NYSE:BNED

Stock Analysis Report

Barnes & Noble Education

Executive Summary

Barnes & Noble Education, Inc. operates bookstores for college and university campuses, and K-12 institutions in the United States.


Snowflake Analysis

Mediocre balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: BNED's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.1%

BNED

-7.6%

US Specialty Retail

-1.1%

US Market


1 Year Return

-70.0%

BNED

-29.6%

US Specialty Retail

-13.6%

US Market

Return vs Industry: BNED underperformed the US Specialty Retail industry which returned -23.7% over the past year.

Return vs Market: BNED underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

BNEDIndustryMarket
7 Day-11.1%-7.6%-1.1%
30 Day-59.9%-28.5%-17.8%
90 Day-66.4%-34.9%-22.5%
1 Year-70.0%-70.0%-28.6%-29.6%-11.9%-13.6%
3 Year-85.6%-85.6%-4.6%-9.2%12.1%4.9%
5 Yearn/a-5.6%-12.9%30.5%16.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.14x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: BNED ($1.36) is trading above our estimate of fair value ($0.15)

Significantly Below Fair Value: BNED is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BNED is unprofitable, so we can't compare its PE Ratio to the Specialty Retail industry average.

PE vs Market: BNED is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BNED's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BNED is good value based on its PB Ratio (0.1x) compared to the US Specialty Retail industry average (0.8x).


Next Steps

Future Growth

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

141.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BNED is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: BNED is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: BNED is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: BNED's revenue is expected to decline over the next 3 years (-5.1% per year).

High Growth Revenue: BNED's revenue is forecast to decline over the next 3 years (-5.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BNED's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-41.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BNED is currently unprofitable.

Growing Profit Margin: BNED is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BNED is unprofitable, and losses have increased over the past 5 years at a rate of -41.5% per year.

Accelerating Growth: Unable to compare BNED's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BNED is unprofitable, making it difficult to compare its past year earnings growth to the Specialty Retail industry (6.9%).


Return on Equity

High ROE: BNED has a negative Return on Equity (-9.65%), as it is currently unprofitable.


Next Steps

Financial Health

How is Barnes & Noble Education's financial position?


Financial Position Analysis

Short Term Liabilities: BNED's short term assets ($851.2M) exceed its short term liabilities ($685.0M).

Long Term Liabilities: BNED's short term assets ($851.2M) exceed its long term liabilities ($285.7M).


Debt to Equity History and Analysis

Debt Level: BNED's debt to equity ratio (14.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if BNED's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: BNED has a high level of physical assets or inventory.

Debt Coverage by Assets: BNED's debt is covered by short term assets (assets are 12.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: BNED has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if BNED has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BNED's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BNED's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BNED's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BNED's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BNED's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.8yrs

Average management tenure


CEO

Michael Huseby (64yo)

2.58s

Tenure

US$4,496,072

Compensation

Mr. Michael P. Huseby, also known as Mike, has been the Executive Chairman of Barnes & Noble Education, Inc. since August 2, 2015 and has been its Chief Executive Officer since September 19, 2017. He serve ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD4.50M) is above average for companies of similar size in the US market ($USD605.16K).

Compensation vs Earnings: Michael's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michael Huseby
Chairman & CEO2.58yrsUS$4.50m1.12% $732.8k
Thomas Donohue
Executive VP & CFO1.25yrsUS$911.31k0.47% $310.5k
Michael Miller
Executive VP of Corporate Affairs3yrsUS$1.43m0.058% $37.9k
Kanuj Malhotra
Executive VP of Corporate Development & President of Digital Student Solutionsno dataUS$1.52m0.84% $551.0k
Seema Paul
Senior VP & Chief Accounting Officer4.75yrsno data0.12% $79.1k
Andy Milevoj
Vice President of Investor Relations & Corporate Financeno datano datano data
Stephen Culver
Senior VP & Chief Information Officerno datano data0.14% $89.3k
Suzanne Andrews
Chief Compliance Officer2.17yrsno datano data
Carolyn Brown
Senior Vice President of Corporate Communications & Public Affairsno datano datano data
JoAnn Magill
Senior VP of Human Resources3.83yrsno data0.16% $104.1k

2.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: BNED's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Huseby
Chairman & CEO2.58yrsUS$4.50m1.12% $732.8k
David Golden
Independent Director4.67yrsUS$220.00k0.26% $173.7k
Jerry Thornton
Independent Director4.67yrsUS$205.00k0.019% $12.5k
Daniel DeMatteo
Independent Director4.67yrsUS$210.00k0.019% $12.5k
John Ryan
Lead Independent Directorno dataUS$237.50k0.068% $44.4k
David Wilson
Independent Director4.75yrsUS$225.00k0.075% $49.0k
Emily Chiu
Independent Director1.83yrsUS$188.84kno data

4.7yrs

Average Tenure

71yo

Average Age

Experienced Board: BNED's board of directors are considered experienced (4.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Barnes & Noble Education, Inc.
  • Ticker: BNED
  • Exchange: NYSE
  • Founded: 1873
  • Industry: Specialty Stores
  • Sector: Retail
  • Market Cap: US$65.685m
  • Shares outstanding: 48.30m
  • Website: https://www.bned.com

Number of Employees


Location

  • Barnes & Noble Education, Inc.
  • 120 Mountain View Boulevard
  • Basking Ridge
  • New Jersey
  • 7920
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BNEDNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2015
2BNDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2015

Biography

Barnes & Noble Education, Inc. operates bookstores for college and university campuses, and K-12 institutions in the United States. It operates in three segments: Retail, Wholesale, and Digital Student Solutions (DSS). The Retail segment sells and rents course materials and supplies, including physical and digital products, as well as a suite of digital content; an operates True Spirit e-commerce Websites. It also provides First Day inclusive access program; BNC OER+, a turnkey solution for colleges and universities; and e-textbooks, collegiate and athletic apparel, other custom-branded school spirit products, lifestyle products, technology products, supplies, and convenience items. In addition, this segment also operates 88 customized cafés and 13 stand-alone convenience stores; and a media channel for brands targeting the college demographic. As of April 27, 2019, this segment operated 772 physical bookstores; and 676 virtual bookstores. The Wholesale segment engages in the wholesale, sourcing, and distribution of new and used textbooks; and sale of hardware and a software suite of applications that provide inventory management and point-of-sale solutions to approximately 400 college bookstores. The DSS segment offers direct-to-student products and services to assist students to study effectively and enhance academic performance. It provides subscription-based writing services; and bartleby, a direct-to-student subscription-based offering, including textbook solutions, expert questions and answers, tutoring, and test prep services. Barnes & Noble Education, Inc. was founded in 1873 and is headquartered in Basking Ridge, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 12:39
End of Day Share Price2020/03/31 00:00
Earnings2020/01/25
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.