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BME

B&M European Value RetailLSE:BME Stock Report

Market Cap

UK£6.4b

7D

1.8%

1Y

35.0%

Updated

03 Dec, 2021

Data

Company Financials +
BME fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance6/6
Financial Health3/6
Dividends3/6

BME Stock Overview

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

B&M European Value Retail Competitors

Fix Price Group

LSE:FIXP

US$6.6b

Industria de Diseño Textil

BME:ITX

€88.5b

Kering

ENXTPA:KER

€86.0b

Dollar General

NYSE:DG

US$50.4b

Price History & Performance

Summary of all time highs, changes and price drops for B&M European Value Retail
Historical stock prices
Current Share PriceUK£6.39
52 Week HighUK£6.45
52 Week LowUK£4.65
Beta0.88
1 Month Change4.75%
3 Month Change16.69%
1 Year Change34.95%
3 Year Change96.86%
5 Year Change153.27%
Change since IPO125.79%

Recent News & Updates

Oct 21
Is B&M European Value Retail S.A. (LON:BME) Potentially Undervalued?

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...

Sep 21
B&M European Value Retail (LON:BME) Is Very Good At Capital Allocation

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...

Sep 08
Is B&M European Value Retail (LON:BME) Using Too Much Debt?

Is B&M European Value Retail (LON:BME) Using Too Much Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Aug 26
An Intrinsic Calculation For B&M European Value Retail S.A. (LON:BME) Suggests It's 30% Undervalued

An Intrinsic Calculation For B&M European Value Retail S.A. (LON:BME) Suggests It's 30% Undervalued

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of B&M European Value...

Shareholder Returns

BMEGB Multiline RetailGB Market
7D1.8%-0.4%-2.2%
1Y35.0%30.9%10.5%

Return vs Industry: BME exceeded the UK Multiline Retail industry which returned 30.9% over the past year.

Return vs Market: BME exceeded the UK Market which returned 10.5% over the past year.

Price Volatility

Is BME's price volatile compared to industry and market?
BME volatility
BME Average Weekly Movement3.8%
Multiline Retail Industry Average Movement3.9%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.6%

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

FoundedEmployeesCEOWebsite
197841,427Simon Arorahttps://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

How do B&M European Value Retail's earnings and revenue compare to its market cap?
BME fundamental statistics
Market CapUK£6.40b
Earnings (TTM)UK£431.50m
Revenue (TTM)UK£4.83b

14.8x

P/E Ratio

1.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BME income statement (TTM)
RevenueUK£4.83b
Cost of RevenueUK£3.02b
Gross ProfitUK£1.81b
ExpensesUK£1.38b
EarningsUK£431.50m

Last Reported Earnings

Sep 25, 2021

Next Earnings Date

May 31, 2022

Earnings per share (EPS)0.43
Gross Margin37.50%
Net Profit Margin8.94%
Debt/Equity Ratio91.5%

How did BME perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

42%

Payout Ratio

Valuation

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

9.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BME (£6.39) is trading below our estimate of fair value (£7.03)

Significantly Below Fair Value: BME is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BME is good value based on its PE Ratio (14.8x) compared to the European Multiline Retail industry average (23.6x).

PE vs Market: BME is good value based on its PE Ratio (14.8x) compared to the UK market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: BME is poor value based on its PEG Ratio (3.5x)


Price to Book Ratio

PB vs Industry: BME is overvalued based on its PB Ratio (7.9x) compared to the XE Multiline Retail industry average (6x).


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?

4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BME's forecast earnings growth (4.3% per year) is above the savings rate (0.9%).

Earnings vs Market: BME's earnings (4.3% per year) are forecast to grow slower than the UK market (12.5% per year).

High Growth Earnings: BME's earnings are forecast to grow, but not significantly.

Revenue vs Market: BME's revenue (6.9% per year) is forecast to grow faster than the UK market (4.9% per year).

High Growth Revenue: BME's revenue (6.9% 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 (56.7%).


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 28.6%.


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?

2.82%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BME's dividend (2.82%) is higher than the bottom 25% of dividend payers in the UK market (1.38%).

High Dividend: BME's dividend (2.82%) 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 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 (42.4% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Retail industry.

Management

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

2.5yrs

Average management tenure


CEO

Simon Arora (51 yo)

17yrs

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 ($USD4.79M) is above average for companies of similar size in the UK market ($USD2.17M).

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 (2.5 years average tenure).


Board Members

Experienced Board: BME's board of directors are considered experienced (3.1 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.


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 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£6.398b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/03 21:23
End of Day Share Price2021/12/03 00:00
Earnings2021/09/25
Annual Earnings2021/03/27


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.