BJ'S WHOLESALE CLUB HOLDINGS (BJ) Stock Fundamental Analysis
USA - NYSE:BJ - US05550J1016 - Common Stock
90.59 USD
-0.72 (-0.79%)
90.678 USD
+0.09 (+0.1%)
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 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.
In the past year BJ had a positive cash flow from operations.
BJ had positive earnings in each of the past 5 years.
Each year in the past 5 years BJ had a positive operating cash flow.
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's Return On Equity of 27.58% is fine compared to the rest of the industry. BJ outperforms 79.49% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.63%, BJ belongs to the top of the industry, outperforming 87.18% 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 8.72%.
| 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.
BJ has a better Operating Margin (3.99%) than 71.79% of its industry peers.
BJ's Operating Margin has improved in the last couple of years.
BJ has a Gross Margin of 18.65%. This is in the lower half of the industry: BJ underperforms 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.
Compared to 5 years ago, BJ has less shares outstanding
The debt/assets ratio for BJ has been reduced compared to a year ago.
2.2 Solvency
BJ has an Altman-Z score of 4.98. This indicates that BJ is financially healthy and has little risk of bankruptcy at the moment.
BJ's Altman-Z score of 4.98 is fine compared to the rest of the industry. BJ outperforms 74.36% of its industry peers.
The Debt to FCF ratio of BJ is 1.79, which is an excellent value as it means it would take BJ, only 1.79 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.79, BJ is in the better half of the industry, outperforming 79.49% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that BJ is not too dependend on debt financing.
BJ has a better Debt to Equity ratio (0.19) than 71.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 4.98 |
ROIC/WACC1.48
WACC8.52%
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 82.05% 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.
Looking at the Quick ratio, with a value of 0.17, BJ is doing worse than 92.31% 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.
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.
The Revenue has been growing by 9.22% on average over the past years. This is quite good.
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.
BJ is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.65% yearly.
EPS Next Y9.85%
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.
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
A Price/Earnings ratio of 20.64 indicates a rather expensive valuation of BJ.
BJ's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of BJ to the average of the S&P500 Index (25.07), we can say BJ is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 18.77, the valuation of BJ can be described as rather expensive.
BJ's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.08, BJ is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.64 | ||
| Fwd PE | 18.77 |
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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.29 | ||
| EV/EBITDA | 11.26 |
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)2.09
PEG (5Y)0.91
EPS Next 2Y9.18%
EPS Next 3Y8.97%
5. Dividend
5.1 Amount
BJ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
90.59
-0.72 (-0.79%)
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 Change4.88%
Ins Owners0.63%
Ins Owner Change-14.73%
Market Cap11.94B
Revenue(TTM)20.91B
Net Income(TTM)578.88M
Analysts78.71
Price Target117.57 (29.78%)
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)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 | 20.64 | ||
| Fwd PE | 18.77 | ||
| P/S | 0.57 | ||
| P/FCF | 42.29 | ||
| P/OCF | 12.74 | ||
| P/B | 5.69 | ||
| P/tB | 12.03 | ||
| EV/EBITDA | 11.26 |
EPS(TTM)4.39
EY4.85%
EPS(NY)4.83
Fwd EY5.33%
FCF(TTM)2.14
FCFY2.36%
OCF(TTM)7.11
OCFY7.85%
SpS158.72
BVpS15.93
TBVpS7.53
PEG (NY)2.09
PEG (5Y)0.91
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 | 4.98 |
F-Score8
WACC8.52%
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 3 / 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 20.64 and the Price/Book (PB) ratio is 5.69.
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.