BJ'S WHOLESALE CLUB HOLDINGS (BJ)
US05550J1016 - Common Stock
BJ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 43 industry peers in the Consumer Staples Distribution & Retail industry. BJ scores excellent points on both the profitability and health parts. This is a solid base for a good stock. While showing a medium growth rate, BJ is valued expensive at the moment. These ratings would make BJ suitable for quality investing!
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.
BJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.73%, BJ belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
With an excellent Return On Equity value of 31.64%, BJ belongs to the best of the industry, outperforming 93.02% of the companies in the same industry.
BJ's Return On Invested Capital of 13.15% is amongst the best of the industry. BJ outperforms 90.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BJ is significantly above the industry average of 8.45%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.73% | ||
| ROE | 31.64% | ||
| ROIC | 13.15% |
ROA(3y)7.82%
ROA(5y)6.96%
ROE(3y)50.26%
ROE(5y)N/A
ROIC(3y)13.58%
ROIC(5y)12.45%
1.3 Margins
The Profit Margin of BJ (2.71%) is better than 74.42% of its industry peers.
BJ's Profit Margin has improved in the last couple of years.
BJ's Operating Margin of 3.93% is fine compared to the rest of the industry. BJ outperforms 72.09% of its industry peers.
BJ's Operating Margin has improved in the last couple of years.
BJ has a Gross Margin of 18.36%. This is in the lower half of the industry: BJ underperforms 65.12% of its industry peers.
BJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.93% | ||
| PM (TTM) | 2.71% | ||
| GM | 18.36% |
OM growth 3Y-0.67%
OM growth 5Y11.85%
PM growth 3Y-1.31%
PM growth 5Y21.85%
GM growth 3Y-1.87%
GM growth 5Y0.1%
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.
BJ has less shares outstanding than it did 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
BJ has an Altman-Z score of 4.78. This indicates that BJ is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.78, BJ is doing good in the industry, outperforming 72.09% of the companies in the same industry.
BJ has a debt to FCF ratio of 1.80. This is a very positive value and a sign of high solvency as it would only need 1.80 years to pay back of all of its debts.
BJ has a better Debt to FCF ratio (1.80) than 83.72% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that BJ is not too dependend on debt financing.
The Debt to Equity ratio of BJ (0.23) is better than 74.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 4.78 |
ROIC/WACC1.47
WACC8.95%
2.3 Liquidity
BJ has a Current Ratio of 0.76. 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's Current ratio of 0.76 is on the low side compared to the rest of the industry. BJ is outperformed by 81.40% of its industry peers.
BJ has a Quick Ratio of 0.76. 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 (0.14) is worse than 95.35% of its industry peers.
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 | 0.76 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
BJ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.32%, which is quite good.
The Earnings Per Share has been growing by 21.12% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 5.32% in the past year.
The Revenue has been growing by 8.95% on average over the past years. This is quite good.
EPS 1Y (TTM)11.32%
EPS 3Y8.28%
EPS 5Y21.12%
EPS Q2Q%20.41%
Revenue 1Y (TTM)5.32%
Revenue growth 3Y8.98%
Revenue growth 5Y8.95%
Sales Q2Q%3.55%
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 11.32% on average per year.
Based on estimates for the next years, BJ will show a small growth in Revenue. The Revenue will grow by 5.52% on average per year.
EPS Next Y5%
EPS Next 2Y6.21%
EPS Next 3Y7.39%
EPS Next 5Y11.32%
Revenue Next Year3.26%
Revenue Next 2Y4.77%
Revenue Next 3Y5.05%
Revenue Next 5Y5.52%
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 22.17, 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.
The average S&P500 Price/Earnings ratio is at 27.73. BJ is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 21.26 indicates a rather expensive valuation of BJ.
The rest of the industry has a similar Price/Forward Earnings ratio as BJ.
The average S&P500 Price/Forward Earnings ratio is at 22.83. BJ is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.17 | ||
| Fwd PE | 21.26 |
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 | 34.72 | ||
| EV/EBITDA | 12.22 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BJ has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)4.43
PEG (5Y)1.05
EPS Next 2Y6.21%
EPS Next 3Y7.39%
5. Dividend
5.1 Amount
No dividends for BJ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BJ'S WHOLESALE CLUB HOLDINGS
NYSE:BJ (12/20/2024, 8:04:00 PM)
After market: 93.77 0 (0%)93.77
-0.23 (-0.24%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners105.76%
Inst Owner Change2.21%
Ins Owners0.9%
Ins Owner Change-4.53%
Market Cap12.39B
Analysts77.58
Price Target99.81 (6.44%)
Short Float %6.41%
Short Ratio5.67
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)15.1%
Min EPS beat(2)5.84%
Max EPS beat(2)24.36%
EPS beat(4)3
Avg EPS beat(4)7.9%
Min EPS beat(4)-0.08%
Max EPS beat(4)24.36%
EPS beat(8)6
Avg EPS beat(8)5.48%
EPS beat(12)10
Avg EPS beat(12)9.45%
EPS beat(16)14
Avg EPS beat(16)10.73%
Revenue beat(2)0
Avg Revenue beat(2)-3.5%
Min Revenue beat(2)-3.94%
Max Revenue beat(2)-3.05%
Revenue beat(4)0
Avg Revenue beat(4)-2.89%
Min Revenue beat(4)-3.94%
Max Revenue beat(4)-1.16%
Revenue beat(8)0
Avg Revenue beat(8)-3.34%
Revenue beat(12)2
Avg Revenue beat(12)-1.76%
Revenue beat(16)5
Avg Revenue beat(16)-0.46%
PT rev (1m)8.78%
PT rev (3m)10.82%
EPS NQ rev (1m)-7.32%
EPS NQ rev (3m)-17.2%
EPS NY rev (1m)3.76%
EPS NY rev (3m)3.75%
Revenue NQ rev (1m)-0.98%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.17 | ||
| Fwd PE | 21.26 | ||
| P/S | 0.6 | ||
| P/FCF | 34.72 | ||
| P/OCF | 13.71 | ||
| P/B | 7.03 | ||
| P/tB | 19.04 | ||
| EV/EBITDA | 12.22 |
EPS(TTM)4.23
EY4.51%
EPS(NY)4.41
Fwd EY4.7%
FCF(TTM)2.7
FCFY2.88%
OCF(TTM)6.84
OCFY7.29%
SpS155.81
BVpS13.34
TBVpS4.93
PEG (NY)4.43
PEG (5Y)1.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.73% | ||
| ROE | 31.64% | ||
| ROCE | 18.06% | ||
| ROIC | 13.15% | ||
| ROICexc | 13.25% | ||
| ROICexgc | 17.68% | ||
| OM | 3.93% | ||
| PM (TTM) | 2.71% | ||
| GM | 18.36% | ||
| FCFM | 1.73% |
ROA(3y)7.82%
ROA(5y)6.96%
ROE(3y)50.26%
ROE(5y)N/A
ROIC(3y)13.58%
ROIC(5y)12.45%
ROICexc(3y)13.72%
ROICexc(5y)12.58%
ROICexgc(3y)19.19%
ROICexgc(5y)17.87%
ROCE(3y)18.65%
ROCE(5y)17.09%
ROICexcg growth 3Y-1.87%
ROICexcg growth 5Y-14.84%
ROICexc growth 3Y0.47%
ROICexc growth 5Y1.03%
OM growth 3Y-0.67%
OM growth 5Y11.85%
PM growth 3Y-1.31%
PM growth 5Y21.85%
GM growth 3Y-1.87%
GM growth 5Y0.1%
F-Score8
Asset Turnover2.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.8 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 213.92% | ||
| Cap/Sales | 2.66% | ||
| Interest Coverage | 16.54 | ||
| Cash Conversion | 84.95% | ||
| Profit Quality | 63.97% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 4.78 |
F-Score8
WACC8.95%
ROIC/WACC1.47
Cap/Depr(3y)194.14%
Cap/Depr(5y)167.63%
Cap/Sales(3y)2.11%
Cap/Sales(5y)1.85%
Profit Quality(3y)81.06%
Profit Quality(5y)96.44%
High Growth Momentum
Growth
EPS 1Y (TTM)11.32%
EPS 3Y8.28%
EPS 5Y21.12%
EPS Q2Q%20.41%
EPS Next Y5%
EPS Next 2Y6.21%
EPS Next 3Y7.39%
EPS Next 5Y11.32%
Revenue 1Y (TTM)5.32%
Revenue growth 3Y8.98%
Revenue growth 5Y8.95%
Sales Q2Q%3.55%
Revenue Next Year3.26%
Revenue Next 2Y4.77%
Revenue Next 3Y5.05%
Revenue Next 5Y5.52%
EBIT growth 1Y3.66%
EBIT growth 3Y8.25%
EBIT growth 5Y21.86%
EBIT Next Year27.35%
EBIT Next 3Y15.63%
EBIT Next 5Y10.12%
FCF growth 1Y12.88%
FCF growth 3Y-27.11%
FCF growth 5Y-2.18%
OCF growth 1Y26.98%
OCF growth 3Y-6.11%
OCF growth 5Y10.98%