Bunzl PLC (GB:BNZL)
LSE:BNZL
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Bunzl plc
(LSE:BNZL)
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Rating:71Outperform
Price Target:
2,684.00 p
â–²(13.83% 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
Cash generation
Consistently high free cash flow and ~95% cash conversion demonstrate durable earnings quality and internal funding capacity. This supports disciplined capital allocation (dividends, buybacks, M&A), deleveraging targets and cushions the business against cyclical shocks over the next 2–6 months and beyond.
Negative Factors
Meaningful leverage
Capital structure remains debt-heavy despite recent deleveraging. With net finance charges elevated and a stated adjusted net debt/EBITDA target range, leverage reduces strategic flexibility, increases interest-sensitivity and leaves less headroom to absorb prolonged margin or volume shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistently high free cash flow and ~95% cash conversion demonstrate durable earnings quality and internal funding capacity. This supports disciplined capital allocation (dividends, buybacks, M&A), deleveraging targets and cushions the business against cyclical shocks over the next 2–6 months and beyond.
Read all positive factors
Bunzl plc (BNZL) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£7.83B
Dividend Yield3.56%
Average Volume (3M)1.01M
Price to Earnings (P/E)14.7
Beta (1Y)0.23
Revenue Growth0.59%
EPS Growth-5.46%
CountryUK
Employees26,978
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)1.41
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
£2,324.29Price Target Upside-1.43% Downside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)1.78
Revenue Forecast (FY)£12.05B
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 makes money primarily by acting as a large-scale distributor of essential, frequently replenished consumable products, generating revenue from the sale of these goods to business customers under recurring supply relationships. Its core reven...
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
2358.00
Price Trends
2213.96
Positive
2156.71
Positive
2244.64
Positive
Market Momentum
38.27
Negative
64.78
Neutral
67.57
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 2358 is above the 20-day moving average (MA) of 2255.20, above the 50-day MA of 2213.96, and above the 200-day MA of 2244.64, indicating a bullish trend. The MACD of 38.27 indicates Negative momentum. The RSI at 64.78 is Neutral, neither overbought nor oversold. The STOCH value of 67.57 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | £2.87B | 8.36 | 14.71% | 2.06% | 6.96% | 28.47% | |
71 Outperform | £7.83B | 14.67 | 17.21% | 3.56% | 0.59% | -5.46% | |
70 Outperform | £1.96B | 17.26 | 12.20% | 0.79% | 7.74% | 31.48% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | £483.17M | 3.61 | 14.17% | 7.01% | 5.67% | 22.05% |
* Consumer Defensive Sector Average
GB:BNZL
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Bunzl plc Corporate Events
Regulatory Filings and Compliance
Bunzl Confirms Total Voting Rights at 324.2 Million Shares
Neutral
May 1, 2026
Bunzl plc has confirmed that as of 30 April 2026 its issued share capital comprises 324,211,429 ordinary shares, each carrying one voting right, with no shares held in treasury. The company noted that this total voting rights figure should be used...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Bunzl Wins Full Shareholder Backing at 2026 AGM
Positive
Apr 22, 2026
Bunzl plc reported that shareholders approved all resolutions at its annual general meeting held on 22 April 2026, confirming broad investor support for the company’s governance and capital allocation plans. The meeting backed the receipt of...
Business Operations and StrategyFinancial Disclosures
Bunzl Holds Guidance as Q1 Revenue Edges Higher Amid Uncertainty
Positive
Apr 22, 2026
Bunzl reported a resilient first-quarter performance for 2026, with group revenue up 1.5% at constant exchange rates and underlying revenue rising 2.0%, driven by volume growth and tariff-related price increases, partially offset by fewer trading ...
Executive/Board Changes
Bunzl Grants Restricted Share Awards to Group CIO Under 2024 LTIP
Positive
Apr 13, 2026
Bunzl plc, a global distributor of consumables and provider of outsourced procurement and distribution services, supports customers in sectors including retail, foodservice, healthcare, and industry with a broad portfolio of packaging, hygiene, an...
Executive/Board Changes
Bunzl CEO Increases Stake After Exercising Share Awards
Positive
Apr 9, 2026
Bunzl plc reported that chief executive officer Frank van Zanten has increased his personal stake in the company through the exercise of long-term incentive and deferred bonus share awards granted in March 2023. The awards, delivered in ordinary s...
Regulatory Filings and Compliance
Bunzl Discloses Share Purchase by North America CEO Under Employee Stock Plan
Neutral
Apr 2, 2026
Bunzl plc has disclosed a routine share transaction by James McCool, its Chief Executive Officer for North America, under regulatory requirements governing dealings by senior management. McCool acquired 91 ordinary shares in a non-discretionary pu...
Business Operations and StrategyExecutive/Board Changes
Bunzl Grants Share Options to Senior Executives Under Sharesave Plans
Positive
Apr 1, 2026
Bunzl plc has granted share options to several senior executives, including the chief financial officer, group general counsel, director of corporate development, and managing director for the UK and Ireland, under its Sharesave Scheme at an optio...
Regulatory Filings and Compliance
Bunzl Confirms Share Capital and Voting Rights for Transparency Rule Compliance
Neutral
Apr 1, 2026
Bunzl plc has confirmed that as of 31 March 2026 its issued share capital comprises 324,211,429 ordinary shares, each carrying one vote, with no shares held in treasury. This figure becomes the reference denominator for investors assessing whether...
Other
Bunzl HR Director Exercises Share Awards and Sells Shares to Cover Costs
Neutral
Mar 31, 2026
Bunzl plc has reported share transactions involving Diana Breeze, its Director of Group Human Resources, linked to the vesting of long-term incentive and deferred bonus awards. The dealings reflect routine execution of the company’s establis...
Executive/Board Changes
Bunzl Asia Pacific Chief Exercises Long-Term Incentive Award and Sells Shares to Cover Costs
Positive
Mar 20, 2026
Bunzl plc reported that Scott Mayne, Managing Director for Asia Pacific, has acquired 7,429 ordinary shares in the company at no cost through the exercise of a 2023 long-term incentive award, including associated dividend equivalent shares. He sub...
Dividends
Bunzl CEO Increases Stake Through Dividend Reinvestment Share Purchase
Positive
Mar 18, 2026
Bunzl plc disclosed that its Chief Executive Officer, Frank van Zanten, acquired 733 ordinary shares in a non-discretionary transaction on 10 July 2025, executed via the London Stock Exchange’s Main Market. The purchase resulted from the aut...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Bunzl Publishes 2025 Annual Report and Sets Date for 2026 AGM
Neutral
Mar 17, 2026
Bunzl plc has published its Annual Report for the year ended 31 December 2025 and made it available to investors via its corporate website, alongside the Chairman’s letter and Notice of the 2026 Annual General Meeting. The company has also s...
Executive/Board ChangesRegulatory Filings and Compliance
Bunzl CFO exercises 2023 share awards and sells portion to cover costs
Neutral
Mar 16, 2026
Bunzl plc, a global distribution and services group focused on non-food consumables and outsourced supply solutions, serves customers across sectors such as grocery, healthcare, foodservice and industry. The company uses its scale and logistics ca...
Executive/Board ChangesRegulatory Filings and Compliance
Bunzl discloses incentive plan share dealings by UK & Ireland chief
Neutral
Mar 11, 2026
Bunzl plc has reported share transactions involving Dale Stokes, managing director for the UK and Ireland, under its deferred annual bonus and long-term incentive plans. On 10 March 2026, Stokes acquired shares at nil cost through the exercise of ...
Executive/Board Changes
Bunzl Non-Executive Director Vin Murria Takes Deputy Chair Role at M&C Saatchi
Positive
Mar 10, 2026
Bunzl plc has announced that non-executive director Vin Murria has taken on an additional role as non-executive director and deputy chair of MC Saatchi plc, effective 9 March 2026. The appointment expands Murria’s external board responsibili...
Other
Bunzl Executives Exercise 2023 Share Awards and Sell Portions to Cover Costs
Neutral
Mar 9, 2026
Bunzl plc has disclosed a series of share transactions by senior managers, including Group General Counsel Suzanne Jefferies, Director of Corporate Development Andrew Mooney and Latin America Managing Director Jonathan Taylor, involving the exerci...
Business Operations and StrategyExecutive/Board Changes
Bunzl Grants Nil-Cost Share Awards to Senior Executives
Positive
Mar 5, 2026
Bunzl plc has granted nil-cost share awards to 11 senior executives, including Chief Executive Officer Frank van Zanten and Chief Financial Officer Richard Howes, under its Deferred Annual Share Bonus Scheme. The awards, representing a total of 42...
Business Operations and StrategyExecutive/Board Changes
Bunzl Grants Nil-Cost Restricted Share Awards to Senior Global Leadership
Positive
Mar 4, 2026
Bunzl plc has granted restricted share awards at nil cost to 11 senior executives, including Chief Executive Officer Frank van Zanten and Chief Financial Officer Richard Howes, under Part B of the Bunzl Long Term Incentive Plan (2024). The awards,...
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...
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.