Barnes & Noble Inc

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BKS : NYSE : Services
$10.97 -0.01 | -0.09%
Today's Range: 10.83 - 10.99
Avg. Daily Volume: 976,300
09/26/16 - 3:59 PM ET

Financial Analysis


BARNES & NOBLE INC's gross profit margin for the first 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 0.09 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has significantly decreased by 57.40% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)913.88978.56
EBITDA ($mil)9.6527.97
EBIT ($mil)-21.39-5.69
Net Income ($mil)-14.42-34.87


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)14.2837.19
Total Assets ($mil)2048.153653.79
Total Debt ($mil)64.60.0
Equity ($mil)570.091338.4


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin30.3730.67
EBITDA Margin1.052.85
Operating Margin-2.34-0.58
Sales Turnover2.01.17
Return on Assets-0.190.82
Return on Equity1.4-0.36
Debt Q1 FY16 Q1 FY15
Current Ratio0.981.13
Debt/Capital0.10.0
Interest Expense1.632.92
Interest Coverage-13.13-1.95


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)72.5775.49
Div / share0.150.0
EPS-0.2-0.27
Book value / share7.8617.73
Institutional Own % n/a n/a
Avg Daily Volume1022302.0765883.0

Valuation


HOLD. BARNES & NOBLE INC's P/E ratio indicates a significant premium compared to an average of 21.96 for the Specialty Retail industry and a significant premium compared to the S&P 500 average of 25.19. To use another comparison, its price-to-book ratio of 1.40 indicates a discount versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 12.35. 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 183.67 Peers 21.96   BKS 6.12 Peers 14.09

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 13.60 Peers 19.56   BKS 0.20 Peers 1.91

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 1.40 Peers 12.35   BKS 160.00 Peers 0.78

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 1.48   BKS -3.90 Peers 7.28

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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