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BJ'S WHOLESALE CLUB HOLDINGS (BJ) Stock Fundamental Analysis

NYSE:BJ - New York Stock Exchange, Inc. - US05550J1016 - Common Stock

95.2  -2.3 (-2.36%)

After market: 95.2 0 (0%)

Fundamental Rating

6

Overall BJ gets a fundamental rating of 6 out of 10. We evaluated BJ against 41 industry peers in the Consumer Staples Distribution & Retail industry. Both the health and profitability get an excellent rating, making BJ a very profitable company, without any liquidiy or solvency issues. BJ is quite expensive at the moment. It does show a decent growth rate. With these ratings, BJ could be worth investigating further for quality investing!.


Dividend Valuation Growth Profitability Health

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8

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.
BJ Yearly Net Income VS EBIT VS OCF VS FCFBJ Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M

1.2 Ratios

Looking at the Return On Assets, with a value of 7.73%, BJ belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
BJ has a better Return On Equity (31.64%) than 95.00% of its industry peers.
With an excellent Return On Invested Capital value of 13.15%, BJ belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BJ is significantly above the industry average of 8.38%.
Industry RankSector 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%
BJ Yearly ROA, ROE, ROICBJ Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 -100 -200 -300

1.3 Margins

BJ has a Profit Margin of 2.71%. This is in the better half of the industry: BJ outperforms 75.00% of its industry peers.
BJ's Profit Margin has improved in the last couple of years.
The Operating Margin of BJ (3.93%) is better than 72.50% 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 67.50% of its industry peers.
BJ's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
BJ Yearly Profit, Operating, Gross MarginsBJ Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15

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7

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
BJ has a better debt/assets ratio than last year.
BJ Yearly Shares OutstandingBJ Yearly Shares OutstandingYearly Shares Outstanding 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M
BJ Yearly Total Debt VS Total AssetsBJ Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

BJ has an Altman-Z score of 4.84. This indicates that BJ is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of BJ (4.84) is better than 70.00% of its industry peers.
The Debt to FCF ratio of BJ is 1.80, which is an excellent value as it means it would take BJ, only 1.80 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BJ (1.80) is better than 82.50% of its industry peers.
BJ has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.23, BJ is doing good in the industry, outperforming 72.50% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 1.8
Altman-Z 4.84
ROIC/WACC1.47
WACC8.96%
BJ Yearly LT Debt VS Equity VS FCFBJ Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B -1B 2B

2.3 Liquidity

A Current Ratio of 0.76 indicates that BJ may have some problems paying its short term obligations.
The Current ratio of BJ (0.76) is worse than 85.00% of its industry peers.
A Quick Ratio of 0.14 indicates that BJ may have some problems paying its short term obligations.
BJ's Quick ratio of 0.14 is on the low side compared to the rest of the industry. BJ is outperformed by 95.00% 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 RankSector Rank
Current Ratio 0.76
Quick Ratio 0.14
BJ Yearly Current Assets VS Current LiabilitesBJ Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B 2.5B

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5

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 11.32% over the past year.
BJ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 21.12% yearly.
Looking at the last year, BJ shows a small growth in Revenue. The Revenue has grown by 5.32% in the last year.
BJ shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.95% yearly.
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.
The Revenue is expected to grow by 5.52% on average over the next years.
EPS Next Y5%
EPS Next 2Y6.21%
EPS Next 3Y7.39%
EPS Next 5Y11.32%
Revenue Next Year3.23%
Revenue Next 2Y4.76%
Revenue Next 3Y5.08%
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.
BJ Yearly Revenue VS EstimatesBJ Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 5B 10B 15B 20B 25B
BJ Yearly EPS VS EstimatesBJ Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2 4 6 8

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3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 22.51, the valuation of BJ can be described as rather expensive.
BJ's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.19. BJ is valued slightly cheaper when compared to this.
BJ is valuated rather expensively with a Price/Forward Earnings ratio of 21.58.
BJ's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of BJ to the average of the S&P500 Index (24.37), we can say BJ is valued inline with the index average.
Industry RankSector Rank
PE 22.51
Fwd PE 21.58
BJ Price Earnings VS Forward Price EarningsBJ Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as BJ.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BJ is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 35.25
EV/EBITDA 12.68
BJ Per share dataBJ EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150

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 excellent profitability rating of BJ may justify a higher PE ratio.
PEG (NY)4.5
PEG (5Y)1.07
EPS Next 2Y6.21%
EPS Next 3Y7.39%

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0

5. Dividend

5.1 Amount

BJ does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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BJ'S WHOLESALE CLUB HOLDINGS

NYSE:BJ (1/22/2025, 6:00:14 PM)

After market: 95.2 0 (0%)

95.2

-2.3 (-2.36%)

Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)11-21 2024-11-21/bmo
Earnings (Next)N/A N/A
Inst Owners105.76%
Inst Owner Change-0.18%
Ins Owners0.9%
Ins Owner Change-2.53%
Market Cap12.57B
Analysts77.58
Price Target100.57 (5.64%)
Short Float %5.26%
Short Ratio4.35
Dividend
Industry RankSector 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)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)0.76%
PT rev (3m)11.22%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-17.2%
EPS NY rev (1m)0%
EPS NY rev (3m)3.75%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.96%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.08%
Valuation
Industry RankSector Rank
PE 22.51
Fwd PE 21.58
P/S 0.61
P/FCF 35.25
P/OCF 13.92
P/B 7.14
P/tB 19.33
EV/EBITDA 12.68
EPS(TTM)4.23
EY4.44%
EPS(NY)4.41
Fwd EY4.63%
FCF(TTM)2.7
FCFY2.84%
OCF(TTM)6.84
OCFY7.18%
SpS155.81
BVpS13.34
TBVpS4.93
PEG (NY)4.5
PEG (5Y)1.07
Profitability
Industry RankSector 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 RankSector 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 4.84
F-Score8
WACC8.96%
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 Year3.23%
Revenue Next 2Y4.76%
Revenue Next 3Y5.08%
Revenue Next 5Y5.52%
EBIT growth 1Y3.66%
EBIT growth 3Y8.25%
EBIT growth 5Y21.86%
EBIT Next Year32.3%
EBIT Next 3Y15.39%
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%