B&M European Value Retail SA (BME) AI Stock Analysis

• Market Cap: £1.92B
• Dividend Yield: 17.38%
• Average Volume (3M): 5.35M
• Price to Earnings (P/E): 7.7
• Beta (1Y): 0.60
• Revenue Growth: 1.74%
• EPS Growth: -23.72%
• Country: UK
• Employees: 40,383
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): 0.07
• Shares Outstanding: 1,005,038,270
• 10 Day Avg. Volume: 7,918,320
• 30 Day Avg. Volume: 5,345,630
• PEG Ratio: -0.61
• Price to Book (P/B): 3.47
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 4.80
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £206.25
• Price Target Upside: 7.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 0.2
• Revenue Forecast (FY): £5.77B

• Rating: 66 Neutral
• Price Target: 206.00p ▲(7.85% Upside)
• Action: Downgraded Date: 12/13/25
• Date: Action: Downgraded 12/13/25

The overall stock score of 66 reflects a mix of strong valuation and financial performance, offset by bearish technical indicators. The low P/E ratio and high dividend yield suggest the stock is undervalued, which is a significant positive factor. However, the technical analysis indicates a bearish trend, which could pose short-term risks. The financial performance is stable but requires attention to leverage and cash flow management.

Positive Factors

Cash generation ability

Strong operating cash conversion indicates durable internal funding for operations, dividends and debt servicing. Consistently higher OCF than net income shows accounting profits translate to cash, supporting resilience through retail cycles and enabling reinvestment without sole reliance on external financing.

Margin sustainability

Sustained high gross margins and solid EBIT/EBITDA margins reflect efficient sourcing, pricing and operating leverage in a low-cost, large-format model. These margins provide a buffer against commodity and cost inflation, supporting profitability even if top-line growth slows.

Resilient value retail model

An off-price, high-turnover model targets budget-conscious consumers and benefits from scale purchasing and opportunistic sourcing. This structural positioning tends to be defensive in slower economies and drives repeat visits, supporting steady revenue and margin durability over time.

Negative Factors

Balance sheet leverage

Elevated leverage increases refinancing, interest rate and covenant risks, reducing financial flexibility. In a capital-intensive retail model higher debt can constrain ability to fund store investment, respond to supply shocks, or sustain dividends if cash generation weakens.

Free cash flow decline

A material fall in free cash flow signals pressure on liquidity available for growth, deleveraging or shareholder returns. If capex remains elevated, the company may need to prioritize spending or access external funding, which is harder given the already high leverage.

Profitability volatility

Declining net margins and negative EPS growth point to bottom-line sensitivity to costs, pricing or mix shifts. Persistent margin compression or earnings volatility can undermine reinvestment capacity and make long-term planning harder for a retailer reliant on tight cost control.

B&M European Value Retail SA Business Overview & Revenue Model

Company Description

B&M European Value Retail S.A. operates general merchandise and grocery stores. The company operates a chain of 701 stores under the B&M brand, and 311 stores under the Heron Foods and B&M Express brands in the United Kingdom; and 107 stores under the B&M brand in France. It also provides employment and property management services. The company was founded in 1978 and is based in Luxembourg, Luxembourg.

How the Company Makes Money

B&M European Value Retail generates revenue primarily through the sale of a wide variety of consumer goods in its retail stores. The company operates on a low-cost, high-volume model, strategically sourcing products from suppliers to ensure competitive pricing. Key revenue streams include sales from its extensive range of own-brand products and branded goods, which appeal to different segments of the market. Additionally, B&M benefits from economies of scale by purchasing large quantities of merchandise, allowing for further cost reductions. The company also enhances its earnings through seasonal promotions and limited-time offers, driving foot traffic and increasing sales volume. Partnerships with suppliers enable B&M to maintain a diverse product assortment while managing costs effectively, contributing to its overall profitability.

B&M European Value Retail SA Financial Statement Overview

Summary

B&M European Value Retail SA demonstrates steady revenue growth and strong operating efficiency, as evidenced by healthy margins. However, net income fluctuation and high leverage introduce potential risks. The company's ability to generate cash remains robust, but declining free cash flow growth could pressure future financial flexibility. Overall, the financial position is stable but requires careful debt and expense management to sustain profitability.

Income Statement

The income statement reveals steady revenue growth, with recent figures showing a 1.59% increase from the previous year. Gross profit margin is robust, consistently around 37% over the years, indicating efficient cost management. However, the net profit margin has shown some volatility, decreasing to 5.73% in the latest year from 6.69% the previous year, reflecting pressures on the bottom line. EBIT and EBITDA margins remain strong at 10.16% and 15.15% respectively, although EBIT margin has slightly decreased.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio due to significant liabilities, with a debt-to-equity ratio reaching 3.41 in the latest report. While stockholders' equity has declined, the company maintains a healthy return on equity at 42.39% for the latest period, suggesting good profitability with existing equity. The equity ratio is moderate at 18.77%, reflecting a leveraged position that could pose risks if cash flows decline.

Cash Flow

Cash flow analysis shows positive trends with operating cash flow consistently exceeding net income, resulting in an operating cash flow to net income ratio of 2.12, indicating strong cash generation. The free cash flow to net income ratio is also favorable at 1.70. However, free cash flow has decreased by 12.58% year-over-year, reflecting increased capital expenditures and reduced net income, which could impact future liquidity.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.68B	5.57B	5.48B	4.98B	4.67B	4.80B
Gross Profit	2.00B	2.09B	2.04B	1.80B	1.75B	1.76B
EBITDA	769.00M	839.00M	866.00M	778.00M	837.00M	821.25M
Net Income	249.00M	319.00M	367.00M	348.00M	422.00M	428.00M
Balance Sheet
Total Assets	4.01B	4.01B	3.63B	3.56B	3.64B	3.36B
Cash, Cash Equivalents and Short-Term Investments	172.00M	217.00M	182.00M	237.00M	173.00M	218.00M
Total Debt	2.48B	2.57B	2.27B	2.25B	2.27B	2.03B
Total Liabilities	3.30B	3.25B	4.36B	4.28B	2.89B	2.63B
Stockholders Equity	711.00M	752.00M	926.22M	-720.00M	746.00M	733.00M
Cash Flow
Free Cash Flow	513.00M	544.00M	623.00M	689.00M	395.00M	740.00M
Operating Cash Flow	646.00M	675.00M	746.00M	782.00M	491.00M	827.00M
Investing Cash Flow	-121.00M	-254.00M	-118.00M	-87.00M	-85.00M	-70.00M
Financing Cash Flow	-544.00M	-384.00M	-680.00M	-634.00M	-450.00M	-969.00M

B&M European Value Retail SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 191.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BME, the sentiment is Positive. The current price of 191 is above the 20-day moving average (MA) of 182.41, above the 50-day MA of 173.83, and below the 200-day MA of 212.54, indicating a neutral trend. The MACD of 5.13 indicates Negative momentum. The RSI at 61.42 is Neutral, neither overbought nor oversold. The STOCH value of 68.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BME.

B&M European Value Retail SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFD	76 Outperform	£1.70B	12.93	9.47%	1.62%	0.50%	20.52%
TSCO	74 Outperform	£30.54B	20.93	13.65%	3.25%	1.05%	-20.25%
SBRY	70 Outperform	£7.76B	22.60	6.63%	4.02%	0.82%	160.81%
BNZL	69 Neutral	£7.07B	15.02	17.98%	3.56%	1.92%	0.50%
BME	66 Neutral	£1.92B	7.70	34.27%	17.38%	1.74%	-23.72%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
OCDO	54 Neutral	£1.74B	4.28	―	―	―	―

B&M European Value Retail SA Corporate Events

B&M Completes Jersey Migration and Prepares London Listing of New Shares

B&M European Value Retail has completed its corporate migration and is now registered in Jersey as B&M European Value Retail plc, with continuity of legal personality preserved despite the change in jurisdiction. The move formalises a new corporate domicile while maintaining the company’s existing structure and branding, including its unchanged stock ticker.

The company has applied for the admission of just over 1 billion ordinary shares to trading on the London Stock Exchange’s main market, with listing expected to commence on 2 March 2026. Existing shareholders will see their uncertificated holdings credited in CREST and, following provision of required information in some cases, receive share certificates under a new ISIN, ensuring continuity of market access and trading liquidity after the migration.

The most recent analyst rating on (GB:BME) stock is a Buy with a £215.00 price target. To see the full list of analyst forecasts on B&M European Value Retail SA stock, see the GB:BME Stock Forecast page.

B&M Publishes Prospectus Ahead of Jersey Migration and London Listing Move

B&M European Value Retail S.A. has published an FCA-approved prospectus for the admission of ordinary shares in B&M European Value Retail plc, incorporated in Jersey, to the FCA’s Official List and to trading on the London Stock Exchange’s main market. The move follows the group’s planned statutory migration of its corporate seat from Luxembourg to Jersey, signalling a corporate re-domiciliation rather than a capital raise.

The company expects admission of the new Jersey shares and the start of unconditional dealings at 8:00 a.m. UK time on 2 March 2026, with Merrill Lynch International acting as sponsor. B&M has also released an FAQ document to guide shareholders on the practical implications of the migration, underlining the need for investors, including those holding through nominees or ISAs, to understand any changes to how their shares are held.

The most recent analyst rating on (GB:BME) stock is a Buy with a £213.00 price target. To see the full list of analyst forecasts on B&M European Value Retail SA stock, see the GB:BME Stock Forecast page.

B&M Executive Increases Stake with Share Purchase on London Market

B&M European Value Retail S.A., a leading European discount retailer focused on value general merchandise and everyday consumer goods, operates in the competitive low-price retail market serving budget-conscious customers. The company’s shares trade on the London Stock Exchange, providing access to a broad base of institutional and retail investors.

The company disclosed that Group Trading Director and person discharging managerial responsibilities Simon Hathway purchased 26,495 ordinary shares on 23 February 2026 on the London Stock Exchange. The transaction, worth approximately £49,996, signals increased personal investment by senior management and may be viewed by shareholders as a sign of confidence in the company’s prospects.

The most recent analyst rating on (GB:BME) stock is a Buy with a £210.00 price target. To see the full list of analyst forecasts on B&M European Value Retail SA stock, see the GB:BME Stock Forecast page.

B&M to Review Pre-Emption Policy After Shareholder Dissent at 2025 AGM

B&M European Value Retail has issued an update on shareholder voting at its 2025 Annual General Meeting, highlighting that all resolutions were passed, with the vast majority receiving more than 95% support. However, the company acknowledged that some investors opposed two resolutions authorising the board to issue up to 20% of share capital on a non-pre-emptive basis for general and capital investment purposes, and it has since engaged with those shareholders to better understand their concerns. B&M said it will continue discussions and review its approach to the disapplication of pre-emption rights to ensure an appropriate balance between capital-raising flexibility and shareholder protections, with further details to be provided in its FY26 annual report, signalling a sharpened focus on governance and investor relations around capital allocation authorities.

The most recent analyst rating on (GB:BME) stock is a Buy with a £196.00 price target. To see the full list of analyst forecasts on B&M European Value Retail SA stock, see the GB:BME Stock Forecast page.

B&M Cuts Profit Guidance as It Doubles Down on Price and Stock Reset

B&M European Value Retail reported modest third-quarter revenue growth, with group sales up 2.9% year-on-year and 3.6% for the year to date, supported by strong seasonal trading and a return to like-for-like growth in its core B&M UK business in December and early January. However, the company cut its full-year adjusted EBITDA guidance to £440m–£475m from £470m–£520m as it deepens investment in price, accelerates clearance of discontinued lines and stock clean-up under its “Back to B&M Basics” reset, and grapples with profit underperformance at Heron Foods, which is under strategic review. The retailer is pushing ahead with a broad rollout of SKU reduction and stock-availability initiatives following pilot trials, while B&M France continues to grow solidly in a competitive market and the group implements recommendations from an external review into a previously disclosed overseas freight cost systems issue, underscoring a focus on operational and financial controls even as near-term margins remain under pressure.

The most recent analyst rating on (GB:BME) stock is a Buy with a £196.00 price target. To see the full list of analyst forecasts on B&M European Value Retail SA stock, see the GB:BME Stock Forecast page.

B&M Sets Date for Q3 FY26 Trading Statement on Key Christmas Period

B&M European Value Retail S.A. has confirmed it will release its Q3 FY26 trading statement, covering the 13 weeks to 27 December 2025, on 22 January 2026 at 07:00 GMT. The scheduled update will provide investors and analysts with a detailed view of the retailer’s peak trading period performance over the key Christmas quarter, offering fresh insight into current trading momentum and consumer demand in the UK value retail segment.

The most recent analyst rating on (GB:BME) stock is a Hold with a £175.00 price target. To see the full list of analyst forecasts on B&M European Value Retail SA stock, see the GB:BME Stock Forecast page.