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Bunzl (BZLFY)
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Bunzl (BZLFY) AI Stock Analysis

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BZLFY

Bunzl

(OTC:BZLFY)

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Neutral 63 (OpenAI - Gpt-5.6Sol)
Rating:63Neutral
Price Target:
$18.50
â–¼(-2.89% Downside)
Action:Reiterated
Date:09/15/26
The score is driven primarily by durable financials (steady margins and strong cash conversion) and supportive earnings-call guidance (upgraded 2026 outlook plus buyback capacity). These positives are meaningfully offset by weak current technical momentum (below key moving averages with negative MACD and very low RSI), while valuation (14.4x P/E and ~2.8% yield) provides a moderate cushion.
Positive Factors
Diversified exposure to essential products and sectors
Broad diversification across businesses, regions and essential product categories reduces dependence on any single market and supports recurring demand. High customer retention and exposure to Safety, Health Care, and Cleaning & Hygiene provide a durable base for resilient revenue and margin performance.
Negative Factors
Expected second-half margin pressure
Recent margin improvement is not fully structural because inventory gains and annualized synergies are expected to unwind. Selling-price reductions and higher variable costs could therefore pressure profitability in the next several months, limiting operating leverage even if revenue continues to grow.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified exposure to essential products and sectors
Broad diversification across businesses, regions and essential product categories reduces dependence on any single market and supports recurring demand. High customer retention and exposure to Safety, Health Care, and Cleaning & Hygiene provide a durable base for resilient revenue and margin performance.
Read all positive factors

Bunzl (BZLFY) vs. SPDR S&P 500 ETF (SPY)

Bunzl Business Overview & Revenue Model

Company Description
Bunzl plc operates as a global distribution and services enterprise. Its operations span North America, Continental Europe, the United Kingdom, Ireland, and a broad international footprint. Serving the food retail sector, including grocery stores,...
How the Company Makes Money
Bunzl primarily makes money by buying large volumes of everyday non-food consumables from manufacturers, then distributing them to business customers at a markup, leveraging scale purchasing, logistics, and local distribution networks. Revenue is ...

Bunzl Earnings Call Summary

Earnings Call Date:Sep 01, 2026
(Q2-2026)
|
% Change Since: |
Next Earnings Date:Mar 01, 2027
Earnings Call Sentiment Positive
The call was strongly positive overall. Bunzl reported broad-based volume and revenue growth, improved operating profit, stronger cash generation, a recovery in North America Distribution, an upgraded 2026 outlook and sufficient balance-sheet capacity for both acquisitions and a GBP 500 million share buyback. These strengths were partly offset by temporary inflation benefits, expected second-half margin declines, higher variable and freight-related costs, regional end-market challenges, tariff-refund repayments and tougher future comparatives.
Positive Updates
Broad-Based Revenue and Volume Growth
Group revenue increased 4.1% at constant currency in the first half, including 3.2% underlying revenue growth. Approximately two-thirds of underlying growth came from volume and one-third from selling price increases. Growth was delivered in all business areas, and Bunzl has now delivered five consecutive quarters of underlying revenue growth. Underlying revenue growth accelerated from 2% in Q1 to 4.3% in Q2.
Negative Updates
Temporary Inflation Benefit Expected to Reverse
The first-half operating margin improvement was largely driven by the net impact of inflation, including the benefit from selling inventory purchased at lower cost. Management said much of this benefit is temporary, gross margin peaked in June and declined in July, and the inventory gain is expected to unwind in the second half.
Read all updates
Q2-2026 Updates
Negative
Broad-Based Revenue and Volume Growth
Group revenue increased 4.1% at constant currency in the first half, including 3.2% underlying revenue growth. Approximately two-thirds of underlying growth came from volume and one-third from selling price increases. Growth was delivered in all business areas, and Bunzl has now delivered five consecutive quarters of underlying revenue growth. Underlying revenue growth accelerated from 2% in Q1 to 4.3% in Q2.
Read all positive updates
Company Guidance
For 2026, Bunzl expects revenue growth at constant exchange rates, excluding U.S. tariff refunds, to be driven by modest underlying growth supported by some inflation alongside a small benefit from acquisitions; group operating margin is expected to be broadly flat year-on-year compared to the 7.6% margin reported in 2025, which excluded the GBP 8 million share-based payment credit, with modest growth in adjusted operating profit. Tax guidance is unchanged at 26%, net interest is expected to be between GBP 125 million and GBP 130 million, annual acquisition spend is expected to be higher in 2026 compared to 2025, and expected dividend cover for 2026 is 2.4x. Over the medium term, leverage is targeted within 2 to 2.5x adjusted net debt to EBITDA, while a GBP 500 million share buyback is planned over the next 12 months.

Bunzl Financial Statement Overview

Summary
Stable profitability with steady net margins (~3.9%–4.5%) and solid cash conversion (FCF roughly ~0.91–0.96x net income). Balance sheet leverage is meaningful (debt-to-equity ~1.0–1.4) but improved in 2025 as debt declined. The main drag is muted growth and softer 2025 results (revenue down ~2% and earnings decline), suggesting durability but limited near-term acceleration.
Income Statement
66
Positive
Balance Sheet
60
Neutral
Cash Flow
71
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue11.88B11.59B11.78B11.80B12.04B10.29B
Gross Profit1.33B1.74B3.39B3.19B3.02B2.52B
EBITDA1.28B1.14B1.23B1.18B1.04B910.20M
Net Income482.79M449.14M500.40M526.20M474.40M442.80M
Balance Sheet
Total Assets8.68B8.56B9.53B8.75B8.67B7.11B
Cash, Cash Equivalents and Short-Term Investments594.49M539.15M1.43B1.43B1.50B776.90M
Total Debt2.69B2.89B3.72B3.09B3.13B2.59B
Total Liabilities5.86B5.77B6.74B5.78B5.95B4.91B
Stockholders Equity2.82B2.78B2.79B2.97B2.72B2.20B
Cash Flow
Free Cash Flow891.41M748.33M856.50M845.70M904.90M700.40M
Operating Cash Flow956.69M818.27M910.90M904.00M951.60M733.10M
Investing Cash Flow-178.28M-166.57M-609.10M-339.50M-223.20M-458.00M
Financing Cash Flow-690.79M-757.62M-381.10M-666.90M-331.00M-458.70M

Bunzl Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price19.05
Price Trends
50DMA
18.46
Negative
100DMA
17.45
Positive
200DMA
15.86
Positive
Market Momentum
MACD
-0.32
Positive
RSI
30.33
Neutral
STOCH
11.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BZLFY, the sentiment is Neutral. The current price of 19.05 is above the 20-day moving average (MA) of 18.30, above the 50-day MA of 18.46, and above the 200-day MA of 15.86, indicating a neutral trend. The MACD of -0.32 indicates Positive momentum. The RSI at 30.33 is Neutral, neither overbought nor oversold. The STOCH value of 11.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BZLFY.

Bunzl Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$59.80B32.0748.70%0.76%7.80%-0.65%
75
Outperform
$56.70B41.5534.03%1.96%12.54%13.58%
75
Outperform
$1.51B17.7926.97%2.76%8.43%29.47%
65
Neutral
$6.69B29.1016.55%2.89%4.41%16.62%
63
Neutral
$11.11B14.5320.61%2.83%5.45%7.68%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
56
Neutral
$1.61B185.081.37%5.18%6.45%108.40%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BZLFY
Bunzl
17.49
1.11
6.80%
FAST
Fastenal Company
49.03
2.91
6.31%
DSGR
Distribution Solutions Group
34.85
4.20
13.70%
MSM
MSC Industrial
120.48
32.56
37.04%
GIC
Global Industrial Company
39.85
4.62
13.10%
GWW
WW Grainger
1,258.26
268.51
27.13%
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: Sep 15, 2026