BJ'S WHOLESALE CLUB HOLDINGS (BJ) Stock Fundamental Analysis
USA - NYSE:BJ - US05550J1016 - Common Stock
88.89 USD
-2.04 (-2.24%)
88.89 USD
0 (0%)
Taking everything into account, BJ scores 5 out of 10 in our fundamental rating. BJ was compared to 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 valied quite expensively at the moment, while 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.
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 better Return On Assets (8.00%) than 84.62% of its industry peers.
The Return On Equity of BJ (27.58%) is better than 79.49% of its industry peers.
With an excellent Return On Invested Capital value of 12.63%, BJ belongs to the best of the industry, outperforming 87.18% 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 above the industry average of 8.75%.
| 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.
In the last couple of years the Profit Margin of BJ has grown nicely.
Looking at the Operating Margin, with a value of 3.99%, BJ is in the better half of the industry, outperforming 71.79% of the companies in the same industry.
BJ's Operating Margin has improved in the last couple of years.
BJ has a worse Gross Margin (18.65%) than 64.10% of its industry peers.
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 | 3.99% | ||
| 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BJ 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.
The debt/assets ratio for BJ has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.98 indicates that BJ is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 4.98, BJ is doing good in the industry, outperforming 74.36% 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.
BJ has a better Debt to FCF ratio (1.79) than 76.92% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that BJ is not too dependend on debt financing.
BJ has a better Debt to Equity ratio (0.19) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 1.79 | ||
| Altman-Z | 4.98 |
ROIC/WACC1.49
WACC8.49%
2.3 Liquidity
A Current Ratio of 0.79 indicates that BJ may have some problems paying its short term obligations.
BJ has a Current ratio of 0.79. This is amonst the worse of the industry: BJ underperforms 82.05% of its industry peers.
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 has a worse Quick ratio (0.17) than 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.
The Earnings Per Share has been growing by 22.64% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 2.48% in the past year.
Measured over the past years, BJ shows a quite strong growth in Revenue. The Revenue has been growing by 9.22% on average per year.
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
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.
Based on estimates for the next years, BJ will show a small growth in Revenue. The Revenue will grow by 5.65% on average per year.
EPS Next Y9.9%
EPS Next 2Y9.2%
EPS Next 3Y9%
EPS Next 5Y10.01%
Revenue Next Year3.8%
Revenue Next 2Y5.27%
Revenue Next 3Y5.57%
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 20.25.
The rest of the industry has a similar Price/Earnings ratio as BJ.
BJ's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.13.
A Price/Forward Earnings ratio of 18.41 indicates a rather expensive valuation of BJ.
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 (22.35), we can say BJ is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.25 | ||
| Fwd PE | 18.41 |
4.2 Price Multiples
BJ's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, BJ is valued a bit more expensive than 61.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.5 | ||
| EV/EBITDA | 11.22 |
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 a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.04
PEG (5Y)0.89
EPS Next 2Y9.2%
EPS Next 3Y9%
5. Dividend
5.1 Amount
No dividends for BJ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
88.89
-2.04 (-2.24%)
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 Change-0.21%
Ins Owners0.63%
Ins Owner Change-8.31%
Market Cap11.71B
Revenue(TTM)20.91B
Net Income(TTM)578.88M
Analysts78.71
Price Target117.57 (32.26%)
Short Float %6.45%
Short Ratio3.57
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)-0.05%
PT rev (3m)-7.11%
EPS NQ rev (1m)-0.38%
EPS NQ rev (3m)-0.14%
EPS NY rev (1m)0.08%
EPS NY rev (3m)0.55%
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 | 20.25 | ||
| Fwd PE | 18.41 | ||
| P/S | 0.56 | ||
| P/FCF | 41.5 | ||
| P/OCF | 12.5 | ||
| P/B | 5.58 | ||
| P/tB | 11.81 | ||
| EV/EBITDA | 11.22 |
EPS(TTM)4.39
EY4.94%
EPS(NY)4.83
Fwd EY5.43%
FCF(TTM)2.14
FCFY2.41%
OCF(TTM)7.11
OCFY8%
SpS158.72
BVpS15.93
TBVpS7.53
PEG (NY)2.04
PEG (5Y)0.89
Graham Number39.67
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%
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-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 | 4.98 |
F-Score8
WACC8.49%
ROIC/WACC1.49
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 Y9.9%
EPS Next 2Y9.2%
EPS Next 3Y9%
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 3Y5.57%
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%
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 7 / 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 20.25 and the Price/Book (PB) ratio is 5.58.
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 9.9% in the next year.