BJ's Wholesale Club Holdings (STU:8BJ) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
BJ's Wholesale Club Holdings had a gross margin of 18.16% for the quarter that ended in Apr. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
BJ's Wholesale Club Holdings Gross Margin % Related Terms
BJ's Wholesale Club Holdings Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:8BJ vs PSMT, TBBB, OLLI: Gross Margin % Comparison
For the Discount Stores subindustry, BJ's Wholesale Club Holdings's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
BJ's Wholesale Club Holdings Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, BJ's Wholesale Club Holdings's Gross Margin % distribution charts can be found below:
* The bar in red indicates where BJ's Wholesale Club Holdings's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
BJ's Wholesale Club Holdings (STU:8BJ) has a Gross Margin % of 18.16% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on BJ's Wholesale Club Holdings and its competitors. This is near median its historical median of 18.30. Over the past decade, BJ's Wholesale Club Holdings' Gross Margin % has ranged from 17.23 to 19.31. According to the industry distribution chart, BJ's Wholesale Club Holdings ranks #204 out of 303 companies in the Retail - Defensive industry, placing it in the top 67.3%.
Is BJ's Wholesale Club Holdings' Gross Margin % too high?
BJ's Wholesale Club Holdings' current Gross Margin % of 18.16% is near median its 10-year median of 18.30. Over the past 10 years, this metric has ranged from a low of 17.23 to a high of 19.31. The Retail - Defensive industry median Gross Margin % is 24.08. BJ's Wholesale Club Holdings' value of 18.16% is 24.6% below this industry median. Based on the distribution chart, BJ's Wholesale Club Holdings ranks #204 out of 303 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, BJ's Wholesale Club Holdings has a GF Score™ of 85/100, reflecting its overall financial health beyond just this single metric.
How does BJ's Wholesale Club Holdings' Gross Margin % compare to PSMT and TBBB?
According to the Retail - Defensive industry distribution chart, BJ's Wholesale Club Holdings ranks #204 out of 303 companies for Gross Margin %. This places BJ's Wholesale Club Holdings in the lower half of its industry. The industry median Gross Margin % is 24.08. BJ's Wholesale Club Holdings' value of 18.16% is 24.6% below this benchmark. Historically, BJ's Wholesale Club Holdings' own Gross Margin % has ranged from 17.23 to 19.31 over the past decade. While the company's 10-year median is 18.30 vs. the industry median of 24.08, BJ's Wholesale Club Holdings has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.08, based on 303 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BJ's Wholesale Club Holdings's current Gross Margin % of 18.16% is 24.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on BJ's Wholesale Club Holdings and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BJ's Wholesale Club Holdings's current Gross Margin % is 18.16%, which is near median its own 10-year median of 18.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BJ's Wholesale Club Holdings stock overvalued right now?
BJ's Wholesale Club Holdings (STU:8BJ) has a current Gross Margin % of 18.16%. The stock's GF Value™ is €85.47, compared to a current price of €77.00 — trading 9.9% below its estimated fair value. The current Gross Margin % is 18.16%, which is near median its 10-year median of 18.30 and 24.6% below the Retail - Defensive industry median of 24.08. BJ's Wholesale Club Holdings' overall GF Score™ is 85/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For BJ's Wholesale Club Holdings (STU:8BJ), the current Gross Margin % is 18.16% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is BJ's Wholesale Club Holdings (STU:8BJ) Overvalued in 2026?
Based on GuruFocus' analysis, BJ's Wholesale Club Holdings stock appears to be undervalued.
The current stock price of €77.00 is trading 9.9% below its estimated GF Value™ of €85.47.
Key valuation signals for STU:8BJ:
Gross Margin %: 18.16% (near median its 10-year median of 18.30)
GF Value™: €85.47 vs. price of €77.00 (9.9% below fair value)
Industry Position: 24.6% below the Retail - Defensive median (#204 of 303)
No single metric tells the full story. See the STU:8BJ stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BJ's Wholesale Club, founded in 1984, operates a membership-based warehouse club model primarily along the US East Coast, with roughly 260 clubs and a growing domestic presence across 21 states. In fiscal 2025, the company generated over $21 billion in revenue. BJ's offers a value-oriented assortment skewed toward grocery, perishables, and consumables (72% of sales), general merchandise (11%), and gasoline (17%). Its business model is supported by recurring membership fee income and private-label brands such as Wellsley Farms and Berkley Jensen.
85GF Score
Get the complete analysis for STU:8BJ
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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