BJ'S WHOLESALE CLUB HOLDINGS (BJ) Stock Fundamental Analysis
USA - NYSE:BJ - US05550J1016 - Common Stock
89.93 USD
-0.17 (-0.19%)
89.619 USD
-0.31 (-0.35%)
BJ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 39 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 quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BJ had positive earnings in the past year.
In the past year BJ had a positive cash flow from operations.
BJ had positive earnings in each of the past 5 years.
In the past 5 years BJ always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.00%, BJ belongs to the top of the industry, outperforming 82.05% of the companies in the same industry.
BJ's Return On Equity of 27.58% is fine compared to the rest of the industry. BJ outperforms 79.49% of its industry peers.
The Return On Invested Capital of BJ (12.63%) is better than 87.18% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BJ is above the industry average of 8.75%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 27.58% | ||
| ROIC | 12.63% |
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 69.23% of its industry peers.
In the last couple of years the Profit Margin of BJ has grown nicely.
The Operating Margin of BJ (3.99%) is better than 71.79% of its industry peers.
BJ's Operating Margin has improved in the last couple of years.
The Gross Margin of BJ (18.65%) is worse than 64.10% of its industry peers.
BJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.99% | ||
| 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
BJ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
Compared to 1 year ago, BJ has an improved debt to assets ratio.
2.2 Solvency
BJ has an Altman-Z score of 4.96. This indicates that BJ is financially healthy and has little risk of bankruptcy at the moment.
BJ has a better Altman-Z score (4.96) than 69.23% of its industry peers.
The Debt to FCF ratio of BJ is 1.79, which is an excellent value as it means it would take BJ, only 1.79 years of fcf income to pay off all of its debts.
BJ has a Debt to FCF ratio of 1.79. This is in the better half of the industry: BJ outperforms 76.92% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that BJ is not too dependend on debt financing.
The Debt to Equity ratio of BJ (0.19) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 4.96 |
ROIC/WACC1.47
WACC8.56%
2.3 Liquidity
A Current Ratio of 0.79 indicates that BJ may have some problems paying its short term obligations.
BJ has a worse Current ratio (0.79) than 84.62% of its industry peers.
BJ has a Quick Ratio of 0.79. 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 (0.17) is worse than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.93% over the past year.
The Earnings Per Share has been growing by 22.64% on average over the past years. This is a very strong growth
BJ shows a small growth in Revenue. In the last year, the Revenue has grown by 2.48%.
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)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
Based on estimates for the next years, BJ will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.01% on average per year.
Based on estimates for the next years, BJ will show a small growth in Revenue. The Revenue will grow by 5.65% on average per year.
EPS Next Y9.82%
EPS Next 2Y9.21%
EPS Next 3Y9.01%
EPS Next 5Y10.01%
Revenue Next Year3.8%
Revenue Next 2Y5.27%
Revenue Next 3Y5.65%
Revenue Next 5Y5.65%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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
With a Price/Earnings ratio of 20.49, BJ is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of BJ indicates a somewhat cheap valuation: BJ is cheaper than 61.54% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.76. BJ is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 18.62, which indicates a rather expensive current valuation of BJ.
61.54% of the companies in the same industry are more expensive than BJ, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.21. BJ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.49 | ||
| Fwd PE | 18.62 |
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 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.98 | ||
| EV/EBITDA | 11.1 |
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 decent profitability rating of BJ may justify a higher PE ratio.
PEG (NY)2.09
PEG (5Y)0.9
EPS Next 2Y9.21%
EPS Next 3Y9.01%
5. Dividend
5.1 Amount
No dividends for BJ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
89.93
-0.17 (-0.19%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners103.18%
Inst Owner Change0%
Ins Owners0.63%
Ins Owner Change-7.99%
Market Cap11.85B
Analysts78.71
Price Target117.51 (30.67%)
Short Float %6.93%
Short Ratio4.07
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)-6.79%
PT rev (3m)-6.67%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)0.47%
EPS NY rev (1m)0.24%
EPS NY rev (3m)0.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)-1.43%
Revenue NY rev (3m)-1.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.49 | ||
| Fwd PE | 18.62 | ||
| P/S | 0.57 | ||
| P/FCF | 41.98 | ||
| P/OCF | 12.65 | ||
| P/B | 5.64 | ||
| P/tB | 11.94 | ||
| EV/EBITDA | 11.1 |
EPS(TTM)4.39
EY4.88%
EPS(NY)4.83
Fwd EY5.37%
FCF(TTM)2.14
FCFY2.38%
OCF(TTM)7.11
OCFY7.91%
SpS158.72
BVpS15.93
TBVpS7.53
PEG (NY)2.09
PEG (5Y)0.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 27.58% | ||
| ROCE | 17.38% | ||
| ROIC | 12.63% | ||
| ROICexc | 12.75% | ||
| ROICexgc | 16.63% | ||
| OM | 3.99% | ||
| PM (TTM) | 2.77% | ||
| GM | 18.65% | ||
| FCFM | 1.35% |
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 | 1.79 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 237.88% | ||
| Cap/Sales | 3.13% | ||
| Interest Coverage | 22.84 | ||
| Cash Conversion | 84.47% | ||
| Profit Quality | 48.75% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 4.96 |
F-Score8
WACC8.56%
ROIC/WACC1.47
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 Y9.82%
EPS Next 2Y9.21%
EPS Next 3Y9.01%
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 3Y5.65%
Revenue Next 5Y5.65%
EBIT growth 1Y6.93%
EBIT growth 3Y8.1%
EBIT growth 5Y16.42%
EBIT Next Year47.42%
EBIT Next 3Y20.04%
EBIT Next 5Y14.03%
FCF growth 1Y45.39%
FCF growth 3Y-14.92%
FCF growth 5Y14.61%
OCF growth 1Y52.4%
OCF growth 3Y2.7%
OCF growth 5Y20.47%