BJ'S WHOLESALE CLUB HOLDINGS (BJ) Stock Fundamental Analysis
USA - NYSE:BJ - US05550J1016 - Common Stock
99.75 USD
+1.29 (+1.31%)
99.037 USD
-0.71 (-0.71%)
BJ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 40 industry peers in the Consumer Staples Distribution & Retail industry. While BJ belongs to the best of the industry regarding profitability, 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.
In the past 5 years BJ always reported a positive cash flow from operatings.
1.2 Ratios
BJ has a better Return On Assets (8.00%) than 82.50% of its industry peers.
BJ has a better Return On Equity (27.58%) than 80.00% of its industry peers.
BJ has a better Return On Invested Capital (12.61%) than 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BJ is significantly above the industry average of 8.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 27.58% | ||
| ROIC | 12.61% |
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
BJ's Profit Margin of 2.77% is fine compared to the rest of the industry. BJ outperforms 67.50% of its industry peers.
In the last couple of years the Profit Margin of BJ has grown nicely.
BJ's Operating Margin of 3.98% is fine compared to the rest of the industry. BJ outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of BJ has grown nicely.
BJ's Gross Margin of 18.65% is on the low side compared to the rest of the industry. BJ is outperformed by 62.50% 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 | 3.98% | ||
| PM (TTM) | 2.77% | ||
| GM | 18.65% |
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.
Compared to 1 year ago, BJ has less shares outstanding
Compared to 5 years ago, BJ has less shares outstanding
BJ has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of BJ is 1.77, which is an excellent value as it means it would take BJ, only 1.77 years of fcf income to pay off all of its debts.
BJ has a better Debt to FCF ratio (1.77) than 77.50% of its industry peers.
BJ has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.19, BJ is in the better half of the industry, outperforming 67.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | N/A |
ROIC/WACC1.49
WACC8.47%
2.3 Liquidity
A Current Ratio of 0.79 indicates that BJ may have some problems paying its short term obligations.
With a Current ratio value of 0.79, BJ is not doing good in the industry: 85.00% of the companies in the same industry are doing better.
A Quick Ratio of 0.17 indicates that BJ may have some problems paying its short term obligations.
BJ's Quick ratio of 0.17 is on the low side compared to the rest of the industry. BJ is outperformed by 95.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
BJ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.93%, 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.
The Revenue has been growing slightly by 2.48% in the past year.
The Revenue has been growing by 9.22% on average over the past years. This is quite good.
EPS 1Y (TTM)8.93%
EPS 3Y7.61%
EPS 5Y22.64%
EPS Q2Q%4.59%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%5.65%
3.2 Future
The Earnings Per Share is expected to grow by 10.01% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.65% on average over the next years.
EPS Next Y9.55%
EPS Next 2Y9.18%
EPS Next 3Y9.03%
EPS Next 5Y10.01%
Revenue Next Year3.8%
Revenue Next 2Y5.27%
Revenue Next 3Y5.57%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 22.72, the valuation of BJ can be described as rather expensive.
BJ's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 27.27. BJ is around the same levels.
With a Price/Forward Earnings ratio of 20.66, BJ is valued on the expensive side.
BJ's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.77. BJ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.72 | ||
| Fwd PE | 20.66 |
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 62.50% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.08 | ||
| EV/EBITDA | 12.28 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BJ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.38
PEG (5Y)1
EPS Next 2Y9.18%
EPS Next 3Y9.03%
5. Dividend
5.1 Amount
No dividends for BJ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
99.75
+1.29 (+1.31%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners103.98%
Inst Owner Change-1.59%
Ins Owners0.7%
Ins Owner Change-3.58%
Market Cap13.14B
Analysts78.71
Price Target117.63 (17.92%)
Short Float %6.36%
Short Ratio4.02
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)11.14%
Min EPS beat(2)1.37%
Max EPS beat(2)20.92%
EPS beat(4)4
Avg EPS beat(4)12.37%
Min EPS beat(4)1.37%
Max EPS beat(4)24.36%
EPS beat(8)7
Avg EPS beat(8)7.13%
EPS beat(12)10
Avg EPS beat(12)7.24%
EPS beat(16)14
Avg EPS beat(16)9.31%
Revenue beat(2)0
Avg Revenue beat(2)-4.18%
Min Revenue beat(2)-4.67%
Max Revenue beat(2)-3.69%
Revenue beat(4)0
Avg Revenue beat(4)-3.75%
Min Revenue beat(4)-4.67%
Max Revenue beat(4)-3.05%
Revenue beat(8)0
Avg Revenue beat(8)-3.25%
Revenue beat(12)0
Avg Revenue beat(12)-3.3%
Revenue beat(16)3
Avg Revenue beat(16)-1.72%
PT rev (1m)-7.06%
PT rev (3m)-6.43%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-8.74%
EPS NY rev (1m)0.23%
EPS NY rev (3m)1.61%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)-1.47%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.72 | ||
| Fwd PE | 20.66 | ||
| P/S | 0.63 | ||
| P/FCF | 46.08 | ||
| P/OCF | 14.03 | ||
| P/B | 6.26 | ||
| P/tB | 13.25 | ||
| EV/EBITDA | 12.28 |
EPS(TTM)4.39
EY4.4%
EPS(NY)4.83
Fwd EY4.84%
FCF(TTM)2.16
FCFY2.17%
OCF(TTM)7.11
OCFY7.13%
SpS158.72
BVpS15.93
TBVpS7.53
PEG (NY)2.38
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 27.58% | ||
| ROCE | 17.36% | ||
| ROIC | 12.61% | ||
| ROICexc | 12.74% | ||
| ROICexgc | 16.61% | ||
| OM | 3.98% | ||
| PM (TTM) | 2.77% | ||
| GM | 18.65% | ||
| FCFM | 1.36% |
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 Turnover2.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.77 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 236.79% | ||
| Cap/Sales | 3.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.55% | ||
| Profit Quality | 49.27% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | N/A |
F-Score8
WACC8.47%
ROIC/WACC1.49
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)8.93%
EPS 3Y7.61%
EPS 5Y22.64%
EPS Q2Q%4.59%
EPS Next Y9.55%
EPS Next 2Y9.18%
EPS Next 3Y9.03%
EPS Next 5Y10.01%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%5.65%
Revenue Next Year3.8%
Revenue Next 2Y5.27%
Revenue Next 3Y5.57%
Revenue Next 5Y5.65%
EBIT growth 1Y6.8%
EBIT growth 3Y8.1%
EBIT growth 5Y16.42%
EBIT Next Year48.8%
EBIT Next 3Y20.07%
EBIT Next 5Y14.03%
FCF growth 1Y46.93%
FCF growth 3Y-14.92%
FCF growth 5Y14.61%
OCF growth 1Y52.4%
OCF growth 3Y2.7%
OCF growth 5Y20.47%