Analysis of BJ's Wholesale Club Holdings, Inc. Stock

BJ's Wholesale Club Holdings, Inc. is a membership-only warehouse club chain. They operate on the east coast and also Ohio, Michigan, and Indiana. The company was formerly known as Beacon Holding Inc. but changed its name to BJ's Wholesale Club Holdings, Inc. in 2018. Is the stock a buy?

BJ's currently has a market cap of $10.067 billion. The company currently has a price/earnings ratio of 19.94. The company is growing. For the 12 months ending January 31, 2023, BJ's posted $19.31 billion which is a 15.89% increase year-over-year. BJ's earnings increased from $426.65 million to $513.18 million which is a 20.28% year-over-year increase. While the stock is trading at 19.94 times their earnings, the growth that the company is experiencing helps justify buying the stock at this premium.

BJ's is also experiencing growth in cash flow. BJ's year-over-year cash flow growth is 16.8%. This is significantly higher than the industry average which is -8% according to Zacks.com. Cash flow is very important for any business, and the strong growth in cash flow that BJ's is experiencing is an important consideration when looking at the stock.

BJ's is in debt though. In BJ's most recent quarter, they reported debt of $3.12 billion. This gives them a current ratio of .67. 

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