LSE:BNZL

Stock Analysis Report

Executive Summary

Bunzl plc provides distribution and outsourcing services primarily in the North America, Continental Europe, the United Kingdom, Ireland, and internationally.


Snowflake Analysis

Adequate balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has Bunzl's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BNZL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

2.4%

BNZL

-4.6%

GB Trade Distributors

-2.2%

GB Market


1 Year Return

-38.9%

BNZL

-20.7%

GB Trade Distributors

-25.9%

GB Market

Return vs Industry: BNZL underperformed the UK Trade Distributors industry which returned -20.7% over the past year.

Return vs Market: BNZL underperformed the UK Market which returned -25.9% over the past year.


Shareholder returns

BNZLIndustryMarket
7 Day2.4%-4.6%-2.2%
30 Day-21.1%-24.5%-21.7%
90 Day-26.0%-26.7%-29.6%
1 Year-37.4%-38.9%-17.6%-20.7%-22.2%-25.9%
3 Year-29.6%-33.9%1.4%-8.0%-16.1%-26.6%
5 Year-10.3%-18.9%21.5%5.2%-4.6%-26.2%

Price Volatility Vs. Market

How volatile is Bunzl's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Bunzl undervalued compared to its fair value and its price relative to the market?

5.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BNZL (£15.5) is trading below our estimate of fair value (£16.4)

Significantly Below Fair Value: BNZL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BNZL is poor value based on its PE Ratio (14.8x) compared to the Trade Distributors industry average (12.1x).

PE vs Market: BNZL is poor value based on its PE Ratio (14.8x) compared to the UK market (12.3x).


Price to Earnings Growth Ratio

PEG Ratio: BNZL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BNZL is overvalued based on its PB Ratio (3x) compared to the GB Trade Distributors industry average (1.4x).


Next Steps

Future Growth

How is Bunzl forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

-3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BNZL's earnings are forecast to decline over the next 3 years (-3.3% per year).

Earnings vs Market: BNZL's earnings are forecast to decline over the next 3 years (-3.3% per year).

High Growth Earnings: BNZL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BNZL's revenue (0.5% per year) is forecast to grow slower than the UK market (2.6% per year).

High Growth Revenue: BNZL's revenue (0.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BNZL's Return on Equity is forecast to be low in 3 years time (17.8%).


Next Steps

Past Performance

How has Bunzl performed over the past 5 years?

10.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BNZL has high quality earnings.

Growing Profit Margin: BNZL's current net profit margins (3.7%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: BNZL's earnings have grown by 10.5% per year over the past 5 years.

Accelerating Growth: BNZL's earnings growth over the past year (7%) is below its 5-year average (10.5% per year).

Earnings vs Industry: BNZL earnings growth over the past year (7%) underperformed the Trade Distributors industry 8.4%.


Return on Equity

High ROE: Whilst BNZL's Return on Equity (20.02%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Bunzl's financial position?


Financial Position Analysis

Short Term Liabilities: BNZL's short term assets (£3.1B) exceed its short term liabilities (£2.3B).

Long Term Liabilities: BNZL's short term assets (£3.1B) exceed its long term liabilities (£1.9B).


Debt to Equity History and Analysis

Debt Level: BNZL's debt to equity ratio (107.1%) is considered high.

Reducing Debt: BNZL's debt to equity ratio has increased from 100% to 107.1% over the past 5 years.

Debt Coverage: BNZL's debt is well covered by operating cash flow (35.8%).

Interest Coverage: BNZL's interest payments on its debt are well covered by EBIT (7.4x coverage).


Balance Sheet

Inventory Level: BNZL has a high level of physical assets or inventory.

Debt Coverage by Assets: BNZL's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is Bunzl's current dividend yield, its reliability and sustainability?

3.39%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BNZL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BNZL's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BNZL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BNZL's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BNZL is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BNZL's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.7yrs

Average management tenure


CEO

Frank van Zanten (52yo)

4s

Tenure

UK£2,730,500

Compensation

Mr. Frank Van Zanten, MBA, has been Chief Executive Officer at Bunzl plc since April 20, 2016. Mr. Van Zanten served as Managing Director of Continental Europe at Bunzl plc from 2005 to April 20, 2016. Mr. ...


CEO Compensation Analysis

Compensation vs Market: Frank's total compensation ($USD3.34M) is about average for companies of similar size in the UK market ($USD3.36M).

Compensation vs Earnings: Frank's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Frank van Zanten
CEO & Executive Director4yrsUK£2.73m0.033% £1.7m
Richard Howes
CFO & Directorno datano datano data
Paul Hussey
General Counsel & Company Secretaryno datano data0.022% £1.1m
Andrew Mooney
Director of Corporate Developmentno datano data0.014% £702.8k
Diana Breeze
Director of Group Human Resourcesno datano datano data
Kim Hetherington
Managing Director of Asia Pacific20.75yrsno datano data
Andrew Tedbury
Managing Director of UK & Irelandno datano datano data
Jonathan Taylor
Managing Director of Latin Americano datano datano data
Alberto Grau
Managing Director of Continental Europeno datano datano data
James McCool
Chief Executive Officer of North America1.33yrsno datano data

2.7yrs

Average Tenure

51yo

Average Age

Experienced Management: BNZL's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Frank van Zanten
CEO & Executive Director4yrsUK£2.73m0.033% £1.7m
Richard Howes
CFO & Directorno datano datano data
Philip Rogerson
Chairman10.08yrsUK£358.20k0.0030% £155.0k
Peter Ventress
Former Chairman of the Board0.83yrUK£41.90kno data
Eugenia Ulasewicz
Independent Non-Executive Director9yrsUK£144.80k0.0012% £62.0k
Vanda Murray
Senior Independent Director3yrsUK£113.70k0.00090% £46.5k
Stephan Nanninga
Independent Non-Executive Director2.92yrsUK£82.20kno data
Lloyd Pitchford
Independent Non-Executive Director3.08yrsUK£91.20k0.0012% £62.0k

3.1yrs

Average Tenure

58yo

Average Age

Experienced Board: BNZL's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BNZL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Bunzl plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bunzl plc
  • Ticker: BNZL
  • Exchange: LSE
  • Founded: 1854
  • Industry: Trading Companies and Distributors
  • Sector: Capital Goods
  • Market Cap: UK£5.168b
  • Shares outstanding: 333.41m
  • Website: https://www.bunzl.com

Number of Employees


Location

  • Bunzl plc
  • York House
  • 45 Seymour Street
  • London
  • Greater London
  • W1H 7JT
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BZLF.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1980
BUZ1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980
BNZLLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1980
BNZLLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1980
BZLF.YOTCPK (Pink Sheets LLC)SPON ADR NEWUSUSDOct 1998

Biography

Bunzl plc provides distribution and outsourcing services primarily in the North America, Continental Europe, the United Kingdom, Ireland, and internationally. It offers non-food consumables, including food packaging, napkins, disposable tableware, food service disposables, guest amenities, light and heavy catering equipment, cleaning and hygiene products, and safety items to hotels, restaurants, caterers, and food processors and packers, as well as the leisure sector. The company also offers films, labels, counter-service packaging, take-out food packaging, and first aid products; and point of purchase displays, stationeries, bags, and cleaning and hygiene supplies to grocery stores, supermarkets, retail chains, convenience stores, food wholesalers, ethnic grocers, organic food outlets, and others. In addition, it provides cleaning systems, floor care items, hand cleansing products, hygiene papers, janitorial products, cleaning machines, mops, polishes, protective clothing, and washroom chemicals to facilities management companies, contract cleaners, and other industrial and healthcare customers; and packaging products to boutiques, office supply companies, retail chains, and home improvement chains. Further, the company offers personal protection equipment, such as footwear, gloves, safety helmets, workwear, harness equipment, tools, safety signs, and traffic management and ancillary site equipment, as well as ear, eye, respiratory, and face protection products to customers in industrial and construction markets. Additionally, it provides aprons, bandages, facemasks, gowns, headwear, mattress covers, overshoes, procedure packs, tapes, wipes, incontinence products, and swabs to the healthcare sector, including hospitals, retirement and nursing homes, and doctors' surgeries and clinics; and various products to government and education establishments. Bunzl plc was founded in 1854 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 22:49
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.