BJ'S WHOLESALE CLUB HOLDINGS (BJ) Stock Fundamental Analysis
NYSE:BJ - New York Stock Exchange, Inc. - US05550J1016 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to BJ. BJ was compared to 40 industry peers in the Consumer Staples Distribution & Retail industry. BJ has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. While showing a medium growth rate, BJ is valued expensive at the moment. These ratings could make BJ a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year BJ was profitable.
In the past year BJ had a positive cash flow from operations.
Each year in the past 5 years BJ has been profitable.
Each year in the past 5 years BJ had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 7.56%, BJ belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
The Return On Equity of BJ (28.93%) is better than 87.50% of its industry peers.
BJ's Return On Invested Capital of 12.46% is amongst the best of the industry. BJ outperforms 87.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BJ is significantly above the industry average of 8.16%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 28.93% | ||
| ROIC | 12.46% |
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 Profit Margin of 2.61%. This is in the better half of the industry: BJ outperforms 75.00% of its industry peers.
BJ's Profit Margin has improved in the last couple of years.
With a decent Operating Margin value of 3.79%, BJ is doing good in the industry, outperforming 72.50% of the companies in the same industry.
In the last couple of years the Operating Margin of BJ has grown nicely.
Looking at the Gross Margin, with a value of 18.36%, BJ is doing worse than 67.50% of the companies in the same industry.
BJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.79% | ||
| PM (TTM) | 2.61% | ||
| GM | 18.36% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BJ is still 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.
The debt/assets ratio for BJ has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.28 indicates that BJ is not in any danger for bankruptcy at the moment.
BJ has a better Altman-Z score (5.28) than 75.00% of its industry peers.
The Debt to FCF ratio of BJ is 1.83, which is an excellent value as it means it would take BJ, only 1.83 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.83, BJ belongs to the best of the industry, outperforming 82.50% of the companies in the same industry.
BJ has a Debt/Equity ratio of 0.22. This is a healthy value indicating a solid balance between debt and equity.
BJ's Debt to Equity ratio of 0.22 is fine compared to the rest of the industry. BJ outperforms 72.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.83 | ||
| Altman-Z | 5.28 |
ROIC/WACC1.42
WACC8.78%
2.3 Liquidity
BJ has a Current Ratio of 0.74. This is a bad value and indicates that BJ is not financially healthy enough and could expect problems in meeting its short term obligations.
BJ has a Current ratio of 0.74. This is amonst the worse of the industry: BJ underperforms 85.00% of its industry peers.
A Quick Ratio of 0.15 indicates that BJ may have some problems paying its short term obligations.
With a Quick ratio value of 0.15, BJ is not doing good in the industry: 95.00% of the companies in the same industry are doing better.
BJ does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.15 |
3. Growth
3.1 Past
BJ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.58%.
BJ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.64% yearly.
BJ shows a small growth in Revenue. In the last year, the Revenue has grown by 2.67%.
The Revenue has been growing by 9.22% on average over the past years. This is quite good.
EPS 1Y (TTM)3.58%
EPS 3Y7.61%
EPS 5Y22.64%
EPS Q2Q%-16.22%
Revenue 1Y (TTM)2.67%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%-1.47%
3.2 Future
Based on estimates for the next years, BJ will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.87% on average per year.
The Revenue is expected to grow by 5.67% on average over the next years.
EPS Next Y7.92%
EPS Next 2Y9.05%
EPS Next 3Y9.6%
EPS Next 5Y10.87%
Revenue Next Year5.02%
Revenue Next 2Y5.82%
Revenue Next 3Y6.29%
Revenue Next 5Y5.67%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BJ is valuated quite expensively with a Price/Earnings ratio of 29.25.
The rest of the industry has a similar Price/Earnings ratio as BJ.
The average S&P500 Price/Earnings ratio is at 28.29. BJ is around the same levels.
With a Price/Forward Earnings ratio of 27.10, BJ can be considered very expensive at the moment.
BJ's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of BJ to the average of the S&P500 Index (21.08), we can say BJ is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.25 | ||
| Fwd PE | 27.1 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BJ.
BJ's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.85 | ||
| EV/EBITDA | 15.53 |
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 excellent profitability rating of BJ may justify a higher PE ratio.
PEG (NY)3.69
PEG (5Y)1.29
EPS Next 2Y9.05%
EPS Next 3Y9.6%
5. Dividend
5.1 Amount
BJ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
118.45
+2.62 (+2.26%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners103.82%
Inst Owner Change0%
Ins Owners0.76%
Ins Owner Change-2.71%
Market Cap15.60B
Analysts77.58
Price Target119.93 (1.25%)
Short Float %5.88%
Short Ratio4.25
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)13.59%
Min EPS beat(2)2.82%
Max EPS beat(2)24.36%
EPS beat(4)3
Avg EPS beat(4)8.24%
Min EPS beat(4)-0.08%
Max EPS beat(4)24.36%
EPS beat(8)6
Avg EPS beat(8)4.46%
EPS beat(12)10
Avg EPS beat(12)9.22%
EPS beat(16)14
Avg EPS beat(16)10.83%
Revenue beat(2)0
Avg Revenue beat(2)-3.32%
Min Revenue beat(2)-3.59%
Max Revenue beat(2)-3.05%
Revenue beat(4)0
Avg Revenue beat(4)-2.93%
Min Revenue beat(4)-3.94%
Max Revenue beat(4)-1.16%
Revenue beat(8)0
Avg Revenue beat(8)-3.75%
Revenue beat(12)2
Avg Revenue beat(12)-1.79%
Revenue beat(16)5
Avg Revenue beat(16)-0.51%
PT rev (1m)14.62%
PT rev (3m)19.25%
EPS NQ rev (1m)0.45%
EPS NQ rev (3m)-0.19%
EPS NY rev (1m)-1.46%
EPS NY rev (3m)-0.91%
Revenue NQ rev (1m)0.19%
Revenue NQ rev (3m)-0.54%
Revenue NY rev (1m)-1.23%
Revenue NY rev (3m)-0.9%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.25 | ||
| Fwd PE | 27.1 | ||
| P/S | 0.76 | ||
| P/FCF | 49.85 | ||
| P/OCF | 17.31 | ||
| P/B | 8.44 | ||
| P/tB | 21.15 | ||
| EV/EBITDA | 15.53 |
EPS(TTM)4.05
EY3.42%
EPS(NY)4.37
Fwd EY3.69%
FCF(TTM)2.38
FCFY2.01%
OCF(TTM)6.84
OCFY5.78%
SpS155.69
BVpS14.03
TBVpS5.6
PEG (NY)3.69
PEG (5Y)1.29
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.56% | ||
| ROE | 28.93% | ||
| ROCE | 17.15% | ||
| ROIC | 12.46% | ||
| ROICexc | 12.54% | ||
| ROICexgc | 16.64% | ||
| OM | 3.79% | ||
| PM (TTM) | 2.61% | ||
| GM | 18.36% | ||
| FCFM | 1.53% |
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%
ROICexcg growth 3Y-1.43%
ROICexcg 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 Turnover2.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.22 | ||
| Debt/FCF | 1.83 | ||
| Debt/EBITDA | 0.38 | ||
| Cap/Depr | 224.36% | ||
| Cap/Sales | 2.87% | ||
| Interest Coverage | 18.27 | ||
| Cash Conversion | 86.67% | ||
| Profit Quality | 58.55% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.15 | ||
| Altman-Z | 5.28 |
F-Score7
WACC8.78%
ROIC/WACC1.42
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)3.58%
EPS 3Y7.61%
EPS 5Y22.64%
EPS Q2Q%-16.22%
EPS Next Y7.92%
EPS Next 2Y9.05%
EPS Next 3Y9.6%
EPS Next 5Y10.87%
Revenue 1Y (TTM)2.67%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%-1.47%
Revenue Next Year5.02%
Revenue Next 2Y5.82%
Revenue Next 3Y6.29%
Revenue Next 5Y5.67%
EBIT growth 1Y-2.9%
EBIT growth 3Y8.1%
EBIT growth 5Y16.42%
EBIT Next Year48.8%
EBIT Next 3Y20.76%
EBIT Next 5Y13.22%
FCF growth 1Y24.26%
FCF growth 3Y-14.92%
FCF growth 5Y14.61%
OCF growth 1Y25.32%
OCF growth 3Y2.7%
OCF growth 5Y20.47%