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.
Some of the quality metrics of NYSE:BJ highlighted
Over the past 5 years, BJ'S WHOLESALE CLUB HOLDINGS has experienced impressive revenue growth, with 8.95% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
BJ'S WHOLESALE CLUB HOLDINGS exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 17.68% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
The Debt/Free Cash Flow Ratio of BJ'S WHOLESALE CLUB HOLDINGS stands at 1.8, 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 96.44% 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.
BJ'S WHOLESALE CLUB HOLDINGS has experienced impressive EBIT growth over the past 5 years, with 21.86% increase. This reflects the company's effective operational performance and highlights its potential for long-term financial success.
BJ'S WHOLESALE CLUB HOLDINGS has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.
How does the complete fundamental picture look for NYSE:BJ?
At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.
Overall BJ gets a fundamental rating of 6 out of 10. We evaluated BJ against 43 industry peers in the Consumer Staples Distribution & Retail industry. BJ gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, BJ is valued expensive at the moment. This makes BJ very considerable for quality investing!
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.