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A Spotlight On B&M European Value Retail S.A.’s (LON:BME) Fundamentals

I’ve been keeping an eye on B&M European Value Retail S.A. (LON:BME) because I’m attracted to its fundamentals. Looking at the company as a whole, as a potential stock investment, I believe BME has a lot to offer. Basically, it is a company with great financial health as well as a an impressive track record of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on B&M European Value Retail here.

Solid track record with adequate balance sheet

Over the past few years, BME has demonstrated a proven ability to generate robust returns of 21% Unsurprisingly, BME surpassed the Multiline Retail industry return of 21%, which gives us more confidence of the company’s capacity to drive earnings going forward. BME’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that BME manages its cash and cost levels well, which is an important determinant of the company’s health. BME appears to have made good use of debt, producing operating cash levels of 0.34x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

LSE:BME Income Statement Export January 21st 19
LSE:BME Income Statement Export January 21st 19

Next Steps:

For B&M European Value Retail, I’ve compiled three essential aspects you should further research:

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  1. Future Outlook: What are well-informed industry analysts predicting for BME’s future growth? Take a look at our free research report of analyst consensus for BME’s outlook.

  2. Valuation: What is BME worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether BME is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of BME? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.