B&M European Value RetailLSE:BME -3.19%57 Altman Z-Score is 2.33 as of Jun. 30, 2026, which is 19% below its 10-year median of 2.86. GuruFocus rates LSE:BME with a GF Score™ of 57/100 and a GF Value™ of £3.95 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 305 Retail - Defensive companies, B&M European Value Retail ranks worse than 73.77% on this metric.
The Altman Z-Score is a model designed to predict the likelihood of a company going bankrupt within the next two years. Created by American finance professor Edward Altman in 1968, the model is specifically designed for publicly traded manufacturing companies with assets greater than $1 million.
Warning Sign:
Altman Z-score of 2.34 is in the grey area. This implies that the company is under some kind of financial stress. If it is below 1.8, the company may face bankruptcy risk.
B&M European Value Retail has a Altman Z-Score of 2.33, indicating it is in Grey Zones. This implies that B&M European Value Retail is in some kind of financial stress. If it is below 1.81, the company may face bankrupcy risk.
The zones of discrimination were as such:
When Altman Z-Score <= 1.8, it is in Distress Zones.
When Altman Z-Score >= 3, it is in Safe Zones.
When Altman Z-Score is between 1.8 and 3, it is in Grey Zones.
The historical rank and industry rank for B&M European Value Retail's Altman Z-Score or its related term are showing as below:
LSE:BME'
s Altman Z-Score Range Over the Past 10 Years
Min: 2.13 Med: 2.86 Max: 4.02
Current: 2.34
During the past 13 years, B&M European Value Retail's highest Altman Z-Score was 4.02. The lowest was 2.13. And the median was 2.86.
B&M European Value Retail (LSE:BME) Altman Z-Score Explanation
X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.
X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.
X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.
X4, Market Value of Equity/Book Value of Total Liabilities (MVE/TL): The measure shows how much the firm's assets can decline in value (measured by market value of equity plus debt) before the liabilities exceed the assets and the firm becomes insolvent.
X5, Revenue/Total Assets (S/TA): The capital-turnover ratio is a standard financial ratio illustrating the sales generating ability of the firm's assets.
* 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: Altman Z-Score Comparison
For the Discount Stores subindustry, B&M European Value Retail's Altman Z-Score, along with its competitors' market caps and Altman Z-Score 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 Altman Z-Score vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, B&M European Value Retail's Altman Z-Score distribution charts can be found below:
* The bar in red indicates where B&M European Value Retail's Altman Z-Score falls into.
B&M European Value Retail Altman Z-Score Calculation
Altman Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
* 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. GuruFocus does not calculate Altman Z-Score when X4 or X5 value is 0.
B&M European Value Retail (LSE:BME) has a Altman Z-Score of 2.33 as of Jun. 30, 2026. The Altman Z-score measures a company's bankruptcy risk. View historical data on B&M European Value Retail and its competitors. This is 19% below median its historical median of 2.86. Over the past decade, B&M European Value Retail's Altman Z-Score has ranged from 2.13 to 4.02. According to the industry distribution chart, B&M European Value Retail ranks #225 out of 305 companies in the Retail - Defensive industry, placing it in the top 73.8%.
Is B&M European Value Retail's Altman Z-Score too high?
B&M European Value Retail's current Altman Z-Score of 2.33 is 19% below median its 10-year median of 2.86. Over the past 10 years, this metric has ranged from a low of 2.13 to a high of 4.02. The Retail - Defensive industry median Altman Z-Score is 3.54. B&M European Value Retail's value of 2.33 is 34.2% below this industry median. Based on the distribution chart, B&M European Value Retail ranks #225 out of 305 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, B&M European Value Retail has a GF Score™ of 57/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does B&M European Value Retail's Altman Z-Score compare to WMT and COST?
According to the Retail - Defensive industry distribution chart, B&M European Value Retail ranks #225 out of 305 companies for Altman Z-Score. This places B&M European Value Retail in the lower half of its industry. The industry median Altman Z-Score is 3.54. B&M European Value Retail's value of 2.33 is 34.2% below this benchmark. Historically, B&M European Value Retail's own Altman Z-Score has ranged from 2.13 to 4.02 over the past decade. While the company's 10-year median is 2.86 vs. the industry median of 3.54, B&M European Value Retail has consistently been below 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 Altman Z-Score for a Retail - Defensive company?
The median Altman Z-Score among Retail - Defensive companies is 3.54, based on 305 companies in the industry. Companies in the top quartile (top 25%) have a Altman Z-Score significantly above this median, while those in the bottom quartile fall well below. However, Altman Z-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. B&M European Value Retail's current Altman Z-Score of 2.33 is 34.2% below 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 Altman Z-Score mean?
A high Altman Z-Score can signal that a stock is expensive relative to its fundamentals. The Altman Z-score measures a company's bankruptcy risk. View historical data on B&M European Value Retail and its competitors. For the Retail - Defensive industry, the median Altman Z-Score is 3.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. B&M European Value Retail's current Altman Z-Score is 2.33, which is 19% below median its own 10-year median of 2.86. 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 £2.00 — trading 49.3% below its estimated fair value. The current Altman Z-Score is 2.33, which is 19% below median its 10-year median of 2.86 and 34.2% below the Retail - Defensive industry median of 3.54. B&M European Value Retail's overall GF Score™ is 57/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Altman Z-Score calculated?
Altman Z-Score is calculated from a company's financial statements. For B&M European Value Retail (LSE:BME), the current Altman Z-Score is 2.33 as of Jun. 30, 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 £2.00 is trading 49.3% 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:
Altman Z-Score: 2.33 (19% below median its 10-year median of 2.86)
GF Value™: £3.95 vs. price of £2.00 (49.3% below fair value)
Industry Position: 34.2% below the Retail - Defensive median (#225 of 305)
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.
57GF Score
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