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BJ

BJ's Wholesale Club HoldingsNYSE:BJ Stock Report

Market Cap

US$8.0b

7D

-0.6%

1Y

45.3%

Updated

26 Sep, 2021

Data

Company Financials +
BJ fundamental analysis
Snowflake Score
Valuation3/6
Future Growth2/6
Past Performance4/6
Financial Health2/6
Dividends0/6

BJ Overview

BJ’s Wholesale Club Holdings, Inc., together with its subsidiaries, operates warehouse clubs on the east coast of the United States.

BJ's Wholesale Club Holdings Competitors

Costco Wholesale

NasdaqGS:COST

US$206.8b

Price History & Performance

Summary of all time highs, changes and price drops for BJ's Wholesale Club Holdings
Historical stock prices
Current Share PriceUS$58.37
52 Week HighUS$36.07
52 Week LowUS$59.81
Beta0.44
1 Month Change3.15%
3 Month Change24.54%
1 Year Change45.31%
3 Year Change117.96%
5 Year Changen/a
Change since IPO165.32%

Recent News & Updates

Sep 01

BJ's Wholesale Club: The YTD Rally Still Has Legs

BJ's continues to leverage the power of its warehouse club model to outperform in a post-pandemic environment. With membership growth also impressive, the longer-term growth runway appears to be extensive. And while wage inflation could weigh on near-term margins, ongoing reinvestments should drive longer-term benefits as well. Shares currently trade at a significantly discounted relative valuation, keeping me bullish.

Aug 21
Is BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) Trading At A 42% Discount?

Is BJ's Wholesale Club Holdings, Inc. (NYSE:BJ) Trading At A 42% Discount?

Does the August share price for BJ's Wholesale Club Holdings, Inc. ( NYSE:BJ ) reflect what it's really worth? Today...

Shareholder Returns

BJUS Consumer RetailingUS Market
7D-0.6%0.1%0.1%
1Y45.3%17.3%35.3%

Return vs Industry: BJ exceeded the US Consumer Retailing industry which returned 17.3% over the past year.

Return vs Market: BJ exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is BJ's price volatile compared to industry and market?
BJ volatility
BJ Beta0.44
Industry Beta0.61
Market Beta1

Stable Share Price: BJ is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BJ's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198432,000Bob Eddyhttps://www.bjs.com

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-edible grocery products, as well as gasoline and other ancillary services. The company also sells its products through its website and mobile app.

BJ's Wholesale Club Holdings Fundamentals Summary

How do BJ's Wholesale Club Holdings's earnings and revenue compare to its market cap?
BJ fundamental statistics
Market CapUS$7.96b
Earnings (TTM)US$411.36m
Revenue (TTM)US$15.72b

19.3x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BJ income statement (TTM)
RevenueUS$15.72b
Cost of RevenueUS$12.75b
Gross ProfitUS$2.98b
ExpensesUS$2.56b
EarningsUS$411.36m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.02
Gross Margin18.93%
Net Profit Margin2.62%
Debt/Equity Ratio156.1%

How did BJ perform over the long term?

See historical performance and comparison

Valuation

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

42.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BJ ($58.37) is trading below our estimate of fair value ($101.15)

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


Price To Earnings Ratio

PE vs Industry: BJ is good value based on its PE Ratio (19.3x) compared to the US Consumer Retailing industry average (19.9x).

PE vs Market: BJ is poor value based on its PE Ratio (19.3x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: BJ is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: BJ is overvalued based on its PB Ratio (16.3x) compared to the US Consumer Retailing industry average (2.2x).


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?

11.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BJ's forecast earnings growth (11.1% per year) is above the savings rate (2%).

Earnings vs Market: BJ's earnings (11.1% per year) are forecast to grow slower than the US market (15% per year).

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

Revenue vs Market: BJ's revenue (6% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: BJ's revenue (6% 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 high in 3 years time (33.3%)


Past Performance

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

43.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BJ has high quality earnings.

Growing Profit Margin: BJ's current net profit margins (2.6%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: BJ's earnings have grown significantly by 43.7% per year over the past 5 years.

Accelerating Growth: BJ's earnings growth over the past year (37.5%) is below its 5-year average (43.7% per year).

Earnings vs Industry: BJ earnings growth over the past year (37.5%) exceeded the Consumer Retailing industry 25%.


Return on Equity

High ROE: Whilst BJ's Return on Equity (84.23%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

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


Financial Position Analysis

Short Term Liabilities: BJ's short term assets ($1.3B) do not cover its short term liabilities ($1.8B).

Long Term Liabilities: BJ's short term assets ($1.3B) do not cover its long term liabilities ($3.0B).


Debt to Equity History and Analysis

Debt Level: BJ's debt to equity ratio (156.1%) 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 (91.1%).

Interest Coverage: BJ's interest payments on its debt are well covered by EBIT (8.5x coverage).


Balance Sheet


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?

1.6yrs

Average management tenure


CEO

Bob Eddy (48 yo)

0.42

Tenure

US$5,469,153

Compensation

Mr. Robert W. Eddy, also known as Bob, serves as President, Chief Executive Officer and Director at BJ's Wholesale Club Holdings, Inc. since April 19, 2021. He served as Interim Chief Executive Officer at...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD5.47M) is about average for companies of similar size in the US market ($USD6.40M).

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


Leadership Team

Experienced Management: BJ's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: BJ's board of directors are not considered experienced ( 2.2 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.


Recent Insider Transactions

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 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$7.959b
  • Shares outstanding: 136.35m
  • Website: https://www.bjs.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:04
End of Day Share Price2021/09/24 00:00
Earnings2021/07/31
Annual Earnings2021/01/30


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.