BJ's Wholesale Club (BJ) Fundamental Analysis: Revenue, Earnings & Valuation

6.87 / 10

Outperform

BJ's fundamentals score 6.9/10, driven by healthy net cash flow from operations per share (YoY -30.96% but still positive), robust net asset growth (27.72% YoY), and a strong ROE (28.93%). However, declining metrics like ROA (7.78%) and annualized net profit margin on total assets (7.78%) temper enthusiasm. The Current assets turnover ratio (11.16) and Net cash flow to operating revenue ratio (4.39%) are supportive. Overall, the company maintains a constructive fundamental base, though growth headwinds in competitive markets warrant attention.

Analysis Checks(7/10)

ROA (%)

Value7.78

Score1/3

Weight2.17%

1M Return0.96%

Net cash flow from operating activities per share (YoY growth rate %)

Value-30.96

Score2/3

Weight1.20%

1M Return0.54%

Net assets per share (growth rate compared to beginning of year %)

Value27.72

Score3/3

Weight14.97%

1M Return6.60%

Asset-liability ratio (%)

Value73.85

Score3/3

Weight17.66%

1M Return7.69%

Net cash flow from operating activities / Operating revenue (%)

Value4.39

Score2/3

Weight6.54%

1M Return2.53%

Total profit (YoY growth rate %)

Value-2.04

Score3/3

Weight17.57%

1M Return7.65%

Current assets turnover ratio

Value11.16

Score3/3

Weight15.80%

1M Return6.36%

Annualized net profit margin on total assets (%)

Value7.78

Score1/3

Weight2.17%

1M Return0.96%

Interest coverage ratio (EBIT / Interest expense) (%)

Value15.04

Score1/3

Weight3.18%

1M Return1.59%

ROE (diluted) (%)

Value28.93

Score3/3

Weight18.71%

1M Return7.17%

Is BJ undervalued or overvalued?

BJ scores 6.87/10 on fundamentals and holds a Discounted valuation at present. Backed by its 22.52% ROE, 2.72% net margin, 22.84 P/E ratio, 6.05 P/B ratio, and 3.80% earnings growth, these metrics solidify its Outperform investment rating.