A popular FTSE 100 stock: would I buy shares in this company today?

first_img Enter Your Email Address Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. Image source: Getty Images. Group revenue in Q3 rose 22.5% and the company volunteered to pay its business rates in FY21, costing around £80m. And it also awarded around 30,000 store and distribution colleagues an extra week’s wages in recognition of their considerable efforts. The FTSE 100 company paid out dividends of £500m in 2020, including a special dividend so shareholders could reap the benefits from its successful year.The group expects FY21 group adjusted 2021 earnings before interest, taxes, depreciation, and amortisation (EBITDA) to be within the range of £540m to £570m. Analyst estimates pitch it at £544m. Results are due at the end of March.Lacking an online presenceI find it strange and somewhat random that B&M has a website filled with products to browse but not to buy. However, it has another website for sheds and garden storage that can be purchased online.I imagine it would be a lot more profitable with an online presence, from which we could purchase its regular products. However, it seems its low prices mean margins are tight. Therefore, there’s little wiggle room for the additional expense created by home delivery. The larger products probably come with wider margins and are more cost effective to deliver.Operating physical stores means it also faces rising business rates and wages. And it somewhat depends on the luck of the draw when it comes to its locations. Some will naturally be more successful than others.I don’t plan on buying shares of B&M as it’s quite an expensive FTSE 100 stock, and there are cheaper stocks I prefer. But I think it operates a good business model and I can see why many investors would consider it a sensible addition to a long-term Stocks and Shares ISA. Our 6 ‘Best Buys Now’ Shares For regular stock market investing ideas and help choosing the best stocks to buy now, sign up to The Motley Fool today. The high-calibre small-cap stock flying under the City’s radar Adventurous investors like you won’t want to miss out on what could be a truly astonishing opportunity…You see, over the past three years, this AIM-listed company has been quietly powering ahead… rewarding its shareholders with generous share price growth thanks to a carefully orchestrated ‘buy and build’ strategy.And with a first-class management team at the helm, a proven, well-executed business model, plus market-leading positions in high-margin, niche products… our analysts believe there’s still plenty more potential growth in the pipeline.Here’s your chance to discover exactly what has got our Motley Fool UK investment team all hot-under-the-collar about this tiny £350+ million enterprise… inside a specially prepared free investment report.But here’s the really exciting part… right now, we believe many UK investors have quite simply never heard of this company before! FTSE 100 company B&M European Value Retail (LSE:BME) operates physical stores filled with a massive range of merchandise from stationery to garden furniture, hot tubs, and DIY goods. Its unique selling point is simply that its products are very cheap. It sells quality branded goods, but at knock-down prices and consumers can’t get enough.A FTSE 100 stock showing resilienceWhile retail has suffered in the pandemic’s wake, this type of business model is proving resilient. People love a bargain, and with little in the way of services and entertainment on offer, consumers are treating themselves to products instead. The group has not been badly affected by UK lockdowns because it has been allowed to remain open. 5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…B&M now operates 673 UK stores and is on track to open up to 45 new stores during this financial year. It has a price-to-earnings ratio (P/E) of 60, earnings per share (EPS) are 9p, and its dividend yield is 1.5%. The B&M share price has risen over 50% in a year and the company has a market cap of £5.4bn. It’s clearly an expensive stock, but the company remains profitable with clear potential for further growth. That’s very attractive when UK retail is on a downward trend.center_img See all posts by Kirsteen Mackay Click here to claim your copy of this special investment report — and we’ll tell you the name of this Top Small-Cap Stock… free of charge! A popular FTSE 100 stock: would I buy shares in this company today? Kirsteen Mackay | Thursday, 25th February, 2021 | More on: BME Simply click below to discover how you can take advantage of this. I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Kirsteen has no position in any of the shares mentioned. The Motley Fool UK has recommended B&M European Value. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.last_img

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