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

Analysis from 10-Q filed 2025-11-26. Data as of Q1 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 13.1%. FCF margin 1.5%. D/E 0.2x. Source: 10-Q filed 2025-11-26.

Metric	Value	Context
ROIC	13.1%	Solid returns
FCF Margin	1.5%	Cash flow pressure
Debt/Equity	0.2x	Conservative leverage

ROIC 13.1% — Top 50% of sector peers. FCF margin 1.5% — Bottom 50%.

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

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.

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

ROIC TTM 13.1%, sector median 8.0%, Top 50%. DuPont: NOPAT margin 2.8% × asset turnover 2.9x. Gross margin 18.6%. Operating margin 3.8%. Source: 10-Q filed 2025-11-26.

Metric	BJ	Rating	Context
Return on Invested Capital (ROIC)	13.1%	Good	Above sector median of 8.0%
Return on Equity (ROE)	28.0%	Excellent	Efficient use of shareholder equity
Gross Margin	18.6%	Warning	Competitive pricing environment
Operating Margin	3.8%	Warning	Moderate operational efficiency

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Cash Flow: BJ's Wholesale Club Holdings, Inc. generates $328.0M FCF at 1.5% margin, positive NaN/8 quarters

FCF TTM $328.0M. FCF margin 1.5%, Bottom 50%. OCF/Net income 1.8x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-26.

Metric	BJ	Rating	Context
Free Cash Flow Margin	1.5%	Warning	Thin cash margins
Free Cash Flow (TTM)	$328.0M	Good	Positive cash generation
OCF/Net Income	1.8x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: BJ's Wholesale Club Holdings, Inc. at 0.2x leverage

Debt/Equity 0.2x. Total debt $519.1M, cash & investments $46.2M. Source: 10-Q filed 2025-11-26.

Metric	BJ	Rating	Context
Debt to Equity	0.2x	Excellent	Conservative capital structure
Net Cash Position	$-472.9M	Adequate	Net debt position

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Valuation: BJ's Wholesale Club Holdings, Inc. trades at 21.0x earnings

P/E 21.0x. EV/Sales 0.6x. FCF yield 2.7%. Source: 10-Q filed 2025-11-26.

Metric	BJ	Rating	Context
P/E Ratio	21.0x	Adequate	Premium valuation
EV/Sales	0.6x	Excellent	Attractive revenue multiple
FCF Yield	2.7%	Adequate	Lower cash yield

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Capital Allocation: BJ's Wholesale Club Holdings, Inc. returns 2.4% shareholder yield

Total shareholder yield 2.4% (buyback 2.4%). Capital returned $286.8M TTM. Source: 10-Q filed 2025-11-26.

Metric	BJ	Rating	Context
Total Shareholder Yield	2.4%	Adequate	Dividend + buyback yield combined
Buyback Yield	2.4%	Adequate	Active share repurchases
Total Capital Returned (TTM)	$286.8M	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	13.1%	Top 50%	1.6x above
Free Cash Flow Margin	1.5%	Bottom 50%	0.7x below
Gross Margin	18.6%	Bottom 25%	0.5x below
Operating Margin	3.8%	Bottom 50%	0.9x below
Return on Equity (ROE)	28.0%	Top 25%	2.7x above
P/E Ratio	21.0x	N/A	-

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Financial Scorecard

Metric	BJ	Rating	Sector Context
Return on Invested Capital (ROIC)	13.1%	Good	Top 50% of sector (median: 8.0%)
Free Cash Flow Margin	1.5%	Warning	Bottom 50% of sector (median: 2.2%)
Gross Margin	18.6%	Warning	Bottom 25% of sector (median: 39.0%)
Debt to Equity Ratio	23.6%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	21.0x	Adequate	Fair value
Free Cash Flow Yield	2.7%	Warning	Growth-focused valuation

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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%. Sector median 8.0%. Source: 10-Q filed 2025-11-26.

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 1.5%, generating $328.0 million in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-26.

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 21.0x, which is above the sector median of N/A. EV/Sales 0.6x. FCF yield 2.7%. Source: 10-Q filed 2025-11-26.

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

BJ's Wholesale Club Holdings, Inc. (BJ) grew revenue by 4.7% year-over-year. EPS +9.5% YoY. Source: 10-Q filed 2025-11-26.

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

BJ's Wholesale Club Holdings, Inc. (BJ) repurchased $286.8 million of stock over the trailing twelve months. This represents a buyback yield of 2.4%. Source: 10-Q filed 2025-11-26.

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 8.0% (Top 50%). FCF margin 1.5%, sector median 2.2% (Bottom 50%). Gross margin 18.6%, 20.3pp 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 1.5% (below 5%). Source: 10-Q filed 2025-11-26.

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Data Source: Data sourced from 10-Q filed 2025-11-26. TTM metrics as of Q1 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.