One-glance verdict
Overvalued
$52.48 our estimate vs market $102.41
Wall Street consensus: $104.80 (99.7% higher than our fair-value estimate)
95% above our estimate, beyond the bull case
Fundamentals snapshot
BJ's Wholesale Club Holdings, Inc.
BJ · NYQ · Consumer Defensive · Discount Stores
Current price
$102.41
52-week range
$83.21 - $106.03
Market cap
$12.94B
Balance sheet
Stretched
20.40x Strong cushion
Net debt $2.74B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 6.3% last year.
- Reward Returns 27.7% on equity, ahead of 66% of its peers.
- Risk Stock trades 9.7% above its 5-year average P/E.
- Risk Insider ownership is only 0.6% (peer median: 1.2%).
What this company does
BJ's Wholesale Club Holdings, Inc.
BJ's Wholesale Club Holdings, Inc. sells groceries, general merchandise, and gasoline through its warehouse clubs and online, primarily to members who pay a fee. This membership fee acts as a consistent source of income for the company, helping to offset the costs of running its business and giving it a degree of predictable revenue. Understanding how much money comes from these membership fees versus actual product sales helps us see how stable the company's overall financial health (its margins, or profit as a percentage of sales) is.
How the company got here
BJ's Wholesale Club was founded in 1984 and has since evolved into a prominent membership-based warehouse club chain. Initially part of a larger retail structure, it became an independent public company in 1997. After a period of private ownership by private equity firms starting in 2011, BJ's returned to the public market in 2018. This journey reflects a strategy focused on providing value to its members through a curated selection of goods at competitive prices, supported by a recurring membership fee structure. The company has strategically expanded its footprint, primarily across the eastern half of the United States, aiming to deepen its presence in key regional markets.
What it actually does
BJ's Wholesale Club operates membership-only warehouse clubs, offering a wide variety of products to its members. Think of it as a place where you can buy everyday essentials and larger items in bulk, often at a lower price per unit than you'd find at a regular supermarket. The core idea is that by paying an annual membership fee, customers gain access to these savings. BJ's sells everything from groceries and fresh produce to electronics, home goods, and gasoline. They aim to be a one-stop shop for households and small businesses looking for value.
Merchandise Sales
This is the primary way BJ's makes money. They sell a wide array of products, including groceries, fresh foods (like produce, meat, and dairy), household essentials (such as cleaning supplies and paper products), and general merchandise (which can include items like clothing, electronics, and home decor). These sales are driven by the company's strategy of offering a curated assortment of goods at competitive prices, encouraging members to stock up on both everyday necessities and occasional larger purchases. The focus on groceries and perishables is particularly important, as these items encourage frequent visits to the club.
Membership Fees
BJ's operates on a membership model, meaning customers pay an annual fee to shop there. This membership fee is a significant and predictable source of revenue for the company, providing a stable income stream that helps fund their low-price strategy on merchandise. There are different membership tiers, often offering additional benefits like cash back rewards or fuel discounts, encouraging members to upgrade and increase their engagement with the brand. This recurring revenue is key to the company's financial stability.
Gasoline and Ancillary Services
BJ's also generates revenue through its gasoline stations, which are often located at their club locations. Selling gasoline can attract members to the club more frequently, as it offers a perceived savings on a regular expense. In addition to gasoline, BJ's offers various other services, such as optical centers, tire services, and even travel packages. These ancillary services add further value for members and create additional revenue streams for the company, complementing the core merchandise sales.
What management is betting on now
BJ's management is focused on strengthening its membership model by attracting new members and retaining existing ones, recognizing that membership fees provide a steady income. They are also investing in making shopping more convenient through digital platforms, including their website and mobile app, offering options like curbside pickup and same-day delivery. A key part of their strategy is growing their own brands, like Wellsley Farms for groceries and Berkley Jensen for general merchandise, as these private-label products often have higher profit margins and help differentiate BJ's from competitors. Expanding their physical footprint into new and existing markets is also a priority to reach more value-conscious shoppers.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q4
$18.82M
FY2026 Q1
$111.49M
FY2026 Q2
$67.60M
FY2026 Q3
$84.30M
FY2026 Q4
$-13.74M
FY2027 Q2
$-42.05M
FY2027 Q3
$224.15M
Revenue
$6.23B
Net income
$173.87M
Diluted EPS
1.36
Operating cash flow
$401.48M
Free cash flow
$224.15M
Fetching…
Sources
Revenue
$5.66B
Net income
$142.73M
Diluted EPS
1.10
Operating cash flow
$139.96M
Free cash flow
$-42.05M
Fetching…
Sources
Revenue
$5.35B
Net income
$152.05M
Diluted EPS
1.15
Operating cash flow
$181.14M
Free cash flow
$-13.74M
Fetching…
Sources
Revenue
$5.38B
Net income
$150.71M
Diluted EPS
1.14
Operating cash flow
$249.86M
Free cash flow
$84.30M
Fetching…
Sources
Revenue
$5.15B
Net income
$149.77M
Diluted EPS
1.13
Operating cash flow
$208.09M
Free cash flow
$67.60M
Fetching…
Sources
Revenue
$5.28B
Net income
$122.66M
Diluted EPS
0.92
Operating cash flow
$271.92M
Free cash flow
$111.49M
Fetching…
Sources
Revenue
$5.10B
Net income
$155.75M
Diluted EPS
1.17
Operating cash flow
$206.76M
Free cash flow
$18.82M
Fetching…
Sources
Is it cheap or expensive?
Fair value $52.48 vs current price $102.41
Wall Street consensus is the average analyst price target: $104.80 (99.7% higher than our fair-value estimate).
Our most-likely fair value is $52.48 a share — about 48.8% below today's price of $102.41, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Stretched
Net debt $2.7B. Interest coverage 20.4x.
Net debt
$2.74B
Interest coverage
20.40x
BJ's Wholesale Club Holdings, Inc.'s profit covers its interest bill about 20.4 times over. which is stronger than most peers shown here.
Stretched
Worse cushion
Baseline
Better cushion
BJ
BASELINE
BJ's Wholesale Club Holdings, Inc.
Total debt $2.77B Interest coverage 20.40x This is the baseline the peer rows are being compared against.
Total debt $10.18B Interest coverage 67.42x +231% vs BJ Carries about 3.3x more debt cushion than BJ.
Total debt $75.09B Interest coverage 10.66x -48% vs BJ Carries about 1.9x less debt cushion than BJ.
Total debt $19.20B Interest coverage 11.50x -44% vs BJ Carries about 1.8x less debt cushion than BJ.
Total debt $24.16B Interest coverage 2.96x -86% vs BJ Carries about 6.9x less debt cushion than BJ.
Total debt $15.92B Interest coverage 1.46x -93% vs BJ Carries about 13.9x less debt cushion than BJ.
What you should know
The case for and against BJ
3 Rewards
2 Risks
Rewards
-
Revenue grew 6.3% last year.
-
Returns 27.7% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 8/10 years.
Risks
-
Stock trades 9.7% above its 5-year average P/E.
-
Insider ownership is only 0.6% (peer median: 1.2%).
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
22.41x
Forward P/E
20.38x
P/B
5.89x
P/S
0.57x
EV/EBITDA
13.51x
PEG ratio
2.23x
Profitability
How much profit each dollar creates
Gross margin
18.2%
Operating margin
4.1%
Net margin
2.6%
ROE
27.7%
ROA
7.0%
Health
Liquidity and balance-sheet strength
Debt / equity
1.26x
Current ratio
0.73x
Quick ratio
0.11x
Total debt
$2.77B
Total cash
$29.98M
Growth
How the business has been compounding
Revenue TTM
$22.81B
Revenue 5Y CAGR
6.5%
EPS TTM
4.57
EPS 5Y CAGR
5.2%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.11B
Free CF TTM
$328.01M
FCF margin
1.4%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
—