Bunzl (BZLFY) AI Stock Analysis

• Market Cap: $10.13B
• Dividend Yield: 3%
• Average Volume (3M): 5.83K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.57
• Revenue Growth: 4.74%
• EPS Growth: 3.33%
• Country: US
• Employees: 26,978
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 1.05
• Shares Outstanding: 649,050,600
• 10 Day Avg. Volume: 6,550
• 30 Day Avg. Volume: 5,831
• PEG Ratio: -2.50
• Price to Book (P/B): 2.00
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 6.52
• Enterprise Value/Market Cap: 1.33
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 4.04
• Enterprise Value/Ebitda: 11.44
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 69 Neutral
• Price Target: $17.50 ▲(6.45% Upside)

Bunzl's overall stock score reflects a solid financial foundation with effective cash flow management and strategic growth through acquisitions. However, challenges in revenue growth and operating margins, along with mixed technical indicators, temper the outlook. The company's commitment to dividend growth and a fair valuation provide additional support to the score.

Bunzl Business Overview & Revenue Model

Company Description

Bunzl 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 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'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.

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	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

• Technical Analysis Sentiment: Negative
• Last Price: 16.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BZLFY, the sentiment is Negative. The current price of 16.44 is above the 20-day moving average (MA) of 16.22, above the 50-day MA of 16.42, and below the 200-day MA of 17.16, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 34.51 is Neutral, neither overbought nor oversold. The STOCH value of 0.21 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BZLFY.

Bunzl Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYY	―	$35.55B	20.34	84.89%	2.83%	2.92%	-4.06%
BZLFY	―	$10.13B	16.65	17.69%	3.00%	4.74%	3.33%
PFGC	―	$15.42B	45.23	7.91%	―	8.61%	-22.16%
USFD	―	$16.45B	31.22	11.48%	―	5.32%	11.65%
CHEF	―	$2.39B	36.17	13.64%	―	7.90%	68.05%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
UNFI	―	$2.32B	―	-7.39%	―	2.60%	-3.23%

Bunzl Corporate Events

Bunzl’s Earnings Call: Growth Amid Challenges

Bunzl’s recent earnings call painted a picture of strategic growth tempered by operational challenges. The company emphasized its robust acquisition strategy and impressive cash conversion, yet it faced hurdles in maintaining operating margins and profits, particularly in its North American and Continental European markets.

Bunzl Reports Revenue Growth Amidst Challenging Conditions

Bunzl plc is a specialist international distribution and services group, operating primarily in the distribution of non-food consumables across various sectors, including healthcare, foodservice, and retail. The company is known for its strategic acquisitions and operational efficiency.