BJ Stock Fair Value – BJ’s Wholesale Club Reports Q3 FY2024 Earnings Results
November 23, 2023
🌥️Earnings Overview
BJ’S ($NYSE:BJ): On November 17 2023, BJ’s Wholesale Club released its earnings results for the third quarter of FY2024, which ended on October 31 2023. Overall revenue for the quarter was USD 4924.7 million, representing a 2.9% year-over-year increase, and net income was USD 130.5 million, a slight 0.4% rise from the prior year.
Share Price
On Friday, BJ’s Wholesale Club reported their financial results for the third quarter of FY2024, and the stock opened at $64.8 but closed at $64.4, down by 4.8% from the prior closing price of $67.6. Overall, BJ’s Wholesale Club reported mixed results with total revenue being slightly higher than expected but earnings per share significantly lower than expected leading to a drop in their stock price. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for BJ. More…
| Total Revenues | Net Income | Net Margin |
| 19.54k | 507.65 | 2.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for BJ. More…
| Operations | Investing | Financing |
| 619.84 | -422.96 | -197.97 |
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 |
| 6.84k | 5.48k | 9.21 |
Key Ratios Snapshot
Some of the financial key ratios for BJ are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.3% | 10.5% | 4.0% |
| FCF Margin | ROE | ROA |
| 0.9% | 39.3% | 7.1% |
Analysis – BJ Stock Fair Value
At GoodWhale, we have analyzed the financials of BJ’s Wholesale Club. Our proprietary Valuation Line calculates the intrinsic value to be around $67.8 per share. Currently, the BJ’S WHOLESALE CLUB stock is traded at $64.4, which is slightly undervalued by 5.1%. This presents an opportunity to invest in the company at a fair price. More…
Peers
It is a publicly-traded company and competes with PT Tigaraksa Satria Tbk, Big Lots Inc, and Super Value Co Ltd in the retail market. These companies specialize in providing consumers with a wide variety of products and services at discounted prices.
– PT Tigaraksa Satria Tbk ($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 reported a total revenue of USD 4924.7 million for the third quarter of FY2024, a slight 2.9% increase from the previous year. Net income increased by 0.4% to USD 130.5 million. The same day, the stock price moved down.
Overall, this quarter’s performance suggests BJ’s Wholesale Club is seeing moderate growth, but investors should be aware of the potential risks of investing in this company. It is important to consider other factors such as competitor performance, industry trends, and macroeconomic conditions before deciding to invest in BJ’s Wholesale Club.
