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Bunzl
(OTC:BZLFY)
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Rating:65Neutral
Price Target:
$20.00
▲(41.34% Upside)
Action:Reiterated
Date:03/05/26
The score is driven primarily by solid underlying financial durability (steady margins, strong cash conversion) but held back by stalled growth and 2025 profit pressure. The earnings call adds a modestly cautious tilt due to execution challenges and slightly lower margin outlook despite recovery actions. Valuation/dividend are supportive, while technical signals are broadly neutral.
Positive Factors
Strong free cash flow generation
Bunzl's free cash flow conversion is exceptionally high (c.95% in 2025 and ~0.91–0.96x historically), producing sizeable cash for buybacks, M&A and debt reduction. Reliable cash conversion supports capital returns and reinvestment capacity through cycles, strengthening balance-sheet optionality.
Negative Factors
Stalled-to-declining revenue growth
Several years of muted organic growth, and a 2025 revenue decline, constrain the ability to leverage fixed costs and organically expand margins. Persistent top-line weakness increases reliance on acquisitions for growth and raises execution risk around integrating bolt-ons to restore sustainable expansion.
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Positive Factors
Negative Factors
Strong free cash flow generation
Bunzl's free cash flow conversion is exceptionally high (c.95% in 2025 and ~0.91–0.96x historically), producing sizeable cash for buybacks, M&A and debt reduction. Reliable cash conversion supports capital returns and reinvestment capacity through cycles, strengthening balance-sheet optionality.
Read all positive factors
Bunzl (BZLFY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$12.13B
Dividend Yield2.61%
Average Volume (3M)43.82K
Price to Earnings (P/E)19.8
Beta (1Y)0.51
Revenue Growth3.76%
EPS Growth-2.37%
CountryUS
Employees26,777
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)1.38
Shares Outstanding648,578,370
10 Day Avg. Volume0
30 Day Avg. Volume43,824
Financial Highlights & Ratios
PEG Ratio-0.94
Price to Book (P/B)1.21
Price to Sales (P/S)0.29
P/FCF Ratio4.51
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.21
Revenue Forecast (FY)$16.18B
Bunzl Business Overview & Revenue Model
Company Description
Bunzl plc operates as a global distribution and services enterprise. Its operations span North America, Continental Europe, the United Kingdom, Ireland, and a broad international footprint. Serving the food retail sector, including grocery stores,...
How the Company Makes Money
Bunzl primarily makes money by buying large volumes of everyday non-food consumables from manufacturers, then distributing them to business customers at a markup, leveraging scale purchasing, logistics, and local distribution networks. Revenue is ...
Bunzl Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Sep 01, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: management acknowledged a challenging 2025 with execution issues (notably in North America distribution), margin and profit declines, and difficult end-market conditions, while highlighting a strong cash generation, successful corrective actions that moderated margin declines in H2, Q4 new business wins (>USD 100m), improving underlying revenue momentum, operational efficiencies, and meaningful progress on own brand and Nisbets synergies. Given the balance of significant operational challenges and clear evidence of recovery actions and financial resilience, the tone is cautiously constructive but not fully recovered.Positive Updates
Revenue Growth and Underlying Momentum
Group revenue increased 3.0% at constant exchange rates in 2025, with underlying revenue growth of 0.4% for the year and improvement during the year to 0.9% in H2 (vs 0.2% in H1). New business wins in Q4 contributed to the H2 acceleration.
Negative Updates
Adjusted Operating Profit and Margin Decline
Adjusted operating profit fell to GBP 910 million, a decline of 4.3% year-on-year (or around GBP 902 million excluding an GBP 8 million share-based payment credit). Operating margin fell to 7.6% from 8.3% in 2024 (approx -0.7pp).
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Q4-2025 Updates
Positive
Negative
Revenue Growth and Underlying Momentum
Group revenue increased 3.0% at constant exchange rates in 2025, with underlying revenue growth of 0.4% for the year and improvement during the year to 0.9% in H2 (vs 0.2% in H1). New business wins in Q4 contributed to the H2 acceleration.
Read all positive updates
Company Guidance
Management reiterated 2026 guidance expecting moderate revenue growth driven by slight volume growth and a small benefit from announced acquisitions, with selling prices broadly neutral and operating cost inflation around 2–3% (partially offset by cost/sourcing initiatives including annualising Nisbets synergies); they expect operating margin to be slightly down year‑on‑year versus 2025’s 7.6% (excluding an £8m share‑based payment credit), a more stable adjusted operating profit with a more normal H1/H2 weighting, a net finance charge of c.£125m, an effective tax rate of 26% and continued leverage within the target range (adjusted net debt/EBITDA c.2.0x, target 2–2.5x), with 2026 providing the foundation for future organic profit growth.Bunzl Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
60
Neutral
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.59B | 11.78B | 11.80B | 12.04B | 10.29B |
| Gross Profit | 1.74B | 3.39B | 3.19B | 3.02B | 2.52B |
| EBITDA | 1.14B | 1.23B | 1.18B | 1.04B | 910.20M |
| Net Income | 449.14M | 500.40M | 526.20M | 474.40M | 442.80M |
Balance Sheet | |||||
| Total Assets | 8.56B | 9.53B | 8.75B | 8.67B | 7.11B |
| Cash, Cash Equivalents and Short-Term Investments | 539.15M | 1.43B | 1.43B | 1.50B | 776.90M |
| Total Debt | 2.89B | 3.72B | 3.09B | 3.13B | 2.59B |
| Total Liabilities | 5.77B | 6.74B | 5.78B | 5.95B | 4.91B |
| Stockholders Equity | 2.78B | 2.79B | 2.97B | 2.72B | 2.20B |
Cash Flow | |||||
| Free Cash Flow | 748.33M | 856.50M | 845.70M | 904.90M | 700.40M |
| Operating Cash Flow | 818.27M | 910.90M | 904.00M | 951.60M | 733.10M |
| Investing Cash Flow | -166.57M | -609.10M | -339.50M | -223.20M | -458.00M |
| Financing Cash Flow | -757.62M | -381.10M | -666.90M | -331.00M | -458.70M |
Bunzl Technical Analysis
Positive
14.15
Price Trends
16.77
Positive
15.88
Positive
15.10
Positive
Market Momentum
0.51
Negative
75.91
Negative
100.12
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 14.15 is below the 20-day moving average (MA) of 17.71, below the 50-day MA of 16.77, and below the 200-day MA of 15.10, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 75.91 is Negative, neither overbought nor oversold. The STOCH value of 100.12 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $3.96B | 47.13 | 13.54% | ― | 10.01% | 22.30% | |
66 Neutral | $17.56B | 52.72 | 7.13% | ― | 8.45% | -12.95% | |
65 Neutral | $12.13B | 19.83 | 17.21% | 3.40% | 3.76% | -2.37% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $21.42B | 32.32 | 15.27% | ― | 3.67% | 36.66% | |
61 Neutral | $39.06B | 22.63 | 81.92% | 2.84% | 3.44% | -6.81% | |
50 Neutral | $2.97B | -78.45 | -2.43% | ― | -3.22% | 44.69% |
* Consumer Defensive Sector Average
BZLFY
Bunzl
18.80
3.89
26.07%
SYY
Sysco
81.69
5.14
6.72%
CHEF
The Chefs' Warehouse
97.09
31.47
47.97%
UNFI
United Natural Foods
49.10
22.65
85.63%
PFGC
Performance Food Group
111.76
12.80
12.93%
USFD
US Foods Holding
97.27
13.86
16.62%
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.