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

• Market Cap: $11.88B
• Dividend Yield: N/A
• Average Volume (3M): 2.16M
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.11
• Revenue Growth: 2.48%
• EPS Growth: 9.41%
• Country: US
• Employees: 33,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): 1.14
• Shares Outstanding: 131,753,370
• 10 Day Avg. Volume: 1,878,266
• 30 Day Avg. Volume: 2,158,522
• PEG Ratio: 9.65
• Price to Book (P/B): 7.09
• Price to Sales (P/S): 0.64
• P/FCF Ratio: 41.83
• Enterprise Value/Market Cap: 1.44
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 4.40
• Enterprise Value/Ebitda: 15.59
• 1Y Price Target: $117.93
• Price Target Upside: 29.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: $104.00 ▲(14.37% Upside)

BJ's Wholesale Club Holdings demonstrates strong financial performance and positive earnings call sentiment, driving the overall score. However, technical indicators suggest bearish momentum, and valuation metrics are moderate, which slightly dampen the overall outlook.

Positive Factors

Membership Growth

Significant membership growth enhances recurring revenue streams and strengthens customer loyalty, providing a stable foundation for future sales.

Digital Business Expansion

Strong digital growth indicates successful adaptation to e-commerce trends, expanding reach and convenience for customers, and boosting long-term sales potential.

Perishables Division Performance

Growth in perishables reflects strong demand and effective inventory management, supporting sustained revenue and margin stability in essential categories.

Negative Factors

Decline in General Merchandise

Declining sales in general merchandise suggest challenges in discretionary spending, potentially impacting overall revenue diversification and growth.

Weather Impact on Sales

Weather-related disruptions highlight vulnerability to external factors, which can affect sales consistency and operational planning in key regions.

Tariff and Macro Environment Concerns

Tariff uncertainties pose risks to cost structures and consumer sentiment, potentially affecting pricing strategies and profit margins in the long term.

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 2024	Dec 2023	Dec 2023	Dec 2022
Income Statement
Total Revenue	20.91B	20.50B	20.50B	19.97B	19.97B	19.32B
Gross Profit	3.90B	3.76B	3.76B	3.64B	3.64B	3.43B
EBITDA	1.10B	1.03B	1.03B	1.03B	1.03B	933.26M
Net Income	578.88M	534.42M	534.42M	523.74M	523.74M	513.18M
Balance Sheet
Total Assets	7.23B	7.07B	7.07B	6.68B	6.68B	6.35B
Cash, Cash Equivalents and Short-Term Investments	47.27M	28.27M	28.27M	36.05M	36.05M	33.91M
Total Debt	2.64B	2.84B	2.84B	2.98B	2.98B	3.12B
Total Liabilities	5.13B	5.22B	5.22B	5.22B	5.22B	5.30B
Stockholders Equity	2.10B	1.85B	1.85B	1.46B	1.46B	1.05B
Cash Flow
Free Cash Flow	285.20M	312.89M	312.89M	251.81M	251.81M	417.63M
Operating Cash Flow	936.63M	900.87M	900.87M	718.88M	718.88M	788.16M
Investing Cash Flow	-656.10M	-589.57M	-589.57M	-454.76M	-454.76M	-747.06M
Financing Cash Flow	-271.31M	-319.08M	-319.08M	-261.98M	-261.98M	-52.63M

Bj's Wholesale Club Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 90.93
• 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 90.93 is below the 20-day moving average (MA) of 92.02, below the 50-day MA of 94.14, and below the 200-day MA of 105.26, indicating a bearish trend. The MACD of -1.14 indicates Positive momentum. The RSI at 45.17 is Neutral, neither overbought nor oversold. The STOCH value of 45.02 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
WMT	75 Outperform	$815.38B	38.58	24.46%	0.90%	4.23%	38.05%
OLLI	74 Outperform	$7.60B	35.98	12.63%	―	10.14%	5.01%
DG	73 Outperform	$21.96B	18.46	15.60%	2.35%	4.98%	-15.98%
BJ	71 Outperform	$11.88B	20.88	30.84%	―	2.48%	9.41%
COST	68 Neutral	$416.92B	51.67	30.69%	0.54%	8.17%	9.92%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DLTR	59 Neutral	$20.82B	-7.72	20.07%	―	-29.67%	-178.03%

Bj's Wholesale Club Holdings Corporate Events

BJ’s Wholesale Club Reports Strong Growth Amid Challenges

BJ’s Wholesale Club’s recent earnings call painted a picture of a company experiencing robust growth, tempered by some external challenges. The sentiment was largely positive, with significant achievements in membership growth and digital business expansion, although concerns about general merchandise sales and macroeconomic factors were acknowledged.

BJ’s Wholesale Club Reports Strong Q2 2025 Results

BJ’s Wholesale Club Holdings, Inc. is a prominent membership warehouse club operator, offering a wide range of products including fresh foods, household essentials, and gasoline across its numerous locations in the United States. The company, headquartered in Marlborough, Massachusetts, has been a pioneer in the warehouse club model since 1984.