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Relative to Consumer Discretionary Sector Median (N=442)
Metric
BJ
Benchmark
P/E Ratio
20.4x
-17%
EV/EBITDA
11.1x
+127%
Price / Book
5.6x
Implied Value Audit
OVERVALUED
Implied Fair Value (vs Sector)
-58.4%
$38.58Spot: $92.67
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Discretionary sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
27.5%
Sector: 6.2%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, BJ's Wholesale Club Holdings, Inc. (BJ) receives a "Hold" rating with a composite score of 48.0/100, ranked #520 out of 4446 stocks. Key factor scores: Quality 50/100, Value 66/100, Momentum 40/100. This is quantitative analysis only — not investment advice.
BJ's Wholesale Club Holdings, Inc. (BJ) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does BJ's Wholesale Club Holdings, Inc. Do?
BJ's Wholesale Club Holdings, Inc., together with its subsidiaries, operates warehouse clubs on the east coast of the United States. It provides perishable, general merchandise, gasoline, and other ancillary services. The company sells its products through the websites BJs.com, BerkleyJensen.com, Wellsleyfarms.com, and Delivery.bjs.com as well as the mobile app. As of March 3, 2022, it operated 226 warehouse clubs and 157 gas locations in 17 states. The company was formerly known as Beacon Holding Inc. and changed its name to BJ's Wholesale Club Holdings, Inc. in February 2018. BJ's Wholesale Club Holdings, Inc. was founded in 1984 and is headquartered in Westborough, Massachusetts. BJ's Wholesale Club Holdings, Inc. (BJ) is classified as a large-cap stock in the Consumer Discretionary sector, specifically within the Retail industry. The company is led by CEO Robert W. Eddy and employs approximately 34,000 people. With a market capitalization of $12.3B, BJ is one of the prominent companies in the Consumer Discretionary sector.
BJ's Wholesale Club Holdings, Inc. (BJ) Stock Rating — Hold (April 2026)
As of April 2026, BJ's Wholesale Club Holdings, Inc. receives a Hold rating with a composite score of 48.0/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.BJ ranks #520 out of 4,446 stocks in our coverage universe. Within the Consumer Discretionary sector, BJ's Wholesale Club Holdings, Inc. ranks #33 of 442 stocks, placing it in the top 10% of its Consumer Discretionary peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
BJ Stock Price and 52-Week Range
BJ's Wholesale Club Holdings, Inc. (BJ) currently trades at $92.67. The stock lost $0.99 (1.1%) in the most recent trading session. The 52-week high for BJ is $121.10, which means the stock is currently trading -23.5% from its annual peak. The 52-week low is $86.68, putting the stock 6.9% above its annual trough. Recent trading volume was 2.1M shares, reflecting moderate market activity.
Is BJ Overvalued or Undervalued? — Valuation Analysis
BJ's Wholesale Club Holdings, Inc. (BJ) carries a value factor score of 66/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 20.41x, compared to the Consumer Discretionary sector average of 24.47x — a discount of 17%. The price-to-book ratio stands at 5.61x, versus the sector average of 1.99x. The price-to-sales ratio is 0.58x, compared to 0.27x for the average Consumer Discretionary stock. On an enterprise value basis, BJ trades at 11.14x EV/EBITDA, versus 4.91x for the sector.
Overall, BJ's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
BJ's Wholesale Club Holdings, Inc. Profitability — ROE, Margins, and Quality Score
BJ's Wholesale Club Holdings, Inc. (BJ) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 27.5%, compared to the Consumer Discretionary sector average of 6.2%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 8.1% versus the sector average of 2.5%.
On a margin basis, BJ's Wholesale Club Holdings, Inc. reports gross margins of 18.9%, compared to 36.9% for the sector. The operating margin is 4.0% (sector: 3.8%). Net profit margin stands at 2.8%, versus 2.1% for the average Consumer Discretionary stock. Revenue growth is running at 3.8% on a trailing basis, compared to 3.3% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
BJ Debt, Balance Sheet, and Financial Health
BJ's Wholesale Club Holdings, Inc. has a debt-to-equity ratio of 18.0%, compared to the Consumer Discretionary sector average of 89.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 0.75x, which may signal near-term liquidity tightness. Total debt on the balance sheet is $399M. Cash and equivalents stand at $45M.
BJ has a beta of -0.01, meaning it is less volatile than the S&P 500, making it a relatively defensive holding. The stability factor score for BJ's Wholesale Club Holdings, Inc. is 80/100, indicating low-volatility characteristics and consistent price behavior that appeals to risk-averse investors.
BJ's Wholesale Club Holdings, Inc. Revenue and Earnings History — Quarterly Trend
In TTM 2026, BJ's Wholesale Club Holdings, Inc. reported revenue of $21.23B and earnings per share (EPS) of $4.41. Net income for the quarter was $605M. Gross margin was 18.9%. Operating income came in at $857M.
In FY 2026, BJ's Wholesale Club Holdings, Inc. reported revenue of $21.46B and earnings per share (EPS) of $4.41. Net income for the quarter was $578M. Gross margin was 18.6%. Revenue grew 4.7% year-over-year compared to FY 2025. Operating income came in at $817M.
In Q3 2025, BJ's Wholesale Club Holdings, Inc. reported revenue of $5.35B and earnings per share (EPS) of $1.16. Net income for the quarter was $152M. Gross margin was 19.0%. Operating income came in at $218M.
In Q3 2026, BJ's Wholesale Club Holdings, Inc. reported revenue of $5.35B and earnings per share (EPS) of $1.16. Net income for the quarter was $152M. Gross margin was 19.0%. Revenue grew 0.0% year-over-year compared to Q3 2025. Operating income came in at $218M.
Over the past 8 quarters, BJ's Wholesale Club Holdings, Inc. has demonstrated a growth trajectory, with revenue expanding from $20.50B to $21.23B. Investors analyzing BJ stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
BJ Dividend Yield and Income Analysis
BJ's Wholesale Club Holdings, Inc. (BJ) does not currently pay a dividend. This is common among growth-oriented companies in the Retail industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Consumer Discretionary dividend stocks may want to explore other Consumer Discretionary stocks or use the stock screener to filter by dividend yield.
BJ Momentum and Technical Analysis Profile
BJ's Wholesale Club Holdings, Inc. (BJ) has a momentum factor score of 40/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 32/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 21/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
BJ vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison
Comparing BJ against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full BJ vs S&P 500 (SPY) comparison to assess how BJ's Wholesale Club Holdings, Inc. stacks up against the broader market across all factor dimensions.
BJ Next Earnings Date
No upcoming earnings date has been announced for BJ's Wholesale Club Holdings, Inc. (BJ) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy BJ? — Investment Thesis Summary
BJ's Wholesale Club Holdings, Inc. presents a balanced picture with arguments on both sides. The value score of 66/100 suggests attractive pricing relative to fundamentals. Low volatility (stability score 80/100) reduces downside risk.
In summary, BJ's Wholesale Club Holdings, Inc. (BJ) earns a Hold rating with a composite score of 48.0/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on BJ stock.
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Institutional Research Dossier
BJ's Wholesale Club Holdings, Inc. (BJ) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
BJ's Wholesale Club Holdings, Inc. currently holds a 'Hold' rating, reflecting a balanced view of its strengths and weaknesses. While the company demonstrates attractive value metrics and stable performance, concerns surrounding free cash flow generation and modest growth prospects temper enthusiasm. The current valuation appears fair, but significant upside potential is limited without substantial improvements in key financial areas.
The company's strategic focus on membership-based retailing provides a degree of stability, but intensifying competition and evolving consumer preferences necessitate continuous innovation and operational efficiency. The 'Hold' rating acknowledges BJ's solid market position and reasonable valuation, while also recognizing the challenges it faces in achieving sustained, robust growth and improved profitability.
Business Strategy & Overview
BJ's Wholesale Club operates on a membership-based business model, offering a curated selection of goods and services at discounted prices to its members. The core strategy revolves around driving membership growth and renewal rates, as membership fees contribute significantly to overall profitability. The company focuses on providing value through competitive pricing, exclusive private-label brands (Berkley Jensen and Wellsley Farms), and a range of ancillary services such as gasoline, optical, and tire installation.
Strategic initiatives include expanding its geographic footprint, enhancing its digital capabilities, and improving the overall member experience. The company is actively investing in its online platforms (BJs.com, BerkleyJensen.com, Wellsleyfarms.com, and Delivery.bjs.com) and mobile app to cater to the evolving needs of its members and drive online sales growth. Furthermore, BJ's is focused on optimizing its merchandise assortment, improving supply chain efficiency, and leveraging data analytics to personalize offers and enhance member engagement.
BJ's operates in the highly competitive warehouse club industry, primarily competing with Costco and Sam's Club. Differentiation strategies include a focus on the Eastern United States market, a more curated product selection compared to its larger competitors, and a greater emphasis on private-label brands. The company also seeks to differentiate itself through its membership tiers and associated benefits, aiming to attract and retain a loyal customer base.
The company's product pipeline is not explicitly defined in terms of innovative new products, but rather focuses on expanding its private-label offerings and enhancing the value proposition of its existing product categories. This includes introducing new variations of existing products, improving product quality, and offering exclusive deals and promotions to members. The company also continuously evaluates opportunities to expand its ancillary services and partnerships to further enhance the member experience and drive revenue growth.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
3.8%
Sector: 3.3%
+15% VS SCTR
Economic Moat Analysis
BJ's Wholesale Club possesses a narrow economic moat, primarily derived from its membership-based business model and established brand recognition within its geographic footprint. The membership model creates a degree of customer loyalty and recurring revenue, as members are incentivized to shop at BJ's to recoup their annual membership fees. This creates a switching cost, albeit a relatively low one, as members would need to forgo the benefits of their membership to switch to a competitor.
The company's private-label brands, Berkley Jensen and Wellsley Farms, also contribute to its moat by offering exclusive products at competitive prices, further incentivizing members to shop at BJ's. These brands enhance the value proposition and differentiate BJ's from other retailers, creating a degree of brand loyalty and reducing price sensitivity among members.
However, the moat is considered narrow due to the intense competition in the warehouse club industry. Costco and Sam's Club are significantly larger and have greater brand recognition and purchasing power. These competitors can offer a wider selection of products and potentially lower prices, which could erode BJ's market share and pricing power. Furthermore, the switching costs associated with BJ's membership are relatively low compared to other industries, making it easier for members to switch to a competitor if they find a better value proposition elsewhere.
The company's efficient scale is limited by its geographic concentration on the East Coast. While this allows for operational efficiencies within its existing footprint, it also limits its growth potential compared to its national competitors. Expanding into new markets would require significant capital investment and marketing efforts, and there is no guarantee that BJ's would be able to successfully compete in these new markets.
Financial Health & Profitability
BJ's Wholesale Club exhibits a mixed financial profile. Revenue growth has been modest but consistent, with a TTM revenue of $21.46 billion and a growth rate of 3.8% compared to the sector average of 3.2%. Net income stands at $578.38 million, resulting in a net margin of 2.8%, slightly above the sector average of 2.1%. The company's operating margin of 4.0% is also marginally better than the sector average of 3.8%.
However, a significant concern is the negative free cash flow of -$194.27 million. This raises questions about the company's ability to fund future growth initiatives and capital expenditures without relying on external financing. The current ratio of 0.75 indicates potential liquidity challenges, as current liabilities exceed current assets. While the debt-to-equity ratio of 18.00 is significantly lower than the sector average of 91.00, the negative free cash flow necessitates careful monitoring of the company's debt levels.
The company's return on equity (ROE) of 27.5% is significantly higher than the sector average of 5.8%, indicating efficient utilization of equity capital. However, this metric should be viewed in conjunction with the negative free cash flow and liquidity concerns. The quarterly financial history reveals consistent revenue and net income performance, with relatively stable gross and operating margins. However, the absence of free cash flow data for most quarters makes it difficult to assess the company's cash flow generation capabilities over time.
Analyzing the trend in gross margin, we see a slight increase from 18.2% in FY2024 to 18.6% in FY2026. Operating margin has remained relatively stable around 4.0%. While these are positive signs, the lack of consistent positive free cash flow is a major red flag. The company needs to address this issue to ensure its long-term financial sustainability.
Valuation Assessment
BJ's Wholesale Club's valuation presents a mixed picture. The company's P/E ratio of 22.0x is lower than the sector average of 28.0x, suggesting that the stock may be undervalued relative to its peers. Similarly, the EV/EBITDA ratio of 2.9x is significantly lower than the sector average of 5.3x, further indicating potential undervaluation. However, these metrics should be considered in light of the company's negative free cash flow and modest growth prospects.
Given the negative free cash flow, traditional free cash flow yield analysis is not applicable. Instead, investors should focus on other valuation metrics such as the P/E ratio and EV/EBITDA ratio, as well as the company's growth prospects and financial health. The company's revenue growth of 3.8% is slightly above the sector average, but it is not high enough to justify a premium valuation. The negative free cash flow also limits the company's ability to invest in future growth initiatives and return capital to shareholders.
Compared to its historical valuation, BJ's stock price has appreciated significantly in recent years, reflecting the company's improved financial performance and strategic initiatives. However, the current valuation appears to be fair, given the company's growth prospects and financial health. Significant upside potential is limited without substantial improvements in free cash flow generation and revenue growth.
Considering the totality of the valuation metrics, BJ's appears to be fairly valued. The lower P/E and EV/EBITDA multiples compared to the sector suggest some undervaluation, but the negative free cash flow and only slightly above-average revenue growth temper enthusiasm. Investors should closely monitor the company's ability to improve its cash flow generation and accelerate revenue growth before considering a more bullish stance.
Risk & Uncertainty
BJ's Wholesale Club faces several key risks and uncertainties. Intensifying competition from Costco and Sam's Club poses a significant threat to its market share and pricing power. These larger competitors have greater brand recognition, purchasing power, and geographic reach, which could erode BJ's competitive advantage. The company must continuously innovate and differentiate itself to maintain its market position.
Evolving consumer preferences and shopping habits also present a challenge. The rise of e-commerce and online grocery delivery services is disrupting the traditional retail landscape. BJ's must adapt to these changes by enhancing its digital capabilities and offering a seamless omnichannel experience to its members. Failure to do so could result in a loss of market share to online retailers and other competitors.
The company's reliance on membership fees as a significant source of revenue creates a vulnerability to changes in membership renewal rates. Economic downturns or increased competition could lead to a decline in membership renewals, which would negatively impact the company's profitability. BJ's must focus on providing value to its members and maintaining high renewal rates to mitigate this risk.
Supply chain disruptions and inflationary pressures could also impact the company's financial performance. Increased costs for goods and transportation could squeeze margins and reduce profitability. BJ's must effectively manage its supply chain and pricing strategies to mitigate these risks. The negative free cash flow further exacerbates these risks, as it limits the company's financial flexibility to respond to unforeseen challenges.
Bulls Say / Bears Say
The Bull Case
BULL VIEWBJ's attractive valuation relative to peers, as evidenced by its lower P/E and EV/EBITDA multiples, suggests potential upside for investors.
BULL VIEWThe company's consistent revenue growth and stable operating margins demonstrate its ability to navigate the competitive retail landscape and maintain profitability.
BULL VIEWBJ's focus on membership-based retailing provides a recurring revenue stream and fosters customer loyalty, creating a stable foundation for future growth.
The Bear Case
BEAR VIEWBJ's negative free cash flow raises concerns about its ability to fund future growth initiatives and capital expenditures without relying on external financing.
BEAR VIEWThe company's modest revenue growth and intense competition in the warehouse club industry limit its potential for significant market share gains.
BEAR VIEWBJ's relatively small geographic footprint and reliance on the East Coast market make it vulnerable to regional economic downturns and competitive pressures.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score BJ and 4,400+ other equities.
BJ's Wholesale Club Holdings, Inc. exhibits a 102% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
8.1%
Sector: 2.5%
Gross Margin
Pricing power and cost efficiency
18.9%
Sector: 36.9%
Operating Margin
Core business profitability
4.0%
Sector: 3.8%
Net Margin
Bottom-line profitability
2.8%
Sector: 2.1%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
