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 40 industry peers in the Consumer Staples Distribution & Retail industry. BJ scores excellent points on both the profitability and health parts. This is a solid base for a good stock. BJ is valied quite expensively at the moment, while it does show a decent growth rate. These ratings would make BJ suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year BJ was profitable.
BJ had a positive operating cash flow in the past year.
In the past 5 years BJ has always been profitable.
In the past 5 years BJ always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BJ (8.01%) is better than 87.50% of its industry peers.
BJ has a better Return On Equity (29.07%) than 87.50% of its industry peers.
With an excellent Return On Invested Capital value of 12.85%, BJ belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
BJ had an Average Return On Invested Capital over the past 3 years of 13.64%. This is significantly above the industry average of 8.23%.
| 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
BJ has a Profit Margin of 2.76%. This is in the better half of the industry: BJ outperforms 75.00% of its industry peers.
In the last couple of years the Profit Margin of BJ has grown nicely.
BJ has a better Operating Margin (3.96%) than 75.00% of its industry peers.
BJ's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 18.57%, BJ is doing worse than 62.50% of the companies in the same industry.
BJ's Gross Margin has been stable in the last couple of years.
| 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
BJ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BJ has been reduced compared to 1 year ago.
BJ has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BJ has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.15 indicates that BJ is not in any danger for bankruptcy at the moment.
BJ's Altman-Z score of 5.15 is fine compared to the rest of the industry. BJ outperforms 72.50% of its industry peers.
BJ has a debt to FCF ratio of 1.92. This is a very positive value and a sign of high solvency as it would only need 1.92 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.92, BJ belongs to the top of the industry, outperforming 82.50% of the companies in the same industry.
A Debt/Equity ratio of 0.20 indicates that BJ is not too dependend on debt financing.
The Debt to Equity ratio of BJ (0.20) is better than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 5.15 |
ROIC/WACC1.45
WACC8.83%
2.3 Liquidity
A Current Ratio of 0.77 indicates that BJ may have some problems paying its short term obligations.
The Current ratio of BJ (0.77) is worse than 85.00% of its industry peers.
A Quick Ratio of 0.14 indicates that BJ may have some problems paying 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 95.00% 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
The Earnings Per Share has grown by an nice 11.00% over the past year.
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.
The Revenue has been growing slightly by 2.84% in the past year.
BJ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.22% yearly.
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
BJ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.69% yearly.
The Revenue is expected to grow by 5.66% on average over the next years.
EPS Next Y9.3%
EPS Next 2Y9.41%
EPS Next 3Y9.61%
EPS Next 5Y9.69%
Revenue Next Year5.35%
Revenue Next 2Y5.77%
Revenue Next 3Y5.96%
Revenue Next 5Y5.66%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
A Price/Earnings ratio of 24.11 indicates a rather expensive valuation of BJ.
BJ's Price/Earnings is on the same level as the industry average.
BJ is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.91, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 21.58, which indicates a rather expensive current valuation of BJ.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BJ is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of BJ to the average of the S&P500 Index (37.11), we can say BJ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.11 | ||
| Fwd PE | 21.58 |
4.2 Price Multiples
BJ's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BJ indicates a slightly more expensive valuation: BJ is more expensive than 65.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.41 | ||
| EV/EBITDA | 13.19 |
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)2.59
PEG (5Y)1.06
EPS Next 2Y9.41%
EPS Next 3Y9.61%
5. Dividend
5.1 Amount
BJ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:BJ (7/30/2025, 11:39:00 AM)
104.625
-0.41 (-0.39%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners103.29%
Inst Owner Change-0.24%
Ins Owners0.73%
Ins Owner Change-0.98%
Market Cap13.82B
Analysts80
Price Target126.57 (20.97%)
Short Float %5.34%
Short Ratio4.15
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)0.53%
PT rev (3m)5.14%
EPS NQ rev (1m)-0.08%
EPS NQ rev (3m)-4.1%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)1.38%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)0.37%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.11 | ||
| Fwd PE | 21.58 | ||
| P/S | 0.67 | ||
| P/FCF | 48.41 | ||
| P/OCF | 15.21 | ||
| P/B | 7.01 | ||
| P/tB | 16.01 | ||
| EV/EBITDA | 13.19 |
EPS(TTM)4.34
EY4.15%
EPS(NY)4.85
Fwd EY4.63%
FCF(TTM)2.16
FCFY2.07%
OCF(TTM)6.88
OCFY6.57%
SpS157.04
BVpS14.93
TBVpS6.54
PEG (NY)2.59
PEG (5Y)1.06
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 | 5.15 |
F-Score8
WACC8.83%
ROIC/WACC1.45
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 Y9.3%
EPS Next 2Y9.41%
EPS Next 3Y9.61%
EPS Next 5Y9.69%
Revenue 1Y (TTM)2.84%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%4.78%
Revenue Next Year5.35%
Revenue Next 2Y5.77%
Revenue Next 3Y5.96%
Revenue Next 5Y5.66%
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%