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Bunzl plc
(LSE:BNZL)
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Rating:65Neutral
Price Target:
2,776.00 p
▼(-0.36% Downside)
Action:Downgraded
Date:09/15/26
The score is driven primarily by solid financial quality (strong cash conversion/FCF and improving deleveraging), supported by reasonable valuation and a generally positive earnings outlook. These are tempered by weak technical momentum (price below key moving averages with negative MACD) and management’s expectation of second-half margin pressure.
Positive Factors
Essential, diversified distribution model
Bunzl serves multiple sectors with recurring demand for mission-critical consumables, reducing reliance on any single end-market. Its sourcing, consolidation, logistics and procurement services can deepen customer relationships and support durable retention across a diversified operating footprint.
Negative Factors
Expected second-half margin pressure
Recent margin improvement benefited partly from temporary inventory inflation effects, which are expected to reverse as higher-cost stock is sold and pricing moderates. This creates a near-term earnings headwind and makes sustained profit expansion more dependent on operating efficiencies and volume growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Essential, diversified distribution model
Bunzl serves multiple sectors with recurring demand for mission-critical consumables, reducing reliance on any single end-market. Its sourcing, consolidation, logistics and procurement services can deepen customer relationships and support durable retention across a diversified operating footprint.
Read all positive factors
Bunzl plc (BNZL) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£8.27B
Dividend Yield2.84%
Average Volume (3M)1.28M
Price to Earnings (P/E)14.6
Beta (1Y)0.29
Revenue Growth1.64%
EPS Growth3.77%
CountryUK
Employees26,777
SectorConsumer Defensive
Sector Strength42
IndustryIndustrial - Distribution
Share Statistics
EPS (TTM)1.79
Shares Outstanding319,113,100
10 Day Avg. Volume1,720,738
30 Day Avg. Volume1,281,667
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
£2,788.89Price Target Upside0.10% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)1.86
Revenue Forecast (FY)£12.17B
Bunzl plc Business Overview & Revenue Model
Company Description
Bunzl plc, a London-based company established in 1854, functions as an international distribution and services provider, operating across North America, Continental Europe, the United Kingdom, Ireland, and other global markets. The firm supplies a...
How the Company Makes Money
Bunzl makes money primarily by purchasing large volumes of non-food consumable products and related supplies from manufacturers and then reselling and delivering them to business customers at a markup, generating revenue from product sales through...
Bunzl plc 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 conveyed a positive overall outlook, supported by broad-based volume growth, improved North America Distribution execution, higher profit, strong cash generation, an upgraded 2026 profit outlook, an active acquisition pipeline and shareholder returns through a GBP 500 million buyback and a 3% dividend increase. These positives were tempered by expectations for lower second-half margins, normalization of selling prices and temporary inflation benefits, higher operating costs, selected regional and 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 underlying revenue growth of 3.2%. Approximately two-thirds of underlying growth came from volume and one-third from selling price increases. Growth was delivered across all business areas, and Bunzl recorded its fifth consecutive quarter of underlying revenue growth.
Negative Updates
Second-Half Margin Pressure
Bunzl expects margins to be lower year-on-year in the second half. The company expects the first-half inventory gain to unwind, selling prices and gross margins to decline, Nisbets synergies not to repeat in H2, and higher variable operating costs linked to improved profit performance to continue.
Read all updates
Q2-2026 Updates
Positive
Negative
Broad-Based Revenue and Volume Growth
Group revenue increased 4.1% at constant currency in the first half, including underlying revenue growth of 3.2%. Approximately two-thirds of underlying growth came from volume and one-third from selling price increases. Growth was delivered across all business areas, and Bunzl recorded its fifth consecutive quarter of underlying revenue growth.
Read all positive updates
Company Guidance
For 2026, Bunzl expects revenue growth at constant exchange rates, excluding U.S. tariff refunds, 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%, while net interest is expected to be between GBP 125 million and GBP 130 million; committed acquisition spend is expected to be more in 2026 than 2025, and the company expects higher annual acquisition spend in 2026 compared to 2025. Bunzl announced a GBP 500 million share buyback over the next 12 months, increased its interim dividend by 3%, and expects dividend cover for 2026 to be 2.4x, in line with last year.Bunzl plc Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
60
Neutral
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.02B | 11.85B | 11.78B | 11.80B | 12.04B | 10.29B |
| Gross Profit | 2.01B | 1.77B | 3.39B | 3.19B | 1.62B | 1.31B |
| EBITDA | 1.51B | 1.16B | 1.22B | 1.18B | 1.03B | 909.00M |
| Net Income | 579.55M | 459.20M | 500.40M | 526.20M | 474.40M | 442.80M |
Balance Sheet | ||||||
| Total Assets | 8.73B | 8.57B | 9.53B | 8.75B | 8.85B | 7.20B |
| Cash, Cash Equivalents and Short-Term Investments | 598.10M | 540.10M | 1.43B | 1.43B | 1.50B | 776.90M |
| Total Debt | 2.71B | 2.90B | 3.72B | 3.09B | 3.13B | 2.59B |
| Total Liabilities | 5.89B | 5.78B | 6.74B | 5.78B | 6.13B | 4.99B |
| Stockholders Equity | 2.83B | 2.79B | 2.79B | 2.97B | 2.72B | 2.20B |
Cash Flow | ||||||
| Free Cash Flow | 874.70M | 765.10M | 856.50M | 845.70M | 859.20M | 665.60M |
| Operating Cash Flow | 938.60M | 836.60M | 910.90M | 904.00M | 905.90M | 698.30M |
| Investing Cash Flow | -176.80M | -170.30M | -609.10M | -339.50M | -239.40M | -466.70M |
| Financing Cash Flow | -671.70M | -774.60M | -381.10M | -666.90M | -269.10M | -415.20M |
Bunzl plc Technical Analysis
Negative
2786.00
Price Trends
2719.84
Negative
2624.22
Negative
2385.58
Positive
Market Momentum
-21.27
Negative
42.38
Neutral
33.18
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 2786 is above the 20-day moving average (MA) of 2628.70, above the 50-day MA of 2719.84, and above the 200-day MA of 2385.58, indicating a neutral trend. The MACD of -21.27 indicates Negative momentum. The RSI at 42.38 is Neutral, neither overbought nor oversold. The STOCH value of 33.18 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
65 Neutral | £8.27B | 14.59 | 20.61% | 2.89% | 1.64% | 3.77% | |
65 Neutral | £2.71B | 17.35 | 14.99% | 2.21% | 9.52% | 18.08% | |
65 Neutral | £1.95B | 81.41 | 0.73% | 1.02% | 25.76% | -73.03% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
56 Neutral | £645.72M | 31.26 | 5.91% | 2.81% | 6.63% | -47.51% |
* Consumer Defensive Sector Average
GB:BNZL
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Bunzl plc Corporate Events
Stock BuybackRegulatory Filings and Compliance
Bunzl Cancels Over 1 Million Shares After Buyback
Positive
Sep 14, 2026
Bunzl plc has announced the repurchase of 1,026,165 of its ordinary shares between 7 September and 11 September 2026, executed through J.P. Morgan Securities, with all repurchased shares to be cancelled. Following these transactions and cancellati...
Regulatory Filings and Compliance
Bunzl CEO Reports Routine Sharesave-Linked Share Transaction
Neutral
Sep 7, 2026
Bunzl plc has disclosed a share transaction involving Chief Executive Officer Frank van Zanten, who exercised options granted in 2023 under the company’s International Sharesave Plan. Following the option exercise, he acquired 368 ordinary s...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Bunzl Cancels 519,646 Shares After Early September Buyback
Positive
Sep 7, 2026
Bunzl plc has repurchased 519,646 of its ordinary shares between 1 and 4 September 2026 through J.P. Morgan Securities, with the shares to be cancelled rather than held in treasury. This move reduces the company’s share count to 323,796,058 ...
Regulatory Filings and Compliance
Bunzl North America CEO Adds to Holdings via Employee Stock Plan
Neutral
Sep 2, 2026
Bunzl plc has disclosed a share transaction by James McCool, Chief Executive Officer for North America, under regulatory requirements for persons discharging managerial responsibilities. The move reflects ongoing participation by senior management...
Regulatory Filings and Compliance
Bunzl Discloses Share Deal by UK & Ireland Managing Director
Neutral
Sep 2, 2026
Bunzl plc has disclosed a share transaction by Dale Stokes, Managing Director for the UK and Ireland, involving ordinary Bunzl shares listed on the London Stock Exchange. Stokes exercised options granted in 2016 under the company’s Long Term...
Private Placements and FinancingRegulatory Filings and Compliance
Bunzl Issues New Shares for Employee Schemes Under Existing Admissions
Neutral
Sep 1, 2026
Bunzl plc has issued and allotted 11,846 new ordinary shares of 32 1/7 pence each under various employee share schemes, all of which are fungible with its existing stock on the London Stock Exchange’s Main Market. Following this issuance, th...
Regulatory Filings and Compliance
Bunzl Confirms Share Capital and Voting Rights Structure
Neutral
Sep 1, 2026
Bunzl plc has confirmed that as of 31 August 2026 its issued share capital comprises 324,312,773 ordinary shares, each carrying one vote, with no shares held in treasury. This updated share count provides the official denominator for investors to ...
DividendsFinancial Disclosures
Bunzl Declares 20.8p Interim Dividend for 2026 Financial Year
Positive
Sep 1, 2026
Bunzl plc has declared an interim dividend of 20.8p per share for the financial year ending 31 December 2026, following the release of its half-year results for the six months to 30 June 2026. The dividend will be paid on 5 January 2027 to shareho...
Business Operations and StrategyStock BuybackDividendsFinancial DisclosuresM&A Transactions
Bunzl lifts outlook as profits rise and launches £500m buyback
Positive
Sep 1, 2026
Bunzl reported a solid first-half performance for 2026, with revenue rising 2.9% at constant exchange rates to £5.93bn and adjusted operating profit up 8.0%, helped by margin expansion to 7.3%. Growth was driven by volume and inflation, parti...
Business Operations and StrategyStock Buyback
Bunzl Launches £500m Share Buyback to Balance Cash Returns and Growth
Positive
Sep 1, 2026
Bunzl plc has launched a share buyback programme of up to £500 million over the next 12 months, aligning with its capital allocation strategy of returning excess cash while preserving capacity for high-return bolt-on acquisitions. The initiat...
Regulatory Filings and Compliance
Bunzl Discloses North America CEO Share Purchase Under Employee Plan
Positive
Aug 5, 2026
Bunzl plc has disclosed a share transaction by James McCool, its Chief Executive Officer for North America, under regulatory requirements for persons discharging managerial responsibilities. McCool acquired 40 ordinary Bunzl shares via a non-discr...
Business Operations and StrategyPrivate Placements and Financing
Bunzl Adds 11,749 Shares for Employee Schemes Under Existing Block Admission
Neutral
Aug 3, 2026
Bunzl plc has issued and allotted 11,749 new ordinary shares of 32 1/7 pence each under its various employee share schemes, with these shares admitted to trading on the London Stock Exchange’s Main Market. Following this issue, Bunzl’s...
Regulatory Filings and Compliance
Bunzl Clarifies Share Capital and Voting Rights for FCA Disclosure
Neutral
Aug 3, 2026
Bunzl plc has confirmed that, as of 31 July 2026, its issued share capital comprises 324,300,927 ordinary shares, each carrying one vote, with no shares held in treasury. This updated share count serves as the reference denominator for shareholder...
DividendsRegulatory Filings and Compliance
Bunzl executives add shares via automatic dividend reinvestment
Neutral
Jul 9, 2026
Bunzl plc has disclosed that James McCool, Chief Executive Officer for North America, and Dale Stokes, Managing Director for the UK and Ireland, have each acquired additional ordinary shares in the company through non-discretionary transactions. T...
Regulatory Filings and Compliance
Bunzl North America CEO Reports Share Purchase Under Employee Plan
Positive
Jul 2, 2026
Bunzl plc has disclosed a share transaction involving James McCool, Chief Executive Officer for North America, under regulatory reporting requirements for persons discharging managerial responsibilities. McCool acquired ordinary shares in Bunzl th...
Regulatory Filings and Compliance
Bunzl Clarifies Share Capital and Voting Rights for FCA Disclosure Rules
Positive
Jul 1, 2026
Bunzl plc has confirmed that, as at 30 June 2026, its issued share capital comprised 324,289,178 ordinary shares, each carrying one vote, with no shares held in treasury. This figure sets the formal base for calculating significant shareholdings u...
Private Placements and FinancingRegulatory Filings and Compliance
Bunzl Adds Shares Under Employee Schemes, Total Stock Rises Slightly
Neutral
Jul 1, 2026
Bunzl plc has issued and allotted 20,187 ordinary shares of 32 1/7 pence each under its various employee share schemes, with these shares admitted to trading on the London Stock Exchange Main Market. Following this issue, the total number of Bunzl...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Bunzl Lifts 2026 Outlook and Bolsters Australian Healthcare Footprint
Positive
Jun 23, 2026
Bunzl has upgraded its 2026 outlook after reporting that first-half group revenue is expected to grow around 4% at constant exchange rates, with underlying revenue up about 3% and a modest lift in operating margin. Growth is being driven by inflat...
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.