📊 BJ Key Takeaways
Is BJ's Wholesale Club Holdings, Inc. (BJ) a Good Investment?
BJ's demonstrates solid revenue growth (+4.7% YoY) and improving EPS (+9.5% YoY) backed by positive operating cash flow, but is hampered by negative free cash flow (-$42M) and concerning liquidity metrics. The company's aggressive capex spending and minimal cash balance relative to substantial debt create financial vulnerability in adverse conditions.
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.
BJ's Wholesale Club Holdings, Inc. Key Strengths (BJ)
- Revenue growth of 4.7% YoY combined with EPS growth of 9.5% shows improving profitability per share despite thin margins
- Positive operating cash flow of $140M demonstrates underlying business fundamentals and customer payment timing advantages
- Manageable debt levels with interest coverage ratio of 6.5x and debt-to-equity of 0.19x
- 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
- Negative free cash flow of -$42M indicates the company is burning cash after capital expenditures, unsustainable long-term
- Critically low liquidity with current ratio of 0.73x and quick ratio of 0.18x; only $27.8M cash against $5.8B total liabilities creates fragility
- Thin net margin of 2.5% and weak returns on equity (6.7%) and assets (1.8%) provide minimal financial cushion for operational deterioration
- 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 trend and whether capex investments drive future revenue/margin expansion
- Working capital management and liquidity ratio trajectory
- Operating cash flow sustainability and operating margin expansion
- 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 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 |
|---|---|---|---|
| Q1 2026 | $5.2B | $142.7M | $1.10 |
| 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 |
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
❓ Frequently Asked Questions about BJ
What is the AI rating for BJ?
BJ's Wholesale Club Holdings, Inc. (BJ) has a Combined AI Grade of A from Claude (B) and ChatGPT (A) with 68% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BJ's key strengths?
Claude: Revenue growth of 4.7% YoY combined with EPS growth of 9.5% shows improving profitability per share despite thin margins. Positive operating cash flow of $140M demonstrates underlying business fundamentals and customer payment timing advantages. 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: Negative free cash flow of -$42M indicates the company is burning cash after capital expenditures, unsustainable long-term. Critically low liquidity with current ratio of 0.73x and quick ratio of 0.18x; only $27.8M cash against $5.8B total liabilities creates fragility. 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 $5.7B.
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 $1.10.
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 grade reflects both perspectives for balanced insights.
What is BJ's fundamental grade?
Based on our AI fundamental analysis in June 2026, BJ's Wholesale Club Holdings, Inc. has a A grade with 68% 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 6.7% (sector avg: 18%), net margin of 2.5% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is BJ's AI grade for 2026?
Our dual AI analysis gives BJ's Wholesale Club Holdings, Inc. a combined A grade 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 $140.0M, with capital expenditures of $182.0M. FCF margin is -0.7%.
How does BJ compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 2.5% (avg: 8%), ROE 6.7% (avg: 18%), current ratio 0.73 (avg: 1.5).