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Bj's Wholesale Club Holdings
(NYSE:BJ)
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Rating:69Neutral
Price Target:
$102.00
▲(8.09% Upside)
Action:Downgraded
Date:09/08/26
The score is driven primarily by solid financial stability and improving cash generation, supported by a strong beat-and-raise earnings call with membership and traffic momentum. Offsetting factors are a mixed technical picture with limited momentum, a mid-range valuation with no dividend support provided, and thin retail margins plus expense/margin pressure from expansion and price investments.
Positive Factors
Membership scale
Membership growth and higher-tier adoption strengthen BJ’s recurring, high-value fee stream and deepen customer loyalty. Reaching 8.5 million members also expands the base for merchandise, fuel, and digital purchases, supporting a durable ecosystem rather than dependence on one transaction.
Negative Factors
Thin retail margins
BJ’s low-margin model leaves limited room for operating mistakes or cost inflation to be absorbed without affecting earnings. Stable margins are a positive discipline signal, but the lack of meaningful expansion means competitive pricing and higher expenses can continue to constrain profit growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Membership scale
Membership growth and higher-tier adoption strengthen BJ’s recurring, high-value fee stream and deepen customer loyalty. Reaching 8.5 million members also expands the base for merchandise, fuel, and digital purchases, supporting a durable ecosystem rather than dependence on one transaction.
Read all positive factors
Bj's Wholesale Club Holdings Key Performance Indicators (KPIs)
Any
Total Expense Breakdown
Analyzes all major expenses, highlighting areas of significant cost and efficiency. This provides insight into operational management and potential areas for cost-saving.
Analyzes all major expenses, highlighting areas of significant cost and efficiency. This provides insight into operational management and potential areas for cost-saving.
Data provided by:
The Fly
The FlyBj's Wholesale Club Holdings (BJ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$11.32B
Dividend YieldN/A
Average Volume (3M)1.71M
Price to Earnings (P/E)19.8
Beta (1Y)-0.27
Revenue Growth9.09%
EPS Growth4.77%
CountryUS
Employees35,000
SectorConsumer Defensive
Sector Strength42
IndustryDiscount Stores
Share Statistics
EPS (TTM)4.61
Shares Outstanding126,314,690
10 Day Avg. Volume1,331,810
30 Day Avg. Volume1,706,672
Financial Highlights & Ratios
PEG Ratio2.29
Price to Book (P/B)5.52
Price to Sales (P/S)0.57
P/FCF Ratio36.64
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$106.17Price Target Upside12.50% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering14
EPS Forecast (FY)4.71
Revenue Forecast (FY)$23.95B
Bj's Wholesale Club Holdings Business Overview & Revenue Model
Company Description
BJ's Wholesale Club Holdings, Inc., alongside its subsidiaries, manages a network of membership-based retail warehouses primarily located across the eastern United States. This enterprise provides a range of products including perishable goods, ge...
How the Company Makes Money
BJ’s primarily makes money through (1) membership fees and (2) merchandise and service sales across its clubs and digital channels. Membership revenue comes from annual membership dues that provide customers access to shop at BJ’s and may include ...
Bj's Wholesale Club Holdings Earnings Call Summary
Earnings Call Date:Aug 21, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 11, 2027
Earnings Call Sentiment Positive
The call highlighted multiple strong operational and financial wins: double-digit net sales growth (+15.9%), substantial EPS and EBITDA expansion, exceptional free cash flow, membership milestones (8.5M members and MFI +9.9%), robust fuel and digital performance, and a repeatable new-club growth engine. Offsetting items include modest merch margin rate compression (~20 bps) from deliberate price investments, near-term reliance on previously received tariff refunds (now tailing off), SG&A increases tied to expansion, and the concentration of growth among higher-income cohorts. On balance the beat-and-raise quarter, healthy cash generation, membership momentum and clear path to sustain growth outweigh the manageable operational and margin headwinds.Positive Updates
Strong Top-Line Growth
Net sales of $6.1 billion, up 15.9% year-over-year; total comparable club sales +11.9% and merchandise comparable sales (ex-gasoline) +3.1% (2-year stack merchandise comps +5.4%).
Negative Updates
Merchandise Margin Pressure
Merchandise gross margin rate decreased approximately 20 basis points year-over-year, reflecting price investments to deliver value to members and partial offset from tariff refunds.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Top-Line Growth
Net sales of $6.1 billion, up 15.9% year-over-year; total comparable club sales +11.9% and merchandise comparable sales (ex-gasoline) +3.1% (2-year stack merchandise comps +5.4%).
Read all positive updates
Company Guidance
Management reiterated full‑year comparable club sales guidance of 2%–3% (excluding gasoline) and raised full‑year adjusted EPS to $4.60–$4.80, citing Q2 outperformance (Q2 adjusted EPS $1.36, +19.3% YoY; net sales $6.1B, +15.9% YoY; adjusted EBITDA $347M, +14.3%), driven largely by fuel (comp gallons +10.5% and fuel profit ahead of plan). They noted merchandise comps +3.1% (2‑yr stack +5.4%), membership at a new high of 8.5M with MFI up ~9.9% to $136M but said MFI growth should moderate as last year’s fee increase normalizes (planning for ~6% exit), and reiterated balance‑sheet and capital priorities (net leverage ~0.5x, repurchased $124M in Q2 with ~$422M remaining authorization, adjusted FCF in Q2 $266M), plus footprint plans of 7 more openings and one relocation this year and a target of 25–30 new clubs every two years.Bj's Wholesale Club Holdings Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
64
Positive
Cash Flow
67
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.81B | 21.46B | 20.50B | 19.97B | 19.32B | 16.67B |
| Gross Profit | 4.16B | 4.00B | 3.76B | 3.64B | 3.43B | 3.08B |
| EBITDA | 1.17B | 1.11B | 1.03B | 1.03B | 933.26M | 788.68M |
| Net Income | 594.50M | 578.38M | 534.42M | 523.74M | 513.18M | 426.65M |
Balance Sheet | ||||||
| Total Assets | 7.99B | 7.51B | 7.07B | 6.68B | 6.35B | 5.67B |
| Cash, Cash Equivalents and Short-Term Investments | 29.98M | 46.24M | 28.27M | 36.05M | 33.91M | 45.44M |
| Total Debt | 2.77B | 2.61B | 2.84B | 2.98B | 3.12B | 2.96B |
| Total Liabilities | 5.79B | 5.31B | 5.22B | 5.22B | 5.30B | 5.02B |
| Stockholders Equity | 2.20B | 2.20B | 1.85B | 1.46B | 1.05B | 648.11M |
Cash Flow | ||||||
| Free Cash Flow | 364.21M | 331.00M | 312.89M | 251.81M | 417.63M | 527.14M |
| Operating Cash Flow | 1.11B | 1.03B | 900.87M | 718.88M | 788.16M | 831.65M |
| Investing Cash Flow | -717.93M | -702.34M | -589.57M | -454.76M | -747.06M | -304.51M |
| Financing Cash Flow | -412.90M | -309.74M | -319.08M | -261.98M | -52.63M | -525.23M |
Bj's Wholesale Club Holdings Technical Analysis
Negative
94.37
Price Trends
92.71
Negative
91.86
Negative
93.36
Negative
Market Momentum
-0.93
Positive
42.13
Neutral
17.71
Positive
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 94.37 is above the 20-day moving average (MA) of 92.51, above the 50-day MA of 92.71, and above the 200-day MA of 93.36, indicating a bearish trend. The MACD of -0.93 indicates Positive momentum. The RSI at 42.13 is Neutral, neither overbought nor oversold. The STOCH value of 17.71 is Positive, 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $400.19B | 45.44 | 28.27% | 0.61% | 9.23% | 12.69% | |
73 Outperform | $5.23B | 32.79 | 12.01% | 0.82% | 10.18% | 9.70% | |
69 Neutral | $11.32B | 19.85 | 27.35% | ― | 9.09% | 4.77% | |
68 Neutral | $70.75B | 16.10 | 26.66% | 2.94% | 1.95% | 12.49% | |
67 Neutral | $838.84B | 38.68 | 22.74% | 0.91% | 6.16% | 4.00% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
53 Neutral | $1.10B | -2.90 | -40.07% | ― | 5.12% | -4889.01% |
* Consumer Defensive Sector Average
BJ
Bj's Wholesale Club Holdings
91.49
-6.97
-7.08%
COST
Costco
904.77
-57.51
-5.98%
PSMT
Pricesmart
170.81
57.19
50.33%
TGT
Target
155.83
69.37
80.24%
WMT
Walmart
107.15
4.52
4.41%
GO
Grocery Outlet Holding
11.25
-6.52
-36.69%
Bj's Wholesale Club Holdings Corporate Events
Financial DisclosuresLegal Proceedings
BJ’s Wholesale gains major earnings boost from settlement
Positive
Sep 8, 2026
On September 4, 2026, BJ’s Wholesale Club Holdings, Inc. reached a settlement in litigation over credit card interchange fees, in which it had participated as a plaintiff. The agreement delivers a one-time pre-tax benefit of about $240 milli...
Executive/Board Changes
BJ’s Wholesale Club CCO Announces Phased Retirement Plan
Neutral
Aug 21, 2026
BJ’s Wholesale Club Holdings, Inc. announced that Executive Vice President and Chief Commercial Officer Paul Cichocki informed the company on August 19, 2026, of his intent to retire from his current role, effective August 21, 2026. After st...
Executive/Board ChangesShareholder Meetings
BJ’s Shareholders Reelect Board, Endorse Governance Practices
Positive
Jun 18, 2026
At its June 18, 2026 annual meeting, BJ’s Wholesale Club reported that shareholders representing about 95.75% of outstanding shares participated and re-elected the full slate of ten directors, ensuring continuity in board leadership through ...
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.