Bunzl (BZLFY) AI Stock Analysis

• Market Cap: $10.39B
• Dividend Yield: 4.37%
• Average Volume (3M): 6.60K
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.59
• Revenue Growth: 2.64%
• EPS Growth: -1.79%
• Country: US
• Employees: 26,978
• Sector: Industrials
• Sector Strength: 86
• Industry: Food Distribution
• EPS (TTM): 1.33
• Shares Outstanding: 655,325,700
• 10 Day Avg. Volume: 5,648
• 30 Day Avg. Volume: 6,600
• PEG Ratio: -0.43
• Price to Book (P/B): 3.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 12.95
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 68 Neutral
• Price Target: ―

Bunzl demonstrates a stable financial foundation with strong cash flow and profitability metrics, though revenue growth remains a concern. Technical analysis indicates bearish trends, but valuation metrics offer a balanced view in terms of growth and income. The recent earnings call highlights strategic successes and operational challenges, presenting a mixed but cautiously optimistic outlook for the stock.

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 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 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: Negative
• Last Price: 15.79
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 15.79 is above the 20-day moving average (MA) of 15.69, above the 50-day MA of 15.78, and below the 200-day MA of 19.52, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 48.94 is Neutral, neither overbought nor oversold. The STOCH value of 39.35 is Neutral, 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
BZLFY	68 Neutral	$10.39B	16.64	17.62%	4.37%	2.64%	-1.79%
USFD	66 Neutral	$18.14B	36.03	11.16%	―	6.32%	5.69%
CHEF	62 Neutral	$2.60B	42.66	12.90%	―	7.85%	79.89%
SYY	61 Neutral	$37.41B	19.96	94.91%	2.80%	3.55%	-5.79%
PFGC	59 Neutral	$13.87B	36.99	9.05%	―	6.20%	-10.58%
UNFI	58 Neutral	$1.41B	―	-4.11%	―	6.62%	53.12%
Sector *	58 Neutral	HK$10.50B	4.22	-2.96%	7.40%	3.76%	-51.26%