BJBJ's Wholesale Club Holdings, Inc.
Is the business good?
A genuinely good business: 8 of 9 health tests passed and earnings fully cash-backed (1.8×).
High fundamental quality. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
Efficiency-driven, thin margins turned over fast (the retail model). ROE 27% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is BJ?
BJ's Wholesale Club Holdings, Inc. earns 24% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 15 points above what the capital costs: growth creates value
- Operating margin
- 3.8%
Operating margin · Discount Stores median 4.5% · 12 months to Q2 2026
- Cash conversion
- 1.77×
Cash conversion · 1.53× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −3.6%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 4.2% |
| FY2021 | 3.7% |
| FY2022 | 3.8% |
| FY2023 | 4.0% |
| FY2024 | 3.8% |
| FY2025 | 3.8% |
Details›
- Gross margin12 months to Q2 2026
- 18%
- Operating margin12 months to Q2 2026
- 3.8%
- Net margin12 months to Q2 2026
- 2.6%
- Free cash flow margin
- 1.6%
- Revenue, trailing twelve months
- $22.8B
- Free cash flow, trailing twelve months
- $358M
- Net income, trailing twelve months
- $594M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 24%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.