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
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 1.9% per year for the next 3 years
Snowflake Analysis
Solid track record and fair value.
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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
| BME | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.1% | 0.3% | 1.2% |
| 30 Day | 3.2% | 2.7% | 3.5% |
| 90 Day | 10.6% | 5.5% | 3.4% |
| 1 Year | 105.3%84.4% | 80.9%75.1% | 36.5%30.5% |
| 3 Year | 74.8%42.3% | 37.5%21.2% | 15.0%1.3% |
| 5 Year | 157.1%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
4 days ago | Simply Wall St
Is Now The Time To Look At Buying B&M European Value Retail S.A. (LON:BME)?2 weeks ago | Simply Wall St
B&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 St
Will B&M European Value Retail's (LON:BME) Growth In ROCE Persist?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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/15 19:17 |
| End of Day Share Price | 2021/04/15 00:00 |
| Earnings | 2020/09/26 |
| Annual Earnings | 2020/03/28 |
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.