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 40 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 valied quite expensively at the moment, while it does show a decent growth rate. This makes BJ very considerable 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.
BJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.01%, BJ belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
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.
Measured over the past 3 years, the Average Return On Invested Capital for BJ 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's Profit Margin of 2.76% is fine compared to the rest of the industry. BJ outperforms 72.50% of its industry peers.
In the last couple of years the Profit Margin of BJ has grown nicely.
BJ has a Operating Margin of 3.96%. This is in the better half of the industry: BJ outperforms 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BJ is still 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.
The debt/assets ratio for BJ has been reduced compared to a year ago.
2.2 Solvency
BJ has an Altman-Z score of 5.21. 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 5.21, BJ is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
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.
BJ has a Debt to FCF ratio of 1.92. This is amongst the best in the industry. BJ outperforms 82.50% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that BJ is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.20, BJ is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 5.21 |
ROIC/WACC1.45
WACC8.83%
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.
BJ has a worse Current ratio (0.77) than 85.00% of its industry peers.
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.
The Quick ratio of BJ (0.14) is worse than 95.00% 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 | 0.77 | ||
| 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.
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.
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
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.
BJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.66% yearly.
EPS Next Y9.32%
EPS Next 2Y9.3%
EPS Next 3Y9.44%
EPS Next 5Y9.69%
Revenue Next Year4.96%
Revenue Next 2Y5.83%
Revenue Next 3Y6.17%
Revenue Next 5Y5.66%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 25.22.
BJ's Price/Earnings ratio is in line with the industry average.
BJ's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.45.
Based on the Price/Forward Earnings ratio of 22.62, the valuation of BJ can be described as rather expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BJ is on the same level as its industry peers.
BJ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.22 | ||
| Fwd PE | 22.62 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BJ.
Based on the Price/Free Cash Flow ratio, BJ is valued a bit more expensive than the industry average as 65.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.64 | ||
| EV/EBITDA | 13.72 |
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.
The excellent profitability rating of BJ may justify a higher PE ratio.
PEG (NY)2.71
PEG (5Y)1.11
EPS Next 2Y9.3%
EPS Next 3Y9.44%
5. Dividend
5.1 Amount
No dividends for BJ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
109.44
+0.3 (+0.27%)
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 Change1.51%
Ins Owners0.73%
Ins Owner Change1.7%
Market Cap14.45B
Analysts78.79
Price Target125.91 (15.05%)
Short Float %4.61%
Short Ratio3.36
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)4.35%
PT rev (3m)20.34%
EPS NQ rev (1m)-3.7%
EPS NQ rev (3m)-3.92%
EPS NY rev (1m)1.39%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)-1.05%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.22 | ||
| Fwd PE | 22.62 | ||
| P/S | 0.7 | ||
| P/FCF | 50.64 | ||
| P/OCF | 15.91 | ||
| P/B | 7.33 | ||
| P/tB | 16.74 | ||
| EV/EBITDA | 13.72 |
EPS(TTM)4.34
EY3.97%
EPS(NY)4.84
Fwd EY4.42%
FCF(TTM)2.16
FCFY1.97%
OCF(TTM)6.88
OCFY6.28%
SpS157.04
BVpS14.93
TBVpS6.54
PEG (NY)2.71
PEG (5Y)1.11
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 | 5.21 |
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 Y9.32%
EPS Next 2Y9.3%
EPS Next 3Y9.44%
EPS Next 5Y9.69%
Revenue 1Y (TTM)2.84%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%4.78%
Revenue Next Year4.96%
Revenue Next 2Y5.83%
Revenue Next 3Y6.17%
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%