Founded: 1986
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: US$474.010m
  • Shares outstanding: 73.04m
  • Website: https://www.barnesandnobleinc.com

Number of Employees


Location

  • Barnes & Noble, Inc.
  • 122 Fifth Avenue
  • New York
  • New York
  • 10011
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BKSNYSE (New York Stock Exchange)YesCommon SharesUSUSDSep 1993
BARDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1993

Biography

Barnes & Noble, Inc., a retail bookseller, sells content, digital media, and educational products in the United States. It operates through two segments, B&N Retail and NOOK. The company sells trade books, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/07 23:33
End of Day Share Price2019/08/06 00:00
Earnings2019/04/27
Annual Earnings2019/04/27


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.