📊 BJ Key Takeaways
Investment Thesis
BJ's Wholesale demonstrates solid operational performance with 4.7% revenue growth and 8.2% net income growth, supported by strong profitability metrics and exceptional return on equity of 26.3%. The business generates healthy free cash flow of $328M despite capital-intensive operations, though liquidity constraints and modest margins warrant monitoring.
BJ Strengths
- Strong net income growth (8.2% YoY) outpacing revenue growth indicating operational efficiency
- Exceptional ROE of 26.3% and ROA of 7.7% demonstrate efficient capital deployment
- Robust interest coverage of 25.6x with manageable debt-to-equity of 0.18x showing financial stability
- Consistent free cash flow generation of $328M supporting reinvestment and shareholder returns
- Operating leverage evident as operating margin of 3.8% supported by growing revenue base
BJ Risks
- Weak current ratio of 0.75x and critically low quick ratio of 0.16x indicate potential liquidity stress and limited working capital flexibility
- Thin gross margin of 3.5% and net margin of 2.7% typical of retail but leave minimal buffer for operational disruptions
- Low cash position of $46.2M relative to $7.5B in total assets may constrain emergency liquidity and strategic flexibility
- Free cash flow margin of 1.5% is modest relative to revenue, limiting financial flexibility for major initiatives or downturns
- Highly leveraged balance sheet with $5.3B liabilities to $2.2B equity despite low debt/equity ratio, concentrated in operational obligations
Key Metrics to Watch
- Free cash flow growth and conversion rate from operating cash flow
- Working capital management and current ratio trend to address liquidity concerns
- Gross margin sustainability amid competitive retail environment and supplier cost pressures
- Capital expenditure efficiency and ROI on store expansion investments
- Operating cash flow stability relative to net income to assess earnings quality
BJ Financial Metrics
💡 AI Analyst Insight
The relatively thin 1.5% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.
BJ Profitability Ratios
BJ vs Consumer Sector
How BJ's Wholesale Club Holdings, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
BJ Balance Sheet & Liquidity
BJ 5-Year Financial Trend
5-Year Trend Summary: BJ's Wholesale Club Holdings, Inc.'s revenue has grown significantly by 29% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.88 reflects profitable operations.
BJ Growth Metrics (YoY)
BJ Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $5.1B | $111.0M | $1.15 |
| Q2 2025 | $5.2B | $111.0M | $1.08 |
| Q1 2025 | $4.9B | $111.0M | $0.83 |
| Q3 2024 | $4.9B | $111.0M | $0.97 |
| Q2 2024 | $5.0B | $111.0M | $0.97 |
| Q1 2024 | $4.7B | $111.0M | $0.83 |
| Q3 2023 | $4.8B | $112.5M | $0.95 |
| Q2 2023 | $5.0B | $112.5M | $0.97 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
BJ Capital Allocation
BJ SEC Filings
Access official SEC EDGAR filings for BJ's Wholesale Club Holdings, Inc. (CIK: 0001531152)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BJ
What is the AI rating for BJ?
BJ's Wholesale Club Holdings, Inc. (BJ) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.
What are BJ's key strengths?
Strong net income growth (8.2% YoY) outpacing revenue growth indicating operational efficiency. Exceptional ROE of 26.3% and ROA of 7.7% demonstrate efficient capital deployment.
What are the risks of investing in BJ?
Weak current ratio of 0.75x and critically low quick ratio of 0.16x indicate potential liquidity stress and limited working capital flexibility. Thin gross margin of 3.5% and net margin of 2.7% typical of retail but leave minimal buffer for operational disruptions.
What is BJ's revenue and growth?
BJ's Wholesale Club Holdings, Inc. reported revenue of $21.5B.
Does BJ pay dividends?
BJ's Wholesale Club Holdings, Inc. pays dividends, with $0.0M distributed to shareholders in the trailing twelve months.
Where can I find BJ SEC filings?
Official SEC filings for BJ's Wholesale Club Holdings, Inc. (CIK: 0001531152) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BJ's EPS?
BJ's Wholesale Club Holdings, Inc. has a diluted EPS of $4.38.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.