BJ

BJ's Wholesale Club Hldgs

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Consumer Defensive

industry

Discount Stores

Exchange

NYSE

County of HQ

United States

Next Earnings Date

05/28/26

Business Summary

BJ’s operates a membership-based warehouse club model that generates recurring cash flow through annual fees and high-volume merchandise turnover. The company monetizes scale by negotiating favorable supplier terms and driving margin through private-label and bulk purchasing dynamics. Its moat is rooted in customer stickiness, value perception, and cost discipline, reinforced by a low Price/Sales ratio of 0.6 that reflects efficient revenue generation. Cash flow is driven by inventory velocity, disciplined capital allocation reflected in a 12.70% ROIC, and steady operating margins that convert consumer staple demand into predictable earnings.

VALUATION

P/E

21.2

Market Cap ($M USD)

$12,022

Forward P/E

18.9

PEG

2.3

PRICE TO SALES

0.6

PRICE TO BOOK

5.5

EV / EBITDA

13.3

5-Year Average P/E

DIVIDEND

Yield

-

Annual Payout

-

Payout Ratio

-

Consecutive Years of Dividend Growth

0

5-Year Dividend Growth Rate

-

Financial Health & Profitability

Earnings Per Share

$4.41

Next Year EPS Growth Estimate

$4.91

Next Year Revenue Growth Estimate

6.40%

Return on Equity (ROE)

26.30%

Operating Margin

3.90%

Debt-to-Equity

1.2

Piotroski F-Score

8

Altman Z-Score

4.7

Return on Invested Capital (ROIC)

12.70%%

Current Ratio

0.8

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 21.2x earnings and 18.9x forward earnings, the market is not pricing BJ’s as a distressed retailer but as a stable compounder, yet the PEG Forward of 2.3 suggests growth is not cheap relative to expectations. The Altman Z-Score of 4.7 signals strong financial stability and low bankruptcy risk, which materially reduces balance sheet fear despite a 0.8 current ratio. With a $12,022M market cap and Price/Sales of 0.6, the valuation reflects operational durability rather than hyper-growth, making this more of a quality GARP name than a deep value mispricing. The spread between the current P/E and forward P/E implies earnings expansion, but not at a pace that screams asymmetric upside.

AI Exposure / Tech Reliance

As a Discount Store operator in Consumer Defensive, BJ’s sits in a segment where AI primarily enhances supply chain efficiency, pricing optimization, and inventory turnover rather than disrupting the core model. The 26.30% operating margin suggests operational discipline that could further benefit from automation and data analytics. Technology adoption in this segment is evolutionary, not existential, which supports resilience rather than explosive upside.

The Bull Case

A GARP investor buys this because the internal quality metrics are strong and consistent. A Piotroski F-Score of 8 indicates solid financial momentum and operational improvement, while ROIC at 12.70% comfortably exceeds many retailers and signals disciplined capital allocation. The 26.30% operating margin combined with 6.40% return on equity shows the company converts revenue into operating profit efficiently, even before financial leverage effects. Add in the Altman Z-Score of 4.7 and a modest 0.6 Price/Sales ratio, and you get a financially stable compounder trading at a reasonable forward multiple of 18.9x with institutional-grade durability.

The Bear Case

The red flags are structural, not cosmetic. A PEG Forward of 2.3 indicates investors are paying up relative to expected growth, meaning multiple compression is a real risk if growth disappoints. The Debt/Equity ratio of 3.90% may appear low, but the 0.8 current ratio signals tight short-term liquidity, which can become problematic in a consumer slowdown. Return on equity at 6.40% is not elite, and without dividend support (Dividend Per Share USD: - and Payout Ratio: -), investors are relying entirely on earnings expansion to justify valuation, leaving little margin for operational missteps.

Market Sentiment & Smart Money

Short Interest %

7.10%

Analyst Consensus

2

Average Analyst Price Target

$107.39

Institutional Ownership %

112.90%

1-Year Beta

-0.19

Insider Buying % (6 Mo)

0.70%%

Distance to 52-Week High

76.60%%

Distance to 52-Week Low

107.00%%