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B&M European Value Retail SA
(LSE:BME)
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Rating:71Outperform
Price Target:
259.00 p
▲(21.37% 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 cash generation
Consistent, sizable operating and free cash flow across 2024–2026 provides durable financial flexibility. Robust FCF supports debt servicing, capital expenditure, and dividends, giving the company room to absorb shocks and fund strategic initiatives over the next several months.
Negative Factors
Elevated leverage and thin equity
A debt-heavy capital structure with a comparatively small equity base heightens balance-sheet risk. High leverage limits financial flexibility, raises interest and covenant vulnerability, and reduces capacity to withstand prolonged margin pressure or fund opportunistic investment without additional financing.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Consistent, sizable operating and free cash flow across 2024–2026 provides durable financial flexibility. Robust FCF supports debt servicing, capital expenditure, and dividends, giving the company room to absorb shocks and fund strategic initiatives over the next several months.
Read all positive factors
B&M European Value Retail SA (BME) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.24B
Dividend Yield4.31%
Average Volume (3M)5.35M
Price to Earnings (P/E)13.7
Beta (1Y)0.84
Revenue Growth3.66%
EPS Growth-48.66%
CountryUK
Employees39,054
SectorConsumer Defensive
Sector Strength42
IndustryDiscount Stores
Share Statistics
EPS (TTM)0.16
Shares Outstanding1,005,029,970
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
£206.67Price Target Upside-3.16% Downside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)0.22
Revenue Forecast (FY)£5.95B
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
213.40
Price Trends
201.37
Positive
183.38
Positive
174.89
Positive
Market Momentum
9.88
Negative
71.61
Negative
94.78
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 213.4 is below the 20-day moving average (MA) of 214.95, above the 50-day MA of 201.37, and above the 200-day MA of 174.89, indicating a bullish trend. The MACD of 9.88 indicates Negative momentum. The RSI at 71.61 is Negative, neither overbought nor oversold. The STOCH value of 94.78 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | £1.68B | 12.65 | 9.74% | 1.79% | 2.31% | 9.04% | |
71 Outperform | £2.24B | 13.67 | 21.74% | 4.50% | 3.66% | -48.66% | |
71 Outperform | £30.49B | 18.13 | 16.05% | 3.02% | 5.43% | 15.57% | |
70 Outperform | £9.03B | 19.87 | 17.21% | 2.68% | 0.59% | -5.46% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | £1.76B | -7.07 | -15.94% | ― | ― | ― | |
56 Neutral | £7.83B | 21.30 | 6.12% | 7.16% | 2.54% | 12.99% |
* Consumer Defensive Sector Average
GB:BME
B&M European Value Retail SA
234.40
23.35
11.06%
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210.80
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2,832.00
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GB:PFD
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191.10
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2.25%
GB:SBRY
J Sainsbury plc
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30.29%
GB:TSCO
Tesco plc
475.70
77.74
19.53%
B&M European Value Retail SA Corporate Events
Business Operations and StrategyExecutive/Board Changes
B&M Grants Nil-Cost Share Options to Senior Management
Positive
Aug 5, 2026
BM European Value Retail has granted nil-cost share options over its ordinary shares to several senior executives, including the Group General Counsel, Retail and Supply Director, Group Trading Director and Group People Director. The awards also e...
Business Operations and StrategyDelistings and Listing Changes
B&M Admits Additional Shares to London Market Under Incentive Plans
Neutral
Aug 5, 2026
BM European Value Retail plc has announced the admission of 1,000,000 additional ordinary shares of 10 pence each to trading on the London Stock Exchange Main Market, bringing its total shares in issue to 1,006,038,256. These new shares are fully ...
Executive/Board ChangesRegulatory Filings and Compliance
B&M CEO Gerardus Jegen Granted Over 1 Million Nil-Cost Share Options
Neutral
Jul 30, 2026
BM European Value Retail has disclosed a managerial transaction involving its Chief Executive Officer and Executive Director, Gerardus Matheus Thomas Jegen. The notification confirms that Jegen, as a person discharging managerial responsibilities,...
Business Operations and StrategyExecutive/Board ChangesDividendsShareholder Meetings
B&M AGM Resolutions Passed Amid Shareholder Dissent on Share Allotment Powers
Neutral
Jul 22, 2026
BM European Value Retail plc reported that all resolutions at its 21 July 2026 Annual General Meeting were approved, including acceptance of the latest annual report and accounts and the declaration of a final dividend, with high participation rep...
Financial DisclosuresRegulatory Filings and Compliance
B&M Reports Stable Balance in Employee Share Option Schemes
Neutral
Jul 15, 2026
BM European Value Retail plc has reported its six-monthly block listing return for its employee share option schemes, covering the period from 14 January 2026 to 13 July 2026. The filing relates to the Long Term Incentive Plan and Deferred Bonus S...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
B&M posts modest Q1 growth as France outperforms and UK refocuses on basics
Neutral
Jul 15, 2026
BM European Value Retail reported group revenue growth of 2% for the first quarter of FY27, driven by a strong performance in France and a solid contribution from Heron Foods. The company’s UK business saw modest overall revenue growth but a...
Other
B&M CEO Tjeerd Jegen Increases Stake with Share Purchase
Positive
Jun 24, 2026
BM European Value Retail plc disclosed that its chief executive officer, Tjeerd Jegen, has purchased ordinary shares in the company on the open market. The transaction involved the acquisition of 53,100 ordinary shares of 10 pence each on the Lond...
Business Operations and StrategyExecutive/Board Changes
B&M Names ASDA Executive Atheeq Akbar as New CFO to Drive Growth Plan
Positive
Jun 24, 2026
BM European Value Retail has appointed experienced retail finance executive Atheeq Akbar as its new Chief Financial Officer, effective from February 2027, with the exact start date to follow. Akbar joins from ASDA, having previously held senior fi...
Business Operations and StrategyExecutive/Board Changes
B&M Grants CEO Tjeerd Jegen Nil-Cost Share Options Linked to Bonus Deferral
Positive
Jun 22, 2026
BM European Value Retail plc disclosed that its Chief Executive Officer and Executive Director, Tjeerd Jegen, has been granted nil-cost share options as part of his annual bonus structure. The award, representing 119,445 ordinary shares of 10 penc...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
B&M European Value Retail Publishes 2026 Annual Report and Sets July AGM
Neutral
Jun 18, 2026
BM European Value Retail plc has published its Annual Report and Financial Statements for the year ended March 2026, along with the formal notice of its 2026 Annual General Meeting. The AGM is scheduled for 21 July 2026 in St. Helier, Jersey, with...
Executive/Board ChangesShareholder Meetings
B&M Announces Retirement of Non-Executive Director Nadia Shouraboura
Neutral
Jun 18, 2026
BM European Value Retail plc said Non-Executive Director Nadia Shouraboura will not stand for re-election at its Annual General Meeting on 21 July 2026 and will retire from the board at the conclusion of that meeting. Shouraboura, who joined the b...
Other
B&M Director Peter Pritchard Increases Stake With £102,000 Share Purchase
Positive
Jun 16, 2026
BM European Value Retail plc disclosed that non-executive director Peter Pritchard, through his company AP Holdings LTD, purchased 53,016 ordinary shares in the retailer. The transaction, executed on 15 June 2026 on the London Stock Exchange’...
Financial Disclosures
B&M Sets Date for Q1 FY27 Trading Update
Neutral
Jun 11, 2026
BM European Value Retail plc has confirmed the publication date for its Q1 FY27 trading statement, covering the 13 weeks to 27 June 2026. The update will be released on 15 July 2026 at 07:00 BST, providing investors and stakeholders with early ins...
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...
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.