B&M European Value Retail S.A.
B&M European Value Retail S.A. is a Luxembourg-based holding company that operates a prominent chain of variety discount stores across the UK and France. It specializes in value retail, offering a fast-changing assortment of branded and private-label general merchandise such as homeware, toys, furniture, garden products, health and beauty items, and everyday essentials at significantly reduced prices compared to traditional retailers. The company also maintains a grocery segment through its Heron Foods stores, providing frozen foods, tinned goods, and other staples to drive frequent customer visits and support cross-selling of higher-margin items. B&M European Value Retail S.A. employs an efficient operational model featuring opportunistic sourcing from manufacturers in Asia and Europe, a lean supply chain with multiple distribution centers for rapid store replenishment, and high-volume stores typically located in out-of-town retail parks. This approach creates a treasure hunt shopping experience that appeals to value-conscious families, combining low prices on necessities with impulse buys. Headquartered in Munsbach, Luxembourg, the company focuses on its core B&M branded stores alongside Heron Foods in the UK and B&M stores in France, serving millions of customers weekly through physical retail operations.
$3.33
+$0.00 (+0.00%)
Price from 2 days ago
Operating margin is thin at 6.48%. Limited cushion if revenue slows or costs rise, not the profile of a wide-moat business.
Revenue grew 3.7%, steady but not accelerating. Margins contracted 3.7pp, which offsets some of the top-line progress.
ROIC dropped from 13.26% to 8.23%, capital efficiency is deteriorating. Operating margin contracted 3.7pp YoY, cost discipline may be slipping.
15.3x earnings, 4.2x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Price History
Valuation & Multiples
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
£5.78B
▲ +3.7% YoY
Net Income (TTM)
£164M
▼ -48.6% YoY
Op. Margin
6.48%
▼ -3.7pp YoY
ROIC
8.23%
▼ -5.0pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
£594M
▲ +9.6% YoY
Op. Cash Flow (TTM)
£730M
▲ +12.1% YoY
Net Debt
£2.10B
Cash & Equiv.
£342M
3Y CAGR: -4.1%
3Y CAGR: -12.9%
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Is B&M European Value Retail (BMRPF) overvalued?
At a P/E of 15.3 and a price-to-free-cash-flow of 4.2, B&M European Value Retail (BMRPF) trades below a two-stage DCF intrinsic value of about £13.26 per share, so at £3.33 the stock looks undervalued (298.2% below estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, B&M European Value Retail scores 38/100 on Intrinsiqq's quality scorecard (a lower-quality business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from company filings; read the full methodology, or see how the market compares in our US profitability statistics. This is analysis, not investment advice.
Frequently asked
What is B&M European Value Retail's fair value?+
Intrinsiqq's two-stage DCF estimates an intrinsic value of about £13.26 per share for BMRPF, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around £9.94. At today's £3.33, that puts the stock about 298.2% below estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Is B&M European Value Retail a high-quality business?+
B&M European Value Retail scores 38 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a lower-quality business on these measures. Recent fundamentals include a 6.5% operating margin and a 8.2% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from company filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
Is B&M European Value Retail a good stock to buy right now?+
That depends on valuation and quality together, not either alone. BMRPF currently trades below its estimated intrinsic value and scores 38/100 on quality (lower-quality). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from company filings, not investment advice.
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Data sourced from company filings and third-party price providers. Scores, valuations, and metrics are algorithmic estimates. This is not investment advice. See our Terms and Methodology.