Barnes & Noble Inc

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BKS : NYSE : Services
$11.45 up 0.35 | 3.15%
Today's Range: 11.05 - 11.8
Avg. Daily Volume: 708500.0
01/17/17 - 4:02 PM ET

Financial Analysis


BARNES & NOBLE INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. BARNES & NOBLE INC has very weak liquidity. Currently, the Quick Ratio is 0.06 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.

During the same period, stockholders' equity ("net worth") has decreased by 9.20% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)858.55894.65
EBITDA ($mil)0.73-9.99
EBIT ($mil)-29.27-45.05
Net Income ($mil)-20.41-39.23


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)11.3713.37
Total Assets ($mil)2257.762447.73
Total Debt ($mil)191.42192.0
Equity ($mil)528.79582.43


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin29.7430.16
EBITDA Margin0.08-1.11
Operating Margin-3.41-5.04
Sales Turnover1.81.73
Return on Assets0.65-0.87
Return on Equity2.8-3.83
Debt Q2 FY16 Q2 FY15
Current Ratio1.051.14
Debt/Capital0.270.25
Interest Expense1.961.88
Interest Coverage-14.92-23.99


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)71.8275.63
Div / share0.150.3
EPS-0.29-0.36
Book value / share7.367.7
Institutional Own % n/a n/a
Avg Daily Volume708429.0822550.0

Valuation


HOLD. BARNES & NOBLE INC's P/E ratio indicates a significant premium compared to an average of 22.23 for the Specialty Retail industry and a significant premium compared to the S&P 500 average of 25.53. To use another comparison, its price-to-book ratio of 1.51 indicates a discount versus the S&P 500 average of 2.85 and a significant discount versus the industry average of 14.03. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BKS 85.38 Peers 22.23   BKS 4.48 Peers 13.98

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

BKS is trading at a significant premium to its peers.

 

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 13.62 Peers 21.05   BKS 0.09 Peers 2.05

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.

 

Discount. 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.

BKS trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BKS 1.51 Peers 14.03   BKS 143.33 Peers -15.61

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BKS 0.20 Peers 1.49   BKS -3.80 Peers 7.68

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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