BJ'S WHOLESALE CLUB HOLDINGS (BJ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BJ - US05550J1016 - Common Stock
96.98 USD
-0.64 (-0.66%)
BJ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 38 industry peers in the Consumer Staples Distribution & Retail industry. Both the profitability and the financial health of BJ get a neutral evaluation. Nothing too spectacular is happening here. 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.
- 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 7.62%. This is in the better half of the industry: BJ outperforms 78.95% of its industry peers.
- BJ's Return On Equity of 26.48% is fine compared to the rest of the industry. BJ outperforms 78.95% of its industry peers.
- With an excellent Return On Invested Capital value of 12.32%, BJ belongs to the best of the industry, outperforming 84.21% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for BJ is significantly below the industry average of 28.30%.
| 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 Profit Margin of 2.72%. This is in the better half of the industry: BJ outperforms 65.79% of its industry peers.
- BJ's Profit Margin has improved in the last couple of years.
- BJ has a Operating Margin of 3.89%. This is in the better half of the industry: BJ outperforms 68.42% of its industry peers.
- BJ's Operating Margin has improved in the last couple of years.
- BJ has a Gross Margin of 18.61%. This is in the lower half of the industry: BJ underperforms 60.53% 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
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BJ is creating some value.
- BJ has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for BJ has been reduced compared to 5 years ago.
- Compared to 1 year ago, BJ has an improved debt to assets ratio.
2.2 Solvency
- BJ has an Altman-Z score of 4.90. This indicates that BJ is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 4.90, BJ is doing good in the industry, outperforming 73.68% of the companies in the same industry.
- BJ has a debt to FCF ratio of 2.40. This is a good value and a sign of high solvency as BJ would need 2.40 years to pay back of all of its debts.
- BJ's Debt to FCF ratio of 2.40 is fine compared to the rest of the industry. BJ outperforms 76.32% of its industry peers.
- A Debt/Equity ratio of 0.18 indicates that BJ is not too dependend on debt financing.
- With a decent Debt to Equity ratio value of 0.18, BJ is doing good in the industry, outperforming 76.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 4.9 |
ROIC/WACC1.43
WACC8.64%
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: 86.84% 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 0.16, BJ is doing worse than 94.74% of the companies in the same industry.
| 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.
- Measured over the past years, BJ shows a very strong growth in Earnings Per Share. The EPS has been growing by 22.64% on average per year.
- Looking at the last year, BJ shows a small growth in Revenue. The Revenue has grown by 2.82% in the last year.
- 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
- BJ is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.59% yearly.
- Based on estimates for the next years, BJ will show a small growth in Revenue. The Revenue will grow by 5.34% on average per year.
EPS Next Y10.64%
EPS Next 2Y8.8%
EPS Next 3Y8.65%
EPS Next 5Y10.59%
Revenue Next Year3.76%
Revenue Next 2Y5.09%
Revenue Next 3Y5.33%
Revenue Next 5Y5.34%
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.
- 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 22.19 indicates a rather expensive valuation of BJ.
- BJ's Price/Earnings is on the same level as the industry average.
- BJ's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.25.
- A Price/Forward Earnings ratio of 20.23 indicates a rather expensive valuation of BJ.
- BJ's Price/Forward Earnings ratio is in line with the industry average.
- BJ is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.19 | ||
| Fwd PE | 20.23 |
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 ratio is a bit more expensive when compared to the industry. BJ is more expensive than 65.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.83 | ||
| EV/EBITDA | 12.07 |
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)0.98
EPS Next 2Y8.8%
EPS Next 3Y8.65%
5. Dividend
5.1 Amount
- No dividends for BJ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
BJ'S WHOLESALE CLUB HOLDINGS / BJ FAQ
What is the ChartMill fundamental rating of BJ'S WHOLESALE CLUB HOLDINGS (BJ) stock?
ChartMill assigns a fundamental rating of 5 / 10 to BJ.
What is the valuation status of BJ'S WHOLESALE CLUB HOLDINGS (BJ) stock?
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 6 / 10.
How financially healthy is BJ'S WHOLESALE CLUB HOLDINGS?
The financial health rating of BJ'S WHOLESALE CLUB HOLDINGS (BJ) is 5 / 10.
What is the earnings growth outlook for BJ'S WHOLESALE CLUB HOLDINGS?
The Earnings per Share (EPS) of BJ'S WHOLESALE CLUB HOLDINGS (BJ) is expected to grow by 10.64% in the next year.