BJ

BJ's Wholesale Club is a membership warehouse retailer that compounds with metronomic consistency, and FY2026 extends the streak. Revenue grew 4.7% to $21.5B, net income rose 8.2% to $578M and EPS climbed 9.5% to $4.38 — capping a five-year arc of uninterrupted growth in both revenue ($16.7B to $21.5B) and net income ($427M to $578M). Operating income rose 5.7% to $817M. The model produces a 26.3% return on equity despite thin retail margins (3.8% operating, 2.7% net), the hallmark of the membership-fee, high-turnover warehouse format where the recurring membership stream and inventory velocity drive returns.

Cash generation and capital allocation are healthy. Operating cash flow grew 14.3% to $1.03B, comfortably funding $702M of capex (+19.4%) for new-club and gas-station expansion plus $287M of buybacks (+30.6%), which trimmed shares 1.5% to 130M. Leverage is moderate — long-term debt of just $399M against $2.20B of equity (which grew 19.0%), with liabilities/equity at 2.42x reflecting the typical lease-and-payables structure of a retailer. The sub-1.0 current ratio (current assets $1.99B vs. liabilities $2.67B) is normal for a fast-turning grocer-style operator.