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Barnes & Noble Education
(NYSE:BNED)
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Rating:61Neutral
Price Target:
$12.00
▲(37.77% Upside)
Action:Reiterated
Date:07/10/26
The score is driven primarily by improving financial performance (return to profitability, stronger cash generation, and materially better leverage). Corporate events further support the outlook via preliminary results showing growth, higher EBITDA, and reduced net debt, plus the initiation of a regular dividend. Offsetting factors are mixed technical momentum and a valuation that isn’t clearly discounted given the company’s history of volatility and the recent revenue weakness noted in the financial statement analysis.
Positive Factors
Improved leverage
Material reduction in debt and a lower debt-to-equity ratio meaningfully improves financial flexibility and reduces interest burden. This durable balance-sheet repair increases capacity to fund store operations, invest in e-commerce, and withstand enrollment cycles without immediate refinancing risk.
Negative Factors
Thin margins & negative returns
Persistently low gross margins and a negative return on equity indicate the company struggles to convert sales into durable profits. Thin margins limit investment capacity and make results sensitive to cost inflation, supplier shifts, or adverse contract terms, constraining long-term return generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage
Material reduction in debt and a lower debt-to-equity ratio meaningfully improves financial flexibility and reduces interest burden. This durable balance-sheet repair increases capacity to fund store operations, invest in e-commerce, and withstand enrollment cycles without immediate refinancing risk.
Read all positive factors
Barnes & Noble Education Key Performance Indicators (KPIs)
Barnes & Noble Education (BNED) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$399.55M
Dividend YieldN/A
Average Volume (3M)316.56K
Price to Earnings (P/E)23.3
Beta (1Y)1.92
Revenue Growth10.09%
EPS Growth99.49%
CountryUS
Employees3,559
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)-0.30
Shares Outstanding34,296,120
10 Day Avg. Volume344,856
30 Day Avg. Volume316,555
Financial Highlights & Ratios
PEG Ratio-0.18
Price to Book (P/B)1.20
Price to Sales (P/S)0.21
P/FCF Ratio10.41
Enterprise Value/Market Cap1.68
Enterprise Value/Revenue0.39
Enterprise Value/Gross Profit2.03
Enterprise Value/Ebitda21.17
Forecast
1Y Price Target
$17.25Price Target Upside98.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.8
Revenue Forecast (FY)$1.80B
Barnes & Noble Education Business Overview & Revenue Model
Company Description
Barnes & Noble Education, Inc. operates bookstores for college and university campuses, and K-12 institutions primarily in the United States. The company sells and rents new and used print textbooks, digital textbooks, and publisher hosted digital...
How the Company Makes Money
BNED primarily makes money by selling and distributing course materials and operating retail bookstore services for higher-education institutions. Key revenue streams include: (1) Course materials revenue: Sales and rentals of new and used textboo...
Barnes & Noble Education Earnings Call Summary
Earnings Call Date:Dec 06, 2023
(Q2-2024)
| % Change Since: |
Next Earnings Date:Aug 27, 2026
Earnings Call Sentiment Positive
The earnings call reflects a period of solid growth and strategic progress for BNED, particularly in its First Day Complete and subscription-like revenue models, which have led to significant EBITDA growth and operational efficiencies. Despite some challenges in general merchandise sales and retail gross margin, the overall sentiment of the call is positive due to the successful implementation of cost-saving measures and the strategic transition to more predictable revenue streams.Positive Updates
Strong Growth in First Day Complete Revenue
First Day Complete revenue increased 52% year-over-year to $136 million. Combined First Day programs revenue reached $199 million, marking a 39% growth.
Negative Updates
Decline in General Merchandise Sales
Comparable store sales for general merchandise declined by 1.7%, primarily due to declines in trade books and cafe and convenience items.
Read all updates
Q2-2024 Updates
Positive
Negative
Strong Growth in First Day Complete Revenue
First Day Complete revenue increased 52% year-over-year to $136 million. Combined First Day programs revenue reached $199 million, marking a 39% growth.
Read all positive updates
Company Guidance
During the Barnes & Noble Education (BNED) Fiscal 2024 2nd Quarter Earnings Call, the company provided several key metrics and insights into its performance and future guidance. The highlight of the quarter was the significant growth in the First Day Complete (FDC) program, which saw a 52% year-over-year revenue increase to $136 million, contributing to a total First Day programs revenue of $199 million. This growth helped offset declines in traditional à la carte courseware sales, with the First Day Complete and First Day revenues approaching 50% of the total course material revenue. This strategic shift has led to improved revenue visibility and operational efficiency, despite the company operating 128 fewer stores. The quarter's total revenue reached $610.4 million, marking a slight increase of 0.3% from the previous year, while consolidated adjusted EBITDA rose by 28.3% to $50.3 million, driven by a $13 million reduction in selling and administrative expenses. Looking ahead, BNED maintains its fiscal 2024 adjusted EBITDA guidance of approximately $40 million, expecting continued growth from its retail segment and ongoing cost reduction initiatives.Barnes & Noble Education Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
63
Positive
Cash Flow
59
Neutral
| Breakdown | TTM | Apr 2026 | Oct 2025 | Apr 2024 | Jul 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.73B | 1.71B | 1.61B | 1.57B | 1.54B | 1.50B |
| Gross Profit | 330.46M | 366.17M | 337.80M | 344.91M | 349.44M | 342.83M |
| EBITDA | 31.64M | 69.29M | -6.18M | -5.21M | -26.87M | -18.11M |
| Net Income | -9.80M | 16.87M | -65.83M | -75.75M | -101.86M | -68.86M |
Balance Sheet | ||||||
| Total Assets | 1.13B | 739.90M | 790.28M | 909.95M | 980.78M | 1.07B |
| Cash, Cash Equivalents and Short-Term Investments | 10.14M | 8.42M | 9.06M | 10.46M | 14.22M | 8.79M |
| Total Debt | 316.01M | 152.50M | 283.12M | 413.92M | 466.88M | 542.44M |
| Total Liabilities | 840.33M | 445.46M | 518.10M | 829.55M | 850.03M | 843.18M |
| Stockholders Equity | 289.97M | 294.44M | 272.19M | 80.40M | 130.75M | 228.37M |
Cash Flow | ||||||
| Free Cash Flow | 6.99M | 33.86M | -98.31M | -19.19M | 66.58M | -32.45M |
| Operating Cash Flow | 22.36M | 50.06M | -85.41M | -5.12M | 91.67M | 1.16M |
| Investing Cash Flow | -15.37M | -16.20M | -12.10M | 7.40M | -31.04M | -42.66M |
| Financing Cash Flow | -5.29M | -34.37M | 97.67M | -5.70M | -49.67M | 45.72M |
Barnes & Noble Education Technical Analysis
Positive
8.71
Price Trends
10.70
Positive
9.93
Positive
9.39
Positive
Market Momentum
0.35
Positive
49.55
Neutral
12.89
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNED, the sentiment is Positive. The current price of 8.71 is below the 20-day moving average (MA) of 11.74, below the 50-day MA of 10.70, and below the 200-day MA of 9.39, indicating a neutral trend. The MACD of 0.35 indicates Positive momentum. The RSI at 49.55 is Neutral, neither overbought nor oversold. The STOCH value of 12.89 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BNED.
Barnes & Noble Education Risk Analysis
Barnes & Noble Education disclosed 42 risk factors in its most recent earnings report. Barnes & Noble Education reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Barnes & Noble Education Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $1.18B | 39.77 | 14.24% | ― | 9.26% | 18.70% | |
62 Neutral | $370.73M | 0.96 | 114.67% | ― | -1.93% | 7589.97% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $399.55M | 23.31 | -3.56% | ― | 10.09% | 99.49% | |
50 Neutral | $400.03M | -5.77 | -32.45% | ― | -14.77% | 79.60% | |
50 Neutral | $146.58M | -0.67 | -680.26% | ― | 1.89% | 28.53% | |
46 Neutral | $238.45M | -1.81 | -55.53% | ― | -9.53% | 20.64% |
* Consumer Cyclical Sector Average
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Barnes & Noble Education Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresShareholder Meetings
Barnes & Noble Education Launches First Regular Dividend Program
Positive
Jun 24, 2026
Barnes Noble Education announced preliminary unaudited results for the fiscal year ended May 2, 2026, projecting revenue of $1.71 billion to $1.72 billion, up 6.2% to 6.8% year over year, driven largely by a 27% to 28% jump in First Day program r...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.