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BJBJ's Wholesale Club Holdings, Inc.
$89.98$11.5B
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  4. Financial Ratios

BJ's Wholesale Club Holdings, Inc. (BJ) Financial Ratios

Latest Ratios: P/E Ratio 20.5x · EV/EBITDA 12.4x · ROE 28.6%. (2016–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

BJ Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$11.5B$12.2B$13.2B$8.7B$9.9B$8.5B$5.8B$2.9B$3.2B——
Enterprise Value$14.1B$14.8B$16.0B$11.6B$13.0B$11.4B$9.0B$6.6B$5.0B——
P/E Ratio →20.5421.1124.7616.5819.2719.8913.8815.2025.06——
P/S Ratio0.540.570.650.440.510.510.380.220.25——
P/B Ratio5.415.567.165.969.4513.0918.30————
P/FCF34.7136.8842.2934.5223.6816.108.9918.0411.33——
P/OCF11.1511.8514.6912.0912.5510.206.738.047.46——

P/E links to full P/E history page with 30-year chart

BJ EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—0.690.780.580.670.680.590.500.38——
EV / EBITDA12.3813.0215.5211.3213.8214.2911.1613.0210.74——
EV / EBIT16.6117.4620.8314.5817.7118.7514.3719.1818.21——
EV / FCF—44.6251.2946.2331.0621.6313.9041.9017.79——

BJ Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin18.6%18.6%18.4%18.2%17.8%18.5%19.3%18.4%18.2%17.6%17.2%
Operating Margin3.9%3.9%3.8%4.0%3.8%3.7%4.2%2.7%2.3%1.7%1.7%
Net Profit Margin2.7%2.7%2.6%2.6%2.7%2.6%2.7%1.4%1.0%0.4%0.4%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE28.6%28.6%32.3%41.8%60.6%88.2%317.8%————
ROA7.9%7.9%7.8%8.0%8.5%7.7%7.9%4.4%3.9%1.5%1.4%
ROIC13.5%13.5%12.8%14.1%14.4%13.1%13.3%9.9%13.7%9.7%9.6%
ROCE18.1%18.1%17.7%20.0%19.8%17.5%18.8%13.7%17.5%11.5%10.6%

BJ Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity1.191.191.542.052.984.5710.15————
Debt / EBITDA2.302.302.752.903.323.724.007.483.967.195.26
Net Debt / Equity—1.171.522.022.944.5010.01————
Net Debt / EBITDA2.262.262.722.873.283.663.957.423.907.105.18
Debt / FCF—7.749.0011.717.385.544.9223.866.4637.5711.18
Interest Coverage19.9619.9615.2612.7315.4310.237.453.311.671.111.45

BJ Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio0.750.750.740.730.670.760.720.750.850.911.05
Quick Ratio0.160.160.150.140.130.140.130.150.180.220.19
Cash Ratio0.020.020.010.010.010.020.020.020.020.020.03
Asset Turnover—2.862.902.993.042.942.852.504.023.903.82
Inventory Turnover11.2211.2211.0911.2211.5210.9310.339.9510.1210.329.91
Days Sales Outstanding—4.304.944.294.533.814.095.715.455.464.91

BJ Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield——0.0%0.0%0.0%0.0%0.0%0.0%0.0%——
Payout Ratio——0.0%0.0%0.0%0.0%0.0%0.0%0.0%1462.2%0.1%

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield4.9%4.7%4.0%6.0%5.2%5.0%7.2%6.6%4.0%——
FCF Yield2.9%2.7%2.4%2.9%4.2%6.2%11.1%5.5%8.8%——
Buyback Yield2.5%2.3%1.7%1.8%1.7%2.3%1.8%2.4%0.6%——
Total Shareholder Yield2.5%2.3%1.7%1.8%1.7%2.3%1.8%2.4%0.6%——
Shares Outstanding—$132M$134M$135M$136M$138M$139M$139M$121M$131M$131M

Key Metrics

Growth RegimeAccelerating
ProfitabilityModerate
Balance SheetAdequate
Cash FlowImproving
Top Statement Risk

Low liquidity and margin compression risk

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q2)

Valuation Discount to Peers

BJ's trades at a significant discount to peers, with a P/E of 21.55 versus the group average near 37, suggesting the market is pricing in lower growth or margin sustainability concerns.

The forward EV/EBITDA of 10.90 appears attractive relative to Target's 10.79 and far below Costco's 32.77, indicating BJ's is valued more like a traditional retailer than a membership-driven growth model. The PEG ratio of 2.82, however, suggests the market is not pricing in significant earnings growth, which aligns with the recent margin compression trend noted in income statement analysis. Investors should evaluate whether this discount fully reflects the business model's structural differences versus peers.

Margin Compression on Growth

Net margin has declined to 2.8% in 2026Q2 from 3.1% a year ago, despite accelerating revenue growth, indicating that rapid expansion is currently coming at the expense of near-term profitability.

This pattern mirrors the gross margin compression from 19.1% to 17.8% over the same period, suggesting that pricing or promotional activity to drive sales velocity is eroding profitability. Operating margin has shown improvement, expanding to 4.2% from 4.5%, indicating some SG&A leverage, but the net effect is a narrowing bottom line. The primary driver of true earning power appears to be operating efficiency rather than gross margin strength.

Stable but Low Capital Efficiency

ROIC has remained range-bound between 2.7% and 3.8% over ten quarters, consistently below the cost of capital, indicating the business model generates returns that struggle to cover its capital intensity.

The modest improvement in ROIC from 2.7% in 2024Q1 to 3.8% in 2026Q2 is primarily driven by the expansion in net margin, not a significant improvement in asset turnover, which has stayed near 0.73-0.78. This low ROIC is a structural characteristic of the high-volume, low-margin wholesale club model, where asset utilization is inherently constrained by the physical footprint. Compared to peers like Costco (ROIC 34.5%), BJ's appears to be a less efficient compounder of invested capital.

Improved Leverage, Still Elevated

The Debt-to-Equity ratio has improved markedly to 1.26 from 1.90 ten quarters ago, but leverage remains high relative to peers, with debt service consuming a significant portion of cash flow.

The deleveraging trend is primarily driven by equity growth from retained earnings rather than debt paydown, as absolute debt levels have remained stable. The interest coverage ratio of 19.78 in 2026Q2 is comfortable, but investors should note it has improved from a low of 11.52, partly due to the earnings expansion. The key risk is that continued margin pressure could erode this coverage, making the capital structure appear more vulnerable.

Perpetual Negative Working Capital

A current ratio consistently below 1.0, with a quick ratio near 0.19, indicates a structural liquidity position that is reliant on strong sales velocity and supplier financing.

This position is a hallmark of the high-volume retail model, where inventory turns quickly and suppliers are effectively financing operations via extended payment terms (DPO of 25 days). The risk, as highlighted in prior balance sheet analysis, is that this model becomes fragile if sales velocity slows or if supplier terms tighten, as the minimal cash balance ($30M) provides almost no buffer. The liquidity profile appears adequate under normal operations but warrants monitoring for any stress to the underlying business model.

Misapplied Ratio: Current Ratio

The current ratio of 0.73 is frequently misinterpreted as a sign of financial distress, but for BJ's business model, it reflects a strategic advantage in financing operations through negative working capital.

This ratio is the most commonly misapplied metric for high-volume, low-margin retailers like wholesale clubs. A low current ratio is not a red flag here; instead, it signals efficient use of supplier credit, as evidenced by the company's ability to generate positive operating cash flow despite having minimal cash on hand. The more appropriate metric to assess true liquidity risk is the cash conversion cycle, which stands at a very short 8 days, confirming the company's efficiency in converting inventory to cash before paying suppliers.

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BJ — Frequently Asked Questions

Quick answers to the most common questions about buying BJ stock.

What is BJ's Wholesale Club Holdings, Inc.'s P/E ratio?

BJ's Wholesale Club Holdings, Inc.'s current P/E ratio is 20.5x. The historical average is 19.5x. This places it at the 63th percentile of its historical range.

What is BJ's Wholesale Club Holdings, Inc.'s EV/EBITDA?

BJ's Wholesale Club Holdings, Inc.'s current EV/EBITDA is 12.4x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 12.9x.

What is BJ's Wholesale Club Holdings, Inc.'s ROE?

BJ's Wholesale Club Holdings, Inc.'s return on equity (ROE) is 28.6%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is 94.9%.

Is BJ stock overvalued?

Based on historical data, BJ's Wholesale Club Holdings, Inc. is trading at a P/E of 20.5x. This is at the 63th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What are BJ's Wholesale Club Holdings, Inc.'s profit margins?

BJ's Wholesale Club Holdings, Inc. has 18.6% gross margin and 3.9% operating margin.

How much debt does BJ's Wholesale Club Holdings, Inc. have?

BJ's Wholesale Club Holdings, Inc.'s Debt/EBITDA ratio is 2.3x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.