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Bj's Wholesale Club Holdings (BJ)
:BJ
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Bj's Wholesale Club Holdings
(NYSE:BJ)
75Outperform
Positive Factors
Digital Growth
BJ's digitally-enabled SSS comped +26%, showing strong growth in digital sales.
Market Expansion
BJ's market share opportunity versus traditional grocers and national expansion prospects are favorable.
Negative Factors
Competitive Challenges
Risks include potential pressure on discretionary general merchandise sales and competitive challenges as BJ's enters new markets.
Investor Sentiment
The need to see consistent EPS growth has led to mixed investor sentiment, as BJ has underperformed peers due to investment in growth.
Bj's Wholesale Club Holdings (BJ) vs. S&P 500 (SPY)
Market Cap
$15.20B
Dividend YieldN/A
Average Volume (3M)2.21M
Price to Earnings (P/E)28.8
Beta (1Y)0.07
Revenue Growth2.67%
EPS Growth2.72%
CountryUS
Employees33,000
SectorConsumer Defensive
Sector Strength93
IndustryDiscount Stores
Share Statistics
EPS (TTM)4.00
Shares Outstanding131,676,990
10 Day Avg. Volume2,114,429
30 Day Avg. Volume2,208,306
Financial Highlights & Ratios
PEG Ratio10.60
Price to Book (P/B)N/A
Price to Sales (P/S)0.71
Price to Cash Flow (P/CF)13.30
P/FCF Ratio12.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$118.86Price Target Upside2.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering16
Bj's Wholesale Club Holdings Business Overview & Revenue Model
Company DescriptionBJ's Wholesale Club Holdings, Inc., together with its subsidiaries, operates warehouse clubs on the east coast of the United States. It provides perishable, general merchandise, gasoline, and other ancillary services. The company sells its products through the websites BJs.com, BerkleyJensen.com, Wellsleyfarms.com, and Delivery.bjs.com as well as the mobile app. As of June 10, 2022, it operated 229 warehouse clubs and 160 gas locations in 17 states. The company was formerly known as Beacon Holding Inc. and changed its name to BJ's Wholesale Club Holdings, Inc. in February 2018. BJ's Wholesale Club Holdings, Inc. was founded in 1984 and is headquartered in Westborough, Massachusetts.
How the Company Makes MoneyBJ's Wholesale Club generates revenue primarily through the sale of goods to its members. The company's revenue model revolves around annual membership fees, which provide access to its warehouse clubs and exclusive pricing on a broad range of products. This membership model not only ensures a steady revenue stream but also fosters customer loyalty. In addition to merchandise sales, BJ's derives income from its fuel sales at on-site gas stations, which attract members with competitive pricing. The company also benefits from strategic vendor partnerships and private label offerings that enhance its product margins. Furthermore, BJ's engages in various promotional activities and partnerships that contribute to its overall earnings.
Bj's Wholesale Club Holdings Financial Statement Overview
Summary
BJ's Wholesale Club exhibits a robust financial profile with strong revenue growth and profitability. The income statement highlights effective operations and cost management. The balance sheet shows improvement in equity but carries moderate leverage. Cash flow is a key strength with strong operating cash flow and consistent free cash flow generation. Overall, the company is on a positive financial trajectory.Income Statement
BJ's Wholesale Club has shown strong revenue growth, with a consistent increase each year. Gross profit and net profit margins are healthy, reflecting effective cost management and operational efficiency. The EBIT and EBITDA margins are stable, indicating good profitability. Overall, the income statement reflects a solid financial performance with consistent growth and profitability.85
Very Positive
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio, suggesting manageable leverage but with room for improvement. The return on equity has been increasing, showcasing effective use of shareholders' funds. However, the equity ratio is moderate, indicating a balanced approach to financing through debt and equity. Strengths include improving equity and profitability metrics, while the leverage remains an area to monitor.70
Positive
Cash Flow
BJ's cash flow statements show healthy operating cash flow with positive free cash flow growth. The company has managed to increase free cash flow over the years, demonstrating good cash generation ability. The operating cash flow to net income ratio is strong, indicating effective cash management. The free cash flow to net income ratio also suggests a solid ability to convert profits into cash. Overall, cash flow management is a strong aspect of the company's financial health.78
Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 20.50B | 19.97B | 19.32B | 16.67B | 15.43B | Gross Profit |
| 3.76B | 3.64B | 3.43B | 3.08B | 2.98B | EBIT |
| 772.21M | 800.42M | 737.99M | 617.32M | 642.39M | EBITDA |
| 772.21M | 1.03B | 951.24M | 815.37M | 809.85M | Net Income Common Stockholders |
| 534.42M | 523.74M | 513.18M | 426.65M | 421.03M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 28.27M | 36.05M | 33.91M | 45.44M | 43.52M | Total Assets |
| 7.07B | 6.68B | 6.35B | 5.70B | 5.41B | Total Debt |
| 2.84B | 2.99B | 3.09B | 2.98B | 3.23B | Net Debt |
| 2.82B | 2.96B | 3.05B | 2.93B | 3.18B | Total Liabilities |
| 5.22B | 5.22B | 5.30B | 5.05B | 5.09B | Stockholders Equity |
| 1.85B | 1.46B | 1.05B | 648.11M | 319.33M |
| Cash Flow | Free Cash Flow | |||
| 312.89M | 251.81M | 417.63M | 527.14M | 650.21M | Operating Cash Flow |
| 900.87M | 718.88M | 788.16M | 831.65M | 868.55M | Investing Cash Flow |
| -589.57M | -454.76M | -747.06M | -304.51M | -192.44M | Financing Cash Flow |
| -319.08M | -261.98M | -52.63M | -525.23M | -662.79M |
Bj's Wholesale Club Holdings Technical Analysis
Positive
115.41
Price Trends
106.69
Positive
100.11
Positive
92.75
Positive
Market Momentum
2.33
Negative
63.54
Neutral
84.87
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BJ, the sentiment is Positive. The current price of 115.41 is above the 20-day moving average (MA) of 111.85, above the 50-day MA of 106.69, and above the 200-day MA of 92.75, indicating a bullish trend. The MACD of 2.33 indicates Negative momentum. The RSI at 63.54 is Neutral, neither overbought nor oversold. The STOCH value of 84.87 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BJ.
Bj's Wholesale Club Holdings Risk Analysis
Bj's Wholesale Club Holdings disclosed 51 risk factors in its most recent earnings report. Bj's Wholesale Club Holdings reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Bj's Wholesale Club Holdings Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $15.20B | 28.85 | 32.33% | ― | 2.67% | 2.72% | |
73 Outperform | $44.40B | 18.29 | 26.59% | 1.86% | -1.94% | 23.94% | |
73 Outperform | $699.55B | 36.28 | 22.23% | 1.03% | 5.07% | 25.86% | |
71 Outperform | $406.63B | 53.50 | 32.89% | 0.51% | 6.13% | 12.14% | |
62 Neutral | $20.22B | 14.00 | -15.99% | 3.22% | 1.17% | 3.32% | |
57 Neutral | $14.53B | ― | 18.88% | ― | -9.88% | -205.57% | |
54 Neutral | $43.61B | 10.81 | 29.12% | 4.66% | -0.79% | -0.90% |
* Consumer Defensive Sector Average
Performance Comparison
BJ
Bj's Wholesale Club Holdings
115.41
38.88
50.80%
COST
Costco
916.48
208.54
29.46%
DLTR
Dollar Tree
67.55
-60.67
-47.32%
KR
Kroger Company
67.18
13.00
23.99%
TGT
Target
95.72
-68.91
-41.86%
WMT
Walmart
83.19
24.08
40.74%
Bj's Wholesale Club Holdings Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: 15.31% | Next Earnings Date: May 21, 2025
Earnings Call Sentiment Positive
The earnings call presented a strong performance with record membership, robust sales growth, and successful digital and fresh produce initiatives. However, there were concerns about declining merchandise gross margins and potential tariff impacts. Despite these challenges, the overall outlook remains positive with continued strategic investments and expansion plans.Highlights
Record Membership and Renewal Rate
Membership is at an all-time high above 7.5 million members with a renewal rate of 90%.
Strong Comparable Club Sales Growth
Comparable club sales, excluding gas sales, grew by 4.6% in the fourth quarter, marking the 12th consecutive quarter of traffic growth.
Digital Sales Surge
Digitally enabled comp sales grew by 26% year-over-year in the fourth quarter and 53% on a two-year stack.
Successful New Club Openings
Opened seven new clubs and 12 gas stations in fiscal 2024, with plans to open 25 to 30 clubs over the next two fiscal years.
Fresh Produce Sales Growth
Double-digit produce comps in each of the past three quarters, with the Fresh business growing at a rate 10 percentage points greater than the rest of the market.
Lowlights
Merchandise Gross Margins Decline
Merchandise gross margins decreased by approximately 10 basis points year-over-year in the fourth quarter.
Exposure to Tariff Risks
Potential impact from tariffs and geopolitical uncertainties could influence costs and consumer demand.
Company Guidance
During BJ's Wholesale Club Holdings Inc.'s fourth quarter fiscal 2024 earnings call, several key metrics were highlighted, demonstrating the company's strong performance and strategic initiatives. Membership reached an all-time high, surpassing 7.5 million with a renewal rate of 90%. Comparable club sales, excluding gas, rose by 4.6%, marking the 12th consecutive quarter of traffic growth. The perishables, grocery, and sundries division achieved over 4% comp growth, led by perishables, while the general merchandise and services division saw comps increase by more than 5%. Consumer electronics experienced high-single digit comp growth, with toys leading seasonal sales with low double-digit growth. Digitally enabled comp sales surged by 26% year-over-year, contributing significantly to overall growth. For fiscal 2025, BJ's anticipates comp sales growth of 2% to 3.5%, with capital expenditures expected to reach approximately $800 million, supporting new club and gas station openings, including entry into the Dallas-Fort Worth market in 2026.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.