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

• Market Cap: £1.74B
• Dividend Yield: 17.38%
• Average Volume (3M): 5.35M
• Price to Earnings (P/E): 7.0
• Beta (1Y): 0.65
• 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: £221.44
• Price Target Upside: 27.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: 187.00p ▲(7.97% Upside)

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

Low-cost, high-volume discount retail model

B&M's entrenched discount retail model and scale support durable demand from budget-conscious consumers. High-volume sourcing and own-brand mix give lasting cost advantages, allowing competitive pricing, margin protection and optionality to expand omnichannel sales over the medium term.

Robust gross and operating margins

Sustained ~37% gross margin alongside double-digit EBITDA indicates efficient sourcing and operating leverage. These durable margin levels provide scope to absorb input cost swings, fund store investment and promotional activity, and sustain profitability through consumer cycles.

Strong cash generation and conversion

Consistent operating cash flow well above reported earnings shows high cash conversion, supporting capex, working capital and shareholder returns. Over several quarters this structural cash generation underpins the firm's ability to service obligations and invest without immediate reliance on external funding.

Negative Factors

High leverage and low equity base

A debt-to-equity ratio above 3x and low equity ratio create structural financial risk. High leverage amplifies interest-cost sensitivity, limits strategic flexibility for M&A or reinvestment, and increases refinancing vulnerability if cash flows weaken over the medium term.

Declining free cash flow year-over-year

A significant YoY drop in free cash flow reduces the firm's buffer for debt repayment, reinvestment and dividends. If the decline persists, it could force tougher capital-allocation choices, hinder deleveraging efforts, and constrain long-term growth initiatives.

Net income volatility and EPS decline

Falling net margins and a sharp EPS decline indicate bottom-line volatility despite revenue stability. Persistent margin pressure or earnings volatility can erode retained earnings, complicate debt servicing under high leverage, and weaken investor confidence in long-term profitability.

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 shows steady revenue growth and strong operating efficiency with healthy margins. However, net income fluctuation and high leverage pose potential risks. The company's robust cash generation is a positive, but declining free cash flow growth could pressure future financial flexibility.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: 173.20
• 50DMA: Positive
• 100DMA: Negative
• 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 173.2 is above the 20-day moving average (MA) of 164.63, above the 50-day MA of 164.86, and below the 200-day MA of 232.76, indicating a neutral trend. The MACD of 0.32 indicates Negative momentum. The RSI at 57.96 is Neutral, neither overbought nor oversold. The STOCH value of 75.56 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	£1.47B	11.19	9.47%	1.62%	0.50%	20.52%
TSCO	74 Outperform	£26.41B	18.09	13.65%	3.25%	1.05%	-20.25%
SBRY	70 Outperform	£6.95B	20.18	6.63%	4.02%	0.82%	160.81%
BNZL	69 Neutral	£6.72B	14.27	17.98%	3.56%	1.92%	0.50%
BME	66 Neutral	£1.74B	6.98	34.27%	17.38%	1.74%	-23.72%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
OCDO	44 Neutral	£2.25B	―	―	―	―	―

B&M European Value Retail SA Corporate Events

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.

B&M CEO Acquires Shares, Signaling Confidence in Market Position

B&M European Value Retail S.A. announced a transaction involving its CEO, Tjeerd Jegen, who purchased 29,000 ordinary shares at a price of 1.636362 GBP per share, totaling 47,454.50 GBP. This transaction, conducted on the London Stock Exchange, highlights the CEO’s confidence in the company’s market position and future prospects, potentially signaling positive sentiment to stakeholders.

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.

B&M CEO Invests in Company’s Future with Share Purchase

B&M European Value Retail S.A. announced a managerial transaction involving its CEO, Tjeerd Jegen, who purchased ordinary shares of the company. This transaction, executed on the London Stock Exchange, reflects a significant investment by the CEO, potentially signaling confidence in the company’s future performance and stability, which could positively influence stakeholder perceptions.

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.

B&M CEO Purchases Shares, Signaling Confidence in Company

B&M European Value Retail S.A. announced a transaction involving the purchase of ordinary shares by its CEO, Tjeerd Jegen. The transaction, which took place on the London Stock Exchange, involved the acquisition of 31,450 shares at a price of 1.57867 GBP per share, totaling 49,649.17 GBP. This move indicates a potential vote of confidence in the company’s future prospects by its top executive, which may positively influence stakeholder perceptions.

The most recent analyst rating on (GB:BME) stock is a Hold with a £174.00 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 CEO Acquires Shares, Signaling Confidence in Retailer’s Future

B&M European Value Retail S.A. announced a transaction involving the purchase of ordinary shares by its CEO, Tjeerd Jegen. The transaction, which took place on the London Stock Exchange, involved the acquisition of 31,650 shares at a price of 1.609952 GBP each, totaling 50,954.98 GBP. This move indicates a potential vote of confidence in the company’s future performance by its top executive.

The most recent analyst rating on (GB:BME) stock is a Buy with a £200.00 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 European Value Retail Reports 4% Revenue Growth Amid Profit Decline

B&M European Value Retail S.A. reported its interim results for the first half of FY26, showing a 4% increase in group revenue to £2,749 million. Despite this growth, the company faced a 30.2% decline in adjusted EBITDA and a 31.5% drop in adjusted operating profit. The company is focusing on its ‘Back to B&M Basics’ plan to improve retail execution and financial performance, with a priority on restoring sustainable like-for-like sales growth in the UK. The expansion of store presence in the UK and France continues to support revenue growth. Key leadership appointments were made to strengthen capabilities, and a redomicile process is expected to enable share buybacks in the future.

The most recent analyst rating on (GB:BME) stock is a Buy with a £225.00 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 Revises FY26 Outlook and Announces CFO Departure

B&M European Value Retail S.A. has revised its financial outlook for FY26 due to an error in recognizing £7m of overseas freight costs, resulting in a lowered Group Adjusted EBITDA forecast to £470m – £520m from the previous £510m – £560m. Additionally, CFO Mike Schmidt plans to step down, with a search for his successor underway, and the company will commission a third-party review of the financial oversight issue.

The most recent analyst rating on (GB:BME) stock is a Hold with a £260.00 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 European Value Retail S.A. Announces Migration to Jersey Incorporation

B&M European Value Retail S.A. announced its statutory migration to become B&M European Value Retail plc, a public limited company under Jersey law, moving from its current incorporation in Luxembourg. This migration is expected to have minimal impact on existing shareholders, who will continue to hold their shares and receive dividends as before. The company is also preparing for its shares to be listed on the London Stock Exchange, with a new ISIN issued for the B&M Jersey shares. This strategic move is anticipated to streamline operations and potentially enhance market positioning.

The most recent analyst rating on (GB:BME) stock is a Hold with a £260.00 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.