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B&M European Value Retail SA
(LSE:BME)
Select Model
Select Model
Rating:63Neutral
Price Target:
305.00 p
▲(23.58% Upside)
Action:Downgraded
Date:09/06/26
The score is driven primarily by strong and consistent cash flow and supportive valuation (moderate P/E and solid dividend yield). These positives are tempered by a sharp recent profitability decline and elevated leverage, with technicals indicating mixed momentum and some near-term weakness.
Positive Factors
Steady Revenue Growth
Multi-year revenue growth indicates that B&M continues to expand sales despite operating in a value-focused retail segment. A larger revenue base can improve purchasing scale, store productivity, and distribution efficiency, supporting the durability of the business model over the next several quarters.
Negative Factors
Sharp Profitability Decline
The substantial decline in net income, operating profit, and EBITDA shows that revenue growth has not translated consistently into earnings. If the pressure persists, weaker profitability could reduce investment capacity, slow deleveraging, and make future results more sensitive to changes in retail margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Steady Revenue Growth
Multi-year revenue growth indicates that B&M continues to expand sales despite operating in a value-focused retail segment. A larger revenue base can improve purchasing scale, store productivity, and distribution efficiency, supporting the durability of the business model over the next several quarters.
Read all positive factors
B&M European Value Retail SA (BME) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.88B
Dividend Yield3.35%
Average Volume (3M)4.87M
Price to Earnings (P/E)17.6
Beta (1Y)0.86
Revenue Growth3.66%
EPS Growth-48.66%
CountryUK
Employees39,054
SectorConsumer Defensive
Sector Strength42
IndustryDiscount Stores
Share Statistics
EPS (TTM)0.16
Shares Outstanding1,005,907,530
10 Day Avg. Volume5,835,490
30 Day Avg. Volume4,874,993
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
£271.50Price Target Upside10.01% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.22
Revenue Forecast (FY)£5.96B
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 makes money mainly by buying branded and own-label consumer goods at low cost and selling them through its discount retail stores at a markup, generating revenue from high-volume sales across a wide range of fast-moving categories. Its core re...
B&M European Value Retail SA Earnings Call Summary
Earnings Call Date:Jun 04, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 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
246.80
Price Trends
243.68
Positive
222.52
Positive
195.55
Positive
Market Momentum
11.02
Negative
76.25
Negative
94.97
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 246.8 is below the 20-day moving average (MA) of 257.74, above the 50-day MA of 243.68, and above the 200-day MA of 195.55, indicating a bullish trend. The MACD of 11.02 indicates Negative momentum. The RSI at 76.25 is Negative, neither overbought nor oversold. The STOCH value of 94.97 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | £33.32B | 17.83 | 16.45% | 2.76% | 5.41% | 30.44% | |
67 Neutral | £1.74B | 13.14 | 9.74% | 1.67% | 2.31% | 9.04% | |
65 Neutral | £8.94B | 15.93 | 20.61% | 2.60% | 1.64% | 3.77% | |
63 Neutral | £2.88B | 17.58 | 21.74% | 3.35% | 3.66% | -48.66% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | £2.44B | -9.73 | -15.94% | ― | ― | ― | |
55 Neutral | £7.68B | 20.89 | 6.12% | 7.01% | 2.54% | 12.99% |
* Consumer Defensive Sector Average
GB:BME
B&M European Value Retail SA
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B&M European Value Retail SA Corporate Events
Regulatory Filings and Compliance
B&M Confirms Total Share Capital and Voting Rights as of 30 September 2026
Neutral
Sep 30, 2026
BM European Value Retail plc has confirmed that, as of 30 September 2026, its issued share capital comprises 1,005,907,551 ordinary shares of 10 pence each, with one vote per share and no shares held in treasury. The disclosure underlines the comp...
Business Operations and StrategyExecutive/Board Changes
B&M strengthens board with appointment of veteran retail finance executive
Positive
Sep 23, 2026
BM European Value Retail, a leading UK variety goods value retailer with a large footprint across the UK and France, continues to expand its discount-led model through the BM, Heron Foods and BM Express banners. The group targets value-seeking sho...
Other
B&M Executive Simon Hathway Increases Stake With Share Purchase
Positive
Sep 14, 2026
BM European Value Retail PLC has disclosed a share purchase by Group Trading Director Simon Hathway, a person discharging managerial responsibilities within the group. Hathway acquired ordinary shares of 10 pence each in the company, underscoring ...
Other
B&M CEO Tjeerd Jegen Buys £385,000 of Company Shares
Positive
Sep 9, 2026
BM European Value Retail plc disclosed a share transaction involving its chief executive, Tjeerd Jegen, who is classified as a person discharging managerial responsibilities under market rules. The company, a major discount retailer listed in Lond...
Regulatory Filings and Compliance
B&M Confirms Share Capital and Voting Rights Update
Neutral
Sep 2, 2026
BM European Value Retail plc has confirmed that, as of 31 August 2026, its issued share capital comprises 1,005,554,363 ordinary shares of 10 pence each, with one vote per share and no treasury shares held. This disclosure updates investors on the...
Financial Disclosures
B&M Sets November Date for FY27 Interim Results
Neutral
Sep 2, 2026
BM European Value Retail plc has announced the timetable for its FY27 interim results, confirming that it will publish figures for the 26 weeks to 26 September 2026 on 12 November 2026 at 07:00 GMT. The scheduled update will give investors and oth...
Other
B&M Executives Exercise 2023 Share Awards and Sell Stock to Cover Taxes
Neutral
Aug 26, 2026
BM European Value Retail plc has reported several transactions by senior managers involving ordinary shares linked to its 2023 Restricted Share Award scheme. Managing Director of BM France Anthony Giron, Retail and Supply Director Jonathan Parry, ...
Executive/Board ChangesRegulatory Filings and Compliance
B&M Discloses Share Option Exercise by Heron Foods Managing Director
Neutral
Aug 19, 2026
BM European Value Retail plc has reported a managerial dealing by Tony Dobbs, Managing Director of group subsidiary Heron Foods, involving ordinary shares of 10 pence each in the company. The disclosure underscores ongoing use of equity-based ince...
Regulatory Filings and Compliance
B&M discloses routine share dealings by interim CFO under 2023 award
Neutral
Aug 12, 2026
BM European Value Retail plc has disclosed share transactions involving interim chief financial officer Peter Waterhouse, in line with regulatory requirements for persons discharging managerial responsibilities. The activity relates to ordinary sh...
Other
B&M CEO Tjeerd Jegen Increases Stake with Share Purchase
Positive
Aug 11, 2026
BM European Value Retail plc disclosed that its chief executive officer, Tjeerd Jegen, has purchased ordinary shares in the company, reinforcing his financial stake in the business. The transaction involved the acquisition of 16,500 ordinary share...
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...
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.