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

• Market Cap: £3.15B
• Dividend Yield: 4.74%
• Average Volume (3M): 4.75M
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.52
• Revenue Growth: 6.82%
• EPS Growth: -8.24%
• Country: UK
• Employees: 40,383
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Discount Stores
• EPS (TTM): 0.33
• Shares Outstanding: 1,003,821,900
• 10 Day Avg. Volume: 6,377,591
• 30 Day Avg. Volume: 4,748,584
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.48
• Price to Cash Flow (P/CF): 5.50
• P/FCF Ratio: 6.80
• 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: 399.55p
• Price Target Upside: 23.78% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

B&M European Value Retail SA shows robust financial performance and attractive valuation, supported by strategic expansion plans and insider confidence. However, high debt levels and mixed technical signals present some risks. The company's disciplined growth strategy and strong cash flow position provide a solid foundation for future opportunities.

Positive Factors

Financial Performance

FY EBITDA (pre-IFRS16) is now expected to be ‘above the midpoint’ of the £605-£625m guidance range.

Investor Appeal

The shares are trading at a marked price-to-earnings discount, which might appeal to value investors.

Market Position

Management is very comfortable and confident in the company's pricing position.

Negative Factors

Earnings Guidance

B&M cut its FY25 EBITDA guidance by approximately 3% due to UK like-for-like sales failing to sustain a pick-up.

Leadership Uncertainty

CEO Alex Russo intends to retire at the end of April, creating uncertainty about the company's future leadership.

Sales Performance

An unexplained weakness in like-for-like sales raises concerns about the company's performance.

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 SA generates revenue primarily through the sale of a diverse range of consumer products in its stores. The company's revenue model is based on high-volume, low-margin sales, leveraging its large buying power to secure favorable terms with suppliers and passing those savings onto customers. B&M's key revenue streams include in-store sales from its core B&M Bargains and Heron Foods brands. The company also benefits from its ability to rapidly adapt its product mix in response to consumer demand and seasonal trends. Additionally, B&M's strategic locations and large store formats contribute to high foot traffic and efficient operations. The business does not heavily rely on online sales, which is a differentiating factor from many other retailers. Its profitability is further supported by cost-effective supply chain management and a focus on operational efficiency.

B&M European Value Retail SA Financial Statement Overview

Summary

B&M European Value Retail SA demonstrates solid revenue growth and profitability with strong gross and net margins. The high debt-to-equity ratio poses a financial leverage risk, but strong cash flow generation and improved equity position mitigate some concerns.

Income Statement

The company shows a strong gross profit margin of 37.1% and a net profit margin of 6.7% for the most recent year, indicating effective cost management and profitability. Revenue growth rate of 10.1% from the previous year highlights positive momentum in sales. However, the EBIT and EBITDA margins, at 11.1% and 15.9% respectively, suggest room for improvement in operational efficiency.

Balance Sheet

The debt-to-equity ratio is high due to significant total debt compared to stockholders' equity, indicating potential financial leverage risks. Return on equity is not calculable due to negative equity in the previous year, but recent positive equity is a positive sign. The equity ratio of 25.6% suggests moderate reliance on equity financing.

Cash Flow

Free cash flow growth rate shows a slight decline of 9.4%, but the company maintains strong operating cash flow and a healthy free cash flow to net income ratio of 1.69, indicating good cash generation and efficiency in converting earnings to cash.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
7.24B	5.48B	4.98B	4.67B	4.80B	4.75B
	Gross Profit
2.71B	2.04B	1.80B	1.75B	1.77B	1.61B
	EBIT
734.55M	608.00M	536.00M	610.00M	613.00M	414.84M
	EBITDA
842.62M	872.00M	777.00M	838.00M	824.00M	469.77M
	Net Income Common Stockholders
420.69M	367.00M	348.00M	422.00M	428.00M	112.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
96.66M	182.00M	237.00M	173.00M	218.00M	533.74M
	Total Assets
2.13B	3.63B	3.56B	3.64B	3.36B	4.45B
	Total Debt
655.11M	2.27B	2.25B	2.27B	2.03B	2.58B
	Net Debt
558.45M	2.08B	2.02B	2.09B	1.81B	2.04B
	Total Liabilities
1.05B	4.36B	4.28B	2.89B	2.63B	3.37B
	Stockholders Equity
1.06B	926.22M	-720.00M	746.00M	733.00M	1.08B
Cash Flow		Free Cash Flow
694.14M	620.00M	684.00M	391.00M	739.00M	531.40M
	Operating Cash Flow
894.08M	746.00M	782.00M	491.00M	827.00M	685.05M
	Investing Cash Flow
-165.84M	-118.00M	-87.00M	-85.00M	-70.00M	37.01M
	Financing Cash Flow
-770.77M	-680.00M	-634.00M	-450.00M	-969.00M	-291.40M

B&M European Value Retail SA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 322.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 322.8 is above the 20-day moving average (MA) of 280.47, above the 50-day MA of 283.19, and below the 200-day MA of 351.41, indicating a neutral trend. The MACD of 8.84 indicates Negative momentum. The RSI at 73.31 is Negative, neither overbought nor oversold. The STOCH value of 89.85 is Negative, 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
BME	75 Outperform	£3.15B	9.66	42.42%	4.74%	6.82%	-8.24%
MKS	72 Outperform	£8.18B	16.02	17.19%	0.74%	6.87%	22.36%
TSCO	71 Outperform	£22.52B	14.14	10.18%	3.62%	―	―
WIL	70 Outperform	£313.39M	8.53	14.26%	3.21%	-8.18%	90.18%
Sector *	60 Neutral	$7.23B	11.55	3.67%	4.04%	2.96%	-13.54%
SBRY	60 Neutral	£5.74B	16.61	6.21%	5.28%	2.66%	80.49%

B&M European Value Retail SA Corporate Events

B&M European Value Retail Reports Revenue Growth and Expansion Plans for FY25

B&M European Value Retail S.A. reported a 3.7% increase in group revenues for FY25, reaching £5.6 billion, driven by new store performance and positive sales in France, despite a decline in like-for-like sales in the UK and Heron Foods. The company opened 45 new stores in the UK and continues to expand in France and Heron Foods, with a robust pipeline for future openings. The group’s adjusted EBITDA is expected to exceed the midpoint of its guidance range, and the company is progressing with a redomicile process to enhance shareholder returns.

Spark’s Take on GB:BME Stock

According to Spark, TipRanks’ AI Analyst, GB:BME is a Neutral.

B&M European Value Retail SA shows robust financial performance with strong profitability and cash flow. However, the high debt level and current bearish technical indicators present risks. The stock’s undervaluation and attractive dividend yield provide potential upside. While the earnings call reflects balanced sentiment, strategic growth plans and share buybacks suggest future opportunities.

To see Spark’s full report on GB:BME stock, click here.

B&M Retail Sees Major Stake Reduction by GIC

B&M European Value Retail SA has announced a change in its major holdings, with GIC Private Limited reducing its stake to less than 5% of voting rights. This shift in shareholding structure may impact the company’s governance and influence within the retail sector, as it reflects a significant reduction from the previous holding of nearly 6%.

Spark’s Take on GB:BME Stock

According to Spark, TipRanks’ AI Analyst, GB:BME is a Neutral.

B&M European Value Retail SA shows robust financial performance with strong profitability and cash flow. However, the high debt level and current bearish technical indicators present risks. The stock’s undervaluation and attractive dividend yield provide potential upside. While the earnings call reflects balanced sentiment, strategic growth plans and share buybacks suggest future opportunities.

To see Spark’s full report on GB:BME stock, click here.

Capital Group Adjusts Voting Rights in B&M European Value Retail

The Capital Group Companies, Inc. has adjusted its voting rights in B&M European Value Retail S.A., reducing its stake from 10.038206% to 9.786876%. This change, reported due to a clarification on the total voting rights (TVR) by the issuer, reflects an updated TVR of 1,003,821,871. The adjustment in voting rights indicates a slight shift in the investment strategy of The Capital Group Companies, which could influence stakeholder perceptions and market dynamics.

Spark’s Take on GB:BME Stock

According to Spark, TipRanks’ AI Analyst, GB:BME is a Neutral.

B&M European Value Retail SA shows robust financial performance with strong profitability and cash flow. However, the high debt level and current bearish technical indicators present risks. The stock’s undervaluation and attractive dividend yield provide potential upside. While the earnings call reflects balanced sentiment, strategic growth plans and share buybacks suggest future opportunities.

To see Spark’s full report on GB:BME stock, click here.

B&M European Value Retail Corrects Share Capital and Voting Rights

B&M European Value Retail S.A. has issued a correction regarding its share capital and voting rights as of March 31, 2025. The company confirmed that it has over one billion ordinary shares in issue, with voting rights attached to each share. However, voting rights for a small number of shares are suspended due to dematerialization issues. This announcement ensures transparency and compliance with regulatory requirements, impacting shareholders’ calculations for notifying interest changes.

B&M European Value Retail Announces Total Voting Rights Update

B&M European Value Retail S.A. has announced its total voting rights as of March 31, 2025, with an issued share capital consisting of over one billion ordinary shares. The voting rights for a small number of shares are currently suspended due to non-dematerialization by their owners, impacting the total number of voting rights available. This update is crucial for shareholders to determine their notification requirements under the Disclosure and Transparency Rules.

B&M European Value Retail Announces Change in Voting Rights

B&M European Value Retail S.A. has announced a change in its voting rights structure following a recent acquisition or disposal by the Allan & Gill Gray Foundation. The foundation’s voting rights in the company have decreased slightly from 5.0325% to 4.9812%, which may impact the company’s governance and decision-making processes. This adjustment reflects the dynamic nature of shareholder positions and could influence future strategic directions and stakeholder interests.

B&M European Value Retail to Release FY25 Trading Update

B&M European Value Retail S.A. announced it will release its post close trading update for the fiscal year ending 29 March 2025 on 15 April 2025. This announcement is significant as it will provide insights into the company’s financial performance and operational strategies, potentially impacting investor perceptions and market positioning.

B&M Retail Executives Increase Shareholdings, Signaling Confidence

B&M European Value Retail S.A. announced that Tiffany Hall, the Non-Executive Chair of the Board, and Oliver Tant, the Senior Independent Non-Executive Director, have purchased ordinary shares in the company. These transactions, conducted on the London Stock Exchange, signify confidence in the company’s market position and potential growth, reflecting positively on stakeholder sentiment.

B&M European Value Retail Announces CEO Retirement and Updates FY25 Guidance

B&M European Value Retail S.A. announced that its Group Chief Executive, Alex Russo, will retire effective April 30, 2025, and the company is in the process of selecting a new CEO. Additionally, B&M has updated its FY25 profit guidance, expecting Group adjusted EBITDA to be between £605m and £625m, reflecting current trading conditions and economic uncertainties. This transition in leadership and financial guidance is crucial for the company’s strategic direction, impacting stakeholders and potentially influencing market dynamics.

B&M European Value Retail: Change in Voting Rights Structure

B&M European Value Retail SA announced a change in its voting rights structure due to security lending activities. GIC Private Limited, based in Singapore, has increased its voting rights in the company to 5.998025%, enhancing its influence and potential decision-making power within the company. This change in holdings could impact the company’s governance and its strategic decisions moving forward.

B&M Retail’s Voting Rights Update: Capital Group Increases Stake

B&M European Value Retail S.A. announced an update on its major holdings as The Capital Group Companies, Inc., a U.S.-based investment management firm, increased its voting rights to 10.038206% in the company as of January 31, 2025. This acquisition, which was notified on February 3, 2025, signifies a strategic move by The Capital Group to strengthen its influence within B&M’s operations, potentially impacting the company’s future governance and strategic decisions.

B&M European Value Retail Adjusts Voting Rights Amid Security Lending

B&M European Value Retail SA announced a change in its voting rights structure due to security lending activities. GIC Private Limited, based in Singapore, altered its holdings, resulting in a decrease to 6.397% of total voting rights from a previous position of 7.031%. This adjustment reflects a shift in the ownership stake, potentially impacting the company’s shareholder dynamics and future decision-making processes.

Barclays PLC Acquires Major Voting Rights in B&M European Value Retail

B&M European Value Retail S.A. reported a change in its major holdings, with Barclays PLC acquiring a significant percentage of voting rights. This acquisition suggests a strategic move by Barclays, potentially impacting B&M’s governance and future operational decisions, and highlighting the importance of financial institutions in shareholder dynamics.

B&M Retail Appoints New Non-Executive Director

B&M European Value Retail S.A. announced the appointment of Euan Sutherland as a Non-Executive Director, following shareholder approval at their Ordinary General Meeting. This strategic addition to the board is expected to enhance the company’s governance and may impact its operational strategies, reinforcing its position in the competitive retail market.