BJ'S WHOLESALE CLUB HOLDINGS (BJ)

US05550J1016 - Common Stock

75.65  -0.84 (-1.1%)

After market: 75.65 0 (0%)

Fundamental Rating

5

Overall BJ gets a fundamental rating of 5 out of 10. We evaluated BJ against 41 industry peers in the Consumer Staples Distribution & Retail industry. BJ has an excellent profitability rating, but there are some minor concerns on its financial health. BJ has a correct valuation and a medium growth rate.



8

1. Profitability

1.1 Basic Checks

In the past year BJ was profitable.
BJ had a positive operating cash flow in the past year.
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

Looking at the Return On Assets, with a value of 7.84%, BJ belongs to the top of the industry, outperforming 92.68% of the companies in the same industry.
With an excellent Return On Equity value of 35.90%, BJ belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
BJ has a better Return On Invested Capital (13.85%) than 92.68% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BJ is above the industry average of 9.87%.
The 3 year average ROIC (13.50%) for BJ is below the current ROIC(13.85%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 7.84%
ROE 35.9%
ROIC 13.85%
ROA(3y)7.82%
ROA(5y)6.96%
ROE(3y)50.26%
ROE(5y)N/A
ROIC(3y)13.5%
ROIC(5y)12.4%

1.3 Margins

BJ has a Profit Margin of 2.62%. This is in the better half of the industry: BJ outperforms 78.05% of its industry peers.
In the last couple of years the Profit Margin of BJ has grown nicely.
BJ has a better Operating Margin (4.01%) than 73.17% of its industry peers.
In the last couple of years the Operating Margin of BJ has grown nicely.
BJ's Gross Margin of 18.24% is on the low side compared to the rest of the industry. BJ is outperformed by 65.85% of its industry peers.
BJ's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 4.01%
PM (TTM) 2.62%
GM 18.24%
OM growth 3Y-1.24%
OM growth 5Y11.47%
PM growth 3Y-1.31%
PM growth 5Y21.85%
GM growth 3Y-1.87%
GM growth 5Y0.1%

4

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.
BJ has a better debt/assets ratio than last year.

2.2 Solvency

The Debt to FCF ratio of BJ is 2.72, which is a good value as it means it would take BJ, 2.72 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.72, BJ is in the better half of the industry, outperforming 75.61% of the companies in the same industry.
BJ has a Debt/Equity ratio of 0.27. This is a healthy value indicating a solid balance between debt and equity.
BJ has a better Debt to Equity ratio (0.27) than 73.17% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF 2.72
Altman-Z N/A
ROIC/WACC1.64
WACC8.46%

2.3 Liquidity

A Current Ratio of 0.73 indicates that BJ may have some problems paying its short term obligations.
BJ has a Current ratio of 0.73. This is amonst the worse of the industry: BJ underperforms 87.80% of its industry peers.
BJ has a Quick Ratio of 0.73. This is a bad value and indicates that BJ is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.14, BJ is not doing good in the industry: 95.12% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.73
Quick Ratio 0.14

5

3. Growth

3.1 Past

BJ shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.26%.
The Earnings Per Share has been growing by 21.12% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 3.38% in the past year.
The Revenue has been growing by 8.95% on average over the past years. This is quite good.
EPS 1Y (TTM)-0.26%
EPS 3Y8.28%
EPS 5Y21.12%
EPS growth Q2Q11%
Revenue 1Y (TTM)3.38%
Revenue growth 3Y8.98%
Revenue growth 5Y8.95%
Revenue growth Q2Q8.68%

3.2 Future

The Earnings Per Share is expected to grow by 12.56% on average over the next years. This is quite good.
Based on estimates for the next years, BJ will show a small growth in Revenue. The Revenue will grow by 5.42% on average per year.
EPS Next Y4.94%
EPS Next 2Y6.84%
EPS Next 3Y13.26%
EPS Next 5Y12.56%
Revenue Next Year2.93%
Revenue Next 2Y4.29%
Revenue Next 3Y4.74%
Revenue Next 5Y5.42%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

4

4. Valuation

4.1 Price/Earnings Ratio

BJ is valuated rather expensively with a Price/Earnings ratio of 19.35.
BJ's Price/Earnings ratio is a bit cheaper when compared to the industry. BJ is cheaper than 65.85% of the companies in the same industry.
BJ is valuated rather cheaply when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 18.44, the valuation of BJ can be described as rather expensive.
Based on the Price/Forward Earnings ratio, BJ is valued a bit cheaper than 70.73% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, BJ is valued at the same level.
Industry RankSector Rank
PE 19.35
Fwd PE 18.44

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, BJ is valued a bit cheaper than the industry average as 63.41% of the companies are valued more expensively.
The rest of the industry has a similar Price/Free Cash Flow ratio as BJ.
Industry RankSector Rank
P/FCF 38.2
EV/EBITDA 10.48

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.
A more expensive valuation may be justified as BJ's earnings are expected to grow with 13.26% in the coming years.
PEG (NY)3.92
PEG (5Y)0.92
EPS Next 2Y6.84%
EPS Next 3Y13.26%

0

5. Dividend

5.1 Amount

BJ does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

BJ'S WHOLESALE CLUB HOLDINGS

NYSE:BJ (3/28/2024, 8:04:00 PM)

After market: 75.65 0 (0%)

75.65

-0.84 (-1.1%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap10.09B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 19.35
Fwd PE 18.44
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.92
PEG (5Y)0.92
Profitability
Industry RankSector Rank
ROA 7.84%
ROE 35.9%
ROCE
ROIC
ROICexc
ROICexgc
OM 4.01%
PM (TTM) 2.62%
GM 18.24%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.99
Health
Industry RankSector Rank
Debt/Equity 0.27
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 0.73
Quick Ratio 0.14
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-0.26%
EPS 3Y8.28%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.38%
Revenue growth 3Y8.98%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y