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

Analysis from 10-Q filed 2025-11-26. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 12.7%. FCF margin 1.0%. D/E 0.4x. Source: 10-Q filed 2025-11-26.

Metric	Value	Context
ROIC	12.7%	Solid returns
FCF Margin	1.0%	Cash flow pressure
Debt/Equity	0.4x	Conservative leverage

ROIC 12.7% — Top 50% of sector peers. FCF margin 1.0% — 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.

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Profitability: BJ's Wholesale Club Holdings, Inc. earns 12.7% ROIC, Top 50% in Consumer Discretionary

ROIC TTM 12.7%, sector median 7.7%, Top 50%. DuPont: NOPAT margin 2.7% × asset turnover 2.9x. Gross margin 18.5%. Operating margin 3.7%. Source: 10-Q filed 2025-11-26.

Metric	BJ	Rating	Context
Return on Invested Capital (ROIC)	12.7%	Good	Above sector median of 7.7%
Return on Equity (ROE)	26.8%	Excellent	Efficient use of shareholder equity
Gross Margin	18.5%	Warning	Competitive pricing environment
Operating Margin	3.7%	Warning	Moderate operational efficiency

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Cash Flow: BJ's Wholesale Club Holdings, Inc. generates $218.4M FCF at 1.0% margin, positive NaN/8 quarters

FCF TTM $218.4M. FCF margin 1.0%, Bottom 50%. OCF/Net income 1.7x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-26.

Metric	BJ	Rating	Context
Free Cash Flow Margin	1.0%	Warning	Thin cash margins
Free Cash Flow (TTM)	$218.4M	Good	Positive cash generation
OCF/Net Income	1.7x	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 0.4x leverage

Debt/Equity 0.4x. Total debt $774.2M, cash & investments $27.8M. Source: 10-Q filed 2025-11-26.

Metric	BJ	Rating	Context
Debt to Equity	0.4x	Good	Conservative capital structure
Net Cash Position	$-746.3M	Adequate	Net debt position

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Valuation: BJ's Wholesale Club Holdings, Inc. trades at 21.4x earnings

P/E 21.4x. EV/Sales 0.6x. FCF yield 1.8%. Source: 10-Q filed 2025-11-26.

Metric	BJ	Rating	Context
P/E Ratio	21.4x	Adequate	Premium valuation
EV/Sales	0.6x	Excellent	Attractive revenue multiple
FCF Yield	1.8%	Warning	Lower cash yield

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Capital Allocation: BJ's Wholesale Club Holdings, Inc. returns 3.8% shareholder yield

Total shareholder yield 3.8% (buyback 3.8%). Capital returned $471.2M TTM. Source: 10-Q filed 2025-11-26.

Metric	BJ	Rating	Context
Total Shareholder Yield	3.8%	Good	Dividend + buyback yield combined
Buyback Yield	3.8%	Good	Active share repurchases
Total Capital Returned (TTM)	$471.2M	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	12.7%	Top 50%	1.7x above
Free Cash Flow Margin	1.0%	Bottom 50%	0.4x below
Gross Margin	18.5%	Bottom 25%	0.5x below
Operating Margin	3.7%	Bottom 50%	0.9x below
Return on Equity (ROE)	26.8%	Top 50%	2.5x above
P/E Ratio	21.4x	N/A	-

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Financial Scorecard

Metric	BJ	Rating	Sector Context
Return on Invested Capital (ROIC)	12.7%	Good	Top 50% of sector (median: 7.7%)
Free Cash Flow Margin	1.0%	Warning	Bottom 50% of sector (median: 2.3%)
Gross Margin	18.5%	Warning	Bottom 25% of sector (median: 38.7%)
Debt to Equity Ratio	36.4%	Good	Moderate leverage
P/E Ratio (Price-to-Earnings)	21.4x	Adequate	Fair value
Free Cash Flow Yield	1.8%	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 12.7%. Sector median 7.7%. 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 1.0%, generating $218.4 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 21.4x, which is above the sector median of N/A. EV/Sales 0.6x. FCF yield 1.8%. 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 5.9% year-over-year. EPS +1.2% 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 $471.2 million of stock over the trailing twelve months. This represents a buyback yield of 3.8%. 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 12.7%, sector median 7.7% (Top 50%). FCF margin 1.0%, sector median 2.3% (Bottom 50%). Gross margin 18.5%, 20.2pp 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 1.0% (below 5%); 2) ROIC declining -2.2% over 8 quarters. 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 Q2 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.