BJ

BJ's Wholesale Club Holdings, Inc.

Consumer DiscretionaryCIK 0001531152

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Market Cap
$12.25B
P/E (TTM)
21.4x
Rev Growth (TTM)
+5.9%
Net Margin (TTM)
2.6%
FCF Yield (TTM)
1.8%
FCF Margin (TTM)
1.0%

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Factsheet

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LATEST EARNINGS

Q3 FY2025
7 months ago
View source
Revenue
$5.22B
+4.8%
Net Income
$152.05M
-2.4%
EPS
$1.15
-1.7%
Operating
4.2% -0.4%
Net
2.9% -0.2%
  • Membership fee income increased by 9.8% year-over-year to $126.3 million, driven by strong membership acquisition and retention.
  • Comparable club sales increased by 1.1% year-over-year, with a 1.8% increase excluding gasoline sales.
  • Digitally enabled comparable sales grew 30%, showing continued strength in online channels.
  • Merchandise gross margin rate remained flat year-over-year in Q3 and increased 10 bps year-to-date.

Cash Flow Health

Free Cash Flow6/8 positive
TTM$218M
Q1 '27
$-42M-122%
Q4 '27
$190M+1482%
FCF Margin
TTM1.0%
Q1 '27-0.7%-122%
Sector: 2.3%Below Avg
OCF Margin4.4%
OCF/NI1.68x
CapEx Coverage1.3x
FCF Yield1.8%
FCF Growth (2Y)-22%
Cash Conversion Cycle
10 days
DSO: 5+DIO: 33DPO: 27

Capital Allocation & Returns

Balanced
Total Shareholder YieldTTM
TTM3.8%
Div Yield0.0%
+
Buyback (TTM)3.8%

Balancing returns with reinvestment

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$218.4M
Stock Repurchases (TTM)$471.2M
Capital Return / FCF215.8%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
12.7%
Stable
-0.0% YoY-2.2%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
2.7%
8Q: 3.0%
Asset Turnover
2.95x
8Q: 2.95x
Leverage (1+D/E)
1.36x
D/E: 0.36x
DuPont: 11.0%12.7% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
9.85x
8Q:10.61x
-303.8%
Invested Cap Turn
4.63x
8Q:4.66x
-11.9%
CapEx Intensity
15.7%
8Q:14.8%
CapEx/Depreciation
2.52x
Asset-based ROIC formula

Valuation Analysis

Fair Value
Price-to-EarningsTTM
21.4x
Volatile
8Q: 90.1x+437%
Multiple expansion without fundamental improvement
High PEG ratio (3.6x) suggests expensive for growth
Valuation Lenses
Earnings
21.4x
vs sector
Cash Flow
58.5x
EV/FCF vs
Growth-Adj
3.6xPEG
Expensive for growth
Quality-Adj
1.7P/E per %ROIC
ROIC: 12.7%
Shareholder Returns
Dividend
Buyback
3.8%
Total Yield
3.8%
Market Cap$12.25B
EV$12.78B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
98/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Above Avg
26.8%
8Q:
Return on Invested Capital (ROIC)Top 25%
12.7%
8Q:
-2.2%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 2.7%
Asset Turnover: 2.95x

Earnings Quality

Cash Conversion

1.68x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin18.5%

Capital Efficiency

Invested Capital Turnover4.63x

Working Capital

Cash Conversion Cycle10 days

Growth Quality & Momentum

Low Quality
Growth Quality Score
46/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
5.9%
OpInc Growth YoY
2.1%
EPS Growth YoY
1.2%
FCF 3Y CAGR
-22.2%

Growth Quality Analysis

Working Capital Drag: FCF growth lagging revenue by 28.1%
Sustainability Index: 3.0/10 - Growth sustainability concerns

Margin Quality & Sustainability

Low Quality
Profitability Cascade
Gross
18.5%
Operating
3.7%
Below Avg in sector
Net
2.6%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
-1.6 pts
FCF: 1.0% | Net: 2.6%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $746.35M
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.36x
Balance sheet risk & solvency analysis