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:66Neutral
Price Target:
190.00 p
▲(9.51% Upside)
Action:DowngradedDate:12/13/25
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
High gross margins
A sustained ~37% gross margin reflects durable procurement and assortment advantages in a value retail model. High gross margins provide structural buffer versus cost inflation, support reinvestment in stores and promotions, and underpin long-term operating profitability.
Negative Factors
High leverage
A debt/equity of 3.41 and low equity ratio mean the company is highly leveraged. That amplifies downside risk from sales or margin weakness, raises interest and covenant exposure, and reduces strategic flexibility if cash flows unexpectedly weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
A sustained ~37% gross margin reflects durable procurement and assortment advantages in a value retail model. High gross margins provide structural buffer versus cost inflation, support reinvestment in stores and promotions, and underpin long-term operating profitability.
Read all positive factors
B&M European Value Retail SA (BME) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.74B
Dividend Yield17.38%
Average Volume (3M)5.35M
Price to Earnings (P/E)12.4
Beta (1Y)0.71
Revenue Growth1.74%
EPS Growth-23.72%
CountryUK
Employees40,383
SectorConsumer Defensive
Sector Strength42
IndustryDiscount Stores
Share Statistics
EPS (TTM)0.07
Shares Outstanding1,005,038,270
10 Day Avg. Volume7,918,320
30 Day Avg. Volume5,345,630
Financial Highlights & Ratios
PEG Ratio-0.61
Price to Book (P/B)3.47
Price to Sales (P/S)0.47
P/FCF Ratio4.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£206.25Price Target Upside18.88% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)0.22
Revenue Forecast (FY)£6.01B
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...
How the Company Makes Money
B&M primarily makes money by buying branded and own-label merchandise at low cost and selling it through its physical retail store network at a markup, generating revenue at the point of sale. Key revenue streams are (1) general merchandise sales ...
B&M European Value Retail SA Earnings Call Summary
Earnings Call Date:Jun 04, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 03, 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
75
Positive
Balance Sheet
65
Positive
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 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
Neutral
173.50
Price Trends
176.80
Negative
170.71
Positive
199.53
Negative
Market Momentum
-4.35
Negative
52.18
Neutral
60.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BME, the sentiment is Neutral. The current price of 173.5 is above the 20-day moving average (MA) of 171.13, below the 50-day MA of 176.80, and below the 200-day MA of 199.53, indicating a neutral trend. The MACD of -4.35 indicates Negative momentum. The RSI at 52.18 is Neutral, neither overbought nor oversold. The STOCH value of 60.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | £1.59B | 8.95 | 10.71% | 1.62% | 0.50% | 20.52% | |
74 Outperform | £30.09B | 7.58 | 13.57% | 3.25% | 1.05% | -20.25% | |
71 Outperform | £7.28B | 14.67 | 17.98% | 3.56% | 1.92% | 0.50% | |
70 Outperform | £7.63B | 11.60 | 5.08% | 4.02% | 0.82% | 160.81% | |
66 Neutral | £1.74B | 12.40 | 34.27% | 17.38% | 1.74% | -23.72% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
52 Neutral | £1.54B | 3.62 | 24.47% | ― | ― | ― |
* Consumer Defensive Sector Average
GB:BME
B&M European Value Retail SA
173.50
-94.58
-35.28%
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B&M European Value Retail SA Corporate Events
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...
Business Operations and StrategyDelistings and Listing Changes
B&M European Value Retail Shares Admitted to London Stock Exchange Main Market
Positive
Mar 2, 2026
BM European Value Retail plc announced that all 1,005,038,256 of its ordinary shares have been admitted to the equity shares (commercial companies) category of the Official List of the Financial Conduct Authority. The shares also began trading on ...
Business Operations and StrategyDelistings and Listing Changes
B&M Completes Jersey Migration and Prepares London Listing of New Shares
Positive
Feb 27, 2026
BM European Value Retail has completed its corporate migration and is now registered in Jersey as BM European Value Retail plc, with continuity of legal personality preserved despite the change in jurisdiction. The move formalises a new corporate ...
Business Operations and StrategyDelistings and Listing ChangesRegulatory Filings and Compliance
B&M Publishes Prospectus Ahead of Jersey Migration and London Listing Move
Neutral
Feb 25, 2026
BM European Value Retail S.A. has published an FCA-approved prospectus for the admission of ordinary shares in BM European Value Retail plc, incorporated in Jersey, to the FCA’s Official List and to trading on the London Stock Exchange’...
Other
B&M Executive Increases Stake with Share Purchase on London Market
Positive
Feb 24, 2026
BM European Value Retail S.A., a leading European discount retailer focused on value general merchandise and everyday consumer goods, operates in the competitive low-price retail market serving budget-conscious customers. The company’s share...
Business Operations and StrategyShareholder Meetings
B&M to Review Pre-Emption Policy After Shareholder Dissent at 2025 AGM
Neutral
Jan 22, 2026
BM European Value Retail has issued an update on shareholder voting at its 2025 Annual General Meeting, highlighting that all resolutions were passed, with the vast majority receiving more than 95% support. However, the company acknowledged that s...
Business Operations and StrategyFinancial Disclosures
B&M Cuts Profit Guidance as It Doubles Down on Price and Stock Reset
Negative
Jan 22, 2026
BM European Value Retail reported modest third-quarter revenue growth, with group sales up 2.9% year-on-year and 3.6% for the year to date, supported by strong seasonal trading and a return to like-for-like growth in its core BM UK business in Dec...
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.