B&M European Value RetailLSE:BME 58 Gross Margin % is 36.38% as of Mar. 2026, which is 0% above its 10-year median of 36.30. GuruFocus rates LSE:BME with a GF Score™ of 58/100 and a GF Value™ of £3.95 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 303 Retail - Defensive companies, B&M European Value Retail ranks better than 80.53% on this metric.
B&M European Value Retail (LSE:BME) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
B&M European Value Retail had a gross margin of 36.38% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
B&M European Value Retail Gross Margin % Related Terms
B&M European Value Retail Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LSE:BME vs WMT, COST, TGT: Gross Margin % Comparison
For the Discount Stores subindustry, B&M European Value Retail's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
B&M European Value Retail Gross Margin % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, B&M European Value Retail's Gross Margin % distribution charts can be found below:
* The bar in red indicates where B&M European Value Retail's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
B&M European Value Retail (LSE:BME) has a Gross Margin % of 36.38% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on B&M European Value Retail and its competitors. This is near median its historical median of 36.30. Over the past decade, B&M European Value Retail's Gross Margin % has ranged from 33.64 to 37.55. According to the industry distribution chart, B&M European Value Retail ranks #59 out of 303 companies in the Retail - Defensive industry, placing it in the top 19.5%.
Is B&M European Value Retail's Gross Margin % too high?
B&M European Value Retail's current Gross Margin % of 36.38% is near median its 10-year median of 36.30. Over the past 10 years, this metric has ranged from a low of 33.64 to a high of 37.55. The Retail - Defensive industry median Gross Margin % is 24.08. B&M European Value Retail's value of 36.38% is 51.1% above this industry median. Based on the distribution chart, B&M European Value Retail ranks #59 out of 303 companies in the Retail - Defensive industry, which is in the top quartile — a strong position relative to peers. Overall, B&M European Value Retail has a GF Score™ of 58/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does B&M European Value Retail's Gross Margin % compare to WMT and COST?
According to the Retail - Defensive industry distribution chart, B&M European Value Retail ranks #59 out of 303 companies for Gross Margin %. This places B&M European Value Retail in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.08. B&M European Value Retail's value of 36.38% is 51.1% above this benchmark. Historically, B&M European Value Retail's own Gross Margin % has ranged from 33.64 to 37.55 over the past decade. While the company's 10-year median is 36.30 vs. the industry median of 24.08, B&M European Value Retail has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Retail - Defensive company?
The median Gross Margin % among Retail - Defensive companies is 24.08, based on 303 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. B&M European Value Retail's current Gross Margin % of 36.38% is 51.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on B&M European Value Retail and its competitors. For the Retail - Defensive industry, the median Gross Margin % is 24.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. B&M European Value Retail's current Gross Margin % is 36.38%, which is near median its own 10-year median of 36.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is B&M European Value Retail stock overvalued right now?
Based on GuruFocus' analysis, B&M European Value Retail (LSE:BME) is currently considered Significantly Undervalued. The stock's GF Value™ is £3.95, compared to a current price of £2.07 — trading 47.6% below its estimated fair value. The current Gross Margin % is 36.38%, which is near median its 10-year median of 36.30 and 51.1% above the Retail - Defensive industry median of 24.08. B&M European Value Retail's overall GF Score™ is 58/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For B&M European Value Retail (LSE:BME), the current Gross Margin % is 36.38% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is B&M European Value Retail (LSE:BME) Overvalued in 2026?
Based on GuruFocus' analysis, B&M European Value Retail stock appears to be undervalued.
The current stock price of £2.07 is trading 47.6% below its estimated GF Value™ of £3.95.
GuruFocus considers B&M European Value Retail to be Significantly Undervalued.
Key valuation signals for LSE:BME:
Gross Margin %: 36.38% (near median its 10-year median of 36.30)
GF Value™: £3.95 vs. price of £2.07 (47.6% below fair value)
Industry Position: 51.1% above the Retail - Defensive median (#59 of 303)
No single metric tells the full story. See the LSE:BME stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
B&M European Value Retail PLC is a retailer offering a targeted range of fast-moving consumer goods (FMCG) and general merchandise products at consistently low prices. It operates under an everyday low-price and cost-focused model, emphasizing operational efficiency and affordability for customers. The Group is a European variety discount retailer providing products at low prices through its stores. The Group operates through three segments: B&M UK, Heron UK, and B&M France, with B&M UK generating the maximum revenue.
58GF Score
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