Barnes & Noble Education (BNED) AI Stock Analysis

• Market Cap: $386.85M
• Dividend Yield: N/A
• Average Volume (3M): 397.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: 1.38%
• EPS Growth: 63.65%
• Country: US
• Employees: 2,520
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Specialty Retail
• EPS (TTM): 0.23
• Shares Outstanding: 34,053,850
• 10 Day Avg. Volume: 589,256
• 30 Day Avg. Volume: 397,930
• PEG Ratio: -0.02
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.23
• Enterprise Value/Market Cap: 1.38
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 1.57
• Enterprise Value/Ebitda: 29.93
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: ―

Barnes & Noble Education has significant financial challenges, with ongoing losses and high leverage being key concerns. While there are modest signs of improvement in revenue and equity, profitability and cash flow issues remain critical. Technical analysis indicates some market momentum, but valuation metrics highlight fundamental weaknesses. Strategic improvements are essential to enhance the company's financial health and stock performance.

Barnes & Noble Education Business Overview & Revenue Model

Company Description

Barnes & Noble Education, Inc. operates bookstores for college and university campuses, and K-12 institutions in the United States. It operates through three segments: Retail, Wholesale, and Digital Student Solutions. The company sells and rents new and used print textbooks, digital textbooks, and publisher hosted digital courseware through physical and virtual bookstores, as well as directly to students through Textbooks.com. It also offers First Day and First Day Complete access programs; BNC OER+, a turnkey solution for colleges and universities, that offers digital content, such as videos, activities, and auto-graded practice assessments; and general merchandise, including collegiate and athletic apparel, school spirit products, lifestyle products, technology products, supplies, graduation products, and convenience items. In addition, the company sources, sells, and distributes new and used textbooks; and sells hardware and a software suite of applications that provides inventory management and point-of-sale solutions to approximately 350 college bookstores. Further, it offers direct-to-student subscription-based writing services; and bartleby, a direct-to-student subscription-based offering that includes textbook solutions, expert questions and answers, and writing and tutoring services. The company operates 805 physical college and university bookstores; 622 virtual bookstores; 8 True Spirit e-commerce websites; pop-up retail locations; 73 customized cafés and 11 stand-alone convenience stores; and a media channel for brands targeting the college demographic. Barnes & Noble Education, Inc. was founded in 1965 and is headquartered in Basking Ridge, New Jersey.

How the Company Makes Money

Barnes & Noble Education generates revenue through various streams. The Retail segment, which includes the operation of campus bookstores, is a significant revenue driver, providing both physical and digital educational materials to students and faculty. BNED also earns from its Wholesale segment, which involves the distribution of textbooks to a variety of customers. Additionally, the Digital Student Solutions segment contributes to the company's earnings by offering digital learning solutions and tools that support online education. Key partnerships with educational institutions and technology providers help expand BNED's market reach and enhance its revenue potential.

Barnes & Noble Education Financial Statement Overview

Summary

Barnes & Noble Education faces significant financial headwinds, with persistent losses and high leverage. While there are signs of slight improvements in some metrics, such as revenue growth and equity improvements, profitability and cash flow remain major areas of concern. The company's financial stability is under pressure, demanding strategic actions to enhance operational efficiency and financial structure.

Income Statement

The income statement reveals substantial challenges with profitability, indicated by negative EBIT and net income over recent periods. Despite slight revenue growth in some periods, the company has struggled to achieve positive profit margins. The TTM data shows a slight improvement in EBIT margin, but overall profitability remains a concern.

Balance Sheet

The balance sheet reflects a high level of debt relative to equity, resulting in a concerning debt-to-equity ratio. Although stockholders' equity has improved in the latest TTM, it still poses financial stability risks. The equity ratio indicates a moderate level of equity financing, but leverage remains a critical issue.

Cash Flow

Cash flow analysis highlights negative operating and free cash flow, indicating liquidity challenges. The free cash flow to net income ratio is weak, and the company has not consistently generated positive free cash flow, which is crucial for sustaining operations without external financing.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.57B	1.57B	1.54B	1.53B	1.43B	1.85B
Gross Profit	341.11M	316.22M	349.44M	372.76M	252.66M	442.55M
EBITDA	9.88M	18.63M	-24.26M	-18.11M	-118.17M	23.16M
Net Income	-70.00M	-63.21M	-101.86M	-68.86M	-131.79M	-38.25M
Balance Sheet
Total Assets	1.09B	905.08M	980.78M	1.07B	1.04B	1.16B
Cash, Cash Equivalents and Short-Term Investments	9.19M	10.46M	14.22M	10.39M	8.02M	8.24M
Total Debt	364.10M	440.74M	466.88M	542.44M	454.89M	453.41M
Total Liabilities	804.26M	834.50M	850.03M	843.18M	737.38M	738.68M
Stockholders Equity	283.32M	70.58M	130.75M	228.37M	301.03M	417.75M
Cash Flow
Free Cash Flow	-68.69M	-19.19M	66.58M	-41.47M	-4.34M	-52.30M
Operating Cash Flow	-56.78M	-5.12M	91.67M	2.06M	32.88M	-16.10M
Investing Cash Flow	-11.12M	7.40M	-31.04M	-42.66M	-36.88M	-29.59M
Financing Cash Flow	69.60M	-5.70M	-49.67M	45.72M	11.80M	39.94M

Barnes & Noble Education Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 11.36 is below the 20-day moving average (MA) of 11.56, above the 50-day MA of 11.15, and above the 200-day MA of 10.41, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 48.48 is Neutral, neither overbought nor oversold. The STOCH value of 52.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BNED.

Barnes & Noble Education Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HZO	71 Outperform	$596.53M	11.31	5.91%	―	-0.24%	-10.33%
Sector *	62 Neutral	$16.90B	11.24	-7.48%	2.95%	1.60%	-23.76%
TDUP	62 Neutral	$945.98M	―	-69.51%	―	-10.55%	9.27%
NEGG	57 Neutral	$321.79M	―	-45.59%	―	―	―
BNED	50 Neutral	$386.85M	―	-36.88%	―	1.38%	63.65%
QVCGA	43 Neutral	$29.97M	―		―	-7.66%	-735.19%
QVCGB	41 Neutral	$29.97M	―		―	-7.66%	-735.19%

Barnes & Noble Education Corporate Events

Barnes & Noble Education Raises $40M to Enhance Flexibility

Barnes & Noble Education has successfully raised $40 million through an equity offering, aiming to reduce interest expenses, attract new customers, and improve strategic options. Additionally, they filed a $100 million mixed-use shelf offering to enhance financial flexibility and optimize capital structure.