Added to YB: 2026-01-19
Pitch date: 2026-01-16
BME.L [bullish]
B&M European Value Retail S.A.
Author Info
Sector Stories is an ex-JPM buyside, analysing stocks mostly through a broader sector lens, and using substack to sharpen, share and track investment ideas. Sign up for the newsletter.
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
N/A
Price Target
342.00 (+20275%)
Dividend
16.89%
EV/EBITDA
5.13
P/E
6.76
EV/Sales
0.70
Sector
Broadline Retail
Category
turnaround
Back to B&M Basics: A Discounter at a Discount
BME.L: UK discount retailer at 12% FCF yield, 7.5x NTM P/E despite best-in-class store economics (12mo payback). New CEO Jegen executing 'Back to B&M Basics' turnaround: cut 35% of FMCG prices, reduced SKUs to 10.5K, improving 86% shelf availability. LFL recovery within 12-18mo could drive 20-30% EPS growth vs 8-10% consensus. 1,200 UK stores (50% expansion) + French rollout provide long-term growth. 6% dividend yield + potential 7% buyback.
Read full article (12 min)