NOT FOR DISTRIBUTION
Header cover image

B&M European Value Retail

Market Cap

UK£4.9b

Last Updated

2021/04/15 19:17 UTC

Data Sources

Company Financials +

Executive Summary

B&M European Value Retail S.A. operates general merchandise and grocery stores. More Details


Snowflake Analysis

Solid track record and fair value.


Similar Companies

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.


Market Performance


7 Day Return

2.1%

BME

0.3%

GB Multiline Retail

1.2%

GB Market


1 Year Return

84.4%

BME

75.1%

GB Multiline Retail

30.5%

GB Market

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.


Shareholder returns

BMEIndustryMarket
7 Day2.1%0.3%1.2%
30 Day3.2%2.7%3.5%
90 Day10.6%5.5%3.4%
1 Year105.3%84.4%80.9%75.1%36.5%30.5%
3 Year74.8%42.3%37.5%21.2%15.0%1.3%
5 Year157.1%95.0%28.5%1.9%42.0%15.0%

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

Valuation

Is B&M European Value Retail undervalued compared to its fair value and its price relative to the market?

23.6%

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).


Future Growth

How is B&M European Value Retail forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

-1.9%

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%).


Past Performance

How has B&M European Value Retail performed over the past 5 years?

16.8%

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.


Financial Health

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).


Balance Sheet


Dividend

What is B&M European Value Retail current dividend yield, its reliability and sustainability?

1.45%

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).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Simon Arora (50 yo)

16.33yrs

Tenure

UK£1,213,194

Compensation

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.


Leadership Team

Experienced Management: BME's management team is considered experienced (2.9 years average tenure).


Board Members

Experienced Board: BME's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

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

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

B&M European Value Retail S.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • 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


Location

  • B&M European Value Retail S.A.
  • 9, Allée Scheffer
  • Luxembourg City
  • 2520
  • Luxembourg

Listings


Biography

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/15 19:17
End of Day Share Price2021/04/15 00:00
Earnings2020/09/26
Annual Earnings2020/03/28


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.