Should Quality Investors Include NYSE:BJ in Their Portfolio?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if BJ'S WHOLESALE CLUB HOLDINGS (NYSE:BJ) is suited for quality investing. Investors should of course do their own research, but we spotted BJ'S WHOLESALE CLUB HOLDINGS showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

What matters for quality investors.

• 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 demonstrates impressive performance in terms of ROIC excluding cash and goodwill, with a 17.68% ratio. This highlights the company's efficient utilization of capital and its focus on maximizing returns for investors.
• With a Debt/Free Cash Flow Ratio of 1.8, BJ'S WHOLESALE CLUB HOLDINGS exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• With a robust Profit Quality (5-year) ratio of 96.44%, BJ'S WHOLESALE CLUB HOLDINGS highlights its ability to consistently generate high-quality profits. This metric reflects the company's effective management and operational excellence in delivering reliable earnings over the long term.
• With a robust 5-year EBIT growth of 21.86%, 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.

What else is there to say on the fundamentals of 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.

BJ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 41 industry peers in the Consumer Staples Distribution & Retail industry. BJ scores excellent points on both the profitability and health parts. This is a solid base for a good stock. BJ is quite expensive at the moment. It does show a decent growth rate. With these ratings, BJ could be worth investigating further for quality investing!.

Our latest full fundamental report of BJ contains the most current fundamental analsysis.

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.