In this article we will dive into BJ'S WHOLESALE CLUB HOLDINGS (NYSE:BJ) as a possible candidate for quality investing. Investors should always do their own research, but we noticed BJ'S WHOLESALE CLUB HOLDINGS showing up in our Caviar Cruise quality screen, which makes it worth to investigate a bit more.
Highlighting Notable Quality Metrics of NYSE:BJ.
BJ'S WHOLESALE CLUB HOLDINGS has achieved substantial revenue growth over the past 5 years, with a 8.65% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
With a robust ROIC excluding cash and goodwill at 20.35%, BJ'S WHOLESALE CLUB HOLDINGS showcases its effective allocation of capital and operational excellence. This metric signifies the company's ability to generate attractive returns and supports its long-term financial performance.
The Debt/Free Cash Flow Ratio of BJ'S WHOLESALE CLUB HOLDINGS stands at 4.43, reflecting the company's prudent capital structure and cash flow dynamics. This ratio highlights the company's ability to generate robust free cash flow relative to its debt obligations.
BJ'S WHOLESALE CLUB HOLDINGS exhibits impressive Profit Quality (5-year) with a 131.0% ratio, reflecting its consistent ability to generate high-quality profits. This metric underscores the company's strong financial performance and commitment to delivering sustainable earnings.
With a robust 5-year EBIT growth of 27.81%, BJ'S WHOLESALE CLUB HOLDINGS showcases its ability to consistently expand its operating profitability. This trend indicates the company's effective cost management and revenue generation strategies.
BJ'S WHOLESALE CLUB HOLDINGS has achieved impressive EBIT 5-year growth, surpassing its Revenue 5-year growth. This indicates the company's ability to improve its profitability and operational efficiency, highlighting its strong financial performance.
How does the complete fundamental picture look for NYSE:BJ?
ChartMill assigns a proprietary Fundamental Rating to each stock. The score is computed daily by evaluating various fundamental indicators and properties. The score ranges from 0 to 10.
Taking everything into account, BJ scores 6 out of 10 in our fundamental rating. BJ was compared to 41 industry peers in the Consumer Staples Distribution & Retail industry. BJ scores excellent on profitability, but there are some minor concerns on its financial health. BJ is quite expensive at the moment. It does show a decent growth rate.
This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.