BARNES & NOBLE INC's gross profit margin for the third quarter of its fiscal year 2014 has increased when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. BARNES & NOBLE INC has very weak liquidity. Currently, the Quick Ratio is 0.29 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 59.11% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||1961.15||1995.79|
|Net Income ($mil)||72.17||63.23|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||326.68||489.58|
|Total Assets ($mil)||3876.24||4141.18|
|Total Debt ($mil)||0.0||246.72|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||32.02||30.24|
|Return on Assets||0.49||-3.02|
|Return on Equity||-0.38||-16.16|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||62.91||59.04|
|Div / share||0.0||0.0|
|Book value / share||22.42||15.02|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||718590.0||706984.0|
BUY. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 1.05 indicates a significant discount versus the S&P 500 average of 2.84 and a significant discount versus the industry average of 76.07. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, BARNES & NOBLE INC proves to trade at a discount to investment alternatives within the industry.
|BKS NM||Peers 24.91||BKS 13.11||Peers 16.73|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
BKS's P/E is negative making this valuation measure meaningless.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
BKS is trading at a discount to its peers.
|BKS 31.14||Peers 21.29||BKS NA||Peers 2.24|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
BKS is trading at a significant premium to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|BKS 1.05||Peers 76.07||BKS 91.12||Peers 21.88|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
BKS is trading at a significant discount to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
BKS is expected to have an earnings growth rate that significantly exceeds its peers.
|BKS 0.24||Peers 1.53||BKS -2.04||Peers 9.06|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
BKS is trading at a significant discount to its industry on this measurement.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
BKS significantly trails its peers on the basis of sales growth
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