BJ Intrinsic Value Calculator – BJ’s Wholesale Club Reports 2.7% Decrease in Total Revenue for Q2 2023
August 31, 2023
🌥️Earnings Overview
For the second quarter of the fiscal year ending July 31 2023, BJ’S WHOLESALE CLUB ($NYSE:BJ) reported a total revenue of USD 4963.5 million, a 2.7% decrease from the same period in FY2024. Net income for the quarter decreased 6.9% year-on-year to USD 131.3 million.
Analysis – BJ Intrinsic Value Calculator
GoodWhale has taken a thorough analysis of BJ’s Wholesale Club’s financials and has determined that the fair value of its share is around $66.7. This calculation was made using our proprietary Valuation Line. As such, investors may find it favourable to purchase shares of BJ’s Wholesale Club at its current price. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for BJ. More…
| Total Revenues | Net Income | Net Margin |
| 19.4k | 507.12 | 2.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BJ. More…
| Operations | Investing | Financing |
| 614.61 | -389.93 | -362.15 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for BJ. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.6k | 5.37k | 8.42 |
Key Ratios Snapshot
Some of the financial key ratios for BJ are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 10.3% | 16.3% | 4.0% |
| FCF Margin | ROE | ROA |
| 1.0% | 42.4% | 7.3% |
Peers
It is a publicly-traded company and competes with PT Tigaraksa Satria Tbk, Big Lots Inc, and Super Value Co Ltd in the retail market. These companies specialize in providing consumers with a wide variety of products and services at discounted prices.
– PT Tigaraksa Satria Tbk ($IDX:TGKA)
PT Tigaraksa Satria Tbk is a leading Indonesian consumer goods company that produces and distributes a wide range of products. With a market capitalization of 6.61T, it is one of the largest companies in Indonesia. The company’s Return on Equity (ROE) of 20.56% indicates that it is efficiently managing its resources to generate returns for its shareholders. Its impressive ROE has been a key factor in its ability to expand its reach and increase its market share. The company has also been able to differentiate itself from competitors by focusing on innovation, sustainability, and customer satisfaction.
– Big Lots Inc ($NYSE:BIG)
Big Lots Inc is a leading closeout retailer in the United States. It offers various products such as furniture, home décor, electronics, toys, food, and more. As of 2022, the company has a market cap of 480.72M, which reflects its financial performance and growth potential. The Return on Equity (ROE) of the company stands at -12.94%, which is lower than the industry average of 16%. This indicates that the company is not generating adequate returns from its equity investments. Despite this, Big Lots Inc continues to be a leading retailer in the United States and is expected to grow further in the years to come.
– Super Value Co Ltd ($TSE:3094)
Super Value Co Ltd is a multinational retail corporation based in the United States. It is the largest retailer in the world, with over 8,500 stores in more than 15 countries, as well as an online presence in many countries across the globe. As of 2022, Super Value Co Ltd has a market capitalization of 6.95 billion dollars. This indicates that the company is performing well and is highly regarded by investors. Additionally, Super Value Co Ltd has a return on equity of -30.33%. This means that the company has not been able to generate the returns that investors expect from them, which could be indicative of weak management or potential problems with the company’s products and services.
Summary
BJ’s Wholesale Club recently reported their financial results for the second quarter ending July 31, 2023. Total revenue decreased by 2.7% to USD 4963.5 million compared to the same period in FY2024, and net income decreased by 6.9% to USD 131.3 million. The release of this earning report had a negative impact on the stock price, with the share price dropping on the same day.
Investors should consider these disappointing financials when evaluating BJ’s Wholesale Club as an investment opportunity, as it may be indicative of a longer-term downward trend. They should also consider the overall market dynamics, potential risk factors, and available competitive analysis to get a more comprehensive view of the company’s financials and future prospects.
