BJ'S WHOLESALE CLUB HOLDINGS (BJ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BJ - US05550J1016 - Common Stock
92.37 USD
+2.76 (+3.08%)
92.37 USD
0 (0%)
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. BJ has an excellent profitability rating, but there are some minor concerns on its financial health. BJ is valied quite expensively at the moment, while it does show a decent growth rate.
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.
In the past 5 years BJ always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.62%, BJ is in the better half of the industry, outperforming 79.49% of the companies in the same industry.
The Return On Equity of BJ (26.48%) is better than 79.49% of its industry peers.
BJ has a Return On Invested Capital of 12.32%. This is amongst the best in the industry. BJ outperforms 84.62% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BJ is above the industry average of 8.84%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 26.48% | ||
| ROIC | 12.32% |
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
BJ has a better Profit Margin (2.72%) than 66.67% 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 3.89%, BJ is doing good in the industry, outperforming 69.23% of the companies in the same industry.
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.
In the last couple of years the Gross Margin of BJ has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.89% | ||
| 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
Compared to 1 year ago, BJ has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.82 indicates that BJ is not in any danger for bankruptcy at the moment.
BJ has a Altman-Z score of 4.82. This is in the better half of the industry: BJ outperforms 74.36% of its industry peers.
The Debt to FCF ratio of BJ is 2.40, which is a good value as it means it would take BJ, 2.40 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BJ (2.40) is better than 71.79% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that BJ is not too dependend on debt financing.
BJ's Debt to Equity ratio of 0.18 is fine compared to the rest of the industry. BJ outperforms 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 4.82 |
ROIC/WACC1.45
WACC8.52%
2.3 Liquidity
A Current Ratio of 0.79 indicates that BJ may have some problems paying its short term obligations.
The Current ratio of BJ (0.79) is worse than 84.62% of its industry peers.
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 (0.16) is worse than 94.87% 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.
The Earnings Per Share has been growing by 22.64% on average over the past years. This is a very strong growth
BJ shows a small growth in Revenue. In the last year, the Revenue has grown by 2.82%.
Measured over the past years, BJ shows a quite strong growth in Revenue. The Revenue has been growing by 9.22% on average per year.
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.
BJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.65% yearly.
EPS Next Y10.52%
EPS Next 2Y9.06%
EPS Next 3Y8.65%
EPS Next 5Y10.01%
Revenue Next Year4.1%
Revenue Next 2Y5.25%
Revenue Next 3Y5.42%
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
Based on the Price/Earnings ratio of 21.14, the valuation of BJ can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of BJ is on the same level as its industry peers.
BJ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.76.
Based on the Price/Forward Earnings ratio of 19.18, the valuation of BJ can be described as rather expensive.
BJ's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.96. BJ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.14 | ||
| Fwd PE | 19.18 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BJ.
Based on the Price/Free Cash Flow ratio, BJ is valued a bit more expensive than the industry average as 64.10% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.42 | ||
| EV/EBITDA | 11.45 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of BJ may justify a higher PE ratio.
PEG (NY)2.01
PEG (5Y)0.93
EPS Next 2Y9.06%
EPS Next 3Y8.65%
5. Dividend
5.1 Amount
No dividends for BJ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
92.37
+2.76 (+3.08%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners110.86%
Inst Owner Change4.87%
Ins Owners0.61%
Ins Owner Change-8.01%
Market Cap12.09B
Revenue(TTM)21.16B
Net Income(TTM)575.18M
Analysts79.35
Price Target110.8 (19.95%)
Short Float %6.54%
Short Ratio3.81
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)-5.76%
PT rev (3m)-5.87%
EPS NQ rev (1m)-2.1%
EPS NQ rev (3m)-2.41%
EPS NY rev (1m)0.6%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)0.88%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.14 | ||
| Fwd PE | 19.18 | ||
| P/S | 0.57 | ||
| P/FCF | 48.42 | ||
| P/OCF | 13.27 | ||
| P/B | 5.56 | ||
| P/tB | 11.34 | ||
| EV/EBITDA | 11.45 |
EPS(TTM)4.37
EY4.73%
EPS(NY)4.82
Fwd EY5.21%
FCF(TTM)1.91
FCFY2.07%
OCF(TTM)6.96
OCFY7.54%
SpS161.72
BVpS16.6
TBVpS8.15
PEG (NY)2.01
PEG (5Y)0.93
Graham Number40.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 26.48% | ||
| ROCE | 16.97% | ||
| ROIC | 12.32% | ||
| ROICexc | 12.44% | ||
| ROICexgc | 16.16% | ||
| OM | 3.89% | ||
| PM (TTM) | 2.72% | ||
| GM | 18.61% | ||
| FCFM | 1.18% |
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 | 2.4 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 234.74% | ||
| Cap/Sales | 3.13% | ||
| Interest Coverage | 25.1 | ||
| Cash Conversion | 82.53% | ||
| Profit Quality | 43.4% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.16 | ||
| Altman-Z | 4.82 |
F-Score7
WACC8.52%
ROIC/WACC1.45
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 Y10.52%
EPS Next 2Y9.06%
EPS Next 3Y8.65%
EPS Next 5Y10.01%
Revenue 1Y (TTM)2.82%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%4.88%
Revenue Next Year4.1%
Revenue Next 2Y5.25%
Revenue Next 3Y5.42%
Revenue Next 5Y5.65%
EBIT growth 1Y1.28%
EBIT growth 3Y8.1%
EBIT growth 5Y16.42%
EBIT Next Year47.67%
EBIT Next 3Y19.87%
EBIT Next 5Y14.03%
FCF growth 1Y48.33%
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 21.14 and the Price/Book (PB) ratio is 5.56.
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 10.52% in the next year.