BJ'S WHOLESALE CLUB HOLDINGS (BJ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BJ - US05550J1016 - Common Stock
90.77 USD
+1.46 (+1.63%)
90.1966 USD
-0.57 (-0.63%)
Overall BJ gets a fundamental rating of 5 out of 10. We evaluated BJ 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. While showing a medium growth rate, BJ is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
BJ had positive earnings in the past year.
BJ had a positive operating cash flow in the past year.
In the past 5 years BJ has always been profitable.
Each year in the past 5 years BJ had a positive operating cash flow.
1.2 Ratios
BJ has a better Return On Assets (7.62%) than 79.49% of its industry peers.
With a decent Return On Equity value of 26.48%, BJ is doing good in the industry, outperforming 79.49% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.30%, BJ belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BJ is above the industry average of 8.76%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 26.48% | ||
| ROIC | 12.3% |
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
Looking at the Profit Margin, with a value of 2.72%, BJ is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
In the last couple of years the Profit Margin of BJ has grown nicely.
BJ's Operating Margin of 3.88% is fine compared to the rest of the industry. BJ outperforms 69.23% of its industry peers.
In the last couple of years the Operating Margin of BJ has grown nicely.
BJ has a worse Gross Margin (18.61%) than 61.54% of its industry peers.
BJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.88% | ||
| PM (TTM) | 2.72% | ||
| GM | 18.61% |
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
BJ has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for BJ has been reduced compared to 1 year ago.
Compared to 5 years ago, BJ has less shares outstanding
BJ has a better debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of BJ is 2.37, which is a good value as it means it would take BJ, 2.37 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 2.37, BJ is doing good in the industry, outperforming 76.92% of the companies in the same industry.
BJ has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
BJ has a Debt to Equity ratio of 0.18. This is in the better half of the industry: BJ outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.37 | ||
| Altman-Z | N/A |
ROIC/WACC1.46
WACC8.4%
2.3 Liquidity
BJ has a Current 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 Current ratio of BJ (0.79) is worse than 84.62% of its industry peers.
A Quick Ratio of 0.16 indicates that BJ may have some problems paying its short term obligations.
BJ has a worse Quick ratio (0.16) than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.16 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.31% 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 2.82% in the last year.
The Revenue has been growing by 9.22% on average over the past years. This is quite good.
EPS 1Y (TTM)3.31%
EPS 3Y7.61%
EPS 5Y22.64%
EPS Q2Q%-1.69%
Revenue 1Y (TTM)2.82%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%4.88%
3.2 Future
The Earnings Per Share is expected to grow by 10.01% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.65% on average over the next years.
EPS Next Y9.85%
EPS Next 2Y9.18%
EPS Next 3Y9.08%
EPS Next 5Y10.01%
Revenue Next Year4.22%
Revenue Next 2Y5.27%
Revenue Next 3Y5.45%
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
A Price/Earnings ratio of 20.77 indicates a rather expensive valuation of BJ.
The rest of the industry has a similar Price/Earnings ratio as BJ.
Compared to an average S&P500 Price/Earnings ratio of 26.15, BJ is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 18.80, the valuation of BJ can be described as rather expensive.
BJ's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of BJ to the average of the S&P500 Index (36.12), we can say BJ is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.77 | ||
| Fwd PE | 18.8 |
4.2 Price Multiples
BJ's Enterprise Value to EBITDA is on the same level as the industry average.
BJ's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. BJ is more expensive than 64.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.34 | ||
| EV/EBITDA | 11.35 |
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.
The decent profitability rating of BJ may justify a higher PE ratio.
PEG (NY)2.11
PEG (5Y)0.92
EPS Next 2Y9.18%
EPS Next 3Y9.08%
5. Dividend
5.1 Amount
No dividends for BJ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
90.77
+1.46 (+1.63%)
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 Change4.86%
Ins Owners0.63%
Ins Owner Change-9.22%
Market Cap11.96B
Revenue(TTM)21.16B
Net Income(TTM)575.18M
Analysts78.71
Price Target114.25 (25.87%)
Short Float %6.66%
Short Ratio4.28
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)2.13%
Min EPS beat(2)1.37%
Max EPS beat(2)2.89%
EPS beat(4)4
Avg EPS beat(4)7%
Min EPS beat(4)1.37%
Max EPS beat(4)20.92%
EPS beat(8)7
Avg EPS beat(8)7.45%
EPS beat(12)10
Avg EPS beat(12)5.98%
EPS beat(16)14
Avg EPS beat(16)8.83%
Revenue beat(2)0
Avg Revenue beat(2)-3.78%
Min Revenue beat(2)-4.67%
Max Revenue beat(2)-2.88%
Revenue beat(4)0
Avg Revenue beat(4)-3.71%
Min Revenue beat(4)-4.67%
Max Revenue beat(4)-2.88%
Revenue beat(8)0
Avg Revenue beat(8)-3.3%
Revenue beat(12)0
Avg Revenue beat(12)-3.47%
Revenue beat(16)2
Avg Revenue beat(16)-2.25%
PT rev (1m)-2.77%
PT rev (3m)-9.73%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)-0.51%
EPS NY rev (1m)-0.04%
EPS NY rev (3m)0.51%
Revenue NQ rev (1m)-0.11%
Revenue NQ rev (3m)-0.88%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)-1.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.77 | ||
| Fwd PE | 18.8 | ||
| P/S | 0.57 | ||
| P/FCF | 47.34 | ||
| P/OCF | 13.13 | ||
| P/B | 5.51 | ||
| P/tB | 11.22 | ||
| EV/EBITDA | 11.35 |
EPS(TTM)4.37
EY4.81%
EPS(NY)4.83
Fwd EY5.32%
FCF(TTM)1.92
FCFY2.11%
OCF(TTM)6.91
OCFY7.62%
SpS160.61
BVpS16.49
TBVpS8.09
PEG (NY)2.11
PEG (5Y)0.92
Graham Number40.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 26.48% | ||
| ROCE | 16.93% | ||
| ROIC | 12.3% | ||
| ROICexc | 12.42% | ||
| ROICexgc | 16.13% | ||
| OM | 3.88% | ||
| PM (TTM) | 2.72% | ||
| GM | 18.61% | ||
| FCFM | 1.19% |
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-Score7
Asset Turnover2.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.37 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 233.68% | ||
| Cap/Sales | 3.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.64% | ||
| Profit Quality | 43.92% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.16 | ||
| Altman-Z | N/A |
F-Score7
WACC8.4%
ROIC/WACC1.46
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)3.31%
EPS 3Y7.61%
EPS 5Y22.64%
EPS Q2Q%-1.69%
EPS Next Y9.85%
EPS Next 2Y9.18%
EPS Next 3Y9.08%
EPS Next 5Y10.01%
Revenue 1Y (TTM)2.82%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%4.88%
Revenue Next Year4.22%
Revenue Next 2Y5.27%
Revenue Next 3Y5.45%
Revenue Next 5Y5.65%
EBIT growth 1Y1.09%
EBIT growth 3Y8.1%
EBIT growth 5Y16.42%
EBIT Next Year47.42%
EBIT Next 3Y20.16%
EBIT Next 5Y14.03%
FCF growth 1Y50.11%
FCF growth 3Y-14.92%
FCF growth 5Y14.61%
OCF growth 1Y46.99%
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 20.77 and the Price/Book (PB) ratio is 5.51.
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.