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Bunzl PLC (GB:BNZL)
LSE:BNZL
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Bunzl plc (BNZL) AI Stock Analysis

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GB:BNZL

Bunzl plc

(LSE:BNZL)

Rating:73Outperform
Price Target:
2,603.00p
▲(12.39%Upside)
Bunzl plc's overall stock score reflects its strong financial performance and strategic growth through acquisitions. While technical indicators suggest short-term challenges, the company's resilient earnings and high dividend yield provide a solid foundation for long-term investors. Insider confidence further strengthens the outlook.
Positive Factors
Acquisitions
Bunzl has signed an agreement to acquire Hospitalia in Chile and Inpakomed in the Netherlands, marking strategic expansion into new markets and adding significant revenue.
Financial Performance
Bunzl reported a robust set of full-year results, with revenues up, improved underlying trends, and increased operating profits and margins.
Valuation
The company's shares are trading at a discount to their 10-year average, providing an attractive entry point into a resilient business.
Negative Factors
North American Market Challenges
Bunzl faces challenges in its North American business with market headwinds impacting sentiment and leading to a reduction in guidance.
Operating Margin Pressure
Revenue softness and operating margin pressure in North America due to macroeconomic uncertainty have led to a significant decline in adjusted operating profit.
Share Buyback Programme
The pause in the group's buyback programme no longer provides share price support, aiming to stay within the lower end of target leverage.

Bunzl plc (BNZL) vs. iShares MSCI United Kingdom ETF (EWC)

Bunzl plc Business Overview & Revenue Model

Company DescriptionBunzl 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 MoneyBunzl plc generates revenue primarily through the distribution of non-food consumable products. The company's revenue model is based on the procurement, consolidation, and supply of these products to a diverse customer base across multiple sectors. Key revenue streams include the sale of packaging materials, cleaning and hygiene products, safety and personal protective equipment, and healthcare supplies. Bunzl has established significant partnerships with manufacturers and suppliers, allowing it to offer a comprehensive range of products at competitive prices. The company's extensive distribution network and expertise in global sourcing contribute significantly to its earnings, enabling it to serve a wide array of industries efficiently.

Bunzl plc Earnings Call Summary

Earnings Call Date:Mar 03, 2025
(Q4-2024)
|
% Change Since: -29.69%|
Next Earnings Date:Sep 02, 2025
Earnings Call Sentiment Neutral
Bunzl demonstrated strong growth and strategic progress through record acquisitions, profit growth, and increased dividends. However, these positives were tempered by challenges such as currency impacts, persistent deflation, and regional revenue declines. The company's resilience and strategic focus indicate a balanced outlook.
Q4-2024 Updates
Positive Updates
Strong Compounding Growth
Since 2014, Bunzl has delivered an adjusted EPS CAGR of 8% with strong consistency, driven by organic and acquisition growth.
Record Acquisition Spend
Bunzl committed a record GBP 883 million to acquisitions in 2024, including 13 acquisitions across 5 sectors and 9 countries.
Operating Profit Growth
Adjusted operating profit grew by 7.2% at constant exchange rates, driven by operating margin expansion from 8.0% to 8.3%.
Increased Dividend and Share Buybacks
Bunzl increased total dividend per share by 8.2% and completed a GBP 250 million share buyback, with another GBP 200 million buyback underway.
Strong Cash Flow
The company generated GBP 634 million of free cash flow, achieving a 93% cash conversion rate.
Own Brand Penetration Growth
Own brand penetration increased from 25% to 28%, with significant development in North America.
Negative Updates
Currency Impact
Results were negatively impacted by currency translation effects between 3% and 4% across the income statement.
Underlying Revenue Decline
There was a 2.4% decline in underlying revenue, reflecting deflation and volume reductions, primarily in North America.
Challenges in Continental Europe
Continental Europe faced deflation and operating cost inflation, impacting adjusted operating profit and margin, particularly in the second half.
Persistent Deflation in North America
Deflation was a prolonged challenge in North America, affecting revenue and volume growth.
U.K. and Ireland Market Softness
The U.K. and Ireland saw underlying revenue decline due to deflation and soft volumes, impacting financial results.
Company Guidance
During Bunzl's 2024 Full Year Results presentation, the company outlined significant metrics highlighting their strong financial performance and strategic progress. The group achieved a 7.2% growth in adjusted operating profit at constant exchange rates, with an operating margin increase from 8% to 8.3%. Revenue rose by 3.1% at constant exchange rates, despite underlying revenue declines due to deflation and volume softness in North America. Bunzl's return on invested capital stood at 14.8%, notably above the group's weighted average cost of capital (WACC), supported by GBP 2.6 billion in acquisitions over five years. The company generated GBP 634 million in free cash flow with a 93% cash conversion rate. Bunzl announced a total dividend per share increase of 8.2% and initiated two share buyback programs, including a GBP 250 million completed buyback in 2024 and another GBP 200 million underway. The group also committed GBP 883 million to acquisitions, including 13 deals across five sectors and nine countries, highlighting their strategic focus on value-added distribution and own brand development. Bunzl plans to maintain operating margins in 2025, with expectations of robust revenue growth driven by acquisitions, despite anticipated deflationary headwinds.

Bunzl plc Financial Statement Overview

Summary
Bunzl plc exhibits solid financial performance with effective margin management and operational efficiency. While revenue growth is modest, profitability remains strong. The balance sheet shows increased leverage, which requires monitoring, but the company continues to generate strong cash flows, supporting its financial stability.
Income Statement
75
Positive
Bunzl plc shows stable revenue with slight growth challenges, as seen by a marginal decline in revenue compared to the previous year. Gross profit margin is consistent, indicating effective cost management. However, net profit margin decreased slightly due to increased expenses. The EBIT and EBITDA margins are strong, reflecting efficient operational performance.
Balance Sheet
70
Positive
The company maintains a robust equity position with an equity ratio of around 29% to 31% over recent years. The debt-to-equity ratio has increased, indicating rising leverage which might pose a risk if not managed carefully. The return on equity (ROE) remains strong, showcasing effective utilization of equity for generating profits.
Cash Flow
78
Positive
Cash flow from operations remains healthy, supporting positive free cash flow. The company's free cash flow to net income ratio is solid, indicating strong conversion of net income to cash. Free cash flow growth is stable, despite fluctuations in capital expenditures and financing activities.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue11.78B11.80B12.04B10.29B10.11B
Gross Profit3.39B3.19B1.62B1.31B1.38B
EBITDA1.22B1.18B1.03B909.00M896.20M
Net Income500.40M526.20M474.40M442.80M430.00M
Balance Sheet
Total Assets9.53B8.75B8.85B7.20B6.91B
Cash, Cash Equivalents and Short-Term Investments1.43B1.43B1.50B776.90M944.30M
Total Debt3.72B3.09B3.13B2.59B2.71B
Total Liabilities6.74B5.78B6.13B4.99B4.99B
Stockholders Equity2.79B2.97B2.72B2.20B1.92B
Cash Flow
Free Cash Flow856.50M845.70M859.20M665.60M715.60M
Operating Cash Flow910.90M904.00M905.90M698.30M748.70M
Investing Cash Flow-609.10M-339.50M-239.40M-466.70M-395.10M
Financing Cash Flow-381.10M-666.90M-269.10M-415.20M-65.60M

Bunzl plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price2316.00
Price Trends
50DMA
2329.50
Positive
100DMA
2519.43
Negative
200DMA
2937.51
Negative
Market Momentum
MACD
-9.34
Negative
RSI
52.96
Neutral
STOCH
56.67
Neutral
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 2316 is above the 20-day moving average (MA) of 2311.90, below the 50-day MA of 2329.50, and below the 200-day MA of 2937.51, indicating a neutral trend. The MACD of -9.34 indicates Negative momentum. The RSI at 52.96 is Neutral, neither overbought nor oversold. The STOCH value of 56.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:BNZL.

Bunzl plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
£7.05B40.8418.41%114.45%15.75%44.11%
75
Outperform
£1.75B17.4423.48%304.10%14.34%-16.43%
75
Outperform
£2.13B50.414.71%144.71%-0.68%-78.93%
73
Outperform
£7.59B15.4217.39%294.27%-0.18%-4.60%
69
Neutral
£9.46B30.157.38%180.62%1.13%-19.48%
65
Neutral
£209.34M11.5415.19%458.00%19.01%-15.21%
63
Neutral
kr61.10B12.501.88%2.33%0.13%-4.39%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:BNZL
Bunzl plc
2,316.00
-843.91
-26.71%
GB:DPLM
Diploma
5,295.00
998.30
23.23%
GB:MTO
Mitie Group plc
141.40
21.81
18.24%
GB:RTO
Rentokil Initial
370.90
-85.97
-18.82%
GB:SRP
Serco Group plc
211.00
21.99
11.63%
GB:KITW
Kitwave Group PLC
250.00
-63.53
-20.26%

Bunzl plc Corporate Events

Executive/Board ChangesDividends
Bunzl CEO Acquires Shares Following Dividend Reinvestment
Positive
Jul 11, 2025

Bunzl plc announced a transaction involving its Chief Executive Officer for North America, James McCool, who acquired ordinary shares through a non-discretionary transaction. This acquisition followed the reinvestment of the company’s 2024 final dividend, with the transaction taking place on the London Stock Exchange. This move reflects the company’s ongoing commitment to aligning management interests with shareholder value, potentially strengthening its market position and stakeholder confidence.

The most recent analyst rating on (GB:BNZL) stock is a Buy with a £3500.00 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.

Executive/Board ChangesDividends
Bunzl CEO Acquires Shares Through Dividend Reinvestment
Neutral
Jul 9, 2025

Bunzl plc announced a transaction involving its Chief Executive Officer for North America, James McCool, who acquired shares through a non-discretionary transaction. This acquisition was part of the reinvestment of the 2024 final dividend under the Bunzl Employee Stock Purchase Plan (US), highlighting the company’s ongoing commitment to employee investment and shareholder value. The transaction took place on July 8, 2025, at the London Stock Exchange.

The most recent analyst rating on (GB:BNZL) stock is a Sell with a £2800.00 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.

Business Operations and Strategy
Bunzl CEO North America Executes Share Purchase
Neutral
Jul 3, 2025

Bunzl plc announced a transaction involving James McCool, the Chief Executive Officer for North America, who executed a non-discretionary purchase of shares through the Bunzl Employee Stock Purchase Plan. This transaction, conducted on the London Stock Exchange, reflects the company’s ongoing efforts to align management interests with shareholder value, potentially impacting stakeholder confidence and market perception.

The most recent analyst rating on (GB:BNZL) stock is a Sell with a £2800.00 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.

Regulatory Filings and Compliance
Bunzl plc Updates Share Capital and Voting Rights Information
Neutral
Jul 1, 2025

Bunzl plc announced that as of June 30, 2025, its share capital consists of 327,662,849 ordinary shares, each carrying one vote. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s rules, impacting how they manage their interests in the company.

The most recent analyst rating on (GB:BNZL) stock is a Sell with a £2800.00 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.

Other
Bunzl plc Announces Share Transactions by European Managing Director
Neutral
Jul 1, 2025

Bunzl plc announced a transaction involving Alberto Grau, Managing Director for Continental Europe, who acquired shares through the Bunzl Deferred Annual Share Bonus Scheme. Grau exercised options granted in 2021 and 2022, acquiring a total of 9,991 shares and subsequently selling 4,390 shares to cover associated costs. This transaction highlights Bunzl’s ongoing commitment to aligning management incentives with shareholder interests, potentially impacting the company’s market perception and stakeholder confidence.

The most recent analyst rating on (GB:BNZL) stock is a Sell with a £2800.00 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.

Other
Bunzl Executives Increase Stake in Company
Positive
Jun 24, 2025

Bunzl plc announced recent transactions involving its Chairman, Peter Ventress, and Non-executive Director, Jacqueline Simmonds, who have both purchased ordinary shares in the company. These transactions, conducted on the London Stock Exchange, reflect a vote of confidence in Bunzl’s market position and future prospects, potentially signaling stability and growth to stakeholders.

The most recent analyst rating on (GB:BNZL) stock is a Sell with a £2800.00 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Bunzl Reports Steady Growth and Announces Brazilian Acquisition
Positive
Jun 24, 2025

Bunzl plc announced that its trading is in line with expectations, with a 4% increase in group revenue at constant exchange rates compared to the previous year, driven by acquisitions. The company has agreed to acquire Solupack, a Brazilian distributor, to enhance its offerings in the food industry, pending regulatory approval. Bunzl’s operating margin is expected to remain stable, and the company is focused on improving performance in its largest markets. The acquisition aligns with Bunzl’s strategy of compounding growth and navigating economic uncertainties through diversification.

The most recent analyst rating on (GB:BNZL) stock is a Sell with a £2800.00 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.

Other
Bunzl plc Announces Share Purchase by CFO’s Associate
Positive
Jun 18, 2025

Bunzl plc announced a transaction involving the purchase of 4,471 ordinary shares by Alexia Howes, a person closely associated with the company’s Chief Financial Officer, Richard Howes. The shares were acquired at a price of £22.19 each on the London Stock Exchange. This transaction reflects confidence in the company’s market position and may have implications for stakeholders regarding the financial strategies of Bunzl’s leadership.

The most recent analyst rating on (GB:BNZL) stock is a Sell with a £2800.00 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.

Other
Bunzl North America CEO Acquires Shares, Signaling Confidence
Positive
Jun 5, 2025

Bunzl plc announced a transaction involving its North America CEO, James McCool, who purchased ordinary shares through the Bunzl Employee Stock Purchase Plan. The transaction, which took place on the London Stock Exchange, involved the acquisition of 45 shares at a price of $28.0217 each. This move highlights the executive’s confidence in the company’s future prospects and may positively influence stakeholder perceptions.

The most recent analyst rating on (GB:BNZL) stock is a Hold with a £2500.00 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.

Business Operations and Strategy
Bunzl CFO Transfers Shares to Associated Party
Neutral
May 23, 2025

Bunzl plc announced a transaction involving the transfer of 89,940 ordinary shares by Richard Howes, the Chief Financial Officer, to Alexia Howes, a person closely associated with him, for nil consideration. This transaction, conducted outside of a trading venue, reflects internal share management and may indicate strategic financial planning within the company’s executive team.

The most recent analyst rating on (GB:BNZL) stock is a Hold with a £32.50 price target. To see the full list of analyst forecasts on Bunzl plc stock, see the GB:BNZL Stock Forecast page.

Business Operations and Strategy
Bunzl CEO Transfers Shares in Strategic Move
Neutral
May 8, 2025

Bunzl plc announced a transaction involving its CEO, Frank van Zanten, who transferred 150,000 ordinary shares to Nathalie van Zanten, a person closely associated with him, for nil consideration. This transaction, conducted outside of a trading venue, reflects internal share movements and may indicate strategic financial planning within the company’s leadership.

Business Operations and StrategyRegulatory Filings and Compliance
Bunzl’s Director Engages in Share Transactions Reflecting Incentive Alignment
Neutral
May 7, 2025

Bunzl plc announced a series of transactions involving Jonathan Taylor, Managing Director for Latin America, who acquired and sold shares as part of the company’s Long Term Incentive Plan and Deferred Annual Share Bonus Scheme. These transactions, conducted on the London Stock Exchange, highlight the company’s ongoing commitment to aligning management incentives with shareholder interests, potentially impacting stakeholder confidence and market perception.

Business Operations and Strategy
Bunzl plc Director Acquires Shares Under Sharesave Scheme
Positive
May 7, 2025

Bunzl plc announced that Diana Breeze, Director of Group Human Resources, acquired 398 ordinary shares at an option price of £22.56 per share. This transaction was executed following the exercise of options granted in April 2022 under the Bunzl plc Sharesave Scheme, and it took place on the London Stock Exchange. This acquisition reflects the company’s ongoing commitment to employee investment and engagement through its Sharesave Scheme, potentially enhancing stakeholder confidence in its human resources leadership and strategic direction.

Other
Bunzl CEO North America Acquires Shares, Signaling Confidence
Positive
May 6, 2025

Bunzl plc announced a transaction involving its Chief Executive Officer for North America, James McCool, who purchased shares through the Bunzl Employee Stock Purchase Plan. This transaction, conducted on the London Stock Exchange, reflects executive confidence in the company’s performance and may positively influence stakeholder perceptions.

Regulatory Filings and Compliance
Bunzl plc Updates Share Capital and Voting Rights Information
Neutral
May 1, 2025

Bunzl plc announced that as of April 30, 2025, its share capital consists of 327,590,567 ordinary shares, each carrying one vote per share. This information is crucial for shareholders to determine their notification requirements under the Financial Conduct Authority’s rules, impacting how they manage their interests in the company.

Delistings and Listing Changes
Bunzl plc Seeks Block Listing for Sharesave Scheme Options
Neutral
May 1, 2025

Bunzl plc has applied for a block listing of 50,000 ordinary shares on the London Stock Exchange, with shares expected to be admitted on 2 May 2025. This move is aimed at fulfilling options granted under the company’s Sharesave Schemes, reflecting Bunzl’s ongoing commitment to employee investment and engagement.

M&A TransactionsBusiness Operations and Strategy
Bunzl Expands with Acquisitions in Chile and the Netherlands
Positive
Apr 30, 2025

Bunzl plc has announced its strategic expansion into the Chilean healthcare market by acquiring Hospitalia, a major healthcare distributor in Chile, pending competition authority clearance. Additionally, Bunzl has completed the acquisition of Inpakomed, a Dutch company specializing in sterile product packaging solutions, enhancing its offerings in the Netherlands. These acquisitions align with Bunzl’s strategy of self-funded, value-accretive growth and strengthen its market position in both regions.

Other
Bunzl plc Director Purchases Shares, Signaling Confidence
Positive
Apr 28, 2025

Bunzl plc announced a transaction involving Daniela Barone Soares, a non-executive director, who purchased 431 ordinary shares at a price of £23.07128 each. This transaction, conducted on the London Stock Exchange, highlights the ongoing engagement of company leadership in Bunzl’s financial activities, potentially signaling confidence in the company’s market position.

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.Date of analysis: Jul 25, 2025