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Bunzl (BZLFY)
OTHER OTC:BZLFY
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Bunzl
(OTC:BZLFY)
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Rating:69Neutral
Price Target:
$18.50
▲(11.99% Upside)
Bunzl's overall stock score reflects a stable financial performance with strong cash flow management and a solid balance sheet. However, challenges in revenue growth and operating margins, particularly in North America and Continental Europe, weigh on the score. The company's strategic acquisitions and commitment to dividend growth provide some positive outlook, but technical indicators suggest cautious market sentiment.
Bunzl (BZLFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.67B
Dividend Yield2.9%
Average Volume (3M)6.29K
Price to Earnings (P/E)17.8
Beta (1Y)0.58
Revenue Growth4.74%
EPS Growth3.33%
CountryUS
Employees26,978
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)1.05
Shares Outstanding650,047,200
10 Day Avg. Volume10,943
30 Day Avg. Volume6,290
Financial Highlights & Ratios
PEG Ratio-2.50
Price to Book (P/B)2.00
Price to Sales (P/S)0.47
P/FCF Ratio6.52
Enterprise Value/Market Cap1.27
Enterprise Value/Revenue1.14
Enterprise Value/Gross Profit4.04
Enterprise Value/Ebitda11.44
Forecast
1Y Price Target
$18.50Price Target Upside11.99% Upside
Rating ConsensusHold
Number of Analyst Covering1
Bunzl Business Overview & Revenue Model
Company DescriptionBunzl plc is a leading multinational distribution and outsourcing company headquartered in London, UK. It operates primarily in the sectors of packaging, cleaning and hygiene, safety, and healthcare. Bunzl provides a wide range of products, including disposable packaging, personal protective equipment (PPE), cleaning supplies, and medical supplies, catering to various industries such as food service, retail, and healthcare. The company focuses on providing value-added services and innovative solutions to its customers, helping them improve efficiency and reduce costs.
How the Company Makes MoneyBunzl 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 Earnings Call Summary
Earnings Call Date:Aug 26, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 02, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted Bunzl's strategic growth through acquisitions and strong cash conversion but faced challenges in operating margins and profit declines, particularly in North America and Continental Europe.Q2-2025 Updates
Positive Updates
Revenue Growth Driven by Acquisitions
Bunzl delivered revenue growth of 4.2% at constant exchange rates, primarily driven by acquisitions.
Cash Conversion Exceeded Expectations
Cash conversion was better than expected at 97%.
Continued Commitment to Dividend Growth
Announced a 0.5% increase in the interim dividend, maintaining the commitment to sustainable annual dividend growth.
Successful Acquisition Strategy
Five acquisitions announced with a committed spend of approximately GBP 120 million, including expansion into the Chilean healthcare market and a first acquisition in Mexico since 2013.
Strong Performance in the Rest of the World
Underlying revenue growth driven by strong inflation in Latin America and moderate volume growth in Asia Pacific, with strong operating margins overall.
Negative Updates
Decline in Group Adjusted Operating Profit
Adjusted operating profit declined by 7.6% at constant exchange rates, with the operating margin reducing by around 100 basis points to 7%.
Challenges in North America Distribution Business
The North America Distribution business faced a challenging inflection point, with volume growth below expectations and a loss of a higher-margin category of business.
Operating Margin Decline in Continental Europe
Continental Europe's operating margin declined by around 100 basis points, driven by the impact of deflation in France and profitability issues in certain online businesses.
Free Cash Flow Decline
Free cash flow declined by 22% year-on-year due to the decline in adjusted operating profit.
Increased Net Finance Expense
Adjusted net finance expense increased due to higher average net debt during the period.
Company Guidance
In the Bunzl 2025 Half Year Results Presentation, the company reported a revenue growth of 4.2% at constant exchange rates, primarily driven by acquisitions, while underlying revenue remained broadly stable. However, the group adjusted operating profit declined by 7.6%, with the operating margin decreasing by approximately 100 basis points to 7%. Cash conversion exceeded expectations at 97%, although free cash flow fell by 22% due to the decline in operating profit. The adjusted net debt-to-EBITDA ratio was 1.9x, slightly better than anticipated. Bunzl announced a 0.5% increase in the interim dividend and completed five acquisitions with a committed spend of around GBP 120 million. The company resumed its GBP 200 million share buyback, with GBP 86 million remaining to be completed by year-end. Despite challenges, Bunzl has delivered a 6% compound annual profit growth since 2019 and remains committed to sustainable annual dividend growth and a robust acquisition strategy.Bunzl Financial Statement Overview
Summary
Bunzl's financial performance is stable with strong profit margins and effective cash flow management. However, revenue growth has been a concern, and the balance sheet requires careful monitoring of leverage and equity trends.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.72
Positive
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.65
Positive
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.78
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 11.82B | 11.78B | 11.80B | 12.04B | 10.29B | 10.11B |
| Gross Profit | 3.34B | 3.39B | 3.19B | 3.02B | 2.52B | 2.58B |
| EBITDA | 1.18B | 1.23B | 1.18B | 1.04B | 910.20M | 899.00M |
| Net Income | 483.60M | 500.40M | 526.20M | 474.40M | 442.80M | 430.00M |
Balance Sheet | ||||||
| Total Assets | 8.27B | 9.53B | 8.75B | 8.67B | 7.11B | 6.83B |
| Cash, Cash Equivalents and Short-Term Investments | 481.00M | 1.43B | 1.43B | 1.50B | 776.90M | 944.30M |
| Total Debt | 2.80B | 3.72B | 3.09B | 3.13B | 2.59B | 2.71B |
| Total Liabilities | 5.72B | 6.74B | 5.78B | 5.95B | 4.91B | 4.91B |
| Stockholders Equity | 2.55B | 2.79B | 2.97B | 2.72B | 2.20B | 1.92B |
Cash Flow | ||||||
| Free Cash Flow | 823.10M | 856.50M | 845.70M | 904.90M | 700.40M | 757.10M |
| Operating Cash Flow | 886.90M | 910.90M | 904.00M | 951.60M | 733.10M | 790.20M |
| Investing Cash Flow | -218.10M | -609.10M | -339.50M | -223.20M | -458.00M | -380.00M |
| Financing Cash Flow | -654.80M | -381.10M | -666.90M | -331.00M | -458.70M | -122.20M |
Bunzl Technical Analysis
Positive
16.52
Price Trends
16.11
Positive
15.93
Positive
17.49
Negative
Market Momentum
-0.02
Negative
54.32
Neutral
84.65
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 16.52 is above the 20-day moving average (MA) of 16.38, above the 50-day MA of 16.11, and below the 200-day MA of 17.49, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 54.32 is Neutral, neither overbought nor oversold. The STOCH value of 84.65 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BZLFY.
Bunzl Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $38.68B | 22.01 | 99.08% | 2.63% | 3.21% | -4.03% | |
74 Outperform | $15.89B | 46.37 | 7.91% | ― | 8.61% | -22.16% | |
69 Neutral | $10.67B | 17.76 | 17.69% | 2.90% | 4.74% | 3.33% | |
69 Neutral | $17.00B | 32.28 | 11.48% | ― | 5.32% | 11.65% | |
63 Neutral | $2.23B | 33.71 | 13.64% | ― | 7.90% | 68.05% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $2.51B | ― | -7.39% | ― | 2.60% | -3.23% |
* Consumer Defensive Sector Average
BZLFY
Bunzl
16.52
-5.53
-25.08%
SYY
Sysco
79.95
6.64
9.06%
CHEF
The Chefs' Warehouse
55.79
16.17
40.81%
UNFI
United Natural Foods
42.09
22.24
112.04%
PFGC
Performance Food Group
100.85
22.44
28.62%
USFD
US Foods Holding
76.07
14.59
23.73%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.