BJ's Wholesale Club Holdings, Inc.
BJ's Wholesale Club Holdings, Inc. Fundamental Analysis
BJ's Wholesale Club Holdings, Inc. (BJ) shows moderate financial fundamentals with a PE ratio of 22.14, profit margin of 2.72%, and ROE of 28.44%. The company generates $21.3B in annual revenue with weak year-over-year growth of 2.67%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 39.2/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BJ's fundamental strength across five key dimensions:
Efficiency Score
WeakBJ struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBJ trades at attractive valuation levels.
Growth Score
WeakBJ faces weak or negative growth trends.
Financial Health Score
WeakBJ carries high financial risk with limited liquidity.
Profitability Score
ModerateBJ maintains healthy but balanced margins.
Key Financial Metrics
Is BJ Expensive or Cheap?
P/E Ratio
BJ trades at 22.14 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, BJ's PEG of -48.59 indicates potential undervaluation.
Price to Book
The market values BJ's Wholesale Club Holdings, Inc. at 5.86 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.24 times EBITDA. This is generally considered low.
How Well Does BJ Make Money?
Net Profit Margin
For every $100 in sales, BJ's Wholesale Club Holdings, Inc. keeps $2.72 as profit after all expenses.
Operating Margin
Core operations generate 3.88 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $28.44 in profit for every $100 of shareholder equity.
ROA
BJ's Wholesale Club Holdings, Inc. generates $7.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
BJ's Wholesale Club Holdings, Inc. generates limited operating cash flow of $914.90M, signaling weaker underlying cash strength.
Free Cash Flow
BJ's Wholesale Club Holdings, Inc. generates weak or negative free cash flow of $256.72M, restricting financial flexibility.
FCF Per Share
Each share generates $1.95 in free cash annually.
FCF Yield
BJ converts 2.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
22.14
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-48.59
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.60
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.24
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.28
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.17
vs 25 benchmark
How BJ Stacks Against Its Sector Peers
| Metric | BJ Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 22.14 | 23.21 | Neutral |
| ROE | 28.44% | 1251.00% | Weak |
| Net Margin | 2.72% | -5497.00% (disorted) | Weak |
| Debt/Equity | 1.24 | 0.79 | Weak (High Leverage) |
| Current Ratio | 0.79 | 2.44 | Weak Liquidity |
| ROA | 7.62% | -200095.00% (disorted) | Weak |
BJ outperforms its industry in 0 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews BJ's Wholesale Club Holdings, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
60.16%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthEPS CAGR
194.21%
Industry Style: Defensive, Dividend, Low Volatility
High GrowthFCF CAGR
161.39%
Industry Style: Defensive, Dividend, Low Volatility
High Growth