Should you consider BJ'S WHOLESALE CLUB HOLDINGS (NYSE:BJ) for quality investing?

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.

Looking into the quality metrics of BJ'S WHOLESALE CLUB HOLDINGS

• BJ'S WHOLESALE CLUB HOLDINGS has achieved substantial revenue growth over the past 5 years, with a 8.95% increase. This signifies the company's ability to successfully capture market opportunities and generate sustained revenue growth.
• 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.
• The Profit Quality (5-year) of BJ'S WHOLESALE CLUB HOLDINGS stands at 96.44%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• 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.

Fundamental analysis of NYSE:BJ

ChartMill assigns a Fundamental Rating to every stock. This score, ranging from 0 to 10, is updated daily and is determined by evaluating multiple fundamental indicators and properties.

Taking everything into account, BJ scores 6 out of 10 in our fundamental rating. BJ was compared to 40 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 valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make BJ a good candidate for quality investing.

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

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.