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

• Market Cap: £2.51B
• Dividend Yield: 12%
• Average Volume (3M): 3.45M
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.83
• 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: 4,090,193
• 30 Day Avg. Volume: 3,452,841
• 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: £314.63
• Price Target Upside: 25.85% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 76 Outperform
• Price Target: 274.00p ▲(9.60% Upside)

B&M European Value Retail SA's overall stock score reflects strong valuation metrics, with a low P/E ratio and high dividend yield, making it attractive for value and income investors. The company's financial performance is stable, supported by robust cash generation, though high leverage and declining free cash flow growth pose risks. Technical indicators suggest positive momentum, and the recent earnings call provided a positive outlook despite some operational challenges.

Positive Factors

Revenue Growth

The consistent revenue growth driven by new store openings indicates an expanding market presence and potential for sustained business expansion.

Cash Generation

Strong cash generation and high return on capital employed reflect efficient operations and provide financial flexibility for future investments.

Gross Profit Margin

Improved gross profit margins suggest effective cost management and pricing strategies, enhancing profitability and competitive positioning.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, especially if cash flows decline, impacting long-term stability.

Decline in Like-for-Like Sales

Declining like-for-like sales indicate potential challenges in maintaining customer engagement and market share in existing stores.

Rising Operating Costs

Rising operating costs, driven by store expansion and wage hikes, could pressure margins and profitability if not managed effectively.

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 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: Neutral
• Last Price: 250.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 250 is above the 20-day moving average (MA) of 241.92, above the 50-day MA of 235.05, and below the 200-day MA of 280.07, indicating a neutral trend. The MACD of 3.83 indicates Negative momentum. The RSI at 59.76 is Neutral, neither overbought nor oversold. The STOCH value of 81.99 is Negative, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BME	76 Outperform	£2.51B	7.86	42.93%	12.00%	1.59%	-13.17%
DNLM	73 Outperform	2.14B	13.76	0.00%	3.88%	3.78%	3.44%
MKS	72 Outperform	7.14B	24.23	10.06%	1.02%	5.96%	-33.04%
CURY	69 Neutral	1.45B	13.41	4.81%	1.12%	2.71%	-34.19%
KGF	64 Neutral	4.36B	24.98	2.92%	4.93%	-1.51%	-45.51%
ROO	64 Neutral	2.64B	-145.69	0.66%	―	2.57%	0.00%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

B&M European Value Retail SA Corporate Events

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.

B&M European Value Retail S.A. Announces Successful EGM Resolutions and Strategic Migration

B&M European Value Retail S.A. announced that all resolutions proposed at its Extraordinary General Meeting were passed, including the migration of its registered office to Jersey and central administration to the UK. This strategic move, supported overwhelmingly by shareholders, is expected to enhance the company’s operational efficiency and market presence, with trading on the London Stock Exchange anticipated by the end of the year.

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.