BJ'S WHOLESALE CLUB HOLDINGS (BJ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BJ - US05550J1016 - Common Stock
93.16 USD
+0.79 (+0.86%)
93.29 USD
+0.13 (+0.14%)
Overall BJ gets a fundamental rating of 5 out of 10. We evaluated BJ against 39 industry peers in the Consumer Staples Distribution & Retail industry. While BJ has a great profitability rating, there are some minor concerns on its financial health. BJ is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BJ was profitable.
In the past year BJ had a positive cash flow from operations.
Each year in the past 5 years BJ has been profitable.
BJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BJ has a better Return On Assets (7.62%) than 79.49% of its industry peers.
BJ has a better Return On Equity (26.48%) than 79.49% of its industry peers.
BJ has a Return On Invested Capital of 12.32%. This is amongst the best in the industry. BJ outperforms 84.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BJ is above the industry average of 8.85%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 26.48% | ||
| ROIC | 12.32% |
ROA(3y)7.83%
ROA(5y)7.76%
ROE(3y)37.94%
ROE(5y)62.31%
ROIC(3y)13.64%
ROIC(5y)13.39%
1.3 Margins
With a decent Profit Margin value of 2.72%, BJ is doing good in the industry, outperforming 66.67% of the companies in the same industry.
BJ's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 3.89%, BJ is doing good in the industry, outperforming 69.23% of the companies in the same industry.
BJ's Operating Margin has improved in the last couple of years.
The Gross Margin of BJ (18.61%) is worse than 61.54% of its industry peers.
BJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.89% | ||
| PM (TTM) | 2.72% | ||
| GM | 18.61% |
OM growth 3Y0.89%
OM growth 5Y6.59%
PM growth 3Y0.58%
PM growth 5Y12.95%
GM growth 3Y-0.2%
GM growth 5Y-0.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BJ is creating some value.
BJ has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BJ has been reduced compared to 5 years ago.
Compared to 1 year ago, BJ has an improved debt to assets ratio.
2.2 Solvency
BJ has an Altman-Z score of 4.83. This indicates that BJ is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.83, BJ is in the better half of the industry, outperforming 74.36% of the companies in the same industry.
The Debt to FCF ratio of BJ is 2.40, which is a good value as it means it would take BJ, 2.40 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.40, BJ is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
BJ has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
BJ has a better Debt to Equity ratio (0.18) than 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 4.83 |
ROIC/WACC1.44
WACC8.58%
2.3 Liquidity
BJ has a Current Ratio of 0.79. This is a bad value and indicates that BJ is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of BJ (0.79) is worse than 84.62% of its industry peers.
A Quick Ratio of 0.16 indicates that BJ may have some problems paying its short term obligations.
BJ has a worse Quick ratio (0.16) than 94.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.16 |
3. Growth
3.1 Past
BJ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.31%.
Measured over the past years, BJ shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.64% on average per year.
Looking at the last year, BJ shows a small growth in Revenue. The Revenue has grown by 2.82% in the last year.
Measured over the past years, BJ shows a quite strong growth in Revenue. The Revenue has been growing by 9.22% on average per year.
EPS 1Y (TTM)3.31%
EPS 3Y7.61%
EPS 5Y22.64%
EPS Q2Q%-1.69%
Revenue 1Y (TTM)2.82%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%4.88%
3.2 Future
Based on estimates for the next years, BJ will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.01% on average per year.
The Revenue is expected to grow by 5.65% on average over the next years.
EPS Next Y10.52%
EPS Next 2Y9.06%
EPS Next 3Y8.65%
EPS Next 5Y10.01%
Revenue Next Year4.1%
Revenue Next 2Y5.25%
Revenue Next 3Y5.42%
Revenue Next 5Y5.65%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.32, which indicates a rather expensive current valuation of BJ.
BJ's Price/Earnings is on the same level as the industry average.
BJ's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.56.
With a Price/Forward Earnings ratio of 19.34, BJ is valued on the expensive side.
BJ's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, BJ is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.32 | ||
| Fwd PE | 19.34 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BJ is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, BJ is valued a bit more expensive than the industry average as 64.10% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.83 | ||
| EV/EBITDA | 11.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BJ does not grow enough to justify the current Price/Earnings ratio.
BJ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.03
PEG (5Y)0.94
EPS Next 2Y9.06%
EPS Next 3Y8.65%
5. Dividend
5.1 Amount
BJ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
93.16
+0.79 (+0.86%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners110.86%
Inst Owner Change4.87%
Ins Owners0.61%
Ins Owner Change-8.36%
Market Cap12.19B
Revenue(TTM)21.16B
Net Income(TTM)575.18M
Analysts79.35
Price Target110.8 (18.94%)
Short Float %6.54%
Short Ratio3.81
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.13%
Min EPS beat(2)1.37%
Max EPS beat(2)2.89%
EPS beat(4)4
Avg EPS beat(4)7%
Min EPS beat(4)1.37%
Max EPS beat(4)20.92%
EPS beat(8)7
Avg EPS beat(8)7.45%
EPS beat(12)10
Avg EPS beat(12)5.98%
EPS beat(16)14
Avg EPS beat(16)8.83%
Revenue beat(2)0
Avg Revenue beat(2)-3.78%
Min Revenue beat(2)-4.67%
Max Revenue beat(2)-2.88%
Revenue beat(4)0
Avg Revenue beat(4)-3.71%
Min Revenue beat(4)-4.67%
Max Revenue beat(4)-2.88%
Revenue beat(8)0
Avg Revenue beat(8)-3.3%
Revenue beat(12)0
Avg Revenue beat(12)-3.47%
Revenue beat(16)2
Avg Revenue beat(16)-2.25%
PT rev (1m)-5.76%
PT rev (3m)-5.81%
EPS NQ rev (1m)-2.1%
EPS NQ rev (3m)-2.25%
EPS NY rev (1m)0.6%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)0.88%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.32 | ||
| Fwd PE | 19.34 | ||
| P/S | 0.58 | ||
| P/FCF | 48.83 | ||
| P/OCF | 13.38 | ||
| P/B | 5.61 | ||
| P/tB | 11.43 | ||
| EV/EBITDA | 11.54 |
EPS(TTM)4.37
EY4.69%
EPS(NY)4.82
Fwd EY5.17%
FCF(TTM)1.91
FCFY2.05%
OCF(TTM)6.96
OCFY7.47%
SpS161.72
BVpS16.6
TBVpS8.15
PEG (NY)2.03
PEG (5Y)0.94
Graham Number40.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 26.48% | ||
| ROCE | 16.97% | ||
| ROIC | 12.32% | ||
| ROICexc | 12.44% | ||
| ROICexgc | 16.16% | ||
| OM | 3.89% | ||
| PM (TTM) | 2.72% | ||
| GM | 18.61% | ||
| FCFM | 1.18% |
ROA(3y)7.83%
ROA(5y)7.76%
ROE(3y)37.94%
ROE(5y)62.31%
ROIC(3y)13.64%
ROIC(5y)13.39%
ROICexc(3y)13.75%
ROICexc(5y)13.52%
ROICexgc(3y)18.89%
ROICexgc(5y)18.92%
ROCE(3y)18.77%
ROCE(5y)18.43%
ROICexgc growth 3Y-1.43%
ROICexgc growth 5Y8.33%
ROICexc growth 3Y0.52%
ROICexc growth 5Y10.31%
OM growth 3Y0.89%
OM growth 5Y6.59%
PM growth 3Y0.58%
PM growth 5Y12.95%
GM growth 3Y-0.2%
GM growth 5Y-0.04%
F-Score7
Asset Turnover2.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 234.74% | ||
| Cap/Sales | 3.13% | ||
| Interest Coverage | 25.1 | ||
| Cash Conversion | 82.53% | ||
| Profit Quality | 43.4% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.16 | ||
| Altman-Z | 4.83 |
F-Score7
WACC8.58%
ROIC/WACC1.44
Cap/Depr(3y)209.17%
Cap/Depr(5y)187.42%
Cap/Sales(3y)2.42%
Cap/Sales(5y)2.12%
Profit Quality(3y)60.91%
Profit Quality(5y)91.23%
High Growth Momentum
Growth
EPS 1Y (TTM)3.31%
EPS 3Y7.61%
EPS 5Y22.64%
EPS Q2Q%-1.69%
EPS Next Y10.52%
EPS Next 2Y9.06%
EPS Next 3Y8.65%
EPS Next 5Y10.01%
Revenue 1Y (TTM)2.82%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%4.88%
Revenue Next Year4.1%
Revenue Next 2Y5.25%
Revenue Next 3Y5.42%
Revenue Next 5Y5.65%
EBIT growth 1Y1.28%
EBIT growth 3Y8.1%
EBIT growth 5Y16.42%
EBIT Next Year47.67%
EBIT Next 3Y19.87%
EBIT Next 5Y14.03%
FCF growth 1Y48.33%
FCF growth 3Y-14.92%
FCF growth 5Y14.61%
OCF growth 1Y46.99%
OCF growth 3Y2.7%
OCF growth 5Y20.47%
BJ'S WHOLESALE CLUB HOLDINGS / BJ FAQ
Can you provide the ChartMill fundamental rating for BJ'S WHOLESALE CLUB HOLDINGS?
ChartMill assigns a fundamental rating of 5 / 10 to BJ.
Can you provide the valuation status for BJ'S WHOLESALE CLUB HOLDINGS?
ChartMill assigns a valuation rating of 2 / 10 to BJ'S WHOLESALE CLUB HOLDINGS (BJ). This can be considered as Overvalued.
What is the profitability of BJ stock?
BJ'S WHOLESALE CLUB HOLDINGS (BJ) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for BJ stock?
The Price/Earnings (PE) ratio for BJ'S WHOLESALE CLUB HOLDINGS (BJ) is 21.32 and the Price/Book (PB) ratio is 5.61.
What is the expected EPS growth for BJ'S WHOLESALE CLUB HOLDINGS (BJ) stock?
The Earnings per Share (EPS) of BJ'S WHOLESALE CLUB HOLDINGS (BJ) is expected to grow by 10.52% in the next year.