Bunzl PLC (GB:BNZL)
LSE:BNZL
Top Page
Bunzl plc
(LSE:BNZL)
Select Model
Select Model
Rating:71Outperform
Price Target:
2,449.00 p
▲(4.12% Upside)
Action:UpgradedDate:03/04/26
The score is led by solid financial performance—especially strong free-cash-flow quality—offset by leverage and recent profitability/margin pressure. Technicals are supportive with positive momentum, while valuation looks reasonable given the mid-teens P/E and ~3.3% yield. Earnings call commentary adds caution due to guidance for slightly lower margins and ongoing regional/execution headwinds.
Positive Factors
Strong free cash flow
Consistently high free cash flow and very strong cash conversion provide durable financial flexibility. Persistent FCF funds dividends, buybacks and bolt-on M&A, supports deleveraging targets and cushions operational shocks, enabling capital allocation without relying on volatile equity markets.
Negative Factors
Meaningful leverage
A still debt-heavy capital structure limits financial flexibility and increases interest‑rate sensitivity. Even with net debt/EBITDA around 2.0x and active deleveraging, elevated leverage reduces headroom for repeated buybacks or larger deals if margins or cash flow slip.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow
Consistently high free cash flow and very strong cash conversion provide durable financial flexibility. Persistent FCF funds dividends, buybacks and bolt-on M&A, supports deleveraging targets and cushions operational shocks, enabling capital allocation without relying on volatile equity markets.
Read all positive factors
Bunzl plc (BNZL) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£7.58B
Dividend Yield3.56%
Average Volume (3M)1.01M
Price to Earnings (P/E)14.7
Beta (1Y)0.30
Revenue Growth1.92%
EPS Growth0.50%
CountryUK
Employees26,978
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)1.01
Shares Outstanding324,211,430
10 Day Avg. Volume623,722
30 Day Avg. Volume1,012,169
Financial Highlights & Ratios
PEG Ratio-2.45
Price to Book (P/B)2.42
Price to Sales (P/S)0.57
P/FCF Ratio8.81
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£2,404.00Price Target Upside2.21% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)1.78
Revenue Forecast (FY)£12.04B
Bunzl plc 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 pro...
How the Company Makes Money
Bunzl generates revenue primarily through the sale of its extensive portfolio of products to businesses in various sectors. The company operates a revenue model based on a broad distribution network, where it sources products from manufacturers an...
Bunzl plc 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 presents a mixed picture: tangible challenges in 2025 (notably execution issues in North America, margin erosion, EPS decline and regional market headwinds) were balanced by strong cash generation, disciplined capital allocation (buybacks/dividend), operational remediation that produced H2 improvement and continued strategic progress (own brand growth, digital penetration, active M&A pipeline and Nisbets synergies). Management reiterates cautious but constructive 2026 guidance and expects profit stability as a foundation for future organic growth.Positive Updates
Strong cash generation and shareholder returns
Free cash flow of GBP 579m (down 9% year-on-year) with cash conversion at 95%. Completed a GBP 200m share buyback in October and returned almost GBP 450m to shareholders (dividends + buybacks). Dividend increased by 0.3% with dividend cover of 2.4x.
Negative Updates
Adjusted operating profit and margin decline
Adjusted operating profit was GBP 910m, down 4.3% year-on-year (excluding an GBP 8m share-based payment credit, adjusted operating profit around GBP 902m). Group operating margin fell to 7.6% from 8.3% in 2024 (a ~0.7 percentage point decline).
Read all updates
Q4-2025 Updates
Positive
Negative
Strong cash generation and shareholder returns
Free cash flow of GBP 579m (down 9% year-on-year) with cash conversion at 95%. Completed a GBP 200m share buyback in October and returned almost GBP 450m to shareholders (dividends + buybacks). Dividend increased by 0.3% with dividend cover of 2.4x.
Read all positive updates
Company Guidance
Management reiterated unchanged 2026 guidance: they expect moderate revenue growth driven by slight underlying volume growth and a small benefit from announced acquisitions with selling prices broadly neutral; typical operating cost inflation of around 2–3% is expected but should be partially offset by operating‑cost and sourcing initiatives (including annualization of Nisbets synergies). They expect adjusted operating profit to be more stable and operating margin to be slightly down year‑on‑year versus 2025’s 7.6% (excluding the £8m share‑based payment credit), a net finance charge of about £125m, an effective tax rate of c.26% and a more normalized H1/H2 profit weighting. The group remains committed to disciplined capital allocation with adjusted net debt/EBITDA targeted at 2–2.5x (currently ~2.0x), supported by strong cash generation (£579m free cash flow, ~95% cash conversion) and a progressive dividend policy (dividend cover ~2.4x).Bunzl plc Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
60
Neutral
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 11.85B | 11.78B | 11.80B | 12.04B | 10.29B |
| Gross Profit | 1.77B | 3.39B | 3.19B | 1.62B | 1.31B |
| EBITDA | 1.16B | 1.22B | 1.18B | 1.03B | 909.00M |
| Net Income | 459.20M | 500.40M | 526.20M | 474.40M | 442.80M |
Balance Sheet | |||||
| Total Assets | 8.57B | 9.53B | 8.75B | 8.85B | 7.20B |
| Cash, Cash Equivalents and Short-Term Investments | 540.10M | 1.43B | 1.43B | 1.50B | 776.90M |
| Total Debt | 2.90B | 3.72B | 3.09B | 3.13B | 2.59B |
| Total Liabilities | 5.78B | 6.74B | 5.78B | 6.13B | 4.99B |
| Stockholders Equity | 2.79B | 2.79B | 2.97B | 2.72B | 2.20B |
Cash Flow | |||||
| Free Cash Flow | 765.10M | 856.50M | 845.70M | 859.20M | 665.60M |
| Operating Cash Flow | 836.60M | 910.90M | 904.00M | 905.90M | 698.30M |
| Investing Cash Flow | -170.30M | -609.10M | -339.50M | -239.40M | -466.70M |
| Financing Cash Flow | -774.60M | -381.10M | -666.90M | -269.10M | -415.20M |
Bunzl plc Technical Analysis
Positive
2352.00
Price Trends
2187.50
Positive
2145.88
Positive
2244.33
Positive
Market Momentum
32.66
Negative
68.19
Neutral
95.77
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BNZL, the sentiment is Positive. The current price of 2352 is above the 20-day moving average (MA) of 2244.05, above the 50-day MA of 2187.50, and above the 200-day MA of 2244.33, indicating a bullish trend. The MACD of 32.66 indicates Negative momentum. The RSI at 68.19 is Neutral, neither overbought nor oversold. The STOCH value of 95.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BNZL.
Bunzl plc Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £2.89B | 8.36 | 14.71% | 2.06% | 6.96% | 28.47% | |
71 Outperform | £7.58B | 14.67 | 17.21% | 3.56% | 1.92% | 0.50% | |
70 Outperform | £2.01B | 17.26 | 12.20% | 0.79% | 7.74% | 30.09% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | £475.98M | 3.61 | 14.17% | 7.01% | 8.58% | -15.81% |
* Consumer Defensive Sector Average
GB:BNZL
Bunzl plc
2,352.00
-596.18
-20.22%
GB:CWK
Cranswick
5,400.00
581.85
12.08%
GB:HFG
Hilton Food
530.00
-293.10
-35.61%
GB:GNC
Greencore
252.60
77.66
44.39%
Bunzl plc Corporate Events
Regulatory Filings and Compliance
Bunzl Confirms Updated Share Capital and Voting Rights for Disclosure Purposes
Positive
Mar 2, 2026
Bunzl plc has confirmed that, as of 28 February 2026, its issued share capital comprises 324,211,429 ordinary shares, each carrying one voting right, with no shares held in treasury. This updated share capital and voting rights figure will serve a...
Dividends
Bunzl Proposes 53.9p Final Dividend and Confirms DRP Timeline
Positive
Mar 2, 2026
Bunzl plc has proposed a final dividend of 53.9p per ordinary share for the financial year ended 31 December 2025, to be paid on 2 July 2026 to shareholders on the register as of 22 May 2026, with an ex-dividend date of 21 May 2026. The company wi...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Bunzl holds profit line in tough 2025 as it reiterates cautious 2026 outlook
Neutral
Mar 2, 2026
Bunzl reported 2025 revenue of £11.8 billion, up 3.0% at constant exchange rates, but adjusted operating profit fell 4.3% as Group operating margin slipped to 7.7%, reflecting challenges in its North American and Continental European operatio...
Other
Bunzl North America CEO Buys Shares Through Employee Stock Plan
Positive
Feb 3, 2026
Bunzl plc has disclosed that James McCool, its Chief Executive Officer for North America, has acquired 53 ordinary shares in the company through a non-discretionary purchase under the Bunzl Employee Stock Purchase Plan in the U.S. The transaction,...
Regulatory Filings and Compliance
Bunzl Confirms Share Capital and Voting Rights as of 31 January 2026
Neutral
Feb 2, 2026
Bunzl plc has confirmed that, as of 31 January 2026, its issued share capital consists of 324,211,429 ordinary shares, each carrying one voting right, with no shares held in treasury. The stated share count will serve as the reference figure for i...
Other
Bunzl North America CEO Acquires Shares Through Dividend Reinvestment Plan
Neutral
Jan 13, 2026
Bunzl plc has disclosed a routine share transaction involving James McCool, Chief Executive Officer for North America, who acquired 62 ordinary shares in the company through a non-discretionary purchase linked to the reinvestment of the 2025 inter...
Dividends
Bunzl North America CEO Increases Holding Through Dividend Reinvestment
Positive
Jan 7, 2026
Bunzl plc has disclosed that James McCool, Chief Executive Officer for North America, has acquired 547 ordinary shares in the company through a non-discretionary transaction linked to the reinvestment of the 2025 interim dividend. The purchase, ex...
Other
Bunzl North America CEO Acquires Shares Through Employee Stock Plan
Neutral
Jan 6, 2026
Bunzl plc has disclosed that James McCool, Chief Executive Officer for North America, has acquired 53 ordinary shares in the company via a non-discretionary purchase under the Bunzl Employee Stock Purchase Plan (U.S.). The transaction, executed on...
Financial DisclosuresRegulatory Filings and Compliance
Bunzl Confirms Share Capital and Voting Rights for Disclosure Calculations
Neutral
Jan 2, 2026
Bunzl plc has confirmed that as of 31 December 2025 its issued share capital amounted to 324,211,429 ordinary shares, each carrying one voting right, and that it holds no shares in treasury. The company stated that this total share count should be...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Bunzl Projects Steady 2025 Profit Amid Market Challenges
Neutral
Dec 17, 2025
Bunzl plc announced that its 2025 profit is expected to align with previous forecasts, despite challenging macroeconomic conditions. The company anticipates a revenue growth of 2% to 3% at constant exchange rates, driven by acquisitions, while mai...
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.