BJ'S WHOLESALE CLUB HOLDINGS (BJ) Stock Fundamental Analysis
USA - NYSE:BJ - US05550J1016 - Common Stock
94.19 USD
+1.19 (+1.28%)
94.3 USD
+0.11 (+0.12%)
BJ gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 39 industry peers in the Consumer Staples Distribution & Retail industry. While BJ has a great profitability rating, 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
With an excellent Return On Assets value of 8.00%, BJ belongs to the best of the industry, outperforming 84.62% of the companies in the same industry.
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.
The Return On Invested Capital of BJ (12.63%) is better than 87.18% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BJ is above the industry average of 8.71%.
| 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
BJ has a Profit Margin of 2.77%. This is in the better half of the industry: BJ outperforms 71.79% of its industry peers.
BJ's Profit Margin has improved in the last couple of years.
BJ has a better Operating Margin (3.99%) than 71.79% 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 64.10% 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 | 3.99% | ||
| 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
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.
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
An Altman-Z score of 5.03 indicates that BJ is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.03, BJ is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
BJ has a debt to FCF ratio of 1.79. This is a very positive value and a sign of high solvency as it would only need 1.79 years to pay back of 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 76.92% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that BJ is not too dependend on debt financing.
The Debt to Equity ratio of BJ (0.19) is better than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 5.03 |
ROIC/WACC1.5
WACC8.42%
2.3 Liquidity
A Current Ratio of 0.79 indicates that BJ may have some problems paying its short term obligations.
With a Current ratio value of 0.79, BJ is not doing good in the industry: 82.05% 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.
BJ's Quick ratio of 0.17 is on the low side compared to the rest of the industry. BJ is outperformed by 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.17 |
3. Growth
3.1 Past
BJ shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.93%, which is quite good.
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.
BJ shows a small growth in Revenue. In the last year, the Revenue has grown by 2.48%.
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
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 Y9.82%
EPS Next 2Y9.21%
EPS Next 3Y9.01%
EPS Next 5Y10.01%
Revenue Next Year3.8%
Revenue Next 2Y5.27%
Revenue Next 3Y5.65%
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.
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
The Price/Earnings ratio is 21.46, which indicates a rather expensive current 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 (27.42), we can say BJ is valued slightly cheaper.
BJ is valuated rather expensively with a Price/Forward Earnings ratio of 19.50.
BJ's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of BJ to the average of the S&P500 Index (22.94), we can say BJ is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.46 | ||
| Fwd PE | 19.5 |
4.2 Price Multiples
BJ's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, BJ is valued a bit more expensive than the industry average as 61.54% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.97 | ||
| EV/EBITDA | 11.6 |
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)2.19
PEG (5Y)0.95
EPS Next 2Y9.21%
EPS Next 3Y9.01%
5. Dividend
5.1 Amount
BJ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
94.19
+1.19 (+1.28%)
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 Change0.01%
Ins Owners0.63%
Ins Owner Change-7.08%
Market Cap12.41B
Analysts78.71
Price Target117.51 (24.76%)
Short Float %6.93%
Short Ratio4.07
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)-0.11%
PT rev (3m)-6.67%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.24%
EPS NY rev (1m)0%
EPS NY rev (3m)0.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.79%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.46 | ||
| Fwd PE | 19.5 | ||
| P/S | 0.59 | ||
| P/FCF | 43.97 | ||
| P/OCF | 13.25 | ||
| P/B | 5.91 | ||
| P/tB | 12.51 | ||
| EV/EBITDA | 11.6 |
EPS(TTM)4.39
EY4.66%
EPS(NY)4.83
Fwd EY5.13%
FCF(TTM)2.14
FCFY2.27%
OCF(TTM)7.11
OCFY7.55%
SpS158.72
BVpS15.93
TBVpS7.53
PEG (NY)2.19
PEG (5Y)0.95
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%
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 | 1.79 | ||
| 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 | 5.03 |
F-Score8
WACC8.42%
ROIC/WACC1.5
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 Y9.82%
EPS Next 2Y9.21%
EPS Next 3Y9.01%
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 3Y5.65%
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%