BJ'S WHOLESALE CLUB HOLDINGS (BJ) Stock Fundamental Analysis
NYSE:BJ - New York Stock Exchange, Inc. - US05550J1016 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to BJ. BJ was compared to 40 industry peers in the Consumer Staples Distribution & Retail industry. BJ gets an excellent profitability rating and is at the same time showing great financial health properties. 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
In the past year BJ was profitable.
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's Return On Assets of 8.01% is amongst the best of the industry. BJ outperforms 87.50% of its industry peers.
BJ's Return On Equity of 29.07% is amongst the best of the industry. BJ outperforms 87.50% of its industry peers.
BJ has a better Return On Invested Capital (12.85%) than 87.50% of its industry peers.
BJ had an Average Return On Invested Capital over the past 3 years of 13.64%. This is significantly above the industry average of 8.23%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.01% | ||
| ROE | 29.07% | ||
| ROIC | 12.85% |
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
The Profit Margin of BJ (2.76%) is better than 72.50% of its industry peers.
BJ's Profit Margin has improved in the last couple of years.
BJ has a Operating Margin of 3.96%. This is in the better half of the industry: BJ outperforms 75.00% of its industry peers.
In the last couple of years the Operating Margin of BJ has grown nicely.
BJ has a Gross Margin of 18.57%. This is in the lower half of the industry: BJ underperforms 62.50% of its industry peers.
BJ's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 3.96% | ||
| PM (TTM) | 2.76% | ||
| GM | 18.57% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BJ is still 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
BJ has an Altman-Z score of 5.18. This indicates that BJ is financially healthy and has little risk of bankruptcy at the moment.
BJ's Altman-Z score of 5.18 is fine compared to the rest of the industry. BJ outperforms 72.50% of its industry peers.
BJ has a debt to FCF ratio of 1.92. This is a very positive value and a sign of high solvency as it would only need 1.92 years to pay back of all of its debts.
The Debt to FCF ratio of BJ (1.92) is better than 82.50% of its industry peers.
BJ has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.20, BJ is doing good in the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 5.18 |
ROIC/WACC1.47
WACC8.72%
2.3 Liquidity
BJ has a Current Ratio of 0.77. This is a bad value and indicates that BJ is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 0.77, BJ is doing worse than 85.00% of the companies in the same industry.
BJ has a Quick Ratio of 0.77. 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 0.14 is on the low side compared to the rest of the industry. BJ is outperformed by 95.00% 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 | 0.77 | ||
| Quick Ratio | 0.14 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.00% over the past year.
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 2.84%.
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)11%
EPS 3Y7.61%
EPS 5Y22.64%
EPS Q2Q%34.12%
Revenue 1Y (TTM)2.84%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%4.78%
3.2 Future
The Earnings Per Share is expected to grow by 9.69% on average over the next years. This is quite good.
Based on estimates for the next years, BJ will show a small growth in Revenue. The Revenue will grow by 5.66% on average per year.
EPS Next Y9.32%
EPS Next 2Y9.3%
EPS Next 3Y9.44%
EPS Next 5Y9.69%
Revenue Next Year4.96%
Revenue Next 2Y5.83%
Revenue Next 3Y6.17%
Revenue Next 5Y5.66%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last 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
Based on the Price/Earnings ratio of 25.15, the valuation of BJ can be described as expensive.
BJ's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.28, BJ is valued at the same level.
BJ is valuated rather expensively with a Price/Forward Earnings ratio of 22.56.
BJ's Price/Forward Earnings is on the same level as the industry average.
BJ is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 22.56 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BJ is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BJ indicates a slightly more expensive valuation: BJ is more expensive than 65.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.5 | ||
| EV/EBITDA | 13.43 |
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.
BJ has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.7
PEG (5Y)1.11
EPS Next 2Y9.3%
EPS Next 3Y9.44%
5. Dividend
5.1 Amount
No dividends for BJ!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
109.14
+2.1 (+1.96%)
Chartmill FA Rating
GICS SectorConsumer Staples
GICS IndustryGroupConsumer Staples Distribution & Retail
GICS IndustryConsumer Staples Distribution & Retail
Earnings (Last)
Earnings (Next)
Inst Owners103.29%
Inst Owner Change1.51%
Ins Owners0.73%
Ins Owner Change1.7%
Market Cap14.41B
Analysts78.79
Price Target125.91 (15.37%)
Short Float %4.61%
Short Ratio3.36
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)11.87%
Min EPS beat(2)2.82%
Max EPS beat(2)20.92%
EPS beat(4)4
Avg EPS beat(4)13.49%
Min EPS beat(4)2.82%
Max EPS beat(4)24.36%
EPS beat(8)7
Avg EPS beat(8)7.49%
EPS beat(12)10
Avg EPS beat(12)9.45%
EPS beat(16)14
Avg EPS beat(16)10.69%
Revenue beat(2)0
Avg Revenue beat(2)-3.64%
Min Revenue beat(2)-3.69%
Max Revenue beat(2)-3.59%
Revenue beat(4)0
Avg Revenue beat(4)-3.57%
Min Revenue beat(4)-3.94%
Max Revenue beat(4)-3.05%
Revenue beat(8)0
Avg Revenue beat(8)-3.65%
Revenue beat(12)1
Avg Revenue beat(12)-2.35%
Revenue beat(16)4
Avg Revenue beat(16)-0.97%
PT rev (1m)4.35%
PT rev (3m)20.34%
EPS NQ rev (1m)-3.7%
EPS NQ rev (3m)-3.92%
EPS NY rev (1m)1.39%
EPS NY rev (3m)-0.19%
Revenue NQ rev (1m)-1.05%
Revenue NQ rev (3m)-0.05%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-1.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.15 | ||
| Fwd PE | 22.56 | ||
| P/S | 0.69 | ||
| P/FCF | 50.5 | ||
| P/OCF | 15.87 | ||
| P/B | 7.31 | ||
| P/tB | 16.7 | ||
| EV/EBITDA | 13.43 |
EPS(TTM)4.34
EY3.98%
EPS(NY)4.84
Fwd EY4.43%
FCF(TTM)2.16
FCFY1.98%
OCF(TTM)6.88
OCFY6.3%
SpS157.04
BVpS14.93
TBVpS6.54
PEG (NY)2.7
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.01% | ||
| ROE | 29.07% | ||
| ROCE | 17.68% | ||
| ROIC | 12.85% | ||
| ROICexc | 12.96% | ||
| ROICexgc | 17.06% | ||
| OM | 3.96% | ||
| PM (TTM) | 2.76% | ||
| GM | 18.57% | ||
| FCFM | 1.38% |
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 Turnover2.9
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1.92 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 232.1% | ||
| Cap/Sales | 3% | ||
| Interest Coverage | 20.86 | ||
| Cash Conversion | 83.31% | ||
| Profit Quality | 49.79% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.14 | ||
| Altman-Z | 5.18 |
F-Score8
WACC8.72%
ROIC/WACC1.47
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)11%
EPS 3Y7.61%
EPS 5Y22.64%
EPS Q2Q%34.12%
EPS Next Y9.32%
EPS Next 2Y9.3%
EPS Next 3Y9.44%
EPS Next 5Y9.69%
Revenue 1Y (TTM)2.84%
Revenue growth 3Y7.15%
Revenue growth 5Y9.22%
Sales Q2Q%4.78%
Revenue Next Year4.96%
Revenue Next 2Y5.83%
Revenue Next 3Y6.17%
Revenue Next 5Y5.66%
EBIT growth 1Y6.11%
EBIT growth 3Y8.1%
EBIT growth 5Y16.42%
EBIT Next Year51.43%
EBIT Next 3Y20.65%
EBIT Next 5Y14.03%
FCF growth 1Y-38.44%
FCF growth 3Y-14.92%
FCF growth 5Y14.61%
OCF growth 1Y5.23%
OCF growth 3Y2.7%
OCF growth 5Y20.47%