Barnes & Noble Inc

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BKS : NYSE : Services
$12.94 -0.12 | -0.92%
Today's Range: 12.86 - 13.09
Avg. Daily Volume: 908,100
07/28/16 - 3:59 PM ET

Financial Analysis


BARNES & NOBLE INC's gross profit margin for the fourth quarter of its fiscal year 2015 has decreased when compared to the same period a year ago. Sales and net income have dropped, however the growth has outpaced the average competitor within the industry. BARNES & NOBLE INC has very weak liquidity. Currently, the Quick Ratio is 0.12 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 56.43% 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 Q4 FY15 Q4 FY14
Net Sales ($mil)876.68910.08
EBITDA ($mil)-5.0618.87
EBIT ($mil)-37.06-14.85
Net Income ($mil)-30.61-19.42


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)13.8474.36
Total Assets ($mil)2012.783229.51
Total Debt ($mil)47.20.0
Equity ($mil)603.511385.42


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin30.3132.94
EBITDA Margin-0.572.07
Operating Margin-4.23-1.63
Sales Turnover2.071.33
Return on Assets-1.211.13
Return on Equity0.830.7
Debt Q4 FY15 Q4 FY14
Current Ratio0.991.19
Debt/Capital0.070.0
Interest Expense1.542.96
Interest Coverage-24.11-5.02


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)73.2963.27
Div / share0.150.0
EPS-0.42-0.12
Book value / share8.2321.9
Institutional Own % n/a n/a
Avg Daily Volume889474.01094471.0

Valuation


HOLD. 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. To use another comparison, its price-to-book ratio of 1.53 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 13.96. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BKS NM Peers 24.35   BKS 8.12 Peers 15.74

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 significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BKS 15.60 Peers 20.26   BKS NA Peers 2.04

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

BKS is trading at a valuation on par with 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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BKS 1.53 Peers 13.96   BKS -116.66 Peers -3.13

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.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, BKS is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BKS 0.22 Peers 1.56   BKS -3.11 Peers 8.06

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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