BJ'S WHOLESALE CLUB HOLDINGS (BJ) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BJ - US05550J1016 - Common Stock
94.48 USD
+0.91 (+0.97%)
94.48 USD
0 (0%)
Overall BJ gets a fundamental rating of 5 out of 10. We evaluated BJ against 38 industry peers in the Consumer Staples Distribution & Retail industry. BJ scores excellent on profitability, but 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
In the past year BJ was profitable.
BJ had a positive operating cash flow in the past year.
Each year in the past 5 years BJ has been profitable.
In the past 5 years BJ always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BJ (7.62%) is better than 81.58% of its industry peers.
BJ's Return On Equity of 26.48% is amongst the best of the industry. BJ outperforms 81.58% of its industry peers.
BJ's Return On Invested Capital of 12.32% is amongst the best of the industry. BJ outperforms 86.84% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BJ is significantly above the industry average of 8.25%.
| 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
Looking at the Profit Margin, with a value of 2.72%, BJ is in the better half of the industry, outperforming 68.42% of the companies in the same industry.
In the last couple of years the Profit Margin of BJ has grown nicely.
BJ has a better Operating Margin (3.89%) than 71.05% 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 18.61%, BJ is doing worse than 60.53% 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 | 3.89% | ||
| 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.
Compared to 1 year ago, BJ has less shares outstanding
Compared to 5 years ago, BJ has less shares outstanding
BJ has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.85 indicates that BJ is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.85, BJ is doing good in the industry, outperforming 76.32% of the companies in the same industry.
The Debt to FCF ratio of BJ is 2.40, which is a good value as it means it would take BJ, 2.40 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.40, BJ is in the better half of the industry, outperforming 73.68% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that BJ is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.18, BJ is in the better half of the industry, outperforming 78.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 4.85 |
ROIC/WACC1.44
WACC8.57%
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.
BJ has a Current ratio of 0.79. This is amonst the worse of the industry: BJ underperforms 84.21% of its industry peers.
A Quick Ratio of 0.16 indicates that BJ may have some problems paying its short term obligations.
BJ has a Quick ratio of 0.16. This is amonst the worse of the industry: BJ underperforms 94.74% of its industry peers.
The current and quick ratio evaluation for BJ is rather negative, while it does have 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 | 0.79 | ||
| Quick Ratio | 0.16 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.31% over the past year.
The Earnings Per Share has been growing by 22.64% on average over the past years. This is a very strong growth
Looking at the last year, BJ shows a small growth in Revenue. The Revenue has grown by 2.82% in the last year.
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)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 10.01% yearly.
The Revenue is expected to grow by 5.65% on average over the next years.
EPS Next Y10.66%
EPS Next 2Y8.84%
EPS Next 3Y8.74%
EPS Next 5Y10.01%
Revenue Next Year3.76%
Revenue Next 2Y5.14%
Revenue Next 3Y5.37%
Revenue Next 5Y5.65%
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 rather expensively with a Price/Earnings ratio of 21.62.
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 (26.59), we can say BJ is valued inline with the index average.
The Price/Forward Earnings ratio is 19.69, which indicates a rather expensive current valuation of BJ.
The rest of the industry has a similar Price/Forward Earnings ratio as BJ.
BJ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.03, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 19.69 |
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 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 | 49.52 | ||
| EV/EBITDA | 11.7 |
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)2.03
PEG (5Y)0.96
EPS Next 2Y8.84%
EPS Next 3Y8.74%
5. Dividend
5.1 Amount
BJ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
94.48
+0.91 (+0.97%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners110.86%
Inst Owner Change4.85%
Ins Owners0.61%
Ins Owner Change-8.89%
Market Cap12.36B
Revenue(TTM)21.16B
Net Income(TTM)575.18M
Analysts79.35
Price Target110.8 (17.27%)
Short Float %6.59%
Short Ratio3.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2.13%
Min EPS beat(2)1.37%
Max EPS beat(2)2.89%
EPS beat(4)4
Avg EPS beat(4)7%
Min EPS beat(4)1.37%
Max EPS beat(4)20.92%
EPS beat(8)7
Avg EPS beat(8)7.45%
EPS beat(12)10
Avg EPS beat(12)5.98%
EPS beat(16)14
Avg EPS beat(16)8.83%
Revenue beat(2)0
Avg Revenue beat(2)-3.78%
Min Revenue beat(2)-4.67%
Max Revenue beat(2)-2.88%
Revenue beat(4)0
Avg Revenue beat(4)-3.71%
Min Revenue beat(4)-4.67%
Max Revenue beat(4)-2.88%
Revenue beat(8)0
Avg Revenue beat(8)-3.3%
Revenue beat(12)0
Avg Revenue beat(12)-3.47%
Revenue beat(16)2
Avg Revenue beat(16)-2.25%
PT rev (1m)-5.76%
PT rev (3m)-5.81%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)-2.04%
EPS NY rev (1m)0.73%
EPS NY rev (3m)0.76%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)-0.44%
Revenue NY rev (3m)-0.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 19.69 | ||
| P/S | 0.58 | ||
| P/FCF | 49.52 | ||
| P/OCF | 13.57 | ||
| P/B | 5.69 | ||
| P/tB | 11.59 | ||
| EV/EBITDA | 11.7 |
EPS(TTM)4.37
EY4.63%
EPS(NY)4.8
Fwd EY5.08%
FCF(TTM)1.91
FCFY2.02%
OCF(TTM)6.96
OCFY7.37%
SpS161.72
BVpS16.6
TBVpS8.15
PEG (NY)2.03
PEG (5Y)0.96
Graham Number40.4
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.62% | ||
| ROE | 26.48% | ||
| ROCE | 16.97% | ||
| ROIC | 12.32% | ||
| ROICexc | 12.44% | ||
| ROICexgc | 16.16% | ||
| OM | 3.89% | ||
| PM (TTM) | 2.72% | ||
| GM | 18.61% | ||
| FCFM | 1.18% |
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-Score7
Asset Turnover2.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.4 | ||
| Debt/EBITDA | 0.36 | ||
| Cap/Depr | 234.74% | ||
| Cap/Sales | 3.13% | ||
| Interest Coverage | 25.1 | ||
| Cash Conversion | 82.53% | ||
| Profit Quality | 43.4% | ||
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.16 | ||
| Altman-Z | 4.85 |
F-Score7
WACC8.57%
ROIC/WACC1.44
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)3.31%
EPS 3Y7.61%
EPS 5Y22.64%
EPS Q2Q%-1.69%
EPS Next Y10.66%
EPS Next 2Y8.84%
EPS Next 3Y8.74%
EPS Next 5Y10.01%
Revenue 1Y (TTM)2.82%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%4.88%
Revenue Next Year3.76%
Revenue Next 2Y5.14%
Revenue Next 3Y5.37%
Revenue Next 5Y5.65%
EBIT growth 1Y1.28%
EBIT growth 3Y8.1%
EBIT growth 5Y16.42%
EBIT Next Year47.67%
EBIT Next 3Y19.87%
EBIT Next 5Y14.03%
FCF growth 1Y48.33%
FCF growth 3Y-14.92%
FCF growth 5Y14.61%
OCF growth 1Y46.99%
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 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 8 / 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 21.62 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 10.66% in the next year.