B&M European Value Retail S.A. operates general merchandise and grocery stores. More Details
Solid track record and fair value.
Share Price & News
How has B&M European Value Retail's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BME is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: BME's weekly volatility (3%) has been stable over the past year.
7 Day Return
GB Multiline Retail
1 Year Return
GB Multiline Retail
Return vs Industry: BME underperformed the UK Multiline Retail industry which returned 75.1% over the past year.
Return vs Market: BME exceeded the UK Market which returned 30.5% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is B&M European Value Retail's share price compared to the market and industry in the last 5 years?
Simply Wall St News
4 days ago | Simply Wall StIs Now The Time To Look At Buying B&M European Value Retail S.A. (LON:BME)?
2 weeks ago | Simply Wall StB&M European Value Retail S.A.'s (LON:BME) Stock Has Been Sliding But Fundamentals Look Strong: Is The Market Wrong?
4 weeks ago | Simply Wall StWill B&M European Value Retail's (LON:BME) Growth In ROCE Persist?
Is B&M European Value Retail undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BME (£5.4) is trading below our estimate of fair value (£7.39)
Significantly Below Fair Value: BME is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: BME's PE Ratio (18.1x) is in line with the XE Multiline Retail industry average.
PE vs Market: BME is good value based on its PE Ratio (18.1x) compared to the UK market (25.7x).
Price to Earnings Growth Ratio
PEG Ratio: BME's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: BME is overvalued based on its PB Ratio (5.4x) compared to the XE Multiline Retail industry average (2.7x).
How is B&M European Value Retail forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BME's earnings are forecast to decline over the next 3 years (-1.9% per year).
Earnings vs Market: BME's earnings are forecast to decline over the next 3 years (-1.9% per year).
High Growth Earnings: BME's earnings are forecast to decline over the next 3 years.
Revenue vs Market: BME's revenue (5.3% per year) is forecast to grow slower than the UK market (6.4% per year).
High Growth Revenue: BME's revenue (5.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: BME's Return on Equity is forecast to be very high in 3 years time (41.6%).
How has B&M European Value Retail performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BME has high quality earnings.
Growing Profit Margin: BME's current net profit margins (7%) are higher than last year (5.8%).
Past Earnings Growth Analysis
Earnings Trend: BME's earnings have grown by 16.8% per year over the past 5 years.
Accelerating Growth: BME's earnings growth over the past year (47.7%) exceeds its 5-year average (16.8% per year).
Earnings vs Industry: BME earnings growth over the past year (47.7%) underperformed the Multiline Retail industry 47.7%.
Return on Equity
High ROE: BME's Return on Equity (30%) is considered high.
How is B&M European Value Retail's financial position?
Financial Position Analysis
Short Term Liabilities: BME's short term assets (£1.2B) exceed its short term liabilities (£776.2M).
Long Term Liabilities: BME's short term assets (£1.2B) do not cover its long term liabilities (£1.9B).
Debt to Equity History and Analysis
Debt Level: BME's debt to equity ratio (76.6%) is considered high.
Reducing Debt: BME's debt to equity ratio has increased from 57.6% to 76.6% over the past 5 years.
Debt Coverage: BME's debt is well covered by operating cash flow (98.3%).
Interest Coverage: BME's interest payments on its debt are well covered by EBIT (5.4x coverage).
What is B&M European Value Retail current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BME's dividend (1.5%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).
High Dividend: BME's dividend (1.5%) is low compared to the top 25% of dividend payers in the UK market (4.17%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, BME has been paying a dividend for less than 10 years.
Growing Dividend: BME's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (32.5%), BME's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BME's dividends in 3 years are forecast to be covered by earnings (65.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Simon Arora (50 yo)
Mr. Sundeep Arora, also known as Simon, has been Chief Executive Officer of B&M European Value Retail S.A since December 1, 2005 and also has been its Executive Director since May 19, 2014. He has a backgr...
CEO Compensation Analysis
Compensation vs Market: Simon's total compensation ($USD1.67M) is about average for companies of similar size in the UK market ($USD2.20M).
Compensation vs Earnings: Simon's compensation has been consistent with company performance over the past year.
Experienced Management: BME's management team is considered experienced (2.9 years average tenure).
Experienced Board: BME's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
B&M European Value Retail S.A.'s company bio, employee growth, exchange listings and data sources
- Name: B&M European Value Retail S.A.
- Ticker: BME
- Exchange: LSE
- Founded: 1978
- Industry: General Merchandise Stores
- Sector: Retail
- Market Cap: UK£4.919b
- Shares outstanding: 1.00b
- Website: https://www.bandmretail.com
Number of Employees
- B&M European Value Retail S.A.
- 9, Allée Scheffer
- Luxembourg City
B&M European Value Retail S.A. operates general merchandise and grocery stores. As of March 28, 2020, it operated 656 stores in the United Kingdom under the B&M brand; 293 stores under the Heron Foods and ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/15 19:17|
|End of Day Share Price||2021/04/15 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.