Stock on Watch: Barnes & Noble Education, Inc. (BNED)

Company Profile:

Barnes & Noble Education, Inc. is a contract operator of bookstores on college and university campuses in the United States. The Company creates and operates campus stores under multi-year management service agreements. Its products and services include Textbook and Course Material Sales, Textbook and Course Material Rentals, General Merchandise, Trade, Digital Education Platform (Yuzu), e-commerce Platform, FacultyEnlight, Campus Connect Technologies platform and Flexible Course Fee Solution. It operates approximately 724 stores across the nation. The Company’s stores are operated under 453 contracts, some of which cover multiple store locations, and 154 of its college and university affiliated bookstores are co-branded with the Barnes & Noble name. Barnes & Noble Education, operates independently of Barnes & Noble, Inc. as of August 03, 2015.

Recent News:

Barnes & Noble Education, Inc. reported sales and earnings for its fiscal 2016 first quarter ended August 1st, 2015. First quarter sales of $239.0 million increased $13.3 million, or 5.9%, as compared to the prior year.

Barnes & Noble Education major shareholder Abrams Capital Management, L.P acquired 146,841 shares of the business’s stock in a transaction dated Wednesday, September 23rd. The shares were purchased at an average price of $12.60 per share, with a total value of $1,850,196.60.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

BNED’s strengths can be seen in its strong growth, robust profitability and great efficiency. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and RSI is increasing to 54.52. The P/BV ratio indicates it is undervalued compared to the average P/BV ratio of the industry and the sector. We rate Barnes & Noble Education, Inc. (BNED) a STRONG BUY.