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B&M European Value Retail

Executive Summary

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


Snowflake Analysis

Outstanding track record and good 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 not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BME's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-0.8%

BME

-0.02%

GB Multiline Retail

-0.6%

GB Market


1 Year Return

37.3%

BME

10.5%

GB Multiline Retail

-6.5%

GB Market

Return vs Industry: BME exceeded the UK Multiline Retail industry which returned 10.5% over the past year.

Return vs Market: BME exceeded the UK Market which returned -6.5% over the past year.


Shareholder returns

BMEIndustryMarket
7 Day-0.8%-0.02%-0.6%
30 Day1.5%10.3%5.2%
90 Day2.9%19.0%15.1%
1 Year61.9%37.3%14.5%10.5%-2.7%-6.5%
3 Year53.0%24.5%25.2%10.0%5.1%-7.7%
5 Year145.7%86.3%14.4%-8.7%46.8%18.2%

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?

31.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BME (£5.14) is trading below our estimate of fair value (£7.52)

Significantly Below Fair Value: BME is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BME is good value based on its PE Ratio (17.2x) compared to the XE Multiline Retail industry average (22x).

PE vs Market: BME is good value based on its PE Ratio (17.2x) compared to the UK market (23.1x).


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 (5.2x) compared to the XE Multiline Retail industry average (2.6x).


Next Steps

Future Growth

How is B&M European Value Retail forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

-2.1%

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 (-2.1% per year).

Earnings vs Market: BME's earnings are forecast to decline over the next 3 years (-2.1% per year).

High Growth Earnings: BME's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BME's revenue (5.1% per year) is forecast to grow slower than the UK market (6.5% per year).

High Growth Revenue: BME's revenue (5.1% 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 high in 3 years time (33.1%)


Next Steps

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%) exceeded the Multiline Retail industry 37.8%.


Return on Equity

High ROE: BME's Return on Equity (30%) is considered high.


Next Steps

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


Next Steps

Dividend

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

1.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BME's dividend (1.58%) is higher than the bottom 25% of dividend payers in the UK market (1.5%).

High Dividend: BME's dividend (1.58%) is low compared to the top 25% of dividend payers in the UK market (4.55%).


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 well covered by earnings (34.9% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Simon Arora (50 yo)

16.08yrs

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 ($USD1.67M) is below average for companies of similar size in the UK market ($USD2.63M).

Compensation vs Earnings: Simon's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Sundeep Arora
CEO & Executive Director16.08yrsUK£1.21mno data
Alejandro Russo
CFO & Executive Director0.17yrno datano data
Steve Webb
Investor Relations Directorno datano datano data
Cedric Mahieu
Chief Executive Officer of France2.25yrsno datano data
Tony Dobbs
Managing Director of Heron Foods3.08yrsno datano data

2.7yrs

Average Tenure

Experienced Management: BME's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sundeep Arora
CEO & Executive Director16.08yrsUK£1.21mno data
Alejandro Russo
CFO & Executive Director0.17yrno datano data
Peter Bamford
Non-Executive Chairman2.83yrsUK£334.97k0.00050%
£ 25.1k
Gilles Petit
Independent Non-Executive Director1.67yrsUK£53.11k0.00024%
£ 12.0k
Tiffany Hall
Independent Non-Executive Director2.33yrsUK£61.00k0.00030%
£ 15.0k
Ronald McMillan
Senior Independent Non-Executive Director1.67yrsUK£85.16k0.0037%
£ 185.4k
Carolyn Bradley
Independent Non-Executive Director2.17yrsUK£58.00k0.0012%
£ 61.1k
Paul McDonald
Executive Officer6.67yrsUK£650.82k0.0039%
£ 196.0k

2.3yrs

Average Tenure

64yo

Average Age

Experienced Board: BME's board of directors are not considered experienced ( 2.3 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£5.012b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BMELSE (London Stock Exchange)YesOrdinary sharesGBGBPJun 2014
BMNDB (Deutsche Boerse AG)YesOrdinary sharesDEEURJun 2014
BMRP.FOTCPK (Pink Sheets LLC)YesOrdinary sharesUSUSDJun 2014
BMELBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary sharesGBGBPJun 2014
BMRR.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDApr 2016

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 Analysis2021/01/21 18:58
End of Day Share Price2021/01/21 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.