Bj's Wholesale Club Holdings (BJ) AI Stock Analysis

• Market Cap: $12.82B
• Dividend Yield: N/A
• Average Volume (3M): 2.08M
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.05
• Revenue Growth: 2.48%
• EPS Growth: 9.41%
• Country: US
• Employees: 33,000
• Sector: Consumer Defensive
• Sector Strength: 54
• Industry: Discount Stores
• EPS (TTM): 1.14
• Shares Outstanding: 132,050,700
• 10 Day Avg. Volume: 3,158,814
• 30 Day Avg. Volume: 2,084,663
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 0.83
• Enterprise Value/Gross Profit: 4.46
• Enterprise Value/Ebitda: 15.87
• 1Y Price Target: $117.21
• Price Target Upside: 20.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 70 Outperform
• Price Target: $107.00 ▲(10.18% Upside)

BJ's Wholesale Club Holdings receives a solid overall score due to its strong financial performance and positive earnings call sentiment. However, bearish technical indicators and moderate valuation metrics slightly temper the outlook. The company's strategic growth in membership and digital sales positions it well for future resilience despite current market challenges.

Positive Factors

Earnings Performance

BJ's Q2 EPS beat expectations on strong digital and membership growth.

Membership Growth

Membership count increased to 8 million, with higher-tier penetration rising, which supports long-term growth.

Negative Factors

Competitive Pricing Pressures

Investments to maintain competitive price gaps are likely to weigh on earnings revisions near-term.

Merchandise Margin Pressure

BJ faces potential merchandise margin pressure due to price investments to offset tariff impacts in the second half.

Bj's Wholesale Club Holdings Business Overview & Revenue Model

Company Description

BJ'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 Money

BJ's Wholesale Club generates revenue primarily through membership fees and the sale of merchandise. Membership fees are charged annually and are a significant source of recurring revenue, providing access to club locations and discounts on products. The company earns money through the sale of a wide range of products, including grocery items, electronics, furniture, and health and beauty products, typically at lower prices than traditional retail stores due to its bulk purchasing strategy. Additionally, BJ's Wholesale Club has embraced e-commerce, offering online shopping options that enhance customer convenience and drive sales. Strategic partnerships with suppliers and brands also contribute to its earnings, enabling exclusive offerings and promotions that attract members. Overall, the combination of membership fees, merchandise sales, and e-commerce initiatives forms the core of BJ's revenue model.

Bj's Wholesale Club Holdings Financial Statement Overview

Summary

BJ's Wholesale Club Holdings demonstrates strong financial performance with robust revenue growth, stable profitability, and effective cash flow management. The company shows a consistent increase in total revenue and improved net profit margins. However, the equity ratio suggests a significant portion of assets is financed through liabilities, which could pose risks during economic downturns.

Income Statement

The income statement of BJ's Wholesale Club Holdings shows strong performance with a consistent increase in total revenue over the years, growing from $15.4 billion in 2021 to $20.7 billion TTM in 2025. Gross profit margins have remained stable, and the net profit margin has improved, indicating efficient cost management. Revenue growth rate has been positive year-over-year, reflecting effective market penetration and expansion strategies. EBIT and EBITDA margins are healthy, supporting the company's profitability.

Balance Sheet

The balance sheet indicates a moderate level of financial health. The debt-to-equity ratio has improved over the years, showing a decrease in leverage risk. Return on equity has been robust, reflecting efficient use of shareholder funds. However, the equity ratio suggests that a significant portion of the company's assets is financed through liabilities, which may pose a risk in periods of economic downturn.

Cash Flow

Cash flow analysis reveals a strong operational cash flow, consistently exceeding net income, indicating effective cash management. Free cash flow has shown growth, albeit with fluctuations due to capital expenditures. The operating cash flow to net income ratio is solid, demonstrating the firm's ability to convert profits into cash. Despite some volatility in free cash flow, the overall cash generation capability remains strong.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.74B	20.50B	19.97B	19.32B	16.67B	15.43B
Gross Profit	3.85B	3.76B	3.64B	3.43B	3.08B	2.98B
EBITDA	1.08B	1.03B	1.03B	951.24M	815.37M	809.85M
Net Income	573.17M	534.42M	523.74M	513.18M	426.65M	421.03M
Balance Sheet
Total Assets	7.16B	7.07B	6.68B	6.35B	5.67B	5.41B
Cash, Cash Equivalents and Short-Term Investments	39.48M	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	5.19B	5.22B	5.22B	5.30B	5.02B	5.09B
Stockholders Equity	1.97B	1.85B	1.46B	1.05B	648.11M	319.33M
Cash Flow
Free Cash Flow	285.38M	312.89M	251.81M	417.63M	527.14M	650.21M
Operating Cash Flow	908.12M	900.87M	718.88M	788.16M	831.65M	868.55M
Investing Cash Flow	-626.12M	-589.57M	-454.76M	-747.06M	-304.51M	-192.44M
Financing Cash Flow	-277.61M	-319.08M	-261.98M	-52.63M	-525.23M	-662.79M

Bj's Wholesale Club Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 97.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BJ, the sentiment is Negative. The current price of 97.11 is below the 20-day moving average (MA) of 105.73, below the 50-day MA of 107.26, and below the 200-day MA of 104.96, indicating a bearish trend. The MACD of -1.16 indicates Positive momentum. The RSI at 32.09 is Neutral, neither overbought nor oversold. The STOCH value of 44.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BJ.

Bj's Wholesale Club Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COST	80 Outperform	$425.09B	54.37	32.08%	0.51%	5.94%	9.31%
WMT	73 Outperform	$772.74B	36.48	24.46%	0.94%	4.23%	38.05%
TGT	72 Outperform	$45.09B	11.57	26.32%	4.53%	-1.55%	-11.41%
BJ	70 Outperform	$12.82B	22.28	30.84%	―	2.48%	9.41%
KR	70 Outperform	$45.99B	18.91	24.06%	1.88%	-2.11%	25.03%
Sector *	63 Neutral	$20.85B	14.73	-3.85%	3.09%	2.70%	-8.60%
DLTR	60 Neutral	$23.65B	―	19.25%	―	-20.46%	-202.26%

Bj's Wholesale Club Holdings Corporate Events

BJ’s Wholesale Club Elects Directors and Approves Compensation

At the annual meeting of BJ’s Wholesale Club Holdings held on April 28, 2025, shareholders elected ten directors to serve until the 2026 annual meeting. Additionally, they approved the compensation of the company’s named executive officers and ratified the appointment of PricewaterhouseCoopers LLP as the independent accounting firm for fiscal year 2025. An officer exculpation amendment was also approved, but a proposal regarding a report on GHG emissions reduction efforts was not passed.