One-glance verdict
Overvalued
$36.87 our estimate vs market $94.96
Wall Street consensus: $105.80 (186.9% higher than our fair-value estimate)
158% above our estimate, beyond the bull case
Fundamentals snapshot
BJ's Wholesale Club Holdings, Inc.
BJ · NYQ · Consumer Defensive · Discount Stores
Current price
$94.96
52-week range
$83.21 - $105.78
Market cap
$11.99B
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 1.0% 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 runs big warehouse stores, mostly on the East Coast, where customers must pay a membership fee to buy groceries, gasoline, and other goods. The company makes money from selling these items, but the real key is the membership fees, which provide a steady and predictable source of income. This reliable income from members helps keep the business stable, even when the amount of goods sold goes up or down.
How the company got here
BJ's Wholesale Club was founded in 1984 in Massachusetts, during the rise of the warehouse club store format. The company's name comes from the initials of Beverly Jean Weich, the daughter of the company's first president. After being part of other retail companies, it became a standalone public company in 1997. In 2011, it was taken private by investment firms but returned to the stock market as a public company again in 2018.
What it actually does
BJ's operates membership-only warehouse clubs primarily in the Eastern United States. Think of it as a supermarket and a department store combined, but one where you have to pay an annual fee to shop. In exchange for the membership fee, customers get access to lower prices on a wide variety of goods, often sold in larger, bulk packaging. The company sells everything from fresh groceries, electronics, and furniture to gasoline and vacation packages.
Net Sales
This is the company's main source of income and represents the money it makes from selling all its products, both in-store and online. This includes a huge variety of items, from groceries like fresh produce and baked goods to general merchandise like electronics, clothing, and seasonal items. This part of the business is all about selling high volumes of goods at low prices to attract and keep members. Sales of groceries make up the vast majority of this revenue.
Membership Fee Income
A significant and very consistent part of BJ's business comes from the annual fees that millions of customers pay to be members. This fee gives them the right to shop at BJ's clubs and access its deals. Because this income is collected upfront and is recurring (customers renew every year), it provides a stable source of profit for the company. This steady cash allows BJ's to invest in keeping its product prices low, which in turn keeps members happy and renewing.
Ancillary Services
This is a smaller but important part of the business that includes the other things BJ's offers beyond physical products. A major component is selling gasoline at its own gas stations, which is a big draw for members looking for savings. Other services include BJ's Optical departments for glasses and contacts, tire centers, and travel deals on car rentals, hotels, and vacation packages. These offerings are designed to provide more value to the membership and capture a larger share of a member's total spending.
What management is betting on now
The company's current strategy is heavily focused on expanding its physical footprint by opening new clubs in both existing and new states. Management is also investing heavily in its digital capabilities, making it easier for members to shop online or through the company's app for curbside pickup and same-day delivery. Another key priority is growing its own private label brands, Wellsley Farms and Berkley Jensen, which helps the company control quality and offer unique products at a lower cost than national brands. These efforts are all aimed at attracting new members and increasing the loyalty and spending of current ones.
Price history
How the share price has moved
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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 $36.87 vs current price $94.96
Wall Street consensus is the average analyst price target: $105.80 (186.9% higher than our fair-value estimate).
Our most-likely fair value is $36.87 a share — about 61.2% below today's price of $94.96, 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 $8.58B 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 $15.70B 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 1.0% 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)
20.64x
Forward P/E
18.89x
P/B
5.46x
P/S
0.53x
EV/EBITDA
12.70x
PEG ratio
2.05x
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
4.60
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
—
Payout ratio
0.0%
Last ex-div date
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