Barnes & Noble Education, Inc. Fundamental Analysis
Barnes & Noble Education, Inc. (BNED) shows weak financial fundamentals with a PE ratio of 26.46, profit margin of 0.98%, and ROE of 6.00%. The company generates $1.7B in annual revenue with weak year-over-year growth of 2.75%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BNED's fundamental strength across five key dimensions:
Efficiency Score
WeakBNED struggles to generate sufficient returns from assets.
Valuation Score
ModerateBNED shows balanced valuation metrics.
Growth Score
ModerateBNED shows steady but slowing expansion.
Financial Health Score
ExcellentBNED maintains a strong and stable balance sheet.
Profitability Score
WeakBNED struggles to sustain strong margins.
Key Financial Metrics
Is BNED Expensive or Cheap?
P/E Ratio
BNED trades at 26.46 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BNED's PEG of -0.09 indicates potential undervaluation.
Price to Book
The market values Barnes & Noble Education, Inc. at 1.48 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 3.52 times EBITDA. This is generally considered low.
How Well Does BNED Make Money?
Net Profit Margin
For every $100 in sales, Barnes & Noble Education, Inc. keeps $0.98 as profit after all expenses.
Operating Margin
Core operations generate 2.61 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $6.00 in profit for every $100 of shareholder equity.
ROA
Barnes & Noble Education, Inc. generates $2.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Barnes & Noble Education, Inc. generates limited operating cash flow of $50.51M, signaling weaker underlying cash strength.
Free Cash Flow
Barnes & Noble Education, Inc. generates weak or negative free cash flow of $34.17M, restricting financial flexibility.
FCF Per Share
Each share generates $0.99 in free cash annually.
FCF Yield
BNED converts 7.76% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
26.46
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.09
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.26
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.76
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How BNED Stacks Against Its Sector Peers
| Metric | BNED Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 26.46 | 25.41 | Neutral |
| ROE | 6.00% | 866.00% | Weak |
| Net Margin | 0.98% | -3094.00% (disorted) | Weak |
| Debt/Equity | 0.76 | 0.60 | Weak (High Leverage) |
| Current Ratio | 1.71 | 2.44 | Neutral |
| ROA | 2.28% | 288.00% | Weak |
BNED outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Barnes & Noble Education, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-36.74%
Industry Style: Cyclical, Growth, Discretionary
DecliningEPS CAGR
-25.15%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
-615.92%
Industry Style: Cyclical, Growth, Discretionary
Declining