B&M European Value Retail plc (BME LN)

BME.L (watchlist): B&M looks attractive at 11x NTM earnings and an estimated 10% free-cash-flow yield on enterprise value, a roughly 5-point premium to the UK 10-year gilt. The company began simplifying its range, reducing excess inventory and cutting prices on key products, and inventory days were back at a healthy level by March 2026; management also raised expectations for gross-margin and same-store-sales improvement. The key question is whether the recovery is sustainable after B&M UK’s latest-quarter same-store sales turned negative.

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