Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, warehouse club operator BJ's Wholesale Club
With that in mind, let's take a closer look at BJ's and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Natick, Mass. (1996)|
|Market Cap||$2.5 billion|
|Industry||Hypermarkets and super centers|
|Trailing-12-Month Revenue||$10.82 billion|
CEO Laura Sen (since 2009)
CFO Frank Forward (since 2007)
|Return on Equity (Average, Past 3 Years)||11.9%|
|Cash/Debt||$65.8 million / $696,000|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
Late last week, explainstuff touched on BJ's recent plans to unlock shareholder value: "I thought as soon as they put themselves up for sale, either a major player or a private equity would gobble them up. Books look neat, don't know why they haven't yet been taken up. ... Foresight, any deal would at least make 15-18% min. So, holding on."
Shares of BJ's have calmed down a bit since its buyout buzz-induced bump last month, but many Fools believe they remain ripe for a takeover. While it isn't as profitable as its main rivals, BJ's current EV/EBITDA of 6.8 -- lower than that of discounters Wal-Mart (7.3) and Costco (10.1), as well as fellow big-box Target
(8.0) -- is still well within the range that usually has private equity firms salivating. (NYSE: TGT)
CAPS member spenceraa elaborates:
BJ is prime takeover candidate. (1) Private equity firm has already expressed interest. (2) Investment bankers already hired to conduct an auction. (3) Opportunity to improve margins with significant capital expenditures, which are best achieved (and rewarded) when privately owned. (4) Growth market in struggling/recovering economy, which is a happy downside scenario if the buyout never materializes.
What do you think about BJ's, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Costco and Wal-Mart are both Motley Fool Inside Value picks. Costco is also a selection of Stock Advisor, and Wal-Mart is a choice of Global Gains. The Fool owns shares of Costco and Wal-Mart. Try any of our Foolish newsletter services free for 30 days.
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