BJ's Wholesale Club Holdings, Inc. (BJ) Stock Analysis

Analysis from 10-Q filed 2026-08-25. Data as of Q3 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 13.1%. FCF margin 1.6%. D/E 0.3x. Source: 10-Q filed 2026-08-25.

Metric	Value	Context
ROIC	13.1%	Solid returns
FCF Margin	1.6%	Cash flow pressure
Debt/Equity	0.3x	Conservative leverage

ROIC 13.1% — Top 50% of sector peers. FCF margin 1.6% — Bottom 50%.

Explore BJ's Wholesale Club Holdings, Inc.: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for BJ: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

---

Profitability: BJ's Wholesale Club Holdings, Inc. earns 13.1% ROIC, Top 50% in Consumer Discretionary

ROIC TTM 13.1%, sector median 5.8%, Top 50%. DuPont: NOPAT margin 2.8% × asset turnover 3.0x. Gross margin 36.1%. Operating margin 3.8%. Source: 10-Q filed 2026-08-25.

Metric	BJ	Rating	Context
Return on Invested Capital (ROIC)	13.1%	Good	Above sector median of 5.8%
Return on Equity (ROE)	27.5%	Excellent	Efficient use of shareholder equity
Gross Margin	36.1%	Good	Competitive pricing environment
Operating Margin	3.8%	Warning	Moderate operational efficiency

---

Cash Flow: BJ's Wholesale Club Holdings, Inc. generates $358.2M FCF at 1.6% margin, positive NaN/8 quarters

FCF TTM $358.2M. FCF margin 1.6%, Bottom 50%. OCF/Net income 1.9x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2026-08-25.

Metric	BJ	Rating	Context
Free Cash Flow Margin	1.6%	Warning	Thin cash margins
Free Cash Flow (TTM)	$358.2M	Good	Positive cash generation
OCF/Net Income	1.9x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

---

Balance Sheet: BJ's Wholesale Club Holdings, Inc. at 0.3x leverage, 18.5x interest coverage

Debt/Equity 0.3x. Total debt $629.2M, cash & investments $30.0M. Interest coverage 18.5x. Source: 10-Q filed 2026-08-25.

Metric	BJ	Rating	Context
Debt to Equity	0.3x	Excellent	Conservative capital structure
Net Cash Position	$-599.3M	Adequate	Net debt position
Interest Coverage	18.5x	Excellent	Comfortable debt service

---

Valuation: BJ's Wholesale Club Holdings, Inc. trades at 20.0x earnings

P/E 20.0x. EV/Sales 0.5x. FCF yield 3.1%. Source: 10-Q filed 2026-08-25.

Metric	BJ	Rating	Context
P/E Ratio	20.0x	Adequate	Premium valuation
EV/Sales	0.5x	Excellent	Attractive revenue multiple
FCF Yield	3.1%	Adequate	Lower cash yield

---

Capital Allocation: BJ's Wholesale Club Holdings, Inc. returns 4.8% shareholder yield, reducing shares 4.0% YoY

Total shareholder yield 4.8% (buyback 4.8%). Share count -4.0% YoY. Capital returned $552.7M TTM. Source: 10-Q filed 2026-08-25.

Metric	BJ	Rating	Context
Total Shareholder Yield	4.8%	Good	Dividend + buyback yield combined
Buyback Yield	4.8%	Good	Active share repurchases
Share Count Change (YoY)	-4.0%	Good	Net share reduction (accretive)
Total Capital Returned (TTM)	$552.7M	Good	Dividends + buybacks returned to shareholders

---

Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	13.1%	Top 50%	2.3x above
Free Cash Flow Margin	1.6%	Bottom 50%	0.4x below
Gross Margin	36.1%	Bottom 50%	0.9x below
Operating Margin	3.8%	Bottom 50%	0.9x below
Return on Equity (ROE)	27.5%	Top 50%	2.8x above
P/E Ratio	20.0x	N/A	-

---

Financial Scorecard

Metric	BJ	Rating	Sector Context
Return on Invested Capital (ROIC)	13.1%	Good	Top 50% of sector (median: 5.8%)
Free Cash Flow Margin	1.6%	Warning	Bottom 50% of sector (median: 3.5%)
Gross Margin	36.1%	Good	Bottom 50% of sector (median: 38.6%)
Debt to Equity Ratio	28.6%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	20.0x	Adequate	Fair value
Free Cash Flow Yield	3.1%	Adequate	Moderate yield

---

Frequently Asked Questions

Q: What is BJ's Wholesale Club Holdings, Inc.'s Return on Invested Capital (ROIC)?

BJ's Wholesale Club Holdings, Inc. (BJ) has a trailing twelve-month Return on Invested Capital (ROIC) of 13.1%. The 8-quarter median ROIC is 13.8% with a declining trend. Sector median 5.8%. Source: 10-Q filed 2026-08-25.

Q: What is BJ's Wholesale Club Holdings, Inc.'s Free Cash Flow Margin?

BJ's Wholesale Club Holdings, Inc. (BJ) has a free cash flow margin of 1.6%, generating $358.2 million in free cash flow over the trailing twelve months. Source: 10-Q filed 2026-08-25.

Q: What is BJ's Wholesale Club Holdings, Inc.'s P/E ratio and how does it compare to peers?

BJ's Wholesale Club Holdings, Inc. (BJ) trades at a P/E ratio of 20.0x, which is above the sector median of N/A. EV/Sales 0.5x. FCF yield 3.1%. Source: 10-Q filed 2026-08-25.

Q: What is BJ's Wholesale Club Holdings, Inc.'s revenue and earnings growth?

BJ's Wholesale Club Holdings, Inc. (BJ) grew revenue by 9.1% year-over-year. EPS +5.0% YoY. Source: 10-Q filed 2026-08-25.

Q: Is BJ's Wholesale Club Holdings, Inc. buying back stock?

BJ's Wholesale Club Holdings, Inc. (BJ) repurchased $552.7 million of stock over the trailing twelve months. This represents a buyback yield of 4.8%. Share count -4.0% YoY. Source: 10-Q filed 2026-08-25.

Q: How does BJ's Wholesale Club Holdings, Inc. compare to competitors in Consumer Discretionary?

Compared to other companies in Consumer Discretionary, BJ's Wholesale Club Holdings, Inc. (BJ) shows: ROIC 13.1%, sector median 5.8% (Top 50%). FCF margin 1.6%, sector median 3.5% (Bottom 50%). Gross margin 36.1%, 2.5pp below sector median. These rankings are based on MetricDuck's analysis of all Consumer Discretionary companies with available SEC filings.

Q: What warning signs should I watch for with BJ's Wholesale Club Holdings, Inc.?

Quantitative warning flags for BJ's Wholesale Club Holdings, Inc. (BJ): 1) FCF margin 1.6% (below 5%). Source: 10-Q filed 2026-08-25.

---

Data Source: Data sourced from 10-Q filed 2026-08-25. TTM metrics as of Q3 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.