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

• Market Cap: £1.88B
• Dividend Yield: 16.06%
• Average Volume (3M): 5.35M
• Price to Earnings (P/E): 6.0
• Beta (1Y): 0.64
• Revenue Growth: 1.59%
• EPS Growth: -13.17%
• Country: UK
• Employees: 40,383
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Discount Stores
• EPS (TTM): 0.21
• 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: 4.82
• 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: £265.91
• Price Target Upside: 42.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 11

• Rating: 70 Outperform
• Price Target: 189.00p ▲(1.18% Upside)

B&M European Value Retail SA's overall stock score is driven by its strong valuation and positive earnings call, which highlight solid revenue growth and shareholder returns. However, technical analysis indicates bearish momentum, and financial performance shows potential risks due to high leverage and declining free cash flow growth.

Positive Factors

Revenue Growth

The company's ability to grow revenue by 3.7% YoY, driven by new store openings, indicates effective expansion strategies and market penetration, supporting long-term growth prospects.

Cash Generation

Strong cash generation and a high return on capital employed indicate efficient operations and financial health, providing resources for reinvestment and shareholder returns.

Store Expansion

Continued store expansion supports revenue growth and market share increase, enhancing the company's competitive position in the discount retail sector.

Negative Factors

High Leverage

High leverage poses financial risks, potentially limiting flexibility and increasing vulnerability to economic downturns, impacting long-term stability.

Declining Free Cash Flow

A decline in free cash flow, due to increased capital expenditures and reduced net income, could constrain liquidity and investment capacity, affecting future growth.

Operating Cost Challenges

Rising operating costs, driven by store expansion and wage hikes, could pressure margins and profitability, challenging cost management and efficiency.

B&M European Value Retail SA Business Overview & Revenue Model

Company Description

B&M European Value Retail SA (BME) is a leading discount retailer based in the United Kingdom, specializing in providing a wide range of general merchandise and groceries at competitive prices. The company operates through its chain of B&M stores, which offer everything from food and drink to household goods, health and beauty products, and seasonal items. With a focus on value for money, B&M caters primarily to price-sensitive customers, leveraging its buying power to offer branded and private label products at significant discounts.

How the Company Makes Money

B&M European Value Retail SA generates revenue primarily through the sale of a diverse range of products in its retail stores. The company's revenue model is built on a high-volume, low-margin approach, allowing it to attract a large customer base seeking affordable options. Key revenue streams include the sale of grocery items, household goods, and seasonal products, with a significant portion coming from private label products that yield higher margins. Additionally, B&M benefits from strategic partnerships with suppliers that enable cost-effective procurement and promotional campaigns. The company's expansion strategy, including the opening of new stores and potential acquisitions, further contributes to its earnings by increasing market presence and customer reach.

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 introduce potential risks. The company's ability to generate cash remains robust, but declining free cash flow growth could pressure future financial flexibility. Overall, the financial position is stable but requires careful debt and expense management to sustain profitability.

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	5.57B	5.57B	5.48B	4.98B	4.67B	4.80B
Gross Profit	2.09B	2.09B	2.04B	1.80B	1.75B	1.76B
EBITDA	839.00M	839.00M	866.00M	778.00M	837.00M	821.25M
Net Income	319.00M	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	217.00M	217.00M	182.00M	237.00M	173.00M	218.00M
Total Debt	2.57B	2.57B	2.27B	2.25B	2.27B	2.03B
Total Liabilities	3.25B	3.25B	4.36B	4.28B	2.89B	2.63B
Stockholders Equity	752.00M	752.00M	926.22M	-720.00M	746.00M	733.00M
Cash Flow
Free Cash Flow	544.00M	544.00M	623.00M	689.00M	395.00M	740.00M
Operating Cash Flow	675.00M	675.00M	746.00M	782.00M	491.00M	827.00M
Investing Cash Flow	-254.00M	-254.00M	-118.00M	-87.00M	-85.00M	-70.00M
Financing Cash Flow	-384.00M	-384.00M	-680.00M	-634.00M	-450.00M	-969.00M

B&M European Value Retail SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 186.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 186.8 is below the 20-day moving average (MA) of 212.87, below the 50-day MA of 232.90, and below the 200-day MA of 266.24, indicating a bearish trend. The MACD of -16.83 indicates Positive momentum. The RSI at 31.60 is Neutral, neither overbought nor oversold. The STOCH value of 41.52 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
CURY	―	£1.52B	14.40	5.01%	1.04%	2.71%	-34.19%
MKS	―	£8.13B	27.56	10.25%	0.89%	5.96%	-33.04%
BME	―	£1.88B	5.95	42.93%	16.06%	1.59%	-13.17%
DNLM	―	£2.35B	14.97	121.78%	1.44%	3.78%	3.29%
KGF	―	£5.37B	29.84	2.86%	3.98%	-0.13%	-43.71%
ROO	―	―	―	―	―	2.57%	-136.83%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

B&M European Value Retail SA Corporate Events

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.

B&M European Value Retail Unveils Strategic Plan to Boost UK Sales

B&M European Value Retail S.A. has announced a strategic plan, ‘Back to B&M Basics,’ to address operational weaknesses and improve like-for-like sales growth in the UK. Despite a 4.0% revenue increase in the first half of FY26, driven by store expansions and strong performance in France, the company experienced challenges in operational execution, impacting its financial performance. The plan includes price adjustments, promotional revamps, and improved product availability, aiming to restore sustainable growth and stabilize profit margins over the next 12-18 months.

The most recent analyst rating on (GB:BME) stock is a Buy with a £274.00 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 Shares, Signaling Confidence

B&M European Value Retail S.A. announced that its CEO, Tjeerd Jegen, has purchased 50,400 ordinary shares of the company at a price of £2.497415 per share, totaling £125,869.72. This transaction, conducted 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 sentiment.

The most recent analyst rating on (GB:BME) stock is a Buy with a £274.00 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 Director Purchases Shares

B&M European Value Retail S.A. announced a transaction involving the purchase of ordinary shares by Oliver Tant, the Senior Independent Director of the company, acting as Attorney for his mother. The transaction involved the acquisition of 2,000 shares at a price of 2.415853 GBP per share, totaling £4,831.71, and was executed on the London Stock Exchange. This purchase may reflect confidence in the company’s market position and could have implications for shareholder perceptions and market dynamics.

The most recent analyst rating on (GB:BME) stock is a Buy with a £274.00 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 Significant Shareholding

B&M European Value Retail S.A. announced that its CEO, Tjeerd Jegen, has purchased 61,500 ordinary shares of the company at a price of £2.418943 per share, totaling £148,764.99. This transaction, conducted on the London Stock Exchange, signifies a vote of confidence from the CEO in the company’s future prospects, potentially impacting investor sentiment positively.

The most recent analyst rating on (GB:BME) stock is a Buy with a £274.00 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 Shares

B&M European Value Retail S.A. announced that its CEO, Tjeerd Jegen, has purchased 79,500 ordinary shares of the company at a price of 2.495579 GBP per share, totaling 198,398.53 GBP. This transaction, conducted on the London Stock Exchange, indicates a significant personal investment by the CEO, which could signal confidence in the company’s future performance and potentially impact investor sentiment positively.

The most recent analyst rating on (GB:BME) stock is a Buy with a £278.00 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 Increases Stake with Share Purchases

B&M European Value Retail S.A. announced that its CEO, Tjeerd Jegen, has purchased ordinary shares of the company on multiple occasions. The transactions, conducted on the London Stock Exchange, indicate a significant investment by the CEO, which could reflect confidence in the company’s future performance and potentially impact investor sentiment positively.

The most recent analyst rating on (GB:BME) stock is a Buy with a £246.00 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 Updates Share Capital and Voting Rights

B&M European Value Retail S.A. has announced its total voting rights as of August 31, 2025. The company has issued share capital comprising over one billion ordinary shares, with a small number of voting rights suspended due to non-dematerialisation. This update is crucial for shareholders to accurately calculate their interests under the Disclosure and Transparency Rules.

The most recent analyst rating on (GB:BME) stock is a Buy with a £246.00 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 Trading Director Exercises Share Options

B&M European Value Retail S.A. announced a transaction involving Gareth Bilton, a Trading Director at the company, who exercised nil-cost share options related to a Restricted Share Award from 2022. Additionally, Bilton disposed of a portion of shares to cover tax liabilities, with the transaction occurring on the London Stock Exchange. This activity reflects internal financial management and compliance with tax obligations, potentially impacting shareholder value and market perception.

The most recent analyst rating on (GB:BME) stock is a Buy with a £246.00 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 Executives Exercise Share Options

B&M European Value Retail S.A. announced transactions involving its managerial staff, Jonathan Parry and James Kew, who exercised nil-cost share options related to the Restricted Share Award 2022. These transactions involved the disposal of shares to cover tax liabilities, with Parry and Kew conducting their transactions on 12 August 2025, both inside and outside trading venues. This activity reflects internal financial management strategies and may influence investor perceptions regarding executive compensation and shareholding structures.

The most recent analyst rating on (GB:BME) stock is a Buy with a £550.00 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 Grants Share Options to Key Executives

B&M European Value Retail S.A. announced the grant of nil-cost share options to several key managerial personnel, including Gareth Bilton, Alexander Simpson, Jonathan Parry, James Kew, and Anthony Giron. This move, involving a total of 326,767 ordinary shares, reflects the company’s strategy to incentivize and retain its leadership team, potentially impacting its operational focus and market positioning.

The most recent analyst rating on (GB:BME) stock is a Buy with a £550.00 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 Grants Share Options to CEO and CFO

B&M European Value Retail S.A. has announced the grant of nil-cost share options to its CEO, Gerardus Matheus Thomas Jegen, and CFO, Michael Stefan Schmidt, as part of their Long Term Incentive Plan. This move reflects the company’s commitment to aligning the interests of its top executives with long-term shareholder value, potentially impacting its operational strategies and market positioning.

The most recent analyst rating on (GB:BME) stock is a Buy with a £550.00 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.