B&M European Value Retail S.A. (BME.L) stock analysis

In our weekly check, B&M European Value Retail S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 7, red flags: 4.

About B&M European Value Retail S.A.

B&M European Value Retail S.A. is a Consumer Defensive company (Discount Stores) based in Jersey, listed on LSE as BME.L.

What our checks show for BME.L

Red flags

• Net debt is 3.1x a year of EBITDA (debt/equity 3.07). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 6.2 points over 5 years, to 2.8%: the company keeps less of each sale as profit.
• The net margin is only 2.8%: little room if costs rise.
• The stock has fallen as much as 76% from a peak. Would you have held through that?

Warning signs

• Operating profit covers interest only 3.5 times: a weak year could make the payments hard.
• The gross margin fell by 1.1 points, to 36.4%: costs are rising faster than prices.
• Analysts expect only about 4% a year of growth in revenue.
• Earnings per share fell 23% a year over the last 3 years.
• Net profit fell 22.2% a year over the last 3 years.
• The price swings a lot: 40.2% annual volatility. Expect large ups and downs.
• The stock is still below its previous peak.

Strengths

• Operating cash flow is 4.1x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 17.9% a year over the next years.
• Actively traded: about 4.6 million shares a day.
• Pay in shares is only 0% of free cash flow.

Next earnings report: 2026-11-11

Similar companies

PSMT · OLLI · TBBB · BJ · DLTR

Questions

What grade does B&M European Value Retail S.A. (BME.L) have?

In our weekly check, B&M European Value Retail S.A. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 7, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of BME.L stock?

This week's biggest flags for B&M European Value Retail S.A.: High debt, Margins falling, Thin margins. In total 11 of 25 checks show a warning or a red flag.

What does B&M European Value Retail S.A. do?

B&M European Value Retail S.A. is a Consumer Defensive company (Discount Stores) based in Jersey, listed on LSE as BME.L.

When does B&M European Value Retail S.A. report earnings next?

The next earnings report is expected on 2026-11-11. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

Open the full analysis