Bunzl (BZLFY) AI Stock Analysis

• Market Cap: $11.02B
• Dividend Yield: 2.85%
• Average Volume (3M): 6.02K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.59
• Revenue Growth: 4.74%
• EPS Growth: 3.33%
• Country: US
• Employees: 26,978
• Sector: Consumer Defensive
• Sector Strength: 47
• Industry: Food Distribution
• EPS (TTM): 1.05
• Shares Outstanding: 655,020,300
• 10 Day Avg. Volume: 4,716
• 30 Day Avg. Volume: 6,020
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.23
• Enterprise Value/Revenue: 1.45
• Enterprise Value/Gross Profit: 2.33
• Enterprise Value/Ebitda: 16.98
• 1Y Price Target: $17.50
• Price Target Upside: 4.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: $18.50 ▲(10.38% Upside)

Bunzl's overall stock score reflects a solid financial foundation with strong cash flow and profit margins. However, concerns about revenue growth and operational challenges in key regions weigh on the score. The technical analysis suggests caution due to overbought signals, and while the valuation is fair, it does not indicate a significant bargain.

Bunzl Business Overview & Revenue Model

Company Description

Bunzl plc operates as a distribution and services company in the North America, Continental Europe, the United Kingdom, Ireland, and internationally. The company offers food packaging, films, labels, cleaning and hygiene supplies, and personal protection equipment to grocery stores, supermarkets, and convenience stores. It also provides food packaging, disposable tableware, guest amenities, catering equipment, agricultural supplies, cleaning and hygiene products, and safety items to hotels, restaurants, contract caterers, food processors, commercial growers, and the leisure sector; and gloves, boots, hard hats, ear and eye protection, and other workwear, as well as cleaning and hygiene supplies, and asset protection products to industrial and construction, and ecommerce sectors. In addition, the company offers chemicals and hygiene paper to cleaning and facilities management companies, and industrial and public customers; gloves, masks, swabs, gowns, bandages, and other healthcare related equipment; and healthcare devices to hospitals, care homes, and other facilities serving the healthcare sector. Further, it provides packaging and other store supplies to retail chains, boutiques, department stores, home improvement chains, office supply companies, and related e-commerce sales channels. The company was founded in 1854 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Bunzl generates revenue through the distribution of a broad range of products across its core sectors. The company's revenue model is primarily based on the sale of products to businesses in various industries, with significant revenue streams coming from packaging, cleaning and hygiene products, and safety equipment. Bunzl's business model emphasizes long-term relationships with customers, often through negotiated contracts that ensure steady demand. Additionally, the company benefits from economies of scale, allowing it to purchase goods at lower prices and pass some of those savings to customers while maintaining healthy profit margins. Strategic partnerships with manufacturers and suppliers further enhance its product offerings and pricing competitiveness, contributing to its overall earnings. Bunzl also engages in acquisitions to expand its market reach and product portfolio, which has been a significant factor in its growth and revenue generation.

Bunzl Financial Statement Overview

Summary

Bunzl presents a robust financial position with stable income and cash flow metrics, though revenue growth has been a concern. The company maintains efficient operations with strong profit margins and effective cash flow management. The balance sheet is solid but requires careful monitoring of leverage and equity trends. Future growth strategies should focus on revitalizing revenue growth while maintaining operational and financial discipline.

Income Statement

Bunzl's income statement reveals a stable financial performance with a consistent gross profit margin around 28-29% and a net profit margin remaining above 4%. While revenue has shown modest fluctuations, the overall trend is a marginal decline in recent years. The EBIT and EBITDA margins are also strong, indicating healthy operational efficiency. However, the revenue growth rate presents challenges with slight declines over the past two years, which could signal potential market saturation or competitive pressures.

Balance Sheet

The balance sheet highlights a moderate debt-to-equity ratio, indicating a balanced approach to leverage. The equity ratio has stayed around 30%, which suggests a stable funding structure. However, the decrease in stockholders' equity over the past year could pose a risk if it continues. Return on Equity (ROE) remains healthy, reflecting effective management of equity investments. Overall, the balance sheet is stable, but future debt management and equity growth need attention.

Cash Flow

Bunzl's cash flow statement shows strong free cash flow generation with consistent positive operating cash flow exceeding net income. The free cash flow to net income ratio is favorable, highlighting effective cash management. The company maintains a healthy cash position, supporting flexibility in operations and investment activities. However, fluctuations in investing cash flows indicate potential variability in capital expenditures, which should be monitored.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	9.33B	11.78B	11.80B	12.04B	10.29B	10.11B
Gross Profit	5.81B	3.39B	3.19B	3.02B	2.52B	2.58B
EBITDA	795.70M	1.23B	1.18B	1.04B	910.20M	899.00M
Net Income	349.20M	500.40M	526.20M	474.40M	442.80M	430.00M
Balance Sheet
Total Assets	5.92B	9.53B	8.75B	8.67B	7.11B	6.83B
Cash, Cash Equivalents and Short-Term Investments	610.50M	1.43B	1.43B	1.50B	776.90M	944.30M
Total Debt	2.35B	3.72B	3.09B	3.13B	2.59B	2.71B
Total Liabilities	4.18B	6.74B	5.78B	5.95B	4.91B	4.91B
Stockholders Equity	1.74B	2.79B	2.97B	2.72B	2.20B	1.92B
Cash Flow
Free Cash Flow	591.00M	856.50M	845.70M	904.90M	700.40M	757.10M
Operating Cash Flow	618.10M	910.90M	904.00M	951.60M	733.10M	790.20M
Investing Cash Flow	-172.40M	-609.10M	-339.50M	-223.20M	-458.00M	-380.00M
Financing Cash Flow	-431.20M	-381.10M	-666.90M	-331.00M	-458.70M	-122.20M

Bunzl Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BZLFY, the sentiment is Positive. The current price of 16.76 is above the 20-day moving average (MA) of 15.52, above the 50-day MA of 15.56, and below the 200-day MA of 18.22, indicating a neutral trend. The MACD of 0.28 indicates Negative momentum. The RSI at 71.91 is Negative, neither overbought nor oversold. The STOCH value of 96.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BZLFY.

Bunzl Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PFGC	78 Outperform	$15.80B	46.62	7.91%	―	8.61%	-22.16%
SYY	73 Outperform	$38.08B	21.34	99.08%	2.58%	3.21%	-4.03%
CHEF	73 Outperform	$2.57B	38.64	13.64%	―	7.90%	68.05%
BZLFY	69 Neutral	$11.02B	17.89	17.69%	2.85%	4.74%	3.33%
USFD	68 Neutral	$17.51B	33.19	11.48%	―	5.32%	11.65%
UNFI	66 Neutral	$1.69B	―	-4.11%	―	6.62%	53.12%
Sector *	63 Neutral	$20.42B	14.38	-3.60%	3.17%	2.07%	-6.17%