Bunzl plc (BNZL) AI Stock Analysis

• Market Cap: £7.06B
• Dividend Yield: 3.56%
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 14.7
• Beta (1Y): 0.25
• Revenue Growth: 1.92%
• EPS Growth: 0.50%
• Country: UK
• Employees: 26,978
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 1.01
• Shares Outstanding: 324,211,430
• 10 Day Avg. Volume: 623,722
• 30 Day Avg. Volume: 1,012,169
• PEG Ratio: -2.45
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 8.81
• 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: £2,314.00
• Price Target Upside: 5.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5
• EPS Forecast (FY): 1.77
• Revenue Forecast (FY): £12.03B

• Rating: 71 Outperform
• Price Target: 2,449.00 p ▲(11.83% Upside)
• Action: Upgraded Date: 03/04/26
• Date: Action: Upgraded 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.

Defensive, recurring distribution model

A diversified, high-frequency consumables distribution model creates recurring revenue and customer stickiness through outsourcing of procurement and logistics. This structural demand smoothing across end-markets supports stable volumes and margin visibility over multi-quarter horizons.

Disciplined bolt-on M&A & digital/brand progress

Proven, disciplined acquisitive capability and integration (targeted multiples, strong year-2 ROIC) expands footprint and cross-sell potential. Higher own-brand penetration and digital ordering raise margin mix and distribution efficiency, making growth and cost gains more sustainable.

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.

Execution and margin pressure in North America

Execution problems following a sales & operations model change have materially reduced wallet share in North America, which is ~30% of group revenue. Given the region's size, persistent operational shortcomings would structurally depress group margins and hinder medium-term growth recovery.

Working-capital intensity and rising cost-to-sales

Higher working capital absorbtion and a recent FCF decline highlight the business's cash sensitivity to payables/inventory movements. This intensity constrains net cash build and amplifies reliance on debt or slower buyback/dividend flexibility if operating conditions deteriorate.

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 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 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 and sells them to customers, often at a marked-up price. Key revenue streams include sales from food packaging, cleaning and hygiene products, healthcare supplies, and retail products. Additionally, Bunzl benefits from long-term partnerships and contracts with large customers, which provide a stable revenue base. Its focus on operational efficiency and cost management also contributes to its profitability, allowing the company to maintain healthy margins despite competitive pressures.

Bunzl plc Financial Statement Overview

Summary

Strong and consistent free-cash-flow generation and solid ROE support the profile, but leverage remains meaningful despite improvement and 2025 showed margin compression and lower net income versus 2024.

Income Statement

Revenue has grown modestly over the long run (2020–2024) and then jumped sharply in 2025 (+32.4% year over year), but profitability softened in 2025 with net income down versus 2024. Margins are generally steady for a distributor (net margin ~3.9% in 2025; EBITDA margin ~9.6%), though both EBIT and EBITDA margins compressed year over year in 2025. Note: 2025 gross profit and gross margin are shown as zero in the data, so gross-level profitability can’t be assessed for that year.

Balance Sheet

Leverage is meaningful: debt is roughly in line with equity in 2025 (debt-to-equity ~1.04) and was higher in 2024 (~1.34). Total debt declined materially in 2025 versus 2024, which is a positive deleveraging signal. Returns on shareholder capital remain solid (return on equity ~16–20% over recent years), but the capital structure is still debt-heavy, leaving less room for error if operating conditions weaken.

Cash Flow

Cash generation is a clear strength: free cash flow is consistently high relative to earnings (free cash flow running at ~91–96% of net income across 2020–2025), indicating good earnings quality. Free cash flow grew strongly in 2025 (+27.4%) and operating cash flow remains robust. A watch item is that operating cash flow is a relatively small share of revenue (about 22–29% per the provided figures), suggesting working-capital intensity, even though conversion to free cash flow remains strong.

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	1.14B	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

• Technical Analysis Sentiment: Negative
• Last Price: 2190.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:BNZL, the sentiment is Negative. The current price of 2190 is below the 20-day moving average (MA) of 2217.10, above the 50-day MA of 2141.02, and below the 200-day MA of 2246.84, indicating a neutral trend. The MACD of 29.82 indicates Positive momentum. The RSI at 48.25 is Neutral, neither overbought nor oversold. The STOCH value of 40.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:BNZL.

Bunzl plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CWK	78 Outperform	£2.77B	8.36	15.07%	2.06%	6.96%	28.47%
BNZL	71 Outperform	£7.06B	14.67	17.98%	3.56%	1.92%	0.50%
HFG	71 Outperform	£438.26M	11.83	12.72%	7.01%	8.58%	-15.81%
GNC	70 Outperform	£1.97B	17.26	12.23%	0.79%	7.74%	30.09%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Bunzl plc Corporate Events

Bunzl Confirms Updated Share Capital and Voting Rights for Disclosure Purposes

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 as the reference denominator for shareholders assessing whether they must disclose holdings or changes in their interests under the UK Financial Conduct Authority’s transparency rules.

The clarification of Bunzl’s voting rights structure helps investors and regulators accurately monitor significant shareholdings and changes in ownership. It also underscores ongoing compliance with disclosure requirements, supporting transparency in the company’s shareholder base and facilitating more informed governance and investment decisions.

The most recent analyst rating on (GB:BNZL) stock is a Hold with a £2350.00 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.

Bunzl Proposes 53.9p Final Dividend and Confirms DRP Timeline

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 will also continue to offer its dividend reinvestment plan, with elections due by 11 June 2026, signalling an ongoing commitment to shareholder returns and providing investors with flexibility in how they receive their distributions.

The most recent analyst rating on (GB:BNZL) stock is a Hold with a £2350.00 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.

Bunzl holds profit line in tough 2025 as it reiterates cautious 2026 outlook

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 operations. Despite the profit decline, cash generation remained strong with 95% cash conversion, an £579 million free cash flow, a modest dividend increase and completion of a £200 million share buyback, while eight acquisitions and expanded own-brand and digital penetration underpinned its long-term growth strategy.

Management highlighted operational improvements in the second half, including stabilising margins in Continental Europe, margin expansion in the UK & Ireland and moderating margin decline in North America after restructuring and cost-saving actions. For 2026, Bunzl reiterated guidance for moderate revenue growth at constant exchange rates and a slightly lower operating margin, signalling a more stable but still cautious profit outlook amid ongoing economic and geopolitical uncertainty, with an active acquisition pipeline expected to support future consolidation and growth.

The most recent analyst rating on (GB:BNZL) stock is a Hold with a £2350.00 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.

Bunzl North America CEO Buys Shares Through Employee Stock Plan

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, executed on 3 February 2026 on the London Stock Exchange’s Main Market at a price of $24.587 per share, underscores ongoing executive participation in the company’s equity schemes, aligning regional leadership’s interests with shareholders and reinforcing long-term incentive structures within the group.

The most recent analyst rating on (GB:BNZL) stock is a Hold with a £2350.00 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.

Bunzl Confirms Share Capital and Voting Rights as of 31 January 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 investors when calculating whether they must disclose new or altered holdings in Bunzl under the UK Financial Conduct Authority’s disclosure and transparency requirements, providing clarity on voting rights and regulatory reporting thresholds for shareholders.

The most recent analyst rating on (GB:BNZL) stock is a Hold with a £2350.00 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.

Bunzl North America CEO Acquires Shares Through Dividend Reinvestment Plan

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 interim dividend under the Bunzl Employee Stock Purchase Plan (US). The transaction, executed on 12 January 2026 on the London Stock Exchange’s Main Market at a price of $27.88477 per share, reflects ongoing participation by senior management in Bunzl’s share plans, aligning executive interests with shareholders without indicating any change in corporate strategy or outlook.

The most recent analyst rating on (GB:BNZL) stock is a Hold with a £2350.00 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.

Bunzl North America CEO Increases Holding Through Dividend Reinvestment

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, executed on 6 January 2026 on the London Stock Exchange’s Main Market at a price of £20.4244 per share, reflects ongoing alignment of senior management’s financial interests with those of shareholders and underscores continued use of dividend reinvestment mechanisms within the group’s executive shareholding structure.

The most recent analyst rating on (GB:BNZL) stock is a Hold with a £2350.00 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.

Bunzl North America CEO Acquires Shares Through Employee Stock Plan

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 5 January 2026 on the London Stock Exchange’s Main Market, reflects routine executive participation in the company’s employee share scheme and signals ongoing alignment of senior management’s interests with those of shareholders.

The most recent analyst rating on (GB:BNZL) stock is a Hold with a £2350.00 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.

Bunzl Confirms Share Capital and Voting Rights for Disclosure Calculations

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 used by investors as the reference denominator when calculating whether they must disclose holdings or changes in holdings under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules, providing clarity for shareholders and the market on regulatory reporting thresholds.

The most recent analyst rating on (GB:BNZL) stock is a Sell with a £2200.00 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.

Bunzl Projects Steady 2025 Profit Amid Market Challenges

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 maintaining a steady operating margin. The acquisition of Damito s.r.o in Slovakia marks an expansion of Bunzl’s presence in Eastern Europe. Looking ahead to 2026, Bunzl expects moderate revenue growth and a slight decrease in operating margin, with ongoing efforts to improve performance and capitalize on new business opportunities.

The most recent analyst rating on (GB:BNZL) stock is a Hold with a £2356.00 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.