Position Increase - B&M European Value Retail (BME.L)
I will increase my position in B&M European Value Retail (BME.L) by 33.3%, effective as of today’s close (June 10th).
BME recently released its annual report. While revenue was up, like-for-like sales in the UK declined — triggering a sharp sell-off of nearly 20%. Despite the reaction, I believe the fundamentals remain strong. At these levels, I'm comfortable adding to my position.
You can check my deep dive here:
B&M European Value Retail S.A. (BME.L) – In-Depth Analysis and Valuation
High-Margin UK Discount Giant with an operating margin exceeding 10%, trading at a P/E of 8x and a P/FCF of 5x. Over FY21-FY24, it has distributed £1.8B in dividends—equivalent to two-thirds of its £2.7B market cap. Over the past decade, revenue has compounded at 14.7% annually
📥 Full Access to Investment Engine
Join the Moat Mind Patreon to gain exclusive access to the live-updating portfolio, dynamic IRR-driven valuation models, and real-time alerts on every decision I make.
📊 Track portfolio weights and expected IRRs as they evolve with market moves.
🧠 Dive into the full DCF models behind each stock—transparent, data-rich.
📈 Follow a real-time watchlist of high-quality companies under active research.
🔔 Get instant alerts for every portfolio move and model update—no delays.
Whether you're allocating capital or studying the process, this is the real-time dashboard behind the strategy—built to help you invest with clarity, conviction, and a real-time edge.
Just read your inital post. Great write up! Some incredible revenue growth and they post amazing ROE % year-on year. Does the level of debt not worry you though? If they hit one speed bump they could get in serious trouble and be forced to dilute/restructure.
It's tempting but I can't help but think of Buffetts foray into retailing with Hochschild, Kohn & Co. and he managed to just get out by the skin of his teeth and break-even on his investment but he was lucky not to lose money.