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

• Market Cap: $13.71B
• Dividend Yield: N/A
• Average Volume (3M): 1.52M
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.08
• Revenue Growth: 2.84%
• EPS Growth: 11.25%
• 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: 1,368,166
• 30 Day Avg. Volume: 1,518,164
• PEG Ratio: 3.21
• Price to Book (P/B): 6.93
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 48.06
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 32.38
• Enterprise Value/Ebitda: 17.43
• 1Y Price Target: $126.14
• Price Target Upside: 20.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 15

• Rating: 75 Outperform
• Price Target: $121.00 ▲(15.21%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.

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

Big Ticket Sales

General merchandise was a weaker performance area for the Q, partially due to consumer sentiment being choosy around big-ticket discretionary items.

Valuation Concerns

The valuation appears stretched, representing the high end of GARP staples retailers.

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 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 Financial Statement Overview

Summary

BJ's Wholesale Club Holdings exhibits strong financial performance with robust revenue growth, stable profitability, and effective cash flow management. The company has improved its debt-to-equity ratio and maintains a strong operational cash flow. However, the equity ratio indicates a reliance on liabilities, which could be a risk 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	20.50B	19.97B	19.32B	16.67B	15.43B
Gross Profit	3.76B	3.64B	3.43B	3.08B	2.98B
EBITDA	1.03B	1.03B	951.24M	815.37M	809.85M
Net Income	534.42M	523.74M	513.18M	426.65M	421.03M
Balance Sheet
Total Assets	7.07B	6.68B	6.35B	5.70B	5.41B
Cash, Cash Equivalents and Short-Term Investments	28.27M	36.05M	33.91M	45.44M	43.52M
Total Debt	2.84B	2.99B	3.09B	2.98B	3.23B
Total Liabilities	5.22B	5.22B	5.30B	5.05B	5.09B
Stockholders Equity	1.85B	1.46B	1.05B	648.11M	319.33M
Cash Flow
Free Cash Flow	312.89M	251.81M	417.63M	527.14M	650.21M
Operating Cash Flow	900.87M	718.88M	788.16M	831.65M	868.55M
Investing Cash Flow	-589.57M	-454.76M	-747.06M	-304.51M	-192.44M
Financing Cash Flow	-319.08M	-261.98M	-52.63M	-525.23M	-662.79M

Bj's Wholesale Club Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 105.03
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Neutral. The current price of 105.03 is below the 20-day moving average (MA) of 106.10, below the 50-day MA of 109.91, and above the 200-day MA of 103.16, indicating a neutral trend. The MACD of -1.70 indicates Negative momentum. The RSI at 42.74 is Neutral, neither overbought nor oversold. The STOCH value of 38.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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
BJ	75 Outperform	$13.71B	24.15	32.76%	―	2.84%	11.25%
WMT	74 Outperform	$778.97B	41.87	22.80%	0.90%	4.22%	-0.17%
COST	71 Outperform	$414.20B	52.98	32.08%	0.51%	5.94%	9.31%
TGT	69 Neutral	$48.36B	11.70	29.08%	4.30%	-0.69%	2.03%
KR	68 Neutral	$45.83B	18.84	24.06%	1.85%	-2.11%	25.03%
Sector *	65 Neutral	$26.91B	15.40	-1.16%	3.07%	1.05%	5.03%
DLTR	60 Neutral	$24.09B	―	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.

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.