BJ'S WHOLESALE CLUB HOLDINGS (BJ) Stock Fundamental Analysis
USA - NYSE:BJ - US05550J1016 - Common Stock
99.44 USD
-0.31 (-0.31%)
99.44 USD
0 (0%)
Overall BJ gets a fundamental rating of 5 out of 10. We evaluated BJ against 40 industry peers in the Consumer Staples Distribution & Retail industry. While BJ belongs to the best of the industry regarding profitability, 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.
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
Looking at the Return On Assets, with a value of 8.00%, BJ belongs to the top of the industry, outperforming 82.50% of the companies in the same industry.
With a decent Return On Equity value of 27.58%, BJ is doing good in the industry, outperforming 80.00% of the companies in the same industry.
BJ has a better Return On Invested Capital (12.61%) than 90.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BJ is significantly above the industry average of 8.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 27.58% | ||
| ROIC | 12.61% |
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's Profit Margin of 2.77% is fine compared to the rest of the industry. BJ outperforms 67.50% of its industry peers.
In the last couple of years the Profit Margin of BJ has grown nicely.
BJ has a Operating Margin of 3.98%. This is in the better half of the industry: BJ outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of BJ has grown nicely.
Looking at the Gross Margin, with a value of 18.65%, BJ is doing worse than 62.50% of the companies in the same industry.
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 | 3.98% | ||
| 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
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.
BJ has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BJ has an improved debt to assets ratio.
2.2 Solvency
BJ has a debt to FCF ratio of 1.77. This is a very positive value and a sign of high solvency as it would only need 1.77 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.77, BJ is doing good in the industry, outperforming 77.50% of the companies in the same industry.
BJ has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.19, BJ is doing good in the industry, outperforming 67.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | N/A |
ROIC/WACC1.49
WACC8.46%
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.
With a Current ratio value of 0.79, BJ is not doing good in the industry: 85.00% 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.
Looking at the Quick ratio, with a value of 0.17, BJ is doing worse than 95.00% of the companies in the same industry.
| 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.
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 2.48%.
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
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 Y9.55%
EPS Next 2Y9.18%
EPS Next 3Y9.03%
EPS Next 5Y10.01%
Revenue Next Year3.8%
Revenue Next 2Y5.27%
Revenue Next 3Y5.57%
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.
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
Based on the Price/Earnings ratio of 22.65, the valuation of BJ can be described as rather expensive.
BJ's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of BJ to the average of the S&P500 Index (27.20), we can say BJ is valued inline with the index average.
A Price/Forward Earnings ratio of 20.60 indicates a rather expensive valuation of BJ.
BJ's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.71, BJ is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.65 | ||
| Fwd PE | 20.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BJ is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, BJ is valued a bit more expensive than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 45.94 | ||
| EV/EBITDA | 12.24 |
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)2.37
PEG (5Y)1
EPS Next 2Y9.18%
EPS Next 3Y9.03%
5. Dividend
5.1 Amount
No dividends for BJ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
99.44
-0.31 (-0.31%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners103.98%
Inst Owner Change-1.59%
Ins Owners0.7%
Ins Owner Change-3.58%
Market Cap13.10B
Analysts78.71
Price Target117.63 (18.29%)
Short Float %6.57%
Short Ratio4.19
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)-7.06%
PT rev (3m)-6.43%
EPS NQ rev (1m)0.24%
EPS NQ rev (3m)-8.74%
EPS NY rev (1m)0.23%
EPS NY rev (3m)1.61%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)-1.9%
Revenue NY rev (1m)-1.47%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.65 | ||
| Fwd PE | 20.6 | ||
| P/S | 0.63 | ||
| P/FCF | 45.94 | ||
| P/OCF | 13.99 | ||
| P/B | 6.24 | ||
| P/tB | 13.21 | ||
| EV/EBITDA | 12.24 |
EPS(TTM)4.39
EY4.41%
EPS(NY)4.83
Fwd EY4.86%
FCF(TTM)2.16
FCFY2.18%
OCF(TTM)7.11
OCFY7.15%
SpS158.72
BVpS15.93
TBVpS7.53
PEG (NY)2.37
PEG (5Y)1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8% | ||
| ROE | 27.58% | ||
| ROCE | 17.36% | ||
| ROIC | 12.61% | ||
| ROICexc | 12.74% | ||
| ROICexgc | 16.61% | ||
| OM | 3.98% | ||
| PM (TTM) | 2.77% | ||
| GM | 18.65% | ||
| FCFM | 1.36% |
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-Score8
Asset Turnover2.89
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.77 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 236.79% | ||
| Cap/Sales | 3.12% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 84.55% | ||
| Profit Quality | 49.27% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.17 | ||
| Altman-Z | N/A |
F-Score8
WACC8.46%
ROIC/WACC1.49
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 Y9.55%
EPS Next 2Y9.18%
EPS Next 3Y9.03%
EPS Next 5Y10.01%
Revenue 1Y (TTM)2.48%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%5.65%
Revenue Next Year3.8%
Revenue Next 2Y5.27%
Revenue Next 3Y5.57%
Revenue Next 5Y5.65%
EBIT growth 1Y6.8%
EBIT growth 3Y8.1%
EBIT growth 5Y16.42%
EBIT Next Year48.8%
EBIT Next 3Y20.07%
EBIT Next 5Y14.03%
FCF growth 1Y46.93%
FCF growth 3Y-14.92%
FCF growth 5Y14.61%
OCF growth 1Y52.4%
OCF growth 3Y2.7%
OCF growth 5Y20.47%