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Bunzl (BZLFY)
:BZLFY
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Bunzl
(OTC:BZLFY)
Rating:71Outperform
Price Target:
$17.00
▲(10.39%Upside)
Bunzl (BZLFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.02B
Dividend Yield3.11%
Average Volume (3M)3.09K
Price to Earnings (P/E)16.1
Beta (1Y)0.59
Revenue Growth2.64%
EPS Growth-1.79%
CountryUS
Employees26,978
SectorIndustrials
Sector Strength89
IndustryFood Distribution
Share Statistics
EPS (TTM)1.33
Shares Outstanding655,325,700
10 Day Avg. Volume3,635
30 Day Avg. Volume3,094
Financial Highlights & Ratios
PEG Ratio-0.43
Price to Book (P/B)3.98
Price to Sales (P/S)0.00
P/FCF Ratio12.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
Bunzl Business Overview & Revenue Model
Company DescriptionBunzl plc is a British multinational distribution and outsourcing company headquartered in London, England. It operates across various sectors including foodservice, retail, healthcare, cleaning and hygiene, and safety, providing a comprehensive range of non-food consumable products. The company's core services include procurement, consolidation, and delivery of essential items such as packaging, disposable supplies, and cleaning products, tailored to meet the specific needs of different industries.
How the Company Makes MoneyBunzl makes money through its business model of distribution and outsourcing services. The company generates revenue by sourcing a wide range of non-food consumable products directly from manufacturers and efficiently distributing them to customers in various sectors such as foodservice, retail, and healthcare. Bunzl's key revenue streams include the sale of these products, often under exclusive supply agreements, and providing value-added services like inventory management, logistics, and supply chain optimization. Additionally, Bunzl benefits from long-standing partnerships with major suppliers and customers, which help ensure steady demand and supply agreements, thus contributing significantly to its earnings.
Bunzl Earnings Call Summary
Earnings Call Date:Mar 03, 2025
(Q4-2024)
| % Change Since: -25.85%|
Next Earnings Date:Sep 02, 2025
Earnings Call Sentiment Neutral
The earnings call presents a mixed outlook. While Bunzl achieved strong operating profit growth, record acquisition activity, and increased own brand penetration, these positives are countered by challenges such as deflation impacting revenue growth, currency translation issues, and increased leverage. The sentiment reflects both the strategic successes and the operational challenges faced by the company.Q4-2024 Updates
Positive Updates
Strong Operating Profit Growth
Bunzl achieved strong adjusted operating profit growth of 7.2% at constant exchange rates, primarily driven by operating margin expansion from 8% to 8.3%.
Record Acquisition Spend
The company committed a record GBP 883 million to acquisitions this year with 13 announced acquisitions across 5 sectors and 9 countries.
Increased Own Brand Penetration
Own brand penetration increased to 28% from 25% last year, primarily driven by actions to develop the own brand offering in North America.
High Return on Invested Capital
Return on invested capital was 14.8%, well ahead of the group's WACC, showcasing strong capital efficiency.
Cash Conversion and Dividend Growth
Consistent cash generation with GBP 634 million of free cash flow and a 93% cash conversion rate. Total dividend per share increased by 8.2%.
Negative Updates
Revenue Growth Impacted by Deflation
Revenue at constant exchange rates increased by only 3.1%, with net acquisitions contributing 5.1% to growth but offset by a 2.4% decline in underlying revenue due to deflation and volume reductions in North America.
Currency Translation Impact
Results were negatively impacted by currency translation of between 3% and 4% across the income statement.
European Market Challenges
Continental Europe experienced moderate revenue growth impacted by deflation and high operating cost inflation, affecting adjusted operating profit and margin.
Debt and Leverage Increase
Leverage increased with adjusted net debt to EBITDA rising to 1.8x, driven by record acquisition spend and buybacks.
Company Guidance
The call highlighted Bunzl's strong financial performance and strategic initiatives for 2024, emphasizing key metrics such as a 7.2% increase in adjusted operating profit at constant exchange rates, driven by margin expansion from 8% to 8.3%. Revenue rose by 3.1%, supported by a 5.1% contribution from net acquisitions, while underlying revenue declined by 2.4% due to deflation and volume reductions, particularly in North America. The company maintained a robust return on invested capital at 14.8%, with free cash flow generation of GBP 634 million and a cash conversion rate of 93%. The total dividend per share increased by 8.2%, and two share buyback programs were announced, totaling GBP 450 million. Bunzl's strategic focus included a record GBP 883 million in acquisitions across five sectors and nine countries, with an increase in own brand penetration from 25% to 28%, supporting margin growth. The 2025 outlook anticipates robust revenue growth driven by acquisitions and slight underlying growth, with operating margins expected to remain consistent with 2024 levels.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.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 | 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
Negative
15.40
Price Trends
15.74
Negative
16.65
Negative
18.96
Negative
Market Momentum
-0.07
Negative
46.17
Neutral
65.88
Neutral
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 15.4 is below the 20-day moving average (MA) of 15.61, below the 50-day MA of 15.74, and below the 200-day MA of 18.96, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 46.17 is Neutral, neither overbought nor oversold. The STOCH value of 65.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BZLFY.
Bunzl Peers Comparison
Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $37.99B | 21.01 | 99.08% | 2.58% | 3.21% | -4.03% | |
78 Outperform | $15.52B | 41.69 | 9.05% | ― | 6.20% | -10.58% | |
77 Outperform | $2.55B | 41.08 | 13.64% | ― | 7.90% | 68.05% | |
75 Outperform | $19.18B | 38.78 | 11.16% | ― | 6.32% | 5.69% | |
71 Outperform | $10.02B | 16.15 | 17.62% | 3.11% | 2.64% | -1.79% | |
65 Neutral | $11.04B | 15.74 | 4.60% | 2.11% | 3.27% | -26.87% | |
62 Neutral | $1.68B | ― | -4.11% | ― | 6.62% | 53.12% |
* Industrials Sector Average
Performance Comparison
BZLFY
Bunzl
15.19
-5.20
-25.50%
SYY
Sysco
80.11
5.52
7.40%
CHEF
The Chefs' Warehouse
66.92
25.33
60.90%
UNFI
United Natural Foods
27.89
12.39
79.94%
PFGC
Performance Food Group
102.08
33.08
47.94%
USFD
US Foods Holding
84.40
30.01
55.18%
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.