Bunzl (BZLFY) AI Stock Analysis

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Bunzl

(Other OTC:BZLFY)

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Rating:70Outperform

Price Target:$19.00▼(-0.96% Downside)

Action:reiterated

Date:09/15/26

Score led by strongly positive earnings call with upgraded guidance and growth, plus stable financial performance. Valuation provides support while technicals reflect near-term pressure.

Positive Factors

Diversified exposure to essential products and sectorsBroad 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 pressureRecent 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.

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

Market Cap: $6.46B
Dividend Yield: 2.56%
Average Volume (3M): 25.42K
Price to Earnings (P/E): 16.0
Beta (1Y): 0.54
Revenue Growth: 5.45%
EPS Growth: 7.68%
Country: US
Employees: 26,777
Sector: Consumer Defensive
Sector Strength: 62
Industry: Industrial - Distribution

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, su...

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 gen...

Bunzl Earnings Call Summary

Earnings Call Date:Aug 31, 2026(Q2-2026)|% Change Since:1.36%|Next Earnings Date:Feb 28, 2027

Earnings Call SentimentPositive

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.

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

Steady profitability with net margins of 3.9-4.5% and stable operating margins, offset by recent revenue decline and moderate debt levels.

Income Statement

75Positive

Balance Sheet

65Positive

Cash Flow

70Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	11.88B	11.59B	11.78B	11.80B	12.04B	10.29B
Gross Profit	1.33B	1.74B	3.39B	3.19B	3.02B	2.52B
EBITDA	1.18B	1.14B	1.23B	1.18B	1.04B	910.20M
Net Income	482.79M	449.14M	500.40M	526.20M	474.40M	442.80M
Balance Sheet
Total Assets	8.68B	8.56B	9.53B	8.75B	8.67B	7.11B
Cash, Cash Equivalents and Short-Term Investments	594.49M	539.15M	1.43B	1.43B	1.50B	776.90M
Total Debt	2.69B	2.89B	3.72B	3.09B	3.13B	2.59B
Total Liabilities	5.86B	5.77B	6.74B	5.78B	5.95B	4.91B
Stockholders Equity	2.82B	2.78B	2.79B	2.97B	2.72B	2.20B
Cash Flow
Free Cash Flow	891.41M	748.33M	856.50M	845.70M	904.90M	700.40M
Operating Cash Flow	956.69M	818.27M	910.90M	904.00M	951.60M	733.10M
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 SentimentPositive

Last Price19.18

Price Trends

50DMA18.16Positive

100DMA18.13Positive

200DMA16.53Positive

Market Momentum

MACD0.32Negative

RSI63.32Neutral

STOCH86.94Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BZLFY, the sentiment is Positive. The current price of 19.18 is above the 20-day moving average (MA) of 18.47, above the 50-day MA of 18.16, and above the 200-day MA of 16.53, indicating a bullish trend. The MACD of 0.32 indicates Negative momentum. The RSI at 63.32 is Neutral, neither overbought nor oversold. The STOCH value of 86.94 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BZLFY.

Bunzl Peers Comparison

Overall Rating

UnderperformOutperform

Sector (62)

Financial Indicators

BZLFY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FAST	81Outperform	$59.56B	41.86	35.13%	1.93%	13.53%	15.58%
GWW	78Outperform	$64.02B	34.64	48.70%	0.70%	7.80%	-0.65%
GIC	75Outperform	$1.65B	19.36	26.97%	2.54%	8.43%	29.47%
BZLFY	70Outperform	$11.96B	16.00	20.61%	2.56%	5.45%	7.68%
MSM	69Neutral	$6.76B	30.33	15.87%	2.88%	6.37%	11.56%
Sector *	62Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
DSGR	58Neutral	$1.62B	185.77	1.37%	―	6.45%	108.40%

* Consumer Defensive Sector Average

Performance Comparison

BZLFY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
BZLFY	Bunzl	19.18	4.74	32.78%
FAST	Fastenal	51.91	11.74	29.22%
DSGR	Distribution Solutions Group, Inc.	34.98	7.97	29.51%
MSM	Msc Industrial Direct	121.02	39.32	48.12%
GIC	Global Industrial Company	43.37	16.19	59.55%
GWW	W.W. Grainger	1359.17	400.77	41.82%

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

Bunzl AI Stock Analysis