BJ'S WHOLESALE CLUB HOLDINGS (BJ) Stock Fundamental Analysis
NYSE:BJ - New York Stock Exchange, Inc. - US05550J1016 - Common Stock - Currency: USD
BJ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 41 industry peers in the Consumer Staples Distribution & Retail industry. Both the health and profitability get an excellent rating, making BJ a very profitable company, without any liquidiy or solvency issues. BJ is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make BJ a good candidate for quality investing.
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.
Each year in the past 5 years BJ had a positive operating cash flow.
1.2 Ratios
BJ has a better Return On Assets (7.56%) than 87.80% of its industry peers.
BJ's Return On Equity of 28.93% is amongst the best of the industry. BJ outperforms 87.80% of its industry peers.
BJ's Return On Invested Capital of 12.46% is amongst the best of the industry. BJ outperforms 87.80% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BJ is significantly above the industry average of 8.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 28.93% | ||
| ROIC | 12.46% |
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 (2.61%) is better than 73.17% of its industry peers.
In the last couple of years the Profit Margin of BJ has grown nicely.
BJ has a Operating Margin of 3.79%. This is in the better half of the industry: BJ outperforms 73.17% of its industry peers.
BJ's Operating Margin has improved in the last couple of years.
The Gross Margin of BJ (18.36%) is worse than 63.41% of its industry peers.
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 | 3.79% | ||
| PM (TTM) | 2.61% | ||
| GM | 18.36% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BJ is destroying value.
Compared to 1 year ago, BJ has less shares outstanding
BJ has less shares outstanding than it did 5 years ago.
BJ has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.29 indicates that BJ is not in any danger for bankruptcy at the moment.
BJ has a better Altman-Z score (5.29) than 78.05% of its industry peers.
BJ has a debt to FCF ratio of 1.83. This is a very positive value and a sign of high solvency as it would only need 1.83 years to pay back of all of its debts.
BJ has a Debt to FCF ratio of 1.83. This is amongst the best in the industry. BJ outperforms 80.49% of its industry peers.
BJ has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.22, BJ is in the better half of the industry, outperforming 65.85% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.83 | ||
| Altman-Z | 5.29 |
ROIC/WACC0.8
WACC15.56%
2.3 Liquidity
BJ has a Current Ratio of 0.74. This is a bad value and indicates that BJ is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.74, BJ is doing worse than 87.80% of the companies in the same industry.
BJ has a Quick Ratio of 0.74. 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 0.15 is on the low side compared to the rest of the industry. BJ is outperformed by 95.12% of its industry peers.
BJ does not score too well on the current and quick ratio evaluation. However, as it has 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 | 0.74 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
BJ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.58%.
The Earnings Per Share has been growing by 22.64% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 2.67% in the past 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)3.58%
EPS 3Y7.61%
EPS 5Y22.64%
EPS Q2Q%-16.22%
Revenue 1Y (TTM)2.67%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%-1.47%
3.2 Future
BJ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.87% yearly.
BJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.67% yearly.
EPS Next Y7.82%
EPS Next 2Y9.04%
EPS Next 3Y9.9%
EPS Next 5Y10.87%
Revenue Next Year5%
Revenue Next 2Y5.81%
Revenue Next 3Y5.97%
Revenue Next 5Y5.67%
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
BJ is valuated quite expensively with a Price/Earnings ratio of 29.01.
BJ's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of BJ to the average of the S&P500 Index (26.03), we can say BJ is valued inline with the index average.
A Price/Forward Earnings ratio of 26.91 indicates a quite expensive valuation of BJ.
BJ's Price/Forward Earnings ratio is in line with the industry average.
BJ's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.01 | ||
| Fwd PE | 26.91 |
4.2 Price Multiples
BJ's Enterprise Value to EBITDA is on the same level as the industry average.
BJ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.45 | ||
| EV/EBITDA | 15.61 |
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)3.71
PEG (5Y)1.28
EPS Next 2Y9.04%
EPS Next 3Y9.9%
5. Dividend
5.1 Amount
BJ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
117.5
-1.58 (-1.33%)
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 Change1.35%
Ins Owners0.76%
Ins Owner Change1.66%
Market Cap15.47B
Analysts78.79
Price Target120.66 (2.69%)
Short Float %4.66%
Short Ratio2.8
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)13.59%
Min EPS beat(2)2.82%
Max EPS beat(2)24.36%
EPS beat(4)3
Avg EPS beat(4)8.24%
Min EPS beat(4)-0.08%
Max EPS beat(4)24.36%
EPS beat(8)6
Avg EPS beat(8)4.46%
EPS beat(12)10
Avg EPS beat(12)9.22%
EPS beat(16)14
Avg EPS beat(16)10.83%
Revenue beat(2)0
Avg Revenue beat(2)-3.32%
Min Revenue beat(2)-3.59%
Max Revenue beat(2)-3.05%
Revenue beat(4)0
Avg Revenue beat(4)-2.93%
Min Revenue beat(4)-3.94%
Max Revenue beat(4)-1.16%
Revenue beat(8)0
Avg Revenue beat(8)-3.75%
Revenue beat(12)2
Avg Revenue beat(12)-1.79%
Revenue beat(16)5
Avg Revenue beat(16)-0.51%
PT rev (1m)0.61%
PT rev (3m)19.98%
EPS NQ rev (1m)0.06%
EPS NQ rev (3m)0.84%
EPS NY rev (1m)0.01%
EPS NY rev (3m)-1.11%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.01 | ||
| Fwd PE | 26.91 | ||
| P/S | 0.75 | ||
| P/FCF | 49.45 | ||
| P/OCF | 17.17 | ||
| P/B | 8.37 | ||
| P/tB | 20.98 | ||
| EV/EBITDA | 15.61 |
EPS(TTM)4.05
EY3.45%
EPS(NY)4.37
Fwd EY3.72%
FCF(TTM)2.38
FCFY2.02%
OCF(TTM)6.84
OCFY5.82%
SpS155.69
BVpS14.03
TBVpS5.6
PEG (NY)3.71
PEG (5Y)1.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 28.93% | ||
| ROCE | 17.15% | ||
| ROIC | 12.46% | ||
| ROICexc | 12.54% | ||
| ROICexgc | 16.64% | ||
| OM | 3.79% | ||
| PM (TTM) | 2.61% | ||
| GM | 18.36% | ||
| FCFM | 1.53% |
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-Score7
Asset Turnover2.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.83 | ||
| Debt/EBITDA | 0.38 | ||
| Cap/Depr | 224.36% | ||
| Cap/Sales | 2.87% | ||
| Interest Coverage | 18.27 | ||
| Cash Conversion | 86.67% | ||
| Profit Quality | 58.55% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.15 | ||
| Altman-Z | 5.29 |
F-Score7
WACC15.56%
ROIC/WACC0.8
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)3.58%
EPS 3Y7.61%
EPS 5Y22.64%
EPS Q2Q%-16.22%
EPS Next Y7.82%
EPS Next 2Y9.04%
EPS Next 3Y9.9%
EPS Next 5Y10.87%
Revenue 1Y (TTM)2.67%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%-1.47%
Revenue Next Year5%
Revenue Next 2Y5.81%
Revenue Next 3Y5.97%
Revenue Next 5Y5.67%
EBIT growth 1Y-2.9%
EBIT growth 3Y8.1%
EBIT growth 5Y16.42%
EBIT Next Year48.8%
EBIT Next 3Y20.76%
EBIT Next 5Y13.22%
FCF growth 1Y24.26%
FCF growth 3Y-14.92%
FCF growth 5Y14.61%
OCF growth 1Y25.32%
OCF growth 3Y2.7%
OCF growth 5Y20.47%