We came across a bullish thesis on BJ’s Wholesale Club Holdings, Inc. on Canadian Cashflow’s Substack. In this article, we will summarize the bulls’ thesis on BJ. BJ’s Wholesale Club Holdings, Inc.’s share was trading at $99.52 as of February 11th. BJ’s trailing and forward P/E were 22.93 and 21.28 respectively according to Yahoo Finance.
BJ’s Wholesale Club (BJ) operates a proven warehouse retail model in the U.S., positioned between traditional grocery stores and large-scale warehouse clubs like Costco and Walmart. The company focuses on everyday essentials, offering bulk pricing on groceries, household staples, and consumables, which has made its stores practical for regular shopping and more resilient during economic downturns.
BJ’s has demonstrated strong operational execution, delivering twelve consecutive quarters of market share gains, rising club traffic, and record profitability, while membership growth remains robust at around 6% year over year with renewal rates consistently above 90%, even after a recent membership fee increase. The company is executing an aggressive expansion strategy, targeting new states such as Alabama and Texas, supported by repeatable unit economics and operational initiatives including the Fresh 2.0 program, private-label growth, and a 30% year-over-year increase in e-commerce sales.
Financially, BJ’s has generated consistent free cash flow over the past three years, with 2024 free cash flow per share rebounding to approximately $2.34 after a temporary dip in 2023 due to elevated capital expenditures, while share repurchases have steadily reduced the share count, offsetting dilution from stock-based compensation.
Despite this strong performance, BJ’s trades at a modest forward multiple of roughly 20x earnings, well below peers Costco and Walmart, reflecting a market that has yet to fully appreciate the quality and durability of its business model. Given its resilient fundamentals, consistent cash generation, and expansion potential, BJ’s presents an attractive opportunity, and if there is any pullback in the stock, it becomes a compelling entry point for investors seeking a high-quality, cash-generative retail business.
Previously, we covered a bullish thesis on Costco Wholesale Corporation (COST) by FluentInQuality in March 2025, which highlighted its membership-driven revenue, cost-efficient warehouse model, and strong customer loyalty. COST’s stock has depreciated by approximately 6.56% since coverage. Canadian Cashflow shares a similar view but emphasizes BJ’s Wholesale Club’s (BJ) focus on everyday essentials, free cash flow, and U.S. expansion.