B&M European Value RetailLSE:BME +1.32%65 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates LSE:BME with a GF Score™ of 65/100 and a GF Value™ of £3.95 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 300 Retail - Defensive companies, B&M European Value Retail ranks better than 99.67% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. B&M European Value Retail's annualized net income for the quarter that ended in Mar. 2026 was £222 Mil. B&M European Value Retail's average shareholder tangible equity for the quarter that ended in Mar. 2026 was £-286 Mil. Therefore, B&M European Value Retail's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for B&M European Value Retail's Return-on-Tangible-Equity or its related term are showing as below:
LSE:BME'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0 Med: 0 Max: 0
Current: Negative Tangible Equity
LSE:BME's Return-on-Tangible-Equity is ranked better than 99.67% of 300
companies
in the Retail - Defensive industry
Industry Median: 11.085
vs LSE:BME: Negative Tangible Equity
B&M European Value Retail (LSE:BME) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
B&M European Value Retail Return-on-Tangible-Equity Related Terms
B&M European Value Retail Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for B&M European Value Retail's Return-on-Tangible-Equity can be seen below:
* 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.
B&M European Value Retail Return-on-Tangible-Equity Chart
LSE:BME vs WMT, COST, TGT: Return-on-Tangible-Equity Comparison
For the Discount Stores subindustry, B&M European Value Retail's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, B&M European Value Retail's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where B&M European Value Retail's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
B&M European Value Retail (LSE:BME) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on B&M European Value Retail and its competitors. According to the industry distribution chart, B&M European Value Retail ranks #1 out of 300 companies in the Retail - Defensive industry, placing it in the top 0.3%.
Is B&M European Value Retail's Return-on-Tangible-Equity too high?
B&M European Value Retail's current Return-on-Tangible-Equity is Negative Tangible Equity%. Based on the distribution chart, B&M European Value Retail ranks #1 out of 300 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 65/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does B&M European Value Retail's Return-on-Tangible-Equity compare to WMT and COST?
According to the Retail - Defensive industry distribution chart, B&M European Value Retail ranks #1 out of 300 companies for Return-on-Tangible-Equity. This places B&M European Value Retail in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.09. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Retail - Defensive company?
The median Return-on-Tangible-Equity among Retail - Defensive companies is 11.09, based on 300 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on B&M European Value Retail and its competitors. For the Retail - Defensive industry, the median Return-on-Tangible-Equity is 11.09 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. B&M European Value Retail's current Return-on-Tangible-Equity is Negative Tangible Equity%. 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 £1.99 — trading 49.5% below its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. B&M European Value Retail's overall GF Score™ is 65/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For B&M European Value Retail (LSE:BME), the current Return-on-Tangible-Equity is Negative Tangible Equity% 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 £1.99 is trading 49.5% below its estimated GF Value™ of £3.95.
GuruFocus considers B&M European Value Retail to be Significantly Undervalued.
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.
65GF Score
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