BJ'S WHOLESALE CLUB HOLDINGS (BJ) Stock Fundamental Analysis
NYSE:BJ - New York Stock Exchange, Inc. - US05550J1016 - Common Stock - Currency: USD
BJ gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 40 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. BJ is quite expensive at the moment. It does show a decent growth rate. These ratings would make BJ suitable for quality investing!
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.
Each year in the past 5 years BJ has been profitable.
BJ had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BJ has a Return On Assets of 7.73%. This is amongst the best in the industry. BJ outperforms 84.62% of its industry peers.
BJ has a better Return On Equity (31.64%) than 94.87% of its industry peers.
With an excellent Return On Invested Capital value of 13.15%, BJ belongs to the best of the industry, outperforming 89.74% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BJ is significantly above the industry average of 8.35%.
| 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 74.36% of its industry peers.
In the last couple of years the Profit Margin of BJ has grown nicely.
The Operating Margin of BJ (3.93%) is better 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 18.36%, BJ is doing worse than 69.23% of the companies in the same industry.
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 | 3.93% | ||
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BJ is still creating some value.
The number of shares outstanding for BJ has been reduced compared to 1 year ago.
BJ has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BJ has been reduced compared to a year ago.
2.2 Solvency
BJ has an Altman-Z score of 4.93. This indicates that BJ is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.93, BJ is doing good in the industry, outperforming 71.79% of the companies in the same industry.
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.
BJ has a Debt to FCF ratio of 1.80. This is amongst the best in the industry. BJ outperforms 84.62% 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.
BJ has a Debt to Equity ratio of 0.23. This is in the better half of the industry: BJ outperforms 74.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.8 | ||
| Altman-Z | 4.93 |
ROIC/WACC1.49
WACC8.83%
2.3 Liquidity
A Current Ratio of 0.76 indicates that BJ may have some problems paying its short term obligations.
BJ has a Current ratio of 0.76. This is amonst the worse of the industry: BJ underperforms 84.62% of its industry peers.
A Quick Ratio of 0.14 indicates that BJ may have some problems paying its short term obligations.
The Quick ratio of BJ (0.14) is worse than 94.87% 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
The Earnings Per Share has grown by an nice 11.32% over the past year.
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.
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.
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 Y5.02%
EPS Next 2Y6.27%
EPS Next 3Y7.41%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.99 indicates a rather expensive valuation of BJ.
BJ's Price/Earnings ratio is in line with the industry average.
BJ is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.99, the valuation of BJ can be described as rather expensive.
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 (22.68), we can say BJ is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 22.99 |
4.2 Price Multiples
BJ's Enterprise Value to EBITDA ratio is in line with the industry average.
BJ's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.58 | ||
| EV/EBITDA | 13.44 |
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)4.78
PEG (5Y)1.14
EPS Next 2Y6.27%
EPS Next 3Y7.41%
5. Dividend
5.1 Amount
BJ does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
101.49
-2.11 (-2.04%)
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 Change-3.46%
Ins Owners0.9%
Ins Owner Change-3.7%
Market Cap13.41B
Analysts77.58
Price Target100.57 (-0.91%)
Short Float %5.31%
Short Ratio4.62
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)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%
PT rev (3m)12.32%
EPS NQ rev (1m)-1.97%
EPS NQ rev (3m)-18.82%
EPS NY rev (1m)0.02%
EPS NY rev (3m)3.78%
Revenue NQ rev (1m)-0.37%
Revenue NQ rev (3m)-1.32%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.99 | ||
| Fwd PE | 22.99 | ||
| P/S | 0.65 | ||
| P/FCF | 37.58 | ||
| P/OCF | 14.84 | ||
| P/B | 7.61 | ||
| P/tB | 20.6 | ||
| EV/EBITDA | 13.44 |
EPS(TTM)4.23
EY4.17%
EPS(NY)4.42
Fwd EY4.35%
FCF(TTM)2.7
FCFY2.66%
OCF(TTM)6.84
OCFY6.74%
SpS155.81
BVpS13.34
TBVpS4.93
PEG (NY)4.78
PEG (5Y)1.14
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 | 4.93 |
F-Score8
WACC8.83%
ROIC/WACC1.49
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 Y5.02%
EPS Next 2Y6.27%
EPS Next 3Y7.41%
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%