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

• Market Cap: $11.96B
• Dividend Yield: N/A
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): 20.9
• Beta (1Y): 0.15
• Revenue Growth: 2.82%
• EPS Growth: 3.77%
• Country: US
• Employees: 33,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): 1.16
• Shares Outstanding: 131,753,370
• 10 Day Avg. Volume: 3,184,761
• 30 Day Avg. Volume: 2,179,814
• 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: 1.20
• Enterprise Value/Revenue: 0.68
• Enterprise Value/Gross Profit: 3.63
• Enterprise Value/Ebitda: 13.03
• 1Y Price Target: $109.67
• Price Target Upside: 20.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14
• EPS Forecast (FY): 4.35
• Revenue Forecast (FY): $21.43B

• Rating: 71 Outperform
• Price Target: $104.00 ▲(14.58% Upside)

BJ's Wholesale Club Holdings receives a solid score driven by strong financial performance and positive earnings call insights. The company's growth in digital sales and membership fees are significant strengths. However, technical indicators suggest caution, and valuation metrics are moderate. Challenges in certain product categories and macroeconomic pressures also weigh on the score.

Positive Factors

Digital Sales Expansion

The significant growth in digital sales indicates a successful adaptation to e-commerce trends, enhancing customer convenience and potentially boosting long-term revenue.

Membership Fee Income Growth

The growth in membership fee income reflects strong customer loyalty and a stable source of recurring revenue, supporting long-term financial stability.

Club Expansion Success

Expanding club locations enhances market presence and accessibility, potentially increasing membership and sales over the long term.

Negative Factors

Home and Seasonal Challenges

Challenges in home and seasonal categories could limit revenue growth and require strategic adjustments to address changing consumer preferences.

Macro Economic Challenges

Ongoing macroeconomic pressures may affect consumer spending and confidence, posing risks to sales and profitability in the near to mid-term.

Flat Merchandise Gross Margins

Flat gross margins suggest potential difficulties in maintaining pricing power and cost management, which could impact profitability if not addressed.

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 product sales. Membership fees are a significant revenue stream, as customers must pay an annual fee to shop at BJ's clubs, which provides access to discounted prices on bulk items. The company also earns money through the sale of a wide range of products, including consumables, perishables, and general merchandise. BJ's leverages strategic partnerships with suppliers to offer exclusive products and competitive pricing, enhancing its value proposition. Additionally, ancillary services such as the BJ's gas stations and online ordering for delivery or curbside pickup contribute to its earnings by attracting more customers and increasing overall sales volume.

Bj's Wholesale Club Holdings Financial Statement Overview

Summary

BJ's Wholesale Club Holdings shows strong financial health with consistent revenue growth and profitability. The company has improved its balance sheet by reducing leverage, although there is still a moderate reliance on debt. Cash flow management shows potential for improvement, particularly in free cash flow generation.

Income Statement

BJ's Wholesale Club Holdings demonstrates strong financial performance with consistent revenue growth and healthy profit margins. The TTM data shows a Gross Profit Margin of 18.61% and a Net Profit Margin of 2.72%, indicating effective cost management and profitability. The Revenue Growth Rate of 1.19% in the TTM period suggests steady growth, although slightly lower than previous years. Overall, the company maintains solid profitability and growth metrics.

Balance Sheet

The balance sheet reflects a moderate financial position with a Debt-to-Equity Ratio of 1.10 in the TTM period, showing improvement from previous years. The Return on Equity (ROE) is strong at 27.47%, indicating efficient use of equity to generate profits. However, the Equity Ratio of 32.57% suggests a moderate reliance on debt financing, which could pose risks if not managed carefully.

Cash Flow

Cash flow analysis reveals a mixed performance. The Operating Cash Flow to Net Income Ratio is 0.91, indicating good cash generation relative to net income. However, the Free Cash Flow Growth Rate is negative at -10.37%, reflecting a decline in free cash flow. The Free Cash Flow to Net Income Ratio of 0.30 suggests that while the company generates positive cash flow, there is room for improvement in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.16B	20.50B	19.97B	19.32B	16.67B	15.43B
Gross Profit	3.94B	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	575.18M	534.42M	523.74M	513.18M	426.65M	421.03M
Balance Sheet
Total Assets	7.55B	7.07B	6.68B	6.35B	5.67B	5.41B
Cash, Cash Equivalents and Short-Term Investments	45.12M	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	5.37B	5.22B	5.22B	5.30B	5.02B	5.09B
Stockholders Equity	2.17B	1.85B	1.46B	1.05B	648.11M	319.33M
Cash Flow
Free Cash Flow	255.63M	312.89M	251.81M	417.63M	527.14M	650.21M
Operating Cash Flow	911.02M	900.87M	718.88M	788.16M	831.65M	868.55M
Investing Cash Flow	-663.20M	-589.57M	-454.76M	-747.06M	-304.51M	-192.44M
Financing Cash Flow	-236.57M	-319.08M	-261.98M	-52.63M	-525.23M	-662.79M

Bj's Wholesale Club Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 90.77
• 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 90.77 is below the 20-day moving average (MA) of 91.13, below the 50-day MA of 92.21, and below the 200-day MA of 104.55, indicating a bearish trend. The MACD of -0.67 indicates Positive momentum. The RSI at 47.36 is Neutral, neither overbought nor oversold. The STOCH value of 31.66 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	78 Outperform	$869.84B	38.22	24.87%	0.84%	4.34%	17.27%
OLLI	74 Outperform	$7.68B	36.29	12.63%	―	10.14%	5.01%
DG	73 Outperform	$23.94B	20.12	15.60%	2.17%	4.98%	-15.98%
BJ	71 Outperform	$11.96B	20.92	29.24%	―	2.82%	3.77%
COST	68 Neutral	$402.52B	49.88	30.69%	0.56%	8.17%	9.92%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DLTR	59 Neutral	$22.39B	―	20.07%	―	-29.67%	-178.03%

Bj's Wholesale Club Holdings Corporate Events

BJ’s Wholesale Club Reports Modest Growth in Q3 2025

BJ’s Wholesale Club Holdings, Inc. is a prominent operator of membership warehouse clubs, providing a wide range of products including fresh foods, household essentials, and gas, with a focus on delivering value to its members. Headquartered in Marlborough, Massachusetts, the company has been a pioneer in the warehouse club model since 1984 and operates numerous clubs and gas stations across 21 states.

BJ’s Wholesale Club Earnings Call Highlights Growth Amid Challenges

BJ’s Wholesale Club Holdings’ recent earnings call painted a picture of robust growth and strategic expansion, tempered by some challenges in specific categories and broader economic conditions. The sentiment was largely positive, with notable achievements in market share, digital sales, and membership income, despite facing headwinds in the home and seasonal sectors and macroeconomic uncertainties.

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.