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Barnes & Noble Education (BNED)
NYSE:BNED
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Barnes & Noble Education
(NYSE:BNED)
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Rating:50Neutral
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 (BNED) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$310.23M
Dividend YieldN/A
Average Volume (3M)303.67K
Price to Earnings (P/E)―
Beta (1Y)1.57
Revenue Growth1.38%
EPS Growth63.65%
CountryUS
Employees2,520
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)N/A
Shares Outstanding34,053,850
10 Day Avg. Volume253,330
30 Day Avg. Volume303,667
Financial Highlights & Ratios
PEG Ratio0.19
Price to Book (P/B)7.50
Price to Sales (P/S)0.34
P/FCF Ratio-27.59
Enterprise Value/Market Cap2.24
Enterprise Value/Revenue0.44
Enterprise Value/Gross Profit2.04
Enterprise Value/Ebitda70.41
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Barnes & Noble Education Business Overview & Revenue Model
Company DescriptionBarnes & Noble Education, Inc. (BNED) is a leading provider of educational products and services for institutions and students across the United States. The company operates through three primary segments: Retail, Wholesale, and Digital Student Solutions. BNED's core offerings include physical and digital textbooks, course materials, and a wide array of educational and technology-related products. With a strong presence on college and university campuses, the company also provides services such as campus bookstore management and academic solutions aimed at enhancing the educational experience.
How the Company Makes MoneyBarnes & 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 Earnings Call Summary
Earnings Call Date:Jul 01, 2025
(Q2-2024)
| % Change Since: |
Next Earnings Date:Sep 04, 2025
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.Q2-2024 Updates
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.
Significant Increase in Adjusted EBITDA
Consolidated adjusted EBITDA increased by 28% to $50.3 million, driven by a $13 million decrease in S&A expenses.
Cost Savings Achieved
Achieved planned $30 million to $35 million of annualized cost savings, contributing to improved profitability.
Positive Transition to Subscription Model
First Day and First Day Complete revenues are approaching 50% of course material revenue, offsetting declines in the à la carte model by $30 million on a year-to-date basis.
Retail Segment Performance
Retail adjusted EBITDA increased by 23% with course material comparable store sales growth of 5.8%.
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.
Retail Gross Margin Decline
Retail gross margin decreased by 70 basis points to 20.9%, due to higher markdowns and a higher percentage of lower-margin digital course material sales.
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
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.45
Neutral
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.55
Neutral
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.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2019 | Dec 2018 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.57B | 1.57B | 1.54B | 1.50B | 2.03B | 2.20B |
| Gross Profit | 341.11M | 356.78M | 349.44M | 342.83M | 527.73M | 557.23M |
| EBITDA | 9.88M | 18.63M | -24.26M | -18.11M | 39.31M | -197.12M |
| Net Income | -70.00M | -63.21M | -101.86M | -68.86M | -24.37M | -252.57M |
Balance Sheet | ||||||
| Total Assets | 1.09B | 905.08M | 980.78M | 1.07B | 946.18M | 1.04B |
| Cash, Cash Equivalents and Short-Term Investments | 9.19M | 10.46M | 14.22M | 10.39M | 14.01M | 16.13M |
| Total Debt | 364.10M | 440.74M | 466.88M | 542.44M | 133.50M | 196.40M |
| Total Liabilities | 804.26M | 834.50M | 850.03M | 843.18M | 495.55M | 571.25M |
| Stockholders Equity | 283.32M | 70.58M | 130.75M | 228.37M | 450.63M | 467.96M |
Cash Flow | ||||||
| Free Cash Flow | -68.69M | -19.19M | 66.58M | -41.47M | 74.40M | 17.23M |
| Operating Cash Flow | -56.78M | -5.12M | 91.67M | 1.16M | 120.82M | 60.04M |
| Investing Cash Flow | -11.12M | 7.40M | -31.04M | -42.66M | -54.65M | -100.03M |
| Financing Cash Flow | 69.60M | -5.70M | -49.67M | 45.72M | -68.27M | 35.16M |
Barnes & Noble Education Technical Analysis
Negative
9.11
Price Trends
8.87
Positive
9.95
Negative
10.07
Negative
Market Momentum
0.16
Positive
46.19
Neutral
31.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BNED, the sentiment is Negative. The current price of 9.11 is below the 20-day moving average (MA) of 9.41, above the 50-day MA of 8.87, and below the 200-day MA of 10.07, indicating a neutral trend. The MACD of 0.16 indicates Positive momentum. The RSI at 46.19 is Neutral, neither overbought nor oversold. The STOCH value of 31.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BNED.
Barnes & Noble Education Risk Analysis
Barnes & Noble Education disclosed 34 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $724.38M | 28.07 | 14.00% | ― | 38.40% | 32.42% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $428.15M | 75.55 | 2.66% | ― | -8.78% | ― | |
50 Neutral | $310.23M | ― | -36.88% | ― | 1.38% | 63.65% | |
46 Neutral | $260.39M | ― | -176.08% | ― | -9.95% | 39.66% | |
44 Neutral | $268.47M | ― | -54.45% | ― | -7.96% | -3078.36% | |
41 Neutral | $502.88M | ― | -105.72% | ― | -26.63% | 45.71% |
* Consumer Cyclical Sector Average
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2.24%
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Barnes & Noble Education Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Barnes & Noble Education Raises $40M to Enhance Flexibility
Positive
Jan 10, 2025
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.
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.