| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 3/6 |
| Past Performance | 6/6 |
| Financial Health | 3/6 |
| Dividends | 3/6 |
BME Stock Overview
B&M European Value Retail S.A. operates general merchandise and grocery stores.
B&M European Value Retail Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | UK£5.43 |
| 52 Week High | UK£6.51 |
| 52 Week Low | UK£5.00 |
| Beta | 0.86 |
| 1 Month Change | -11.45% |
| 3 Month Change | -11.01% |
| 1 Year Change | 4.54% |
| 3 Year Change | 62.92% |
| 5 Year Change | 77.86% |
| Change since IPO | 91.87% |
Recent News & Updates
Is B&M European Value Retail S.A. (LON:BME) Potentially Undervalued?
B&M European Value Retail S.A. ( LON:BME ), might not be a large cap stock, but it saw a decent share price growth in...
B&M European Value Retail (LON:BME) Is Very Good At Capital Allocation
Finding a business that has the potential to grow substantially is not easy, but it is possible if we look at a few key...
Shareholder Returns
| BME | GB Multiline Retail | GB Market | |
|---|---|---|---|
| 7D | -3.9% | -3.6% | -1.3% |
| 1Y | 4.5% | 8.4% | 7.8% |
Return vs Industry: BME underperformed the UK Multiline Retail industry which returned 8.2% over the past year.
Return vs Market: BME underperformed the UK Market which returned 7.8% over the past year.
Price Volatility
| BME volatility | |
|---|---|
| BME Average Weekly Movement | 3.8% |
| Multiline Retail Industry Average Movement | 4.2% |
| Market Average Movement | 5.0% |
| 10% most volatile stocks in GB Market | 10.7% |
| 10% least volatile stocks in GB Market | 2.5% |
Stable Share Price: BME is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: BME's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1978 | 41,427 | Simon Arora | https://www.bandmretail.com |
B&M European Value Retail S.A. operates general merchandise and grocery stores. As of March 31, 2020, it operated 656 B&M branded stores and 293 Heron Foods branded stores in the United Kingdom; and 101 stores in France under the Babou and B&M brand. It also provides employment and administrative services.
B&M European Value Retail Fundamentals Summary
| BME fundamental statistics | |
|---|---|
| Market Cap | UK£5.44b |
| Earnings (TTM) | UK£431.50m |
| Revenue (TTM) | UK£4.83b |
12.6x
P/E Ratio1.1x
P/S RatioIs BME overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| BME income statement (TTM) | |
|---|---|
| Revenue | UK£4.83b |
| Cost of Revenue | UK£3.02b |
| Gross Profit | UK£1.81b |
| Expenses | UK£1.38b |
| Earnings | UK£431.50m |
Last Reported Earnings
Sep 25, 2021
Next Earnings Date
May 31, 2022
| Earnings per share (EPS) | 0.43 |
| Gross Margin | 37.50% |
| Net Profit Margin | 8.94% |
| Debt/Equity Ratio | 91.5% |
How did BME perform over the long term?
See historical performance and comparisonDividends
3.3%
Current Dividend Yield42%
Payout RatioValuation
Is B&M European Value Retail undervalued compared to its fair value and its price relative to the market?
45.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BME (£5.43) is trading below our estimate of fair value (£9.93)
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 (12.6x) compared to the European Multiline Retail industry average (23.4x).
PE vs Market: BME is good value based on its PE Ratio (12.6x) compared to the UK market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: BME is poor value based on its PEG Ratio (4x)
Price to Book Ratio
PB vs Industry: BME is overvalued based on its PB Ratio (6.7x) compared to the XE Multiline Retail industry average (5.3x).
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?
3.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BME's forecast earnings growth (3.1% per year) is above the savings rate (0.9%).
Earnings vs Market: BME's earnings (3.1% per year) are forecast to grow slower than the UK market (12.1% per year).
High Growth Earnings: BME's earnings are forecast to grow, but not significantly.
Revenue vs Market: BME's revenue (6.8% per year) is forecast to grow faster than the UK market (4.8% per year).
High Growth Revenue: BME's revenue (6.8% 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 (58.4%).
Past Performance
How has B&M European Value Retail performed over the past 5 years?
24.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BME has high quality earnings.
Growing Profit Margin: BME's current net profit margins (8.9%) are higher than last year (7%).
Past Earnings Growth Analysis
Earnings Trend: BME's earnings have grown significantly by 24.5% per year over the past 5 years.
Accelerating Growth: BME's earnings growth over the past year (44.9%) exceeds its 5-year average (24.5% per year).
Earnings vs Industry: BME earnings growth over the past year (44.9%) exceeded the Multiline Retail industry 34%.
Return on Equity
High ROE: BME's Return on Equity (53.3%) is considered outstanding.
Financial Health
How is B&M European Value Retail's financial position?
Financial Position Analysis
Short Term Liabilities: BME's short term assets (£1.1B) exceed its short term liabilities (£872.9M).
Long Term Liabilities: BME's short term assets (£1.1B) do not cover its long term liabilities (£1.9B).
Debt to Equity History and Analysis
Debt Level: BME's net debt to equity ratio (80.1%) is considered high.
Reducing Debt: BME's debt to equity ratio has increased from 61% to 91.5% over the past 5 years.
Debt Coverage: BME's debt is well covered by operating cash flow (84.5%).
Interest Coverage: BME's interest payments on its debt are well covered by EBIT (7.2x coverage).
Balance Sheet
Dividend
What is B&M European Value Retail current dividend yield, its reliability and sustainability?
3.31%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BME's dividend (3.31%) is higher than the bottom 25% of dividend payers in the UK market (1.4%).
High Dividend: BME's dividend (3.31%) is low compared to the top 25% of dividend payers in the UK market (4.09%).
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 7 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (41.7%), 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 (39.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.6yrs
Average management tenure
CEO
Simon Arora (51 yo)
17.08yrs
Tenure
UK£3,622,819
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 ($USD4.91M) is above average for companies of similar size in the UK market ($USD2.25M).
Compensation vs Earnings: Simon's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: BME's management team is considered experienced (2.6 years average tenure).
Board Members
Experienced Board: BME's board of directors are considered experienced (3.3 years average tenure).
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.
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 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
- Implied Market Cap: UK£5.437b
- Shares outstanding: 1.00b
- Website: https://www.bandmretail.com
Number of Employees
Location
- B&M European Value Retail S.A.
- 9, AllEe Scheffer
- Luxembourg City
- 2520
- Luxembourg
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/22 18:51 |
| End of Day Share Price | 2022/01/21 00:00 |
| Earnings | 2021/09/25 |
| Annual Earnings | 2021/03/27 |
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.