BJ's Wholesale Club HoldingsBJ +1.60%85 Operating Margin % is 3.92% as of Apr. 2026, which is 2% above its 10-year median of 3.85. GuruFocus rates BJ with a GF Score™ of 85/100 and a GF Value™ of $98.69 (Modestly Undervalued). The stock has 1 warning sign investors should review. Among 310 Retail - Defensive companies, BJ's Wholesale Club Holdings ranks better than 56.77% on this metric.
BJ's Wholesale Club Holdings (NYSE:BJ) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
BJ's Wholesale Club Holdings Operating Margin % Related Terms
BJ's Wholesale Club Holdings Operating 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.
BJ's Wholesale Club Holdings Operating Margin % Chart
BJ vs PSMT, OLLI, TBBB: Operating Margin % Comparison
For the Discount Stores subindustry, BJ's Wholesale Club Holdings's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, BJ's Wholesale Club Holdings's Operating Margin % distribution charts can be found below:
* The bar in red indicates where BJ's Wholesale Club Holdings's Operating Margin % falls into.
BJ's Wholesale Club Holdings Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
* 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.
BJ's Wholesale Club Holdings (BJ) has a Operating Margin % of 3.92% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on BJ's Wholesale Club Holdings and its competitors. This is near median its historical median of 3.85. Over the past decade, BJ's Wholesale Club Holdings' Operating Margin % has ranged from 1.75 to 4.23. According to the industry distribution chart, BJ's Wholesale Club Holdings ranks #134 out of 310 companies in the Retail - Defensive industry, placing it in the top 43.2%.
Is BJ's Wholesale Club Holdings' Operating Margin % too high?
BJ's Wholesale Club Holdings' current Operating Margin % of 3.92% is near median its 10-year median of 3.85. Over the past 10 years, this metric has ranged from a low of 1.75 to a high of 4.23. The Retail - Defensive industry median Operating Margin % is 3.28. BJ's Wholesale Club Holdings' value of 3.92% is 19.7% above this industry median. Based on the distribution chart, BJ's Wholesale Club Holdings ranks #134 out of 310 companies in the Retail - Defensive industry, which is above the industry midpoint. Overall, BJ's Wholesale Club Holdings has a GF Score™ of 85/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does BJ's Wholesale Club Holdings' Operating Margin % compare to PSMT and OLLI?
According to the Retail - Defensive industry distribution chart, BJ's Wholesale Club Holdings ranks #134 out of 310 companies for Operating Margin %. This puts BJ's Wholesale Club Holdings in the upper half of its industry. The industry median Operating Margin % is 3.28. BJ's Wholesale Club Holdings' value of 3.92% is 19.7% above this benchmark. Historically, BJ's Wholesale Club Holdings' own Operating Margin % has ranged from 1.75 to 4.23 over the past decade. While the company's 10-year median is 3.85 vs. the industry median of 3.28, BJ's Wholesale Club Holdings has consistently been above 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 Operating Margin % for a Retail - Defensive company?
The median Operating Margin % among Retail - Defensive companies is 3.28, based on 310 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating 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 Operating Margin % of 3.92% is 19.7% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on BJ's Wholesale Club Holdings and its competitors. For the Retail - Defensive industry, the median Operating Margin % is 3.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BJ's Wholesale Club Holdings's current Operating Margin % is 3.92%, which is near median its own 10-year median of 3.85. 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?
Based on GuruFocus' analysis, BJ's Wholesale Club Holdings (BJ) is currently considered Modestly Undervalued. The stock's GF Value™ is $98.69, compared to a current price of $87.51 — trading 11.3% below its estimated fair value. The current Operating Margin % is 3.92%, which is near median its 10-year median of 3.85 and 19.7% above the Retail - Defensive industry median of 3.28. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For BJ's Wholesale Club Holdings (BJ), the current Operating Margin % is 3.92% 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 (BJ) Overvalued in 2026?
Based on GuruFocus' analysis, BJ's Wholesale Club Holdings stock appears to be undervalued.
The current stock price of $87.51 is trading 11.3% below its estimated GF Value™ of $98.69.
GuruFocus considers BJ's Wholesale Club Holdings to be Modestly Undervalued.
Key valuation signals for BJ:
Operating Margin %: 3.92% (near median its 10-year median of 3.85)
GF Value™: $98.69 vs. price of $87.51 (11.3% below fair value)
Industry Position: 19.7% above the Retail - Defensive median (#134 of 310)
No single metric tells the full story. See the BJ 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 BJ
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
BJ has been successfully added to your 
