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BJ'S Wholesale IPO - Investment case Presentation

Research

Publication Date: 20 Sep 2018 - By Robert Prather By Robert Prather
Actionable
Differentiated

IPO & Placements Equity Fundamental Equity USA Consumer

BJ's Wholesale Club is a leading warehouse club operator on the East Coast of the United States. It operates 215 clubs and 134 gas stations in 16 states. The company was taken private in 2011 after it was acquired by 2 private equity firms for $2.8bn and now is making a comeback in public equity markets.

Strengths & Opportunities

  • Secular tailwinds in warehouse club market
  • Improving margins and profitability
  • Same store sales starting to accelerate
  • Membership growth
  • New club openings and online platform
  • Improving working capital trends

Risks & Concerns

  • Crowded industry
  • Headwinds from German discounters
  • Competitive eCommerce platforms growing rapidly
  • Markets that BJ's operates in seem saturated
  • High leverage and off-balance sheet obligations
  • Negative growth in merchandise sale

 

 

BJ IPO

Source: VR Fundamental

Pages: 49

Released: 20 Sep 2018

Unlock for 10 credits

The Author

Robert Prather

Equity Analyst

Technology, Consumer, Telecom & Media, Industrials

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