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Bj's Wholesale Club Holdings (BJ)
NYSE:BJ

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

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BJ

Bj's Wholesale Club Holdings

(NYSE:BJ)

Rating:75Outperform
Price Target:
$121.00
â–²(10.56%Upside)
BJ's Wholesale Club Holdings scores well overall due to strong financial performance and positive earnings call highlights. However, technical analysis suggests some short-term challenges, and valuation is moderate without a dividend yield. Strategic expansion and digital initiatives support a positive outlook, despite potential margin pressures.
Positive Factors
Digital Initiatives
Digital conveniences like BOPIC, ExpressPay, Curbside Pick-Up, and Same-Day Delivery drive deeper share gains across income and age cohorts.
Market Share Expansion
BJ is well positioned to gain market share, supported by stronger-than-expected comp sales and membership fee income.
Membership Growth
Higher tier membership penetration above 40% and 90% tenured renewal rates validate the success of BJ's efforts to improve membership lifetime value.
Negative Factors
Consumer Discretionary Weakness
General merchandise was a weaker performance area for the Q, partially due to consumer sentiment being choosy around big-ticket discretionary items.
Risk of Comp Deceleration
There is comp deceleration risk due to the estimated tailwind from Fresh 2.0 and headwinds on the lower-end consumer.
Valuation Concerns
The valuation appears stretched, representing the high end of GARP staples retailers.

Bj's Wholesale Club Holdings (BJ) vs. SPDR S&P 500 ETF (SPY)

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 makes money primarily through membership fees and the sale of goods in bulk quantities to its members. Membership fees provide a steady and recurring revenue stream, as customers pay annually for access to the warehouse club's discounts and services. Additionally, BJ's generates revenue from the sale of a wide range of products, including groceries, electronics, home goods, and more, often at lower prices than traditional retail stores due to their bulk purchasing model. The company also benefits from partnerships with various suppliers and manufacturers, allowing them to offer exclusive deals and private label products. Supplemental revenue is generated through services such as optical and tire centers, as well as fuel sales at certain locations. Overall, BJ's combines its membership model with strategic sourcing and product offerings to drive its revenue.

Bj's Wholesale Club Holdings Key Performance Indicators (KPIs)

Any
Any
Store Count
Store Count
Counts the number of operational stores, indicating the company's physical presence and expansion strategy, which can impact market reach and sales potential.
Chart InsightsBJ's Wholesale Club Holdings has consistently expanded its store count, reaching 252 by early 2024. This growth aligns with strategic plans to open 25 to 30 new clubs over the next two years, supported by robust membership growth and strong digital sales. The company's expansion into new markets, such as Dallas-Fort Worth, is expected to drive further growth despite challenges like declining merchandise margins and tariff risks. The focus on perishables and digital sales positions BJ's well for sustained performance and market penetration.
Data provided by:Main Street Data

Bj's Wholesale Club Holdings Earnings Call Summary

Earnings Call Date:May 22, 2025
(Q1-2025)
|
% Change Since: -6.86%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
BJ's Wholesale Club Holdings, Inc. reported strong financial results for the first quarter of fiscal 2025. The company demonstrated significant growth in membership and digital sales, and strong performance from the Fresh 2.0 initiative. However, there were challenges in the general merchandise segment and concerns about macroeconomic uncertainties and potential margin pressures. Despite these challenges, the overall performance and strategic initiatives suggest a positive outlook.
Q1-2025 Updates
Positive Updates
Strong Financial Performance
BJ's reported a strong start to fiscal 2025 with first quarter net sales growing by 4.7%, and operating income and net income increasing by 27% and 35% respectively.
Membership Growth and Engagement
Higher tier membership penetration grew by over 100 basis points sequentially, surpassing 40% for the first time in company history. Membership fee income grew by 8.1% to approximately $120.4 million.
Digital Sales Surge
Digitally enabled comp sales grew by 35% year over year in the first quarter, contributing significantly to overall sales growth.
Fresh 2.0 Initiative Success
The Fresh 2.0 initiative in produce resulted in high single digit to low double digit growth. The initiative is now being expanded to meat and seafood.
Real Estate Expansion
BJ's opened five new clubs in the first quarter and plans to open 25 to 30 new clubs over the next two years.
Negative Updates
General Merchandise and Services Division Softness
Comps in the general merchandise and services division decreased slightly in the first quarter, with unfavorable weather and consumer sentiment impacting discretionary categories.
Macroeconomic Uncertainty
The company acknowledges operating in uncertain times with potential impacts on financial performance due to economic conditions and tariffs.
Margin Pressure Concerns
Continued investments and cost pressures, including those related to Fresh 2.0 and tariff uncertainties, could impact margins throughout the year.
Company Guidance
In the fiscal 2025 first quarter earnings call, BJ's Wholesale Club Holdings, Inc. reported a strong performance, surpassing expectations with a 4.7% increase in net sales to $5 billion. Operating income and net income grew by 27% and 35%, respectively. The company achieved a 3.9% increase in comparable club sales excluding gas sales, driven by a 2.5-point contribution from traffic growth, marking the thirteenth consecutive quarter of traffic increases. Membership fee income rose 8.1% to approximately $120.4 million, with higher tier membership penetration surpassing 40% for the first time. Digital convenience sales surged 35% year over year, contributing significantly to overall sales growth. BJ's maintained its full-year guidance of 2% to 3.5% comp sales growth excluding gas and adjusted earnings per share of $4.10 to $4.30, despite a more uncertain economic environment. The company is on track to open 25 to 30 new clubs over the next two years, supported by strong membership growth and strategic investments in digital conveniences and Fresh 2.0 initiatives.

Bj's Wholesale Club Holdings Financial Statement Overview

Summary
BJ's Wholesale Club Holdings demonstrates strong financial performance with consistent revenue growth, stable profitability, and effective cash flow management. While the company shows robust return on equity and improved debt-to-equity ratio, the high portion of assets financed through liabilities poses a risk.
Income Statement
85
Very Positive
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
78
Positive
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
80
Positive
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.
BreakdownTTMMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue20.74B20.50B19.97B19.32B16.67B15.43B
Gross Profit3.85B3.76B3.64B3.43B3.08B2.98B
EBITDA1.01B1.03B1.03B951.24M815.37M809.85M
Net Income573.17M534.42M523.74M513.18M426.65M421.03M
Balance Sheet
Total Assets7.16B7.07B6.68B6.35B5.70B5.41B
Cash, Cash Equivalents and Short-Term Investments39.48M28.27M36.05M33.91M45.44M43.52M
Total Debt2.70B2.84B2.99B3.09B2.98B3.23B
Total Liabilities5.19B5.22B5.22B5.30B5.05B5.09B
Stockholders Equity1.97B1.85B1.46B1.05B648.11M319.33M
Cash Flow
Free Cash Flow285.38M312.89M251.81M417.63M527.14M650.21M
Operating Cash Flow908.12M900.87M718.88M788.16M831.65M868.55M
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 Price109.44
Price Trends
50DMA
112.97
Negative
100DMA
111.49
Negative
200DMA
101.24
Positive
Market Momentum
MACD
-0.79
Positive
RSI
45.47
Neutral
STOCH
28.08
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 109.44 is below the 20-day moving average (MA) of 110.47, below the 50-day MA of 112.97, and above the 200-day MA of 101.24, indicating a neutral trend. The MACD of -0.79 indicates Positive momentum. The RSI at 45.47 is Neutral, neither overbought nor oversold. The STOCH value of 28.08 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 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 (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
WMWMT
78
Outperform
$784.95B42.2022.80%0.96%4.22%-0.17%
77
Outperform
$437.72B55.9932.08%0.53%5.94%9.31%
BJBJ
75
Outperform
$14.45B25.4532.76%―2.84%11.25%
KRKR
70
Outperform
$46.43B19.0924.06%1.83%-2.11%25.03%
TGTGT
66
Neutral
$47.28B11.4429.08%4.30%-0.69%2.03%
58
Neutral
$21.27B―19.25%―-20.46%-202.26%
50
Neutral
AU$2.23B3.40-14.55%12.66%7.38%-66.34%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BJ
Bj's Wholesale Club Holdings
109.44
21.65
24.66%
COST
Costco
987.02
109.57
12.49%
DLTR
Dollar Tree
101.91
-4.81
-4.51%
KR
Kroger Company
69.83
18.98
37.33%
TGT
Target
104.06
-39.56
-27.54%
WMT
Walmart
98.36
29.39
42.61%

Bj's Wholesale Club Holdings Corporate Events

Executive/Board ChangesShareholder Meetings
BJ’s Wholesale Club Elects Directors and Approves Compensation
Neutral
Jun 20, 2025

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.

The most recent analyst rating on (BJ) stock is a Buy with a $105.00 price target. To see the full list of analyst forecasts on Bj’s Wholesale Club Holdings stock, see the BJ Stock Forecast page.

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.Date of analysis: Jul 01, 2025