B&M European Value Retail SA (GB:BME)
LSE:BME
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B&M European Value Retail SA
(LSE:BME)
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Rating:71Outperform
Price Target:
216.00 p
▲(19.60% Upside)
Action:Reiterated
Date:06/04/26
The score is anchored by solid cash generation and attractive valuation (low P/E and high dividend yield). These positives are tempered by elevated leverage and a sharp drop in 2026 profitability, while technicals remain supportive with a clear uptrend but momentum nearing overbought levels.
Positive Factors
Strong operating and free cash flow
Consistent OCF (~£0.67–£0.83bn) and robust FCF across 2024–2026 provide durable internal funding for debt service, capex and dividends. Reliable cash conversion cushions the business through retail cycles and supports strategic execution without heavy reliance on external financing.
Negative Factors
Elevated leverage and debt burden
High absolute debt relative to equity reduces financial flexibility and increases interest and refinancing risk. With a debt-heavy capital structure, sustained margin weakness or adverse macro shocks could significantly constrain investment, refinancing options and shareholder distributions.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating and free cash flow
Consistent OCF (~£0.67–£0.83bn) and robust FCF across 2024–2026 provide durable internal funding for debt service, capex and dividends. Reliable cash conversion cushions the business through retail cycles and supports strategic execution without heavy reliance on external financing.
Read all positive factors
B&M European Value Retail SA (BME) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.88B
Dividend Yield17.38%
Average Volume (3M)5.35M
Price to Earnings (P/E)11.5
Beta (1Y)0.86
Revenue Growth3.66%
EPS Growth-48.66%
CountryUK
Employees40,383
SectorConsumer Defensive
Sector Strength42
IndustryDiscount Stores
Share Statistics
EPS (TTM)0.16
Shares Outstanding1,005,038,270
10 Day Avg. Volume7,918,320
30 Day Avg. Volume5,345,630
Financial Highlights & Ratios
PEG Ratio-0.21
Price to Book (P/B)2.12
Price to Sales (P/S)0.29
P/FCF Ratio3.17
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£209.29Price Target Upside15.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.21
Revenue Forecast (FY)£5.97B
B&M European Value Retail SA Business Overview & Revenue Model
Company Description
B&M European Value Retail S.A. is a retail group primarily engaged in operating stores that offer a range of general merchandise and groceries. In the United Kingdom, the company manages a substantial network comprising 701 outlets under the B&M b...
How the Company Makes Money
B&M primarily makes money by buying consumer goods at low cost and selling them through its store network at a markup, generating revenue mainly from retail sales to customers (in-store and, where applicable, other limited channels). Key revenue s...
B&M European Value Retail SA Earnings Call Summary
Earnings Call Date:Jun 04, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted solid revenue growth and strong cash returns to shareholders, despite challenges with like-for-like sales declines and rising operating costs. The company remains optimistic about future growth prospects and strategic actions to address current challenges.Positive Updates
Revenue Growth
Total revenues reached GBP 5.6 billion, representing a 3.7% year-on-year increase, primarily driven by new store openings across the group.
Negative Updates
Decline in Like-for-Like Sales
Like-for-like sales decreased by GBP 119 million, a 3.1% decline, with continued negative performance in Q4.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue Growth
Total revenues reached GBP 5.6 billion, representing a 3.7% year-on-year increase, primarily driven by new store openings across the group.
Read all positive updates
Company Guidance
In the call, B&M's Group CFO, Mike Schmidt, provided a detailed overview of the company's financial performance and guidance for the fiscal year 2025. B&M reported total revenues of GBP 5.6 billion, reflecting a 3.7% increase year-on-year, despite negative like-for-like sales. The company's group adjusted EBITDA before IFRS 16 was GBP 620 million, up GBP 4 million from the previous year, and the leverage ratio remained healthy at 1.26x on a pre-IFRS 16 basis. A final dividend of 9.7p was proposed, bringing the full-year dividend to 15p per share, a 2% increase compared to 2024. Over the past five years, B&M has returned GBP 2.1 billion to shareholders, with GBP 1 billion returned post-COVID, equivalent to over one-third of its current market capitalization. The group's adjusted return on capital employed was a robust 30.4%, and cash generation was strong, with over GBP 300 million generated or around 10% of the current market capitalization. The call also addressed operating costs, with a 7.2% overall increase year-on-year, primarily driven by an expanded store estate and rising wages. B&M plans to continue its store expansion with 45 new gross stores in 2026 and is optimistic about maintaining its strong financial performance, focusing on sustainable growth and efficient cost management.B&M European Value Retail SA Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
45
Neutral
Cash Flow
78
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.78B | 5.57B | 5.48B | 4.98B | 4.67B |
| Gross Profit | 2.10B | 2.09B | 2.04B | 1.80B | 1.75B |
| EBITDA | 678.00M | 846.00M | 875.00M | 779.00M | 840.00M |
| Net Income | 164.00M | 319.00M | 367.00M | 348.00M | 422.00M |
Balance Sheet | |||||
| Total Assets | 3.97B | 4.01B | 3.63B | 3.56B | 3.64B |
| Cash, Cash Equivalents and Short-Term Investments | 342.00M | 217.00M | 182.00M | 237.00M | 173.00M |
| Total Debt | 2.45B | 2.57B | 2.27B | 2.25B | 2.27B |
| Total Liabilities | 3.17B | 3.25B | 4.36B | 4.28B | 2.89B |
| Stockholders Equity | 798.00M | 752.00M | 926.22M | -720.00M | 746.00M |
Cash Flow | |||||
| Free Cash Flow | 534.00M | 544.00M | 623.00M | 689.00M | 395.00M |
| Operating Cash Flow | 673.00M | 675.00M | 746.00M | 782.00M | 491.00M |
| Investing Cash Flow | 11.00M | -254.00M | -118.00M | -87.00M | -85.00M |
| Financing Cash Flow | -560.00M | -384.00M | -680.00M | -634.00M | -450.00M |
B&M European Value Retail SA Technical Analysis
Positive
180.60
Price Trends
172.97
Positive
172.44
Positive
178.51
Positive
Market Momentum
6.48
Positive
54.82
Neutral
10.31
Positive
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 180.6 is below the 20-day moving average (MA) of 183.36, above the 50-day MA of 172.97, and above the 200-day MA of 178.51, indicating a bullish trend. The MACD of 6.48 indicates Positive momentum. The RSI at 54.82 is Neutral, neither overbought nor oversold. The STOCH value of 10.31 is Positive, 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £1.73B | 7.84 | 15.61% | 1.62% | 2.31% | 9.04% | |
73 Outperform | £28.38B | 16.76 | 16.05% | 3.25% | 5.43% | 15.57% | |
71 Outperform | £1.88B | 11.45 | 21.74% | 17.38% | 3.66% | -48.66% | |
71 Outperform | £8.04B | 17.63 | 17.21% | 3.56% | 0.59% | -5.46% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | £1.56B | 3.79 | 24.47% | ― | ― | ― | |
56 Neutral | £6.66B | 17.81 | 6.12% | 4.02% | 2.54% | 12.99% |
* Consumer Defensive Sector Average
GB:BME
B&M European Value Retail SA
187.10
-54.56
-22.58%
GB:OCDO
Ocado Group
180.80
-52.00
-22.34%
GB:BNZL
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GB:PFD
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0.16%
GB:SBRY
J Sainsbury plc
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35.12
13.25%
GB:TSCO
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440.80
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13.22%
B&M European Value Retail SA Corporate Events
Business Operations and StrategyFinancial Disclosures
B&M profit falls despite revenue growth as retailer doubles down on turnaround plan
Negative
Jun 3, 2026
BM European Value Retail reported a 3.6% rise in group revenue to £5.78bn for FY26 but saw adjusted EBITDA fall 25.9% and adjusted profit before tax drop 37.7%, as UK trading margins were squeezed and costs rose. The company’s core BM U...
Business Operations and StrategyExecutive/Board Changes
B&M Reshapes Leadership Team With New CFO, Board and HR Appointments
Positive
Apr 10, 2026
BM European Value Retail has announced a series of leadership changes, including the departure of interim Chief Financial Officer and Executive Director Helen Cowing, with long-standing Group Financial Controller Peter Waterhouse stepping in as in...
Regulatory Filings and Compliance
B&M Discloses Routine Share Dealings by Senior Independent Director
Neutral
Mar 9, 2026
BM European Value Retail plc disclosed that its Senior Independent Director, Oliver Tant, executed a simultaneous sale and purchase of ordinary shares in the company. The transaction, involving 10,850 shares sold and an identical number repurchase...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.