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BJ's Wholesale Club Holdings

Executive Summary

BJ’s Wholesale Club Holdings, Inc., together with its subsidiaries, operates warehouse clubs on the East Coast of the United States. More Details


Snowflake Analysis

Solid track record and fair value.


Similar Companies

Share Price & News

How has BJ's Wholesale Club Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BJ is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: BJ's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

3.7%

BJ

-0.7%

US Consumer Retailing

-0.5%

US Market


1 Year Return

84.0%

BJ

18.6%

US Consumer Retailing

18.3%

US Market

Return vs Industry: BJ exceeded the US Consumer Retailing industry which returned 18.7% over the past year.

Return vs Market: BJ exceeded the US Market which returned 19.1% over the past year.


Shareholder returns

BJIndustryMarket
7 Day3.7%-0.7%-0.5%
30 Day11.6%3.3%3.6%
90 Day-7.0%10.6%5.6%
1 Year84.0%84.0%20.6%18.6%21.0%18.3%
3 Yearn/a58.1%49.2%45.2%35.6%
5 Yearn/a101.2%80.7%89.8%68.8%

Long-Term Price Volatility Vs. Market

How volatile is BJ's Wholesale Club Holdings's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BJ's Wholesale Club Holdings undervalued compared to its fair value and its price relative to the market?

37.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BJ ($42) is trading below our estimate of fair value ($69.79)

Significantly Below Fair Value: BJ is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BJ's PE Ratio (15.6x) is in line with the US Consumer Retailing industry average.

PE vs Market: BJ is good value based on its PE Ratio (15.6x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: BJ is poor value based on its PEG Ratio (2.8x)


Price to Book Ratio

PB vs Industry: BJ is overvalued based on its PB Ratio (26.3x) compared to the US Consumer Retailing industry average (1.9x).


Next Steps

Future Growth

How is BJ's Wholesale Club Holdings forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

5.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BJ's forecast earnings growth (5.6% per year) is above the savings rate (2.2%).

Earnings vs Market: BJ's earnings (5.6% per year) are forecast to grow slower than the US market (21.9% per year).

High Growth Earnings: BJ's earnings are forecast to grow, but not significantly.

Revenue vs Market: BJ's revenue (3.1% per year) is forecast to grow slower than the US market (10.2% per year).

High Growth Revenue: BJ's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BJ's Return on Equity is forecast to be very high in 3 years time (40.1%).


Next Steps

Past Performance

How has BJ's Wholesale Club Holdings performed over the past 5 years?

41.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BJ has high quality earnings.

Growing Profit Margin: BJ's current net profit margins (2.5%) are higher than last year (1.6%).


Past Earnings Growth Analysis

Earnings Trend: BJ's earnings have grown significantly by 41.1% per year over the past 5 years.

Accelerating Growth: BJ's earnings growth over the past year (75.6%) exceeds its 5-year average (41.1% per year).

Earnings vs Industry: BJ earnings growth over the past year (75.6%) exceeded the Consumer Retailing industry 48.2%.


Return on Equity

High ROE: Whilst BJ's Return on Equity (169.05%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is BJ's Wholesale Club Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: BJ's short term assets ($1.6B) do not cover its short term liabilities ($2.2B).

Long Term Liabilities: BJ's short term assets ($1.6B) do not cover its long term liabilities ($3.1B).


Debt to Equity History and Analysis

Debt Level: BJ's debt to equity ratio (508.7%) is considered high.

Reducing Debt: Insufficient data to determine if BJ's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: BJ's debt is well covered by operating cash flow (84.6%).

Interest Coverage: BJ's interest payments on its debt are well covered by EBIT (6.6x coverage).


Balance Sheet


Next Steps

Dividend

What is BJ's Wholesale Club Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BJ's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BJ's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BJ's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BJ's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BJ's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.8yrs

Average management tenure


CEO

Lee Delaney (48 yo)

0.75

Tenure

US$4,497,533

Compensation

Mr. Lee Delaney has been Chief Executive Officer and Director of BJ's Wholesale Club Holdings and BJ's Wholesale Club, Inc. since February 2, 2020. Mr. Delaney has been President of BJ's Wholesale Club Hol...


CEO Compensation Analysis

Compensation vs Market: Lee's total compensation ($USD4.50M) is below average for companies of similar size in the US market ($USD7.11M).

Compensation vs Earnings: Lee's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Christopher Baldwin
Executive Chairman2.83yrsUS$9.97m0.23%
$ 14.0m
Lee Delaney
CEO, President & Director0.75yrUS$4.50m0.20%
$ 12.1m
Robert Eddy
Executive VP and Chief Financial & Administrative Officer9.83yrsUS$5.72m0.22%
$ 13.1m
Scott Kessler
Executive VP & Chief Information Officer3.83yrsUS$2.19m0.097%
$ 5.8m
Brian Poulliot
Executive Vice President of Enterprise Analytics8.83yrsUS$2.16m0.087%
$ 5.2m
William Werner
Senior Vice President of Strategic Planning & Investor Relationsno datano data0.042%
$ 2.5m
Graham Luce
Senior VP5.83yrsno data0.030%
$ 1.8m
Kristy Houston
Senior Director of Corporate Communicationsno datano datano data
Jeff Desroches
Executive VP & Club Operations Officer10.83yrsno data0.12%
$ 7.3m
Caroline Glynn
Senior Vice President of Internal Audit & Asset Protectionno datano data0.017%
$ 1.0m
Paul Cichocki
Executive Vice President of Membership0.58yrno data0.076%
$ 4.6m
Monica Schwartz
Senior VP & Chief Digital Officer0.25yrno data0.014%
$ 867.9k

3.8yrs

Average Tenure

49yo

Average Age

Experienced Management: BJ's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Christopher Baldwin
Executive Chairman2.83yrsUS$9.97m0.23%
$ 14.0m
Lee Delaney
CEO, President & Director0.75yrUS$4.50m0.20%
$ 12.1m
Robert Steele
Lead Independent Director1.5yrsUS$267.02k0.0073%
$ 439.6k
Thomas Kingsbury
Independent Director0.75yrno data0.0019%
$ 111.9k
Kenneth Parent
Independent Director9.83yrsUS$237.49k0.0073%
$ 439.6k
Michelle Gloeckler
Independent Director1.17yrsUS$131.21k0.0029%
$ 175.0k
Maile Clark
Independent Director1.17yrsUS$129.10kno data
Christopher Peterson
Independent Director1.92yrsUS$249.99k0.0060%
$ 357.9k
Judith Werthauser
Independent Director2yrsUS$234.88k0.0069%
$ 413.8k

1.5yrs

Average Tenure

54yo

Average Age

Experienced Board: BJ's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

BJ's Wholesale Club Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BJ's Wholesale Club Holdings, Inc.
  • Ticker: BJ
  • Exchange: NYSE
  • Founded: 1984
  • Industry: Hypermarkets and Super Centers
  • Sector: Consumer Retailing
  • Market Cap: US$6.014b
  • Shares outstanding: 137.94m
  • Website: https://www.bjs.com

Number of Employees


Location

  • BJ's Wholesale Club Holdings, Inc.
  • 25 Research Drive
  • Westborough
  • Massachusetts
  • 1581
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BJNYSE (New York Stock Exchange)YesCommon StockUSUSDJun 2018
8BJDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2018

Biography

BJ’s Wholesale Club Holdings, Inc., together with its subsidiaries, operates warehouse clubs on the East Coast of the United States. It offers perishable, edible grocery, general merchandise, and non-edibl...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/24 00:13
End of Day Share Price2020/11/23 00:00
Earnings2020/10/31
Annual Earnings2020/02/01


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.