BME (B&M European Value Retail SA) vs FTSE All Share Index Comparison

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B&M European Value Retail SA
Glance View

Market Cap

1.7B GBX

Industry

Retail

Nestled in the retail landscape is B&M European Value Retail SA, a company that has carved its niche in the value-for-money segment, offering an extensive range of products at competitive prices. Born out of the vision to provide budget-friendly shopping options, B&M has expanded its footprint primarily across the UK, where it operates a growing network of stores. The company’s strength lies in its diverse product assortment, which spans groceries, household goods, toys, and seasonal merchandise, among others. By leveraging a keen eye for market trends and consumer demand, B&M ensures that its offerings remain both relevant and appealing, often sourced directly from manufacturers to keep prices low. This direct procurement strategy maximizes operational efficiency and minimizes cost, allowing B&M to pass on tangible savings to its customers. As B&M continues to grow, its business strategy revolves around its high-volume, low-margin model, which effectively drives footfall and sales. By maintaining a tight grip on operational costs and exercising disciplined expansion, B&M bolsters its value proposition, drawing a steady stream of budget-conscious shoppers to its stores. The company also astutely positions its outlets in strategic high-traffic locations, maximizing visibility and accessibility. This retail model thrives on high turnover and the impulse-driven nature of in-store shopping experiences, where customers often find bargains and unique items. By constantly refreshing its products and keeping the customer experience at the forefront, B&M secures its position as a leading player in the value retail sector. Through these strategies, B&M European Value Retail continues to cultivate a loyal consumer base, contributing to its robust revenue streams.

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BME Intrinsic Value

Undervaluation 67%

Intrinsic Value

Price

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

BME

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F
FTSE All Share Index

Stocks Performance
BME vs FTSE All Share Index

Performance Gap
BME vs FTSE All Share Index

Performance By Year
BME vs FTSE All Share Index

Competitors Performance
B&M European Value Retail SA vs Peers

B&M European Value Retail SA
Glance View

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BME vs F FTSE All Share Index

Stocks Performance BME vs FTSE All Share Index

Performance Gap BME vs FTSE All Share Index

Performance By Year BME vs FTSE All Share Index

Competitors Performance B&M European Value Retail SA vs Peers

B&M European Value Retail SA Glance View

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Stocks

BME

vs

F
FTSE All Share Index

Stocks Performance
BME vs FTSE All Share Index

Performance Gap
BME vs FTSE All Share Index

Performance By Year
BME vs FTSE All Share Index

Competitors Performance
B&M European Value Retail SA vs Peers

B&M European Value Retail SA
Glance View