Added to YB: 2025-11-12
Pitch date: 2025-11-07
BME.L [bullish]
B&M European Value Retail S.A.
+2%
current return
Author Info
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Company Info
B&M European Value Retail S.A. retails general merchandise products and groceries. The company operates a chain of stores under the B&M, Heron Foods, and B&M Express brand names in the United Kingdom, as well as stores under the B&M brand name in France.
Market Cap
GBP 1.7B
Pitch Price
GBP 1.60
Price Target
2.42 (+54%)
Dividend
17.07%
EV/EBITDA
5.11
P/E
6.69
EV/Sales
0.70
Sector
Broadline Retail
Category
value
B&M European Value Retail - New Position
BME.L: UK discount retailer down 72% from highs. Trading at £1.8B mcap on £5.57B revenue, 10% EBIT margin, £319M net income. 50%+ growth runway to 1,200 stores vs 777 today. Strong unit economics: £480k profit/store/year, 12mo payback. 9% div yield, potential 18% w/ special div. New mgmt navigating LFL sales weakness & cost inflation. Fair value £2.42-£3.14 (47-84% upside). 24-39% IRR over 12-18mo timeframe.
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