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

• Market Cap: £2.75B
• Dividend Yield: 7.08%
• Average Volume (3M): 9.30M
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.74
• Revenue Growth: 6.82%
• EPS Growth: -8.24%
• Country: UK
• Employees: 40,383
• Sector: Consumer Cyclical
• Sector Strength: 61
• Industry: Discount Stores
• EPS (TTM): 0.21
• Shares Outstanding: 1,003,821,900
• 10 Day Avg. Volume: 9,125,850
• 30 Day Avg. Volume: 9,298,955
• PEG Ratio: -0.83
• Price to Book (P/B): -6.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.07
• 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: £397.80
• Price Target Upside: 45.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

• Rating: 70 Outperform
• Price Target: ―

B&M European Value Retail SA shows robust financial performance with strong profitability and cash flow. However, high debt levels and bearish technical indicators present risks. Despite these challenges, the stock's undervaluation and attractive dividend yield provide potential upside. Earnings call and corporate events highlight strategic growth plans and share buybacks, suggesting future opportunities.

Positive Factors

Financial Performance

FY EBITDA (pre-IFRS16) is expected to be above the midpoint of the £605-£625m guidance range, indicating strong financial health.

Leadership Change

B&M has announced the appointment of Tjeerd Jegen as its new CEO, bringing broad international retail experience, which could positively impact the company's growth and transformation.

Operational Efficiency

France LFLs remained in growth, gross margin was ‘robust’ and operating costs have been ‘managed with discipline’, reflecting operational strength.

Negative Factors

Guidance Cut

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

Leadership Uncertainty

CEO Alex Russo intends to retire, creating uncertainty about the company's future leadership and strategic direction.

Sales Performance

The anticipated Q4 like-for-like sales acceleration did not materialize, leading to a guidance cut, which raises concerns about sales strategy.

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 in a competitive retail sector. The company shows strong cash flow generation and profitability, with room for improvement in operational efficiency. However, high debt levels pose a financial leverage risk despite recent equity improvements.

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
EBITDA	842.62M	872.00M	777.00M	838.00M	824.00M	469.77M
Net Income	420.69M	367.00M	348.00M	422.00M	428.00M	112.22M
Balance Sheet
Total Assets	5.20B	3.63B	3.56B	3.64B	3.36B	4.45B
Cash, Cash Equivalents and Short-Term Investments	247.47M	182.00M	237.00M	173.00M	218.00M	533.74M
Total Debt	3.13B	2.27B	2.25B	2.27B	2.03B	2.58B
Total Liabilities	4.21B	4.36B	4.28B	2.89B	2.63B	3.37B
Stockholders Equity	992.54M	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: Negative
• Last Price: 274.00
• 50DMA: Negative
• 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 Negative. The current price of 274 is above the 20-day moving average (MA) of 2.64, above the 50-day MA of 2.97, and above the 200-day MA of 3.11, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 45.66 is Neutral, neither overbought nor oversold. The STOCH value of 38.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
DNLM	76 Outperform	£2.30B	15.19	84.81%	1.79%	3.07%	1.42%
CURY	74 Outperform	£1.36B	0.13	5.01%	―	-10.46%	396.13%
KGF	71 Outperform	£5.02B	28.49	2.86%	6.00%	-1.51%	-45.51%
MKS	71 Outperform	£6.93B	23.52	10.25%	1.11%	6.87%	22.36%
BME	70 Outperform	£2.75B	8.62	42.93%	7.08%	6.82%	-8.24%
ROO	67 Neutral	£2.56B	981.67	-0.02%	―	2.06%	―
Sector *	56 Neutral	HK$23.37B	3.96	-1.56%	6.69%	0.06%	-64.88%

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.