📊 BJ Key Takeaways
Is BJ's Wholesale Club Holdings, Inc. (BJ) a Good Investment?
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's Wholesale Club shows solid fundamental quality with steady revenue growth, faster earnings growth, and strong returns on equity supported by conservative leverage. The business generates healthy operating cash flow and remains financially resilient, though its thin retail margins, weak near-term liquidity, and modest free cash flow margin keep the outlook from being more aggressive.
Why Buy BJ's Wholesale Club Holdings, Inc. Stock? BJ 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
- 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
- Revenue and net income are both growing, with earnings outpacing sales growth
- Balance sheet leverage is low and interest coverage is very strong
- Operating cash flow is robust and supports ongoing investment in the business
BJ Stock Risks: BJ's Wholesale Club Holdings, Inc. Investment 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
- Margins are very thin, leaving limited room for cost pressure or execution missteps
- Current and quick ratios are weak, indicating tight short-term liquidity
- Capital expenditures are high relative to cash generation, keeping free cash flow margin modest
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
- Free cash flow margin and capital expenditure intensity
- Operating margin and membership-driven profitability trends
BJ's Wholesale Club Holdings, Inc. (BJ) Financial Metrics & Key Ratios
💡 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 Profit Margin, ROE & Profitability Analysis
BJ vs Consumer Sector: How BJ's Wholesale Club Holdings, Inc. Compares
How BJ's Wholesale Club Holdings, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is BJ's Wholesale Club Holdings, Inc. Stock Overvalued? BJ Valuation Analysis 2026
Based on fundamental analysis, BJ's Wholesale Club Holdings, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
BJ's Wholesale Club Holdings, Inc. Balance Sheet: BJ Debt, Cash & Liquidity
BJ Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
BJ Quarterly Earnings & 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's Wholesale Club Holdings, Inc. Dividends, Buybacks & Capital Allocation
BJ SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for BJ's Wholesale Club Holdings, Inc. (CIK: 0001531152)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Apr 14, 2026 | 4 | xslF345X06/wk-form4_1776198151.xml | View → |
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775247338.xml | View → |
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775247283.xml | View → |
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775247249.xml | View → |
| Apr 3, 2026 | 4 | xslF345X06/wk-form4_1775247215.xml | View → |
❓ Frequently Asked Questions about BJ
What is the AI rating for BJ?
BJ's Wholesale Club Holdings, Inc. (BJ) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BJ's key strengths?
Claude: 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. ChatGPT: Revenue and net income are both growing, with earnings outpacing sales growth. Balance sheet leverage is low and interest coverage is very strong.
What are the risks of investing in BJ?
Claude: 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. ChatGPT: Margins are very thin, leaving limited room for cost pressure or execution missteps. Current and quick ratios are weak, indicating tight short-term liquidity.
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is BJ a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, BJ's Wholesale Club Holdings, Inc. has a BUY rating with 72% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is BJ stock overvalued or undervalued?
Valuation metrics for BJ: ROE of 26.3% (sector avg: 18%), net margin of 2.7% (sector avg: 8%). Higher ROE suggests strong returns relative to peers.
Should I buy BJ stock in 2026?
Our dual AI analysis gives BJ's Wholesale Club Holdings, Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BJ's free cash flow?
BJ's Wholesale Club Holdings, Inc.'s operating cash flow is $1.0B, with capital expenditures of $702.0M. FCF margin is 1.5%.
How does BJ compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 2.7% (avg: 8%), ROE 26.3% (avg: 18%), current ratio 0.75 (avg: 1.5).
Why is BJ's return on equity (ROE) so high?
BJ's Wholesale Club Holdings, Inc. has a return on equity of 26.3%, significantly above the Consumer sector average of 18%. A high ROE indicates the company is efficient at generating profits from shareholder equity. This is supported by a 2.7% net margin.