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Bj's Wholesale Club Holdings (BJ)
NYSE:BJ
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Bj's Wholesale Club Holdings
(NYSE:BJ)
Rating:80Outperform
Price Target:
$134.00
▲( 15.55% Upside)
Positive Factors
Comparable Sales
BJ's Wholesale Club Holdings reported stronger-than-expected comparable sales, particularly in general merchandise and services, indicating a positive shift in consumer demand.
Digital Growth
BJ's digitally-enabled SSS comped +26%, showing strong growth in digital sales.
Expansion
BJ has the largest pipeline of new clubs in its history and expects significant expansion with plans to enter new markets and open more clubs.
Negative Factors
EPS Growth
The need to see consistent EPS growth has led to mixed investor sentiment, as BJ has underperformed peers due to investment in growth.
Merchandise Margin
The merchandise gross margin declined below expectations due to a combination of factors, including price investments and higher commodity costs.
Pricing Strategy
The Street’s muted reaction to an otherwise strong print is likely driven by tariff-related noise and some uncertainty about the company’s pricing strategy.
Bj's Wholesale Club Holdings (BJ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$15.31B
Dividend YieldN/A
Average Volume (3M)2.01M
Price to Earnings (P/E)27.0
Beta (1Y)0.06
Revenue Growth2.84%
EPS Growth11.25%
CountryUS
Employees33,000
SectorConsumer Defensive
Sector Strength72
IndustryDiscount Stores
Share Statistics
EPS (TTM)1.14
Shares Outstanding132,051,710
10 Day Avg. Volume2,300,936
30 Day Avg. Volume2,012,859
Financial Highlights & Ratios
PEG Ratio-7.00
Price to Book (P/B)8.17
Price to Sales (P/S)0.00
P/FCF Ratio48.23
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue0.22
Enterprise Value/Gross Profit4.76
Enterprise Value/Ebitda4.31
Forecast
1Y Price Target
$123.00Price Target Upside6.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering17
Bj's Wholesale Club Holdings Business Overview & Revenue Model
Company DescriptionBJ'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 MoneyBJ'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 Key Performance Indicators (KPIs)
Any
Store Count
Tracks the number of retail locations, reflecting the company's physical footprint and potential market reach.
Tracks the number of retail locations, reflecting the company's physical footprint and potential market reach.
Data provided by:
Main Street Data
Main Street DataBj's Wholesale Club Holdings Financial Statement Overview
Summary
BJ's Wholesale Club exhibits a robust financial profile with strong revenue growth and profitability. The income statement highlights effective operations and cost management. The balance sheet shows improvement in equity but carries moderate leverage. Cash flow is a key strength with strong operating cash flow and consistent free cash flow generation. Overall, the company is on a positive financial trajectory.Income Statement
BJ's Wholesale Club has shown strong revenue growth, with a consistent increase each year. Gross profit and net profit margins are healthy, reflecting effective cost management and operational efficiency. The EBIT and EBITDA margins are stable, indicating good profitability. Overall, the income statement reflects a solid financial performance with consistent growth and profitability.85
Very Positive
Balance Sheet
The balance sheet reveals a moderate debt-to-equity ratio, suggesting manageable leverage but with room for improvement. The return on equity has been increasing, showcasing effective use of shareholders' funds. However, the equity ratio is moderate, indicating a balanced approach to financing through debt and equity. Strengths include improving equity and profitability metrics, while the leverage remains an area to monitor.70
Positive
Cash Flow
BJ's cash flow statements show healthy operating cash flow with positive free cash flow growth. The company has managed to increase free cash flow over the years, demonstrating good cash generation ability. The operating cash flow to net income ratio is strong, indicating effective cash management. The free cash flow to net income ratio also suggests a solid ability to convert profits into cash. Overall, cash flow management is a strong aspect of the company's financial health.78
Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| 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 | EBIT |
| 772.21M | 800.42M | 737.99M | 617.32M | 642.39M | EBITDA |
| 1.03B | 1.03B | 951.24M | 815.37M | 809.85M | Net Income Common Stockholders |
| 534.42M | 523.74M | 513.18M | 426.65M | 421.03M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 28.27M | 36.05M | 33.91M | 45.44M | 43.52M | Total Assets |
| 7.07B | 6.68B | 6.35B | 5.70B | 5.41B | Total Debt |
| 2.84B | 2.99B | 3.09B | 2.98B | 3.23B | Net Debt |
| 2.82B | 2.96B | 3.05B | 2.93B | 3.18B | 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
Positive
115.97
Price Trends
114.30
Positive
107.27
Positive
97.19
Positive
Market Momentum
0.51
Negative
51.88
Neutral
84.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BJ, the sentiment is Positive. The current price of 115.97 is above the 20-day moving average (MA) of 115.52, above the 50-day MA of 114.30, and above the 200-day MA of 97.19, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 51.88 is Neutral, neither overbought nor oversold. The STOCH value of 84.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $15.31B | 26.95 | 32.76% | ― | 2.84% | 11.25% | |
78 Outperform | $460.02B | 60.53 | 32.89% | 0.45% | 6.13% | 12.14% | |
73 Outperform | $782.49B | 41.91 | 22.80% | 0.89% | 4.22% | -0.17% | |
70 Outperform | $46.28B | 18.92 | 26.59% | 1.81% | -1.94% | 23.94% | |
64 Neutral | $8.78B | 14.55 | 4.78% | 173.91% | 3.39% | 2.17% | |
61 Neutral | $19.04B | ― | 18.88% | ― | -9.88% | -205.57% | |
52 Neutral | $43.19B | 10.45 | 29.08% | 4.79% | -0.69% | 2.03% |
* Consumer Defensive Sector Average
Performance Comparison
BJ
Bj's Wholesale Club Holdings
115.97
32.77
39.39%
COST
Costco
1,018.13
224.85
28.34%
DLTR
Dollar Tree
89.97
-24.63
-21.49%
KR
Kroger Company
67.95
15.76
30.20%
TGT
Target
95.06
-44.40
-31.84%
WMT
Walmart
95.93
31.75
49.47%
Bj's Wholesale Club Holdings Earnings Call Summary
Earnings Call Date:May 22, 2025
(Q1-2025)
| % Change Since: -1.30%|
Next Earnings Date:Aug 14, 2025
Earnings Call Sentiment Positive
BJ's Wholesale Club Holdings, Inc. reported strong financial results for the first quarter of fiscal 2025. The company demonstrated significant growth in membership and digital sales, and strong performance from the Fresh 2.0 initiative. However, there were challenges in the general merchandise segment and concerns about macroeconomic uncertainties and potential margin pressures. Despite these challenges, the overall performance and strategic initiatives suggest a positive outlook.Q1-2025 Updates
Positive Updates
Strong Financial Performance
BJ's reported a strong start to fiscal 2025 with first quarter net sales growing by 4.7%, and operating income and net income increasing by 27% and 35% respectively.
Membership Growth and Engagement
Higher tier membership penetration grew by over 100 basis points sequentially, surpassing 40% for the first time in company history. Membership fee income grew by 8.1% to approximately $120.4 million.
Digital Sales Surge
Digitally enabled comp sales grew by 35% year over year in the first quarter, contributing significantly to overall sales growth.
Fresh 2.0 Initiative Success
The Fresh 2.0 initiative in produce resulted in high single digit to low double digit growth. The initiative is now being expanded to meat and seafood.
Real Estate Expansion
BJ's opened five new clubs in the first quarter and plans to open 25 to 30 new clubs over the next two years.
Negative Updates
General Merchandise and Services Division Softness
Comps in the general merchandise and services division decreased slightly in the first quarter, with unfavorable weather and consumer sentiment impacting discretionary categories.
Macroeconomic Uncertainty
The company acknowledges operating in uncertain times with potential impacts on financial performance due to economic conditions and tariffs.
Margin Pressure Concerns
Continued investments and cost pressures, including those related to Fresh 2.0 and tariff uncertainties, could impact margins throughout the year.
Company Guidance
In the fiscal 2025 first quarter earnings call, BJ's Wholesale Club Holdings, Inc. reported a strong performance, surpassing expectations with a 4.7% increase in net sales to $5 billion. Operating income and net income grew by 27% and 35%, respectively. The company achieved a 3.9% increase in comparable club sales excluding gas sales, driven by a 2.5-point contribution from traffic growth, marking the thirteenth consecutive quarter of traffic increases. Membership fee income rose 8.1% to approximately $120.4 million, with higher tier membership penetration surpassing 40% for the first time. Digital convenience sales surged 35% year over year, contributing significantly to overall sales growth. BJ's maintained its full-year guidance of 2% to 3.5% comp sales growth excluding gas and adjusted earnings per share of $4.10 to $4.30, despite a more uncertain economic environment. The company is on track to open 25 to 30 new clubs over the next two years, supported by strong membership growth and strategic investments in digital conveniences and Fresh 2.0 initiatives.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.