LSE:BNZL

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Solid track record with excellent balance sheet and pays a dividend.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.1%

BNZL

1.0%

GB Trade Distributors

-1.7%

GB Market


1 Year Return

30.2%

BNZL

17.5%

GB Trade Distributors

-14.2%

GB Market

Return vs Industry: BNZL exceeded the UK Trade Distributors industry which returned 17.5% over the past year.

Return vs Market: BNZL exceeded the UK Market which returned -14.2% over the past year.


Shareholder returns

BNZLIndustryMarket
7 Day3.1%1.0%-1.7%
30 Day4.1%6.2%-1.5%
90 Day12.0%12.5%-3.9%
1 Year33.0%30.2%19.2%17.5%-10.8%-14.2%
3 Year21.3%13.7%34.9%25.0%-8.8%-20.1%
5 Year54.5%39.5%88.2%66.8%15.1%-10.7%

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?

0.008%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BNZL (£25.57) is trading below our estimate of fair value (£25.57)

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 (22.5x) compared to the GB Trade Distributors industry average (18x).

PE vs Market: BNZL is poor value based on its PE Ratio (22.5x) compared to the UK market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: BNZL is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: BNZL is overvalued based on its PB Ratio (4.5x) 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 15 analysts?

5.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BNZL's forecast earnings growth (5% per year) is above the savings rate (1.2%).

Earnings vs Market: BNZL's earnings (5% per year) are forecast to grow slower than the UK market (24.1% per year).

High Growth Earnings: BNZL's earnings are forecast to grow, but not significantly.

Revenue vs Market: BNZL's revenue (2.7% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: BNZL's revenue (2.7% 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 (19.1%).


Next Steps

Past Performance

How has Bunzl performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BNZL has high quality earnings.

Growing Profit Margin: BNZL's current net profit margins (3.9%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: BNZL's earnings have grown by 10.2% per year over the past 5 years.

Accelerating Growth: BNZL's earnings growth over the past year (14.2%) exceeds its 5-year average (10.2% per year).

Earnings vs Industry: BNZL earnings growth over the past year (14.2%) exceeded the Trade Distributors industry -14.9%.


Return on Equity

High ROE: BNZL's Return on Equity (20%) is considered low.


Next Steps

Financial Health

How is Bunzl's financial position?


Financial Position Analysis

Short Term Liabilities: BNZL's short term assets (£3.5B) exceed its short term liabilities (£2.6B).

Long Term Liabilities: BNZL's short term assets (£3.5B) exceed its long term liabilities (£2.0B).


Debt to Equity History and Analysis

Debt Level: BNZL's debt to equity ratio (106.9%) is considered high.

Reducing Debt: BNZL's debt to equity ratio has reduced from 135.6% to 106.9% over the past 5 years.

Debt Coverage: BNZL's debt is well covered by operating cash flow (37.3%).

Interest Coverage: BNZL's interest payments on its debt are well covered by EBIT (8.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.01%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: BNZL's dividend (2.01%) is higher than the bottom 25% of dividend payers in the UK market (1.83%).

High Dividend: BNZL's dividend (2.01%) is low compared to the top 25% of dividend payers in the UK market (5.36%).


Stability and Growth of Payments

Stable Dividend: BNZL's dividend payments have been volatile in the past 10 years.

Growing Dividend: BNZL's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45.3%), BNZL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BNZL's dividends in 3 years are forecast to be well covered by earnings (40.6% payout ratio).


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Frank van Zanten (53 yo)

4.5yrs

Tenure

UK£2,730,500

Compensation

Mr. Frank van Zanten, MBA, is a Member of Supervisory Board at Koninklijke Ahold Delhaize N.V. since April 8, 2020. He has been Chief Executive Officer at Bunzl plc since April 20, 2016. Mr. van Zanten ser ...


CEO Compensation Analysis

Compensation vs Market: Frank's total compensation ($USD3.53M) is about average for companies of similar size in the UK market ($USD4.89M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Frank van Zanten
CEO & Executive Director4.5yrsUK£2.73m0.037%
£ 3.1m
Richard Howes
CFO & Directorno datano data0.0025%
£ 214.1k
Paul Hussey
General Counsel & Company Secretaryno datano data0.022%
£ 1.8m
Andrew Mooney
Director of Corporate Developmentno datano data0.013%
£ 1.1m
Diana Breeze
Director of Group Human Resourcesno datano datano data
Kim Hetherington
Managing Director of Asia Pacific21.25yrsno 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 America1.83yrsno datano data

3.2yrs

Average Tenure

52yo

Average Age

Experienced Management: BNZL's management team is considered experienced (3.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Frank van Zanten
CEO & Executive Director4.5yrsUK£2.73m0.037%
£ 3.1m
Richard Howes
CFO & Directorno datano data0.0025%
£ 214.1k
Vinodka Murria
Non-Executive Director0.33yrno datano data
Peter Ventress
Chairman of the Board0.50yrUK£41.90k0.00078%
£ 66.5k
Vanda Murray
Senior Independent Director3.5yrsUK£113.70k0.00090%
£ 76.8k
Stephan Nanninga
Independent Non-Executive Director3.42yrsUK£82.20kno data
Lloyd Pitchford
Independent Non-Executive Director3.58yrsUK£91.20k0.0012%
£ 102.4k

3.5yrs

Average Tenure

57yo

Average Age

Experienced Board: BNZL's board of directors are considered experienced (3.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BNZL insiders have only sold shares 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£8.531b
  • Shares outstanding: 333.63m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/18 21:19
End of Day Share Price2020/10/16 00:00
Earnings2020/06/30
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.