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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on BNED

Negative drivers behind Barnes & Noble Education's recent performance include disappointing cash flow generation, despite a profitable third quarter. The company's net income was bolstered by a one-time benefit from the termination of liabilities related to a frozen retirement benefit plan, rather than organic growth. Additionally, the lack of cash generation is concerning, as it may indicate underlying operational issues. The appointment of new leadership, including Christopher Neumann as General Counsel & Corporate Secretary and Gary Luster as Chief Accounting Officer, may be a positive step, but its impact on the company's performance is yet to be seen.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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BNED Investigation: Investors Encouraged to Contact Kirby McInerney LLP

Dec -04

Source: businesswire.com

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Barnes & Noble Education: More Progress But Downgrading On Profitability Outlook

Nov -26

Source: seekingalpha.com

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Barnes & Noble Education Announces Preliminary Full-Year Fiscal 2025 and Year-to-Date Fiscal 2026 Unaudited Financial Results

Nov -25

Source: globenewswire.com

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Immersion: Upgrading On Upcoming Barnes & Noble Education Catalyst - Buy

Sep -19

Source: seekingalpha.com

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BNED INVESTIGATION ALERT: Bragar Eagel & Squire, P.C. Continues Investigating Barnes & Noble Education, Inc. on Behalf of Stockholders and Encourages Investors to Contact the Firm

Sep -18

Source: globenewswire.com

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Barnes & Noble College Introduces Room Service – An Innovative Dorm Shopping and Delivery Service

Sep -18

Source: globenewswire.com

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Back To School: Barnes & Noble Education Is A Textbook Buy

Sep -16

Source: seekingalpha.com

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Barnes & Noble Education: Major Progress Masked By Accounting Issues - Strong Buy (Rating Upgrade)

Sep -16

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.39%)

6. Segments

Retail

Expected Growth: 2.5%

Barnes & Noble Education's 2.5% retail growth is driven by increasing demand for digital learning materials, strategic partnerships with universities, and expansion of its omnichannel platform, providing students with a seamless shopping experience. Additionally, the company's focus on general merchandise and convenience items, such as food and beverages, contributes to growth.

Wholesale

Expected Growth: 1.8%

The 1.8% growth in wholesale from Barnes & Noble Education, Inc. is driven by increasing demand for digital course materials, expansion of the company's digital platform, and strategic partnerships with educational institutions. Additionally, the company's focus on providing affordable and accessible educational resources has contributed to the growth.

Eliminations

Expected Growth: 0.5%

Barnes & Noble Education, Inc.'s 0.5% growth is driven by increasing demand for digital learning solutions, strategic partnerships with educational institutions, and cost-saving initiatives. Additionally, the company's focus on general merchandise and omnichannel retailing has contributed to its growth. However, the decline in physical textbook sales and intense competition in the education space have partially offset these gains.

7. Detailed Products

Wholesale

Barnes & Noble Education, Inc. provides wholesale services to colleges and universities, offering a wide range of products, including textbooks, course materials, and general merchandise.

Retail

The company operates physical and virtual bookstores on college campuses, offering a variety of products, including textbooks, general merchandise, and convenience items.

Digital Solutions

Barnes & Noble Education, Inc. offers digital solutions, including e-textbooks, digital course materials, and online learning platforms.

Brand Partnerships

The company partners with leading brands to offer a range of products and services to students, including technology, apparel, and convenience items.

Campus Services

Barnes & Noble Education, Inc. provides a range of services to colleges and universities, including bookstore management, marketing, and logistics support.

8. Barnes & Noble Education, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Barnes & Noble Education, Inc. is medium due to the presence of alternative textbook rental and digital learning platforms. However, the company's strong brand recognition and partnerships with publishers mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low due to the fragmented nature of the market and the lack of concentration among buyers. Additionally, Barnes & Noble Education, Inc.'s strong relationships with publishers and institutions reduce the bargaining power of customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of a few large publishers that dominate the market. However, Barnes & Noble Education, Inc.'s diversified supplier base and strong relationships with publishers mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the textbook rental and digital learning platform market. The need for significant capital investment, established relationships with publishers, and strong brand recognition create significant barriers to entry.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the market, including Chegg, Amazon, and VitalSource. The market is highly competitive, with companies competing on price, convenience, and quality of service.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 78.12%
Debt Cost 4.80%
Equity Weight 21.88%
Equity Cost 14.02%
WACC 6.82%
Leverage 357.08%

11. Quality Control: Barnes & Noble Education, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Hour Loop

A-Score: 4.6/10

Value: 3.8

Growth: 7.1

Quality: 6.5

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

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National Vision

A-Score: 4.1/10

Value: 4.7

Growth: 2.4

Quality: 3.2

Yield: 0.0

Momentum: 10.0

Volatility: 4.0

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Barnes & Noble Education

A-Score: 3.3/10

Value: 7.4

Growth: 1.7

Quality: 2.8

Yield: 0.0

Momentum: 6.0

Volatility: 1.7

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Petco

A-Score: 3.1/10

Value: 7.5

Growth: 5.1

Quality: 2.1

Yield: 0.0

Momentum: 3.0

Volatility: 1.0

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Sportsman's Warehouse

A-Score: 3.0/10

Value: 8.1

Growth: 3.6

Quality: 2.9

Yield: 0.0

Momentum: 2.5

Volatility: 1.0

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The Container Store

A-Score: 2.4/10

Value: 10.0

Growth: 1.3

Quality: 2.9

Yield: 0.0

Momentum: 0.0

Volatility: 0.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

8.85$

Current Price

8.85$

Potential

-0.00%

Expected Cash-Flows