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%)
Taking everything into account, BJ scores 5 out of 10 in our fundamental rating. BJ was compared to 38 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. While showing a medium growth rate, BJ is valued expensive at the moment.
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.
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.
1.2 Ratios
With an excellent Return On Assets value of 7.62%, BJ belongs to the best of the industry, outperforming 81.58% of the companies in the same industry.
With an excellent Return On Equity value of 26.48%, BJ belongs to the best of the industry, outperforming 81.58% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.32%, BJ belongs to the best of the industry, outperforming 86.84% of the companies in the same industry.
BJ had an Average Return On Invested Capital over the past 3 years of 13.64%. This 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
With a decent Profit Margin value of 2.72%, BJ is doing good in the industry, outperforming 68.42% of the companies in the same industry.
BJ's Profit Margin has improved in the last couple of years.
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.
BJ has a worse Gross Margin (18.61%) than 60.53% of its industry peers.
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.
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.
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.
BJ has a Altman-Z score of 4.85. This is in the better half of the industry: BJ outperforms 76.32% of its industry peers.
BJ has a debt to FCF ratio of 2.40. This is a good value and a sign of high solvency as BJ would need 2.40 years to pay back of all of its debts.
BJ has a Debt to FCF ratio of 2.40. This is in the better half of the industry: BJ outperforms 73.68% of its industry peers.
BJ has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
BJ's Debt to Equity ratio of 0.18 is fine compared to the rest of the industry. BJ outperforms 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 2.4 | ||
| Altman-Z | 4.85 |
ROIC/WACC1.44
WACC8.54%
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 worse Current ratio (0.79) than 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's Quick ratio of 0.16 is on the low side compared to the rest of the industry. BJ is outperformed by 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
BJ shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.31%.
BJ shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 22.64% yearly.
The Revenue has been growing slightly by 2.82% in the past 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
Based on estimates for the next years, BJ will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.01% on average per year.
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
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 21.62, the valuation of BJ can be described as rather expensive.
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.
BJ is valuated rather expensively with a Price/Forward Earnings ratio of 19.69.
BJ's Price/Forward Earnings ratio is in line with the industry average.
BJ's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.62 | ||
| Fwd PE | 19.69 |
4.2 Price Multiples
BJ's Enterprise Value to EBITDA ratio is in line with the industry average.
65.79% of the companies in the same industry are cheaper than BJ, based on the Price/Free Cash Flow ratio.
| 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
No dividends for BJ!.
| 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
WACC8.54%
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.