B&M European Value Retail BME.L
2.30 GBP (−10.2%)
19 analysts
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B&M European Value Retail is a discount retailer operating own-brand stores in the UK and France, offering a wide range of consumer and home products at low prices.
Listed on London Stock Exchange · Symbol BME.L · LON: BME · Currency GBP
Key points
from its scores- ✓Attractive valuation7.7
- ✕Weak growth2.6
- ✕Fragile balance sheet3.0
- ✕Poor share-price trend4.3
AI analysis
bottom line, main risk, context and newsValuation and dividend are attractive, but high debt and earnings deterioration warrant caution until signs of stabilization appear.
B&M combines a defensive discount model with an attractive valuation (P/E 15.97, FCF yield 13.98%) and a solid ROE of 21.16%, but its high leverage (ND/EBITDA 4.49) and sharp earnings decline (-43.40%) weigh on its risk and growth profile.
The main risk is high leverage (ND/EBITDA 4.49) in a rising rate environment, which makes refinancing more expensive and limits financial flexibility if earnings deterioration continues.
Context and risks
B&M operates mainly in the UK and France, with a global supply chain dependent on maritime routes. The blockade of the Strait of Hormuz and attacks in the Gulf of Aden raise freight costs and lead times for importers like B&M, although its extreme value model allows it to partially pass on these costs. The impact is moderate and does not affect its defensive demand.
Is B&M European Value Retail stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades in line with the Consumer Defensive median (within 15%).
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 16.0 | 19.8 | −19% |
| EV / EBITDA | 10.0 | 10.8 | −8% |
| Price / book | 3.2 | 2.7 | +18% |
| Price / sales | 0.4 | 1.2 | −64% |
Sector: median of the 124 Consumer Defensive companies analysed. In bold, the multiples used for the comparison.
Valuation score: 7.7 out of 10 (median for Consumer Defensive: 6.3).
Average analyst target: 2.30 GBP, −10.2% versus the price.
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Consumer Defensive medianValuation
- P/E
- 16.0
- Forward P/E
- 10.8
- EV / EBITDA
- 10.0
- Price / book
- 3.2
- Price / sales
- 0.4
- PEG
- 1.38
- Market cap
- 2.6B GBP
- Enterprise value
- 4.7B GBP
Profitability
- ROE
- 21.2%
- ROA
- 5.9%
- ROIC (approx.)
- 12.5%
- Gross margin
- 36.5%
- Operating margin
- 7.0%
- Net margin
- 2.8%
- Free cash flow
- 359.5M GBP
- FCF yield
- 14.0%
- Cash conversion
- 77%
Solvency
- Total debt
- 2.4B GBP
- Net debt
- 2.1B GBP
- Cash
- 342.0M GBP
- EBITDA
- 469.0M GBP
- Net debt / EBITDA
- 4.49
- Debt / equity
- 306.52
- Current ratio
- 1.42
- Quick ratio
- 0.43
Growth
- Revenue growth
- +3.4%
- Earnings growth
- −43.4%
- EPS (TTM)
- 0.16 GBP
- EPS (forward)
- 0.24 GBP
Dividend
- Dividend yield
- 3.9%
- Payout
- 81.0%
Risk and market
- Beta
- 1.10
- Analyst consensus
- Buy (19)
- Target price
- 2.30 GBP
Recent news
All BME.L news →Compare it with its sector
All 124 in Consumer Defensive →Frequently asked questions about B&M European Value Retail
Is B&M European Value Retail stock cheap or expensive?
On P/E and EV / EBITDA, it trades in line with the Consumer Defensive median (within 15%). Valuation score: 7.7 out of 10 (median for Consumer Defensive: 6.3). Average analyst target: 2.30 GBP, −10.2% versus the price. This is not investment advice.
What score does B&M European Value Retail get on MeridIAn Screener?
It scores 5.6 out of 10, rank 1,313 of 2,130 (better than 35% of the companies analysed). Its strongest category is Valuation (7.7) and its weakest, Growth (2.6). Analysis of 08/10/2026.
What is B&M European Value Retail's P/E ratio?
Its P/E is 16.0: the share price equals 16.0 times earnings per share over the last 12 months. The Consumer Defensive median is 19.8. Based on the earnings analysts expect, the forward P/E is 10.8.
How much is B&M European Value Retail worth on the stock market?
Its market capitalisation is 2.6B GBP and its enterprise value, debt included, is 4.7B GBP.
How much debt does B&M European Value Retail have?
Its net debt (debt minus cash) is 2.1B GBP. That is 4.49 times its EBITDA; the Consumer Defensive median is 2.38.
Does B&M European Value Retail pay a dividend?
Yes: its dividend yield is 3.91% and it pays out 81% of its earnings.
How has B&M European Value Retail stock performed over the last year?
It has risen 12.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 0.00 and 2.62 GBP. Past performance does not guarantee future results.
What do analysts think of B&M European Value Retail?
19 analysts cover it; their average recommendation is “Buy” and their average target is 2.30 GBP (−10.2% versus the price). It is an estimate, not market data.