BJ'S WHOLESALE CLUB HOLDINGS (BJ) Stock Fundamental Analysis
NYSE:BJ - New York Stock Exchange, Inc. - US05550J1016 - Common Stock - Currency: USD
Taking everything into account, BJ scores 6 out of 10 in our fundamental rating. BJ was compared to 41 industry peers in the Consumer Staples Distribution & Retail industry. BJ has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. BJ is quite expensive at the moment. It does show a decent growth rate. These ratings would make BJ suitable for quality investing!
1. Profitability
1.1 Basic Checks
BJ had positive earnings in the past year.
BJ had a positive operating cash flow in the past year.
Each year in the past 5 years BJ has been profitable.
Each year in the past 5 years BJ had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.01%, BJ belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
BJ has a better Return On Equity (29.07%) than 87.80% of its industry peers.
With an excellent Return On Invested Capital value of 12.85%, BJ belongs to the best of the industry, outperforming 87.80% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BJ is significantly above the industry average of 7.97%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.01% | ||
| ROE | 29.07% | ||
| ROIC | 12.85% |
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
The Profit Margin of BJ (2.76%) is better than 73.17% of its industry peers.
BJ's Profit Margin has improved in the last couple of years.
BJ's Operating Margin of 3.96% is fine compared to the rest of the industry. BJ outperforms 75.61% of its industry peers.
In the last couple of years the Operating Margin of BJ has grown nicely.
Looking at the Gross Margin, with a value of 18.57%, BJ is doing worse than 63.41% of the companies in the same industry.
In the last couple of years the Gross Margin of BJ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.96% | ||
| PM (TTM) | 2.76% | ||
| GM | 18.57% |
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) below the Cost of Capital (WACC), BJ is destroying value.
Compared to 1 year ago, BJ has less shares outstanding
The number of shares outstanding for BJ has been reduced compared to 5 years ago.
BJ has a better debt/assets ratio than last year.
2.2 Solvency
BJ has an Altman-Z score of 5.22. This indicates that BJ is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.22, BJ is doing good in the industry, outperforming 75.61% of the companies in the same industry.
The Debt to FCF ratio of BJ is 1.92, which is an excellent value as it means it would take BJ, only 1.92 years of fcf income to pay off all of its debts.
BJ has a Debt to FCF ratio of 1.92. This is amongst the best in the industry. BJ outperforms 82.93% of its industry peers.
BJ has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
BJ has a better Debt to Equity ratio (0.20) than 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 5.22 |
ROIC/WACC0.83
WACC15.42%
2.3 Liquidity
BJ has a Current Ratio of 0.77. This is a bad value and indicates that BJ is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.77, BJ is not doing good in the industry: 85.37% of the companies in the same industry are doing better.
BJ has a Quick Ratio of 0.77. This is a bad value and indicates that BJ is not financially healthy enough and could expect problems in meeting its short term obligations.
BJ's Quick ratio of 0.14 is on the low side compared to the rest of the industry. BJ is outperformed by 95.12% of its industry peers.
The current and quick ratio evaluation for BJ is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
BJ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.00%, which is quite good.
BJ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.64% yearly.
BJ shows a small growth in Revenue. In the last year, the Revenue has grown by 2.84%.
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)11%
EPS 3Y7.61%
EPS 5Y22.64%
EPS Q2Q%34.12%
Revenue 1Y (TTM)2.84%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%4.78%
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 11.15% on average per year.
BJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.64% yearly.
EPS Next Y7.82%
EPS Next 2Y9.04%
EPS Next 3Y9.65%
EPS Next 5Y11.15%
Revenue Next Year4.99%
Revenue Next 2Y5.79%
Revenue Next 3Y6.11%
Revenue Next 5Y5.64%
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
Based on the Price/Earnings ratio of 25.49, the valuation of BJ can be described as expensive.
BJ's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.31, BJ is valued at the same level.
A Price/Forward Earnings ratio of 22.97 indicates a rather expensive valuation of BJ.
The rest of the industry has a similar Price/Forward Earnings ratio as BJ.
BJ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.49 | ||
| Fwd PE | 22.97 |
4.2 Price Multiples
BJ's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, BJ is valued a bit more expensive than the industry average as 60.98% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.19 | ||
| EV/EBITDA | 13.75 |
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 an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.26
PEG (5Y)1.13
EPS Next 2Y9.04%
EPS Next 3Y9.65%
5. Dividend
5.1 Amount
BJ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
110.62
+0.96 (+0.88%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners103.82%
Inst Owner Change1.51%
Ins Owners0.76%
Ins Owner Change1.02%
Market Cap14.61B
Analysts78.79
Price Target125.71 (13.64%)
Short Float %4.37%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)11.87%
Min EPS beat(2)2.82%
Max EPS beat(2)20.92%
EPS beat(4)4
Avg EPS beat(4)13.49%
Min EPS beat(4)2.82%
Max EPS beat(4)24.36%
EPS beat(8)7
Avg EPS beat(8)7.49%
EPS beat(12)10
Avg EPS beat(12)9.45%
EPS beat(16)14
Avg EPS beat(16)10.69%
Revenue beat(2)0
Avg Revenue beat(2)-3.64%
Min Revenue beat(2)-3.69%
Max Revenue beat(2)-3.59%
Revenue beat(4)0
Avg Revenue beat(4)-3.57%
Min Revenue beat(4)-3.94%
Max Revenue beat(4)-3.05%
Revenue beat(8)0
Avg Revenue beat(8)-3.65%
Revenue beat(12)1
Avg Revenue beat(12)-2.35%
Revenue beat(16)4
Avg Revenue beat(16)-0.97%
PT rev (1m)4.43%
PT rev (3m)21.94%
EPS NQ rev (1m)-3.8%
EPS NQ rev (3m)-3.68%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-1.55%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.49 | ||
| Fwd PE | 22.97 | ||
| P/S | 0.7 | ||
| P/FCF | 51.19 | ||
| P/OCF | 16.09 | ||
| P/B | 7.41 | ||
| P/tB | 16.92 | ||
| EV/EBITDA | 13.75 |
EPS(TTM)4.34
EY3.92%
EPS(NY)4.82
Fwd EY4.35%
FCF(TTM)2.16
FCFY1.95%
OCF(TTM)6.88
OCFY6.22%
SpS157.04
BVpS14.93
TBVpS6.54
PEG (NY)3.26
PEG (5Y)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.01% | ||
| ROE | 29.07% | ||
| ROCE | 17.68% | ||
| ROIC | 12.85% | ||
| ROICexc | 12.96% | ||
| ROICexgc | 17.06% | ||
| OM | 3.96% | ||
| PM (TTM) | 2.76% | ||
| GM | 18.57% | ||
| FCFM | 1.38% |
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%
ROICexcg growth 3Y-1.43%
ROICexcg 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-Score8
Asset Turnover2.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.92 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 232.1% | ||
| Cap/Sales | 3% | ||
| Interest Coverage | 20.86 | ||
| Cash Conversion | 83.31% | ||
| Profit Quality | 49.79% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 5.22 |
F-Score8
WACC15.42%
ROIC/WACC0.83
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)11%
EPS 3Y7.61%
EPS 5Y22.64%
EPS Q2Q%34.12%
EPS Next Y7.82%
EPS Next 2Y9.04%
EPS Next 3Y9.65%
EPS Next 5Y11.15%
Revenue 1Y (TTM)2.84%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%4.78%
Revenue Next Year4.99%
Revenue Next 2Y5.79%
Revenue Next 3Y6.11%
Revenue Next 5Y5.64%
EBIT growth 1Y6.11%
EBIT growth 3Y8.1%
EBIT growth 5Y16.42%
EBIT Next Year51.43%
EBIT Next 3Y20.65%
EBIT Next 5Y14.03%
FCF growth 1Y-38.44%
FCF growth 3Y-14.92%
FCF growth 5Y14.61%
OCF growth 1Y5.23%
OCF growth 3Y2.7%
OCF growth 5Y20.47%