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Bj's Wholesale Club Holdings (BJ)
NYSE:BJ
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Bj's Wholesale Club Holdings
(NYSE:BJ)
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Select Model
Rating:71Outperform
Price Target:
$104.00
▲(11.35% Upside)
BJ's Wholesale Club Holdings receives a solid score driven by strong financial performance and positive earnings call insights. The company's growth in digital sales and membership fees are significant strengths. However, technical indicators suggest caution, and valuation metrics are moderate. Challenges in certain product categories and macroeconomic pressures also weigh on the score.
Positive Factors
Digital Sales Expansion
The significant growth in digital sales indicates a successful adaptation to e-commerce trends, enhancing customer convenience and potentially boosting long-term revenue.
Membership Fee Income Growth
The growth in membership fee income reflects strong customer loyalty and a stable source of recurring revenue, supporting long-term financial stability.
Club Expansion Success
Expanding club locations enhances market presence and accessibility, potentially increasing membership and sales over the long term.
Negative Factors
Home and Seasonal Challenges
Challenges in home and seasonal categories could limit revenue growth and require strategic adjustments to address changing consumer preferences.
Macro Economic Challenges
Ongoing macroeconomic pressures may affect consumer spending and confidence, posing risks to sales and profitability in the near to mid-term.
Flat Merchandise Gross Margins
Flat gross margins suggest potential difficulties in maintaining pricing power and cost management, which could impact profitability if not addressed.
Bj's Wholesale Club Holdings (BJ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.22B
Dividend YieldN/A
Average Volume (3M)1.65M
Price to Earnings (P/E)21.5
Beta (1Y)0.10
Revenue Growth2.82%
EPS Growth3.77%
CountryUS
Employees33,000
SectorConsumer Defensive
Sector Strength42
IndustryDiscount Stores
Share Statistics
EPS (TTM)1.16
Shares Outstanding130,847,720
10 Day Avg. Volume1,789,790
30 Day Avg. Volume1,654,549
Financial Highlights & Ratios
PEG Ratio9.65
Price to Book (P/B)7.09
Price to Sales (P/S)0.64
P/FCF Ratio41.83
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue0.67
Enterprise Value/Gross Profit3.61
Enterprise Value/Ebitda12.97
Forecast
1Y Price Target
$107.00Price Target Upside14.56% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
EPS Forecast (FY)4.36
Revenue Forecast (FY)$21.42B
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 membership fees and product sales. Membership fees are a significant revenue stream, as customers must pay an annual fee to shop at BJ's clubs, which provides access to discounted prices on bulk items. The company also earns money through the sale of a wide range of products, including consumables, perishables, and general merchandise. BJ's leverages strategic partnerships with suppliers to offer exclusive products and competitive pricing, enhancing its value proposition. Additionally, ancillary services such as the BJ's gas stations and online ordering for delivery or curbside pickup contribute to its earnings by attracting more customers and increasing overall sales volume.
Bj's Wholesale Club Holdings Key Performance Indicators (KPIs)
Any
Revenue by Type
Categorizes revenue streams, offering a view of the company's diverse income sources and identifying which areas drive growth or present risks.
Categorizes revenue streams, offering a view of the company's diverse income sources and identifying which areas drive growth or present risks.
Data provided by:
The Fly
The FlyBj's Wholesale Club Holdings Earnings Call Summary
Earnings Call Date:Nov 21, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
BJ's Wholesale Club Holdings demonstrated strong performance in market share growth, digital sales expansion, and membership fee income growth. There were successful new club openings and promising own brand developments. Nevertheless, challenges remain in home and seasonal categories and the broader macroeconomic environment, with disruptions from SNAP and government shutdowns impacting consumer behavior.Q3-2025 Updates
Positive Updates
Market Share and Traffic Growth
Achieved the twelfth consecutive quarter of market share growth and the fifteenth consecutive quarter of traffic growth, demonstrating consistent value to members.
Digital Sales Expansion
Digital sales grew 30% year over year and 61% on a two-year stack, driven by BOPIC, same-day delivery, and Express Pay.
Membership Fee Income Growth
Membership fee income grew nearly 10%, driven by strong member accounts, mixed benefits, and a recent fee increase.
Club Expansion Success
Opened new clubs in Warner Robins, Georgia and Survivorville, Tennessee, with new club membership counts 25% ahead of plan. Planned expansion includes 14 new clubs for the year.
Own Brands Growth
Introduction of new own brand products offering quality at a 30% discount compared to national brands, enhancing member value and loyalty.
Adjusted Earnings Per Share Increase
Adjusted earnings per share grew approximately 8% year over year, normalizing for a legal settlement in the previous year.
Negative Updates
Home and Seasonal Challenges
Home and seasonal categories continue to be impacted by lower discretionary demand, consumer confidence, and prior inventory decisions.
Macro Economic Challenges
The macroeconomic environment remains challenging, impacting consumer confidence and presenting difficulties in predicting general merchandise sales.
SNAP Program and Government Shutdown Disruption
Slight disruption in Q3 and a more meaningful disruption in early Q4 due to SNAP program adjustments and government shutdown concerns.
Flat Merchandise Gross Margins
Merchandise gross margin rate was flat year over year, despite investments in pricing and member value.
Company Guidance
During BJ's Wholesale Club Holdings, Inc.'s third quarter earnings call for fiscal year 2025, the company provided guidance for the remainder of the year. The guidance included a narrowed full-year merchandise comparable sales growth expectation of 2% to 3% and an increased adjusted earnings per share range of $4.30 to $4.40. BJ's reported a 1.8% growth in merchandise comp sales for Q3, with a two-year stack comp growth of 5.5%, and adjusted earnings per share of $1.16. The company highlighted the success of its digital initiatives, with digital sales growing 30% year over year. Furthermore, membership fee income grew by nearly 10%, and BJ's plans to continue expanding its footprint by adding 25 to 30 new clubs over two years. The company emphasized its focus on value and convenience as key drivers for member engagement and retention.Bj's Wholesale Club Holdings Financial Statement Overview
Summary
BJ's Wholesale Club Holdings shows strong financial health with consistent revenue growth and profitability. The company has improved its balance sheet by reducing leverage, although there is still a moderate reliance on debt. Cash flow management shows potential for improvement, particularly in free cash flow generation.Income Statement
BJ's Wholesale Club Holdings demonstrates strong financial performance with consistent revenue growth and healthy profit margins. The TTM data shows a Gross Profit Margin of 18.61% and a Net Profit Margin of 2.72%, indicating effective cost management and profitability. The Revenue Growth Rate of 1.19% in the TTM period suggests steady growth, although slightly lower than previous years. Overall, the company maintains solid profitability and growth metrics.85
Very Positive
Balance Sheet
The balance sheet reflects a moderate financial position with a Debt-to-Equity Ratio of 1.10 in the TTM period, showing improvement from previous years. The Return on Equity (ROE) is strong at 27.47%, indicating efficient use of equity to generate profits. However, the Equity Ratio of 32.57% suggests a moderate reliance on debt financing, which could pose risks if not managed carefully.70
Positive
Cash Flow
Cash flow analysis reveals a mixed performance. The Operating Cash Flow to Net Income Ratio is 0.91, indicating good cash generation relative to net income. However, the Free Cash Flow Growth Rate is negative at -10.37%, reflecting a decline in free cash flow. The Free Cash Flow to Net Income Ratio of 0.30 suggests that while the company generates positive cash flow, there is room for improvement in cash management.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 21.16B | 20.50B | 19.97B | 19.32B | 16.67B | 15.43B |
| Gross Profit | 3.94B | 3.76B | 3.64B | 3.43B | 3.08B | 2.98B |
| EBITDA | 1.10B | 1.03B | 1.03B | 933.26M | 788.68M | 796.35M |
| Net Income | 575.18M | 534.42M | 523.74M | 513.18M | 426.65M | 421.03M |
Balance Sheet | ||||||
| Total Assets | 7.55B | 7.07B | 6.68B | 6.35B | 5.67B | 5.41B |
| Cash, Cash Equivalents and Short-Term Investments | 45.12M | 28.27M | 36.05M | 33.91M | 45.44M | 43.52M |
| Total Debt | 2.70B | 2.84B | 2.98B | 3.12B | 2.96B | 3.24B |
| Total Liabilities | 5.37B | 5.22B | 5.22B | 5.30B | 5.02B | 5.09B |
| Stockholders Equity | 2.17B | 1.85B | 1.46B | 1.05B | 648.11M | 319.33M |
Cash Flow | ||||||
| Free Cash Flow | 255.63M | 312.89M | 251.81M | 417.63M | 527.14M | 650.21M |
| Operating Cash Flow | 911.02M | 900.87M | 718.88M | 788.16M | 831.65M | 868.55M |
| Investing Cash Flow | -663.20M | -589.57M | -454.76M | -747.06M | -304.51M | -192.44M |
| Financing Cash Flow | -236.57M | -319.08M | -261.98M | -52.63M | -525.23M | -662.79M |
Bj's Wholesale Club Holdings Technical Analysis
Positive
93.40
Price Trends
91.96
Positive
93.10
Positive
101.91
Negative
Market Momentum
0.46
Negative
52.44
Neutral
76.44
Neutral
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 93.4 is above the 20-day moving average (MA) of 92.63, above the 50-day MA of 91.96, and below the 200-day MA of 101.91, indicating a neutral trend. The MACD of 0.46 indicates Negative momentum. The RSI at 52.44 is Neutral, neither overbought nor oversold. The STOCH value of 76.44 is Neutral, 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $954.03B | 41.98 | 24.87% | 0.85% | 4.34% | 17.27% | |
73 Outperform | $7.15B | 32.25 | 12.96% | ― | 12.58% | 7.80% | |
73 Outperform | $32.74B | 25.68 | 16.45% | 1.88% | 4.86% | -4.51% | |
72 Outperform | $427.72B | 51.62 | 30.32% | 0.59% | 8.34% | 9.58% | |
71 Outperform | $12.22B | 21.52 | 29.24% | ― | 2.82% | 3.77% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $27.83B | -10.39 | 20.07% | ― | -39.27% | -182.36% |
* Consumer Defensive Sector Average
BJ
Bj's Wholesale Club Holdings
93.40
-4.10
-4.21%
COST
Costco
963.61
20.80
2.21%
DG
Dollar General
148.74
81.78
122.12%
DLTR
Dollar Tree
139.95
66.19
89.74%
WMT
Walmart
119.70
27.50
29.83%
OLLI
Ollie's Bargain Outlet Holding
116.61
2.95
2.60%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.