Barnes & Noble Inc

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BKS : NYSE : Services
$6.8 -0.05 | -0.73%
Today's Range: 6.7 - 6.95
Avg. Daily Volume: 947100.0
05/26/17 - 4:02 PM ET

Financial Analysis


BARNES & NOBLE INC's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. BARNES & NOBLE INC has very weak liquidity. Currently, the Quick Ratio is 0.07 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.

During the same period, stockholders' equity ("net worth") has decreased by 7.98% 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 FY16 Q3 FY15
Net Sales ($mil)1300.911413.95
EBITDA ($mil)157.84172.84
EBIT ($mil)128.79137.7
Net Income ($mil)70.2880.26


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)11.6363.56
Total Assets ($mil)1968.962206.42
Total Debt ($mil)18.20.0
Equity ($mil)586.53637.46


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin33.5834.77
EBITDA Margin12.1312.22
Operating Margin9.99.74
Sales Turnover2.011.9
Return on Assets0.24-0.6
Return on Equity0.824.45
Debt Q3 FY16 Q3 FY15
Current Ratio0.961.05
Debt/Capital0.030.0
Interest Expense2.081.98
Interest Coverage62.0469.68


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)71.5673.94
Div / share0.150.15
EPS0.961.04
Book value / share8.28.62
Institutional Own % n/a n/a
Avg Daily Volume940205.0711796.0

Valuation


HOLD. BARNES & NOBLE INC's P/E ratio indicates a significant premium compared to an average of 23.78 for the Specialty Retail industry and a significant premium compared to the S&P 500 average of 25.54. For additional comparison, its price-to-book ratio of 0.84 indicates a significant discount versus the S&P 500 average of 3.06 and a significant discount versus the industry average of 21.53. 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 137.00 Peers 23.78   BKS 4.43 Peers 14.54

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 16.31 Peers 19.49   BKS 0.33 Peers 3.92

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.

 

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 0.84 Peers 21.53   BKS -82.76 Peers 14.20

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 0.12 Peers 1.50   BKS -5.89 Peers 7.03

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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