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

• Market Cap: $12.92B
• Dividend Yield: N/A
• Average Volume (3M): 2.52M
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.05
• Revenue Growth: 2.48%
• EPS Growth: 9.41%
• Country: US
• Employees: 33,000
• Sector: Consumer Defensive
• Sector Strength: 41
• Industry: Discount Stores
• EPS (TTM): 1.14
• Shares Outstanding: 131,753,370
• 10 Day Avg. Volume: 2,232,826
• 30 Day Avg. Volume: 2,515,872
• 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: 1.33
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 4.40
• Enterprise Value/Ebitda: 15.59
• 1Y Price Target: $116.80
• Price Target Upside: 19.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16

• Rating: 66 Neutral
• Price Target: $103.00 ▲(5.05% Upside)

BJ's Wholesale Club Holdings has a strong financial performance with robust revenue growth and profitability. The earnings call provided positive guidance and highlighted significant membership and digital growth. However, technical analysis indicates bearish momentum, and valuation is moderate with no dividend yield. These factors combined result in an overall stock score of 66.

Positive Factors

Membership Growth

The significant growth in membership base enhances recurring revenue from membership fees, strengthening BJ's long-term revenue stability and customer loyalty.

Digital Business Expansion

Strong digital growth reflects BJ's successful adaptation to e-commerce trends, increasing market reach and enhancing customer convenience, supporting future revenue growth.

Efficient Inventory Management

Efficient inventory management reduces costs and improves cash flow, contributing to margin sustainability and financial health over the long term.

Negative Factors

Leverage Concerns

While leverage has improved, reliance on debt can still pose risks to financial flexibility and increase vulnerability to interest rate changes.

Decline in Free Cash Flow Growth

A decline in free cash flow growth can limit BJ's ability to reinvest in business expansion and reduce financial resilience in challenging market conditions.

General Merchandise Sales Decline

A decline in general merchandise sales indicates potential challenges in product mix and consumer demand, impacting revenue diversification and growth potential.

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 shows strong revenue growth and stable profitability with healthy margins. The balance sheet is stable but has some leverage concerns, and cash flow generation is adequate despite a decline in free cash flow growth.

Income Statement

Bj's Wholesale Club Holdings demonstrates strong revenue growth with a TTM (Trailing-Twelve-Months) revenue growth rate of 8.43%. The company maintains healthy margins, with a gross profit margin of 18.65% and a net profit margin of 2.77%. EBIT and EBITDA margins are also solid at 3.95% and 5.27% respectively, indicating efficient operations. The consistent revenue growth and stable margins reflect a robust income statement.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 1.11, which is an improvement from previous years, indicating better financial leverage management. Return on equity is strong at 29.12%, showcasing effective use of equity to generate profits. However, the equity ratio is relatively low, suggesting a higher reliance on debt financing. Overall, the balance sheet reflects a stable financial position with some leverage concerns.

Cash Flow

Cash flow analysis reveals a slight decline in free cash flow growth at -6.3%, which could be a concern if it persists. The operating cash flow to net income ratio is 0.38, indicating good cash generation relative to net income. The free cash flow to net income ratio is 0.30, showing that a reasonable portion of net income is converted into free cash flow. While cash flow generation is adequate, the negative growth in free cash flow warrants attention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.91B	20.50B	19.97B	19.32B	16.67B	15.43B
Gross Profit	3.90B	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	578.88M	534.42M	523.74M	513.18M	426.65M	421.03M
Balance Sheet
Total Assets	7.23B	7.07B	6.68B	6.35B	5.67B	5.41B
Cash, Cash Equivalents and Short-Term Investments	47.27M	28.27M	36.05M	33.91M	45.44M	43.52M
Total Debt	2.64B	2.84B	2.98B	3.12B	2.96B	3.24B
Total Liabilities	5.13B	5.22B	5.22B	5.30B	5.02B	5.09B
Stockholders Equity	2.10B	1.85B	1.46B	1.05B	648.11M	319.33M
Cash Flow
Free Cash Flow	285.20M	312.89M	251.81M	417.63M	527.14M	650.21M
Operating Cash Flow	936.63M	900.87M	718.88M	788.16M	831.65M	868.55M
Investing Cash Flow	-656.10M	-589.57M	-454.76M	-747.06M	-304.51M	-192.44M
Financing Cash Flow	-271.31M	-319.08M	-261.98M	-52.63M	-525.23M	-662.79M

Bj's Wholesale Club Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 98.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 98.05 is below the 20-day moving average (MA) of 99.50, below the 50-day MA of 103.69, and below the 200-day MA of 105.55, indicating a bearish trend. The MACD of -2.09 indicates Negative momentum. The RSI at 42.69 is Neutral, neither overbought nor oversold. The STOCH value of 61.32 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	79 Outperform	$427.65B	54.24	32.08%	0.51%	5.94%	9.31%
OLLI	76 Outperform	$8.07B	38.13	12.63%	―	10.14%	5.01%
WMT	75 Outperform	$818.41B	37.88	24.46%	0.88%	4.23%	38.05%
DG	69 Neutral	$23.20B	19.70	15.60%	2.24%	4.98%	-15.98%
BJ	66 Neutral	$12.92B	22.51	30.84%	―	2.48%	9.41%
Sector *	62 Neutral	$20.56B	14.66	-3.18%	3.15%	1.93%	-6.58%
DLTR	53 Neutral	$20.27B	―	20.07%	―	-29.67%	-178.03%

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.