B&M European Value RetailLSE:BME 58 ROA % is 5.56% as of Mar. 2026, which is 34% below its 10-year median of 8.46. 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 312 Retail - Defensive companies, B&M European Value Retail ranks better than 56.09% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. B&M European Value Retail's annualizedNet Income for the quarter that ended in Mar. 2026 was £222 Mil.
B&M European Value Retail's average Total Assets over the quarter that ended in Mar. 2026 was £3,992 Mil. Therefore, B&M European Value Retail's annualized ROA % for the quarter that ended in Mar. 2026 was 5.56%.
The historical rank and industry rank for B&M European Value Retail's ROA % or its related term are showing as below:
LSE:BME'
s ROA % Range Over the Past 10 Years
Min: 2.6 Med: 8.46 Max: 12.36
Current: 4.1
During the past 13 years, B&M European Value Retail's highest ROA % was 12.36%. The lowest was 2.60%. And the median was 8.46%.
LSE:BME's ROA % is ranked better than 56.09% of 312
companies
in the Retail - Defensive industry
Industry Median: 3.56
vs LSE:BME: 4.10
B&M European Value Retail (LSE:BME) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is two times the semi-annual (Mar. 2026) net income data. The Revenue data used here is two times the semi-annual (Mar. 2026) revenue 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.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* 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.
For the Discount Stores subindustry, B&M European Value Retail's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, B&M European Value Retail's ROA % distribution charts can be found below:
* The bar in red indicates where B&M European Value Retail's ROA % 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 ROA %, the net income of the last fiscal year and the average total assets 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.
ROA % is displayed in the 30-year financial page.
B&M European Value Retail (LSE:BME) has a ROA % of 5.56% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on B&M European Value Retail and its competitors. This is 34% below median its historical median of 8.46. Over the past decade, B&M European Value Retail's ROA % has ranged from 2.60 to 12.36. According to the industry distribution chart, B&M European Value Retail ranks #137 out of 312 companies in the Retail - Defensive industry, placing it in the top 43.9%.
Is B&M European Value Retail's ROA % too high?
B&M European Value Retail's current ROA % of 5.56% is 34% below median its 10-year median of 8.46. Over the past 10 years, this metric has ranged from a low of 2.60 to a high of 12.36. The Retail - Defensive industry median ROA % is 3.56. B&M European Value Retail's value of 5.56% is 56.2% above this industry median. Based on the distribution chart, B&M European Value Retail ranks #137 out of 312 companies in the Retail - Defensive industry, which is above the industry midpoint. 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 ROA % compare to WMT and COST?
According to the Retail - Defensive industry distribution chart, B&M European Value Retail ranks #137 out of 312 companies for ROA %. This puts B&M European Value Retail in the upper half of its industry. The industry median ROA % is 3.56. B&M European Value Retail's value of 5.56% is 56.2% above this benchmark. Historically, B&M European Value Retail's own ROA % has ranged from 2.60 to 12.36 over the past decade. While the company's 10-year median is 8.46 vs. the industry median of 3.56, 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 ROA % for a Retail - Defensive company?
The median ROA % among Retail - Defensive companies is 3.56, based on 312 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. B&M European Value Retail's current ROA % of 5.56% is 56.2% 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 ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on B&M European Value Retail and its competitors. For the Retail - Defensive industry, the median ROA % is 3.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. B&M European Value Retail's current ROA % is 5.56%, which is 34% below median its own 10-year median of 8.46. 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 ROA % is 5.56%, which is 34% below median its 10-year median of 8.46 and 56.2% above the Retail - Defensive industry median of 3.56. 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 ROA % calculated?
ROA % is calculated from a company's financial statements. For B&M European Value Retail (LSE:BME), the current ROA % is 5.56% 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:
ROA %: 5.56% (34% below median its 10-year median of 8.46)
GF Value™: £3.95 vs. price of £2.07 (47.6% below fair value)
Industry Position: 56.2% above the Retail - Defensive median (#137 of 312)
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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