BJ'S WHOLESALE CLUB HOLDINGS (BJ) Stock Fundamental Analysis
USA - NYSE:BJ - US05550J1016 - Common Stock
94.38 USD
+0.39 (+0.41%)
94.38 USD
0 (0%)
BJ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 39 industry peers in the Consumer Staples Distribution & Retail industry. While BJ has a great profitability rating, there are some minor concerns on its financial health. BJ is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BJ had positive earnings in the past year.
In the past year BJ had a positive cash flow from operations.
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
BJ has a Return On Assets of 8.00%. This is amongst the best in the industry. BJ outperforms 84.62% of its industry peers.
BJ has a better Return On Equity (27.58%) than 79.49% of its industry peers.
The Return On Invested Capital of BJ (12.63%) is better than 87.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BJ is above the industry average of 8.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 27.58% | ||
| ROIC | 12.63% |
ROA(3y)7.83%
ROA(5y)7.76%
ROE(3y)37.94%
ROE(5y)62.31%
ROIC(3y)13.64%
ROIC(5y)13.39%
1.3 Margins
The Profit Margin of BJ (2.77%) is better than 71.79% of its industry peers.
In the last couple of years the Profit Margin of BJ has grown nicely.
With a decent Operating Margin value of 3.99%, BJ is doing good in the industry, outperforming 71.79% of the companies in the same industry.
In the last couple of years the Operating Margin of BJ has grown nicely.
The Gross Margin of BJ (18.65%) is worse than 64.10% of its industry peers.
BJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.99% | ||
| PM (TTM) | 2.77% | ||
| GM | 18.65% |
OM growth 3Y0.89%
OM growth 5Y6.59%
PM growth 3Y0.58%
PM growth 5Y12.95%
GM growth 3Y-0.2%
GM growth 5Y-0.04%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BJ is creating some value.
The number of shares outstanding for BJ has been reduced compared to 1 year ago.
The number of shares outstanding for BJ has been reduced compared to 5 years ago.
Compared to 1 year ago, BJ has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.03 indicates that BJ is not in any danger for bankruptcy at the moment.
The Altman-Z score of BJ (5.03) is better than 74.36% of its industry peers.
BJ has a debt to FCF ratio of 1.79. This is a very positive value and a sign of high solvency as it would only need 1.79 years to pay back of all of its debts.
BJ's Debt to FCF ratio of 1.79 is fine compared to the rest of the industry. BJ outperforms 79.49% of its industry peers.
BJ has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.19, BJ is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 5.03 |
ROIC/WACC1.48
WACC8.54%
2.3 Liquidity
A Current Ratio of 0.79 indicates that BJ may have some problems paying its short term obligations.
With a Current ratio value of 0.79, BJ is not doing good in the industry: 82.05% of the companies in the same industry are doing better.
BJ has a Quick Ratio of 0.79. This is a bad value and indicates that BJ is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BJ (0.17) is worse than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.93% over the past year.
BJ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.64% yearly.
Looking at the last year, BJ shows a small growth in Revenue. The Revenue has grown by 2.48% in the last year.
BJ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.22% yearly.
EPS 1Y (TTM)8.93%
EPS 3Y7.61%
EPS 5Y22.64%
EPS Q2Q%4.59%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%5.65%
3.2 Future
BJ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.01% yearly.
Based on estimates for the next years, BJ will show a small growth in Revenue. The Revenue will grow by 5.65% on average per year.
EPS Next Y9.85%
EPS Next 2Y9.18%
EPS Next 3Y8.97%
EPS Next 5Y10.01%
Revenue Next Year4.22%
Revenue Next 2Y5.27%
Revenue Next 3Y5.65%
Revenue Next 5Y5.65%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.50, which indicates a rather expensive current valuation of BJ.
The rest of the industry has a similar Price/Earnings ratio as BJ.
BJ is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.89, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 19.55, BJ is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as BJ.
When comparing the Price/Forward Earnings ratio of BJ to the average of the S&P500 Index (34.59), we can say BJ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.5 | ||
| Fwd PE | 19.55 |
4.2 Price Multiples
BJ's Enterprise Value to EBITDA ratio is in line with the industry average.
61.54% of the companies in the same industry are cheaper than BJ, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.06 | ||
| EV/EBITDA | 11.63 |
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.
BJ has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.18
PEG (5Y)0.95
EPS Next 2Y9.18%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
No dividends for BJ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
94.38
+0.39 (+0.41%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners103.18%
Inst Owner Change0.4%
Ins Owners0.63%
Ins Owner Change-9.22%
Market Cap12.43B
Revenue(TTM)20.91B
Net Income(TTM)578.88M
Analysts78.71
Price Target117.57 (24.57%)
Short Float %6.45%
Short Ratio3.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.14%
Min EPS beat(2)1.37%
Max EPS beat(2)20.92%
EPS beat(4)4
Avg EPS beat(4)12.37%
Min EPS beat(4)1.37%
Max EPS beat(4)24.36%
EPS beat(8)7
Avg EPS beat(8)7.13%
EPS beat(12)10
Avg EPS beat(12)7.24%
EPS beat(16)14
Avg EPS beat(16)9.31%
Revenue beat(2)0
Avg Revenue beat(2)-4.18%
Min Revenue beat(2)-4.67%
Max Revenue beat(2)-3.69%
Revenue beat(4)0
Avg Revenue beat(4)-3.75%
Min Revenue beat(4)-4.67%
Max Revenue beat(4)-3.05%
Revenue beat(8)0
Avg Revenue beat(8)-3.25%
Revenue beat(12)0
Avg Revenue beat(12)-3.3%
Revenue beat(16)3
Avg Revenue beat(16)-1.72%
PT rev (1m)0.05%
PT rev (3m)-7.11%
EPS NQ rev (1m)-0.24%
EPS NQ rev (3m)-0.01%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-0.85%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.5 | ||
| Fwd PE | 19.55 | ||
| P/S | 0.59 | ||
| P/FCF | 44.06 | ||
| P/OCF | 13.28 | ||
| P/B | 5.92 | ||
| P/tB | 12.53 | ||
| EV/EBITDA | 11.63 |
EPS(TTM)4.39
EY4.65%
EPS(NY)4.83
Fwd EY5.11%
FCF(TTM)2.14
FCFY2.27%
OCF(TTM)7.11
OCFY7.53%
SpS158.72
BVpS15.93
TBVpS7.53
PEG (NY)2.18
PEG (5Y)0.95
Graham Number39.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 27.58% | ||
| ROCE | 17.38% | ||
| ROIC | 12.63% | ||
| ROICexc | 12.75% | ||
| ROICexgc | 16.63% | ||
| OM | 3.99% | ||
| PM (TTM) | 2.77% | ||
| GM | 18.65% | ||
| FCFM | 1.35% |
ROA(3y)7.83%
ROA(5y)7.76%
ROE(3y)37.94%
ROE(5y)62.31%
ROIC(3y)13.64%
ROIC(5y)13.39%
ROICexc(3y)13.75%
ROICexc(5y)13.52%
ROICexgc(3y)18.89%
ROICexgc(5y)18.92%
ROCE(3y)18.77%
ROCE(5y)18.43%
ROICexgc growth 3Y-1.43%
ROICexgc growth 5Y8.33%
ROICexc growth 3Y0.52%
ROICexc growth 5Y10.31%
OM growth 3Y0.89%
OM growth 5Y6.59%
PM growth 3Y0.58%
PM growth 5Y12.95%
GM growth 3Y-0.2%
GM growth 5Y-0.04%
F-Score8
Asset Turnover2.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.79 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 237.88% | ||
| Cap/Sales | 3.13% | ||
| Interest Coverage | 22.84 | ||
| Cash Conversion | 84.47% | ||
| Profit Quality | 48.75% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | 5.03 |
F-Score8
WACC8.54%
ROIC/WACC1.48
Cap/Depr(3y)209.17%
Cap/Depr(5y)187.42%
Cap/Sales(3y)2.42%
Cap/Sales(5y)2.12%
Profit Quality(3y)60.91%
Profit Quality(5y)91.23%
High Growth Momentum
Growth
EPS 1Y (TTM)8.93%
EPS 3Y7.61%
EPS 5Y22.64%
EPS Q2Q%4.59%
EPS Next Y9.85%
EPS Next 2Y9.18%
EPS Next 3Y8.97%
EPS Next 5Y10.01%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%5.65%
Revenue Next Year4.22%
Revenue Next 2Y5.27%
Revenue Next 3Y5.65%
Revenue Next 5Y5.65%
EBIT growth 1Y6.93%
EBIT growth 3Y8.1%
EBIT growth 5Y16.42%
EBIT Next Year47.42%
EBIT Next 3Y20.04%
EBIT Next 5Y14.03%
FCF growth 1Y45.39%
FCF growth 3Y-14.92%
FCF growth 5Y14.61%
OCF growth 1Y52.4%
OCF growth 3Y2.7%
OCF growth 5Y20.47%
BJ'S WHOLESALE CLUB HOLDINGS / BJ FAQ
Can you provide the ChartMill fundamental rating for BJ'S WHOLESALE CLUB HOLDINGS?
ChartMill assigns a fundamental rating of 5 / 10 to BJ.
Can you provide the valuation status for BJ'S WHOLESALE CLUB HOLDINGS?
ChartMill assigns a valuation rating of 2 / 10 to BJ'S WHOLESALE CLUB HOLDINGS (BJ). This can be considered as Overvalued.
What is the profitability of BJ stock?
BJ'S WHOLESALE CLUB HOLDINGS (BJ) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for BJ stock?
The Price/Earnings (PE) ratio for BJ'S WHOLESALE CLUB HOLDINGS (BJ) is 21.5 and the Price/Book (PB) ratio is 5.92.
What is the expected EPS growth for BJ'S WHOLESALE CLUB HOLDINGS (BJ) stock?
The Earnings per Share (EPS) of BJ'S WHOLESALE CLUB HOLDINGS (BJ) is expected to grow by 9.85% in the next year.