BJ's Wholesale Club BJ
BJ's Wholesale Club is a US membership warehouse club operator selling groceries and consumer goods to households and businesses at discounted prices, generating recurring revenue from membership fees. BJ's Wholesale Club combines solid growth (revenue +15.7%, earnings +19.3%) with a 27.67% return on equity, though its financial health is weighed down by 2.36x EBITDA leverage and weak free cash flow conversion (21.25%). Moody's outlook upgrade and the investment-grade policy strengthen the balance sheet profile.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
BJ's Wholesale Club is a US membership warehouse club operator selling groceries and consumer goods to households and businesses at discounted prices, generating recurring revenue from membership fees. BJ's Wholesale Club combines solid growth (revenue +15.7%, earnings +19.3%) with a 27.67% return on equity, though its financial health is weighed down by 2.36x EBITDA leverage and weak free cash flow conversion (21.25%). Moody's outlook upgrade and the investment-grade policy strengthen the balance sheet profile.
Score by category
| Category | Score |
|---|---|
| Financial health | 4.8 |
| Quality / Moat | 5.5 |
| Valuation | 5.7 |
| Growth | 7.6 |
| Dividend | 1.5 |
| Momentum | 4.3 |
| Risk & Context | 9.2 |
OVERALL SCORE: 5.7/10
Context and risks
No material exposure to the relevant macro factors (oil, rates, geopolitics). Defensive consumer staples and the membership club model with recurring revenue insulate BJ's from Middle East tensions and the rise in yields.
News considered in the analysis
- Moody’s raises BJ’s Wholesale outlook to positive on debt reduction — Mejora de perspectiva crediticia por desapalancamiento; refuerza la salud financiera pero es un cambio de outlook, no de rating.
- BJ’s Wholesale Club (BJ) Formalizes Investment-Grade Financial Policy — Política financiera explícita de grado de inversión; señal de disciplina de balance y menor riesgo de refinanciación.
- Here is Why BJ’s Wholesale Club (BJ) is a Good Investment — Artículo promocional sin información nueva.
- Costco Has Moved Sideways and Down for 1 Year: One Of The Most Respected Wall Street Firms Says 45% Returns Lie Ahead — Noticia sobre un competidor sin implicación directa para BJ's.
- Target Uses AI Personalization to Deepen Digital Guest Engagement — Noticia de un competidor en otro subsector; sin impacto material.
Verdict: Hold; growth and quality are attractive, but valuation is not a bargain and free cash flow generation is the key weakness to watch.
Main risk: Weak free cash flow conversion (21.25%) and 2.36x EBITDA leverage limit financial flexibility if consumer spending slows or rates stay high.
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