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BNZL

BunzlLSE:BNZL Stock Report

Market Cap

UK£9.6b

7D

2.7%

1Y

21.5%

Updated

30 Nov, 2021

Data

Company Financials +
BNZL fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance4/6
Financial Health5/6
Dividends4/6

BNZL Stock Overview

Bunzl plc operates as a distribution and services company in the North America, Continental Europe, the United Kingdom, Ireland, and internationally.

Bunzl Competitors

Honeywell International

NasdaqGS:HON

US$139.2b

W.W. Grainger

NYSE:GWW

US$24.8b

Sodexo

ENXTPA:SW

€10.8b

Aramark

NYSE:ARMK

US$8.6b

Price History & Performance

Summary of all time highs, changes and price drops for Bunzl
Historical stock prices
Current Share PriceUK£28.68
52 Week HighUK£28.98
52 Week LowUK£21.22
Beta0.47
1 Month Change6.14%
3 Month Change8.06%
1 Year Change21.53%
3 Year Change18.27%
5 Year Change41.56%
Change since IPO1,965.44%

Recent News & Updates

Oct 12
Bunzl plc's (LON:BNZL) Intrinsic Value Is Potentially 38% Above Its Share Price

Bunzl plc's (LON:BNZL) Intrinsic Value Is Potentially 38% Above Its Share Price

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of Bunzl plc ( LON:BNZL...

Sep 27
Here's Why Bunzl (LON:BNZL) Can Manage Its Debt Responsibly

Here's Why Bunzl (LON:BNZL) Can Manage Its Debt Responsibly

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

BNZLGB Trade DistributorsGB Market
7D2.7%-2.1%-2.6%
1Y21.5%43.6%10.9%

Return vs Industry: BNZL underperformed the UK Trade Distributors industry which returned 48% over the past year.

Return vs Market: BNZL exceeded the UK Market which returned 13.8% over the past year.

Price Volatility

Is BNZL's price volatile compared to industry and market?
BNZL volatility
BNZL Average Weekly Movement2.5%
Trade Distributors Industry Average Movement4.1%
Market Average Movement4.9%
10% most volatile stocks in GB Market9.8%
10% least volatile stocks in GB Market2.5%

Stable Share Price: BNZL is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BNZL's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
185419,853Frank van Zantenhttps://www.bunzl.com

Bunzl plc operates as a distribution and services company in the North America, Continental Europe, the United Kingdom, Ireland, and internationally. The company offers food packaging, films, labels, counter-service packaging, foodservice disposables, take-out food packaging, first aid products, point of purchase displays, stationery, bags, and cleaning and hygiene supplies to grocery stores, supermarkets, retail chains, convenience stores, food wholesalers, ethnic grocers, and organic food outlets. It also provides 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, the leisure sector, and food processors and packers; and footwear, gloves, safety helmets, workwear, harness equipment, tools, safety signs, traffic management, and ancillary site equipment, as well as ear, eye, respiratory, and face protection products to customers in the industrial and construction markets.

Bunzl Fundamentals Summary

How do Bunzl's earnings and revenue compare to its market cap?
BNZL fundamental statistics
Market CapUK£9.59b
Earnings (TTM)UK£455.50m
Revenue (TTM)UK£10.13b

21.1x

P/E Ratio

0.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BNZL income statement (TTM)
RevenueUK£10.13b
Cost of RevenueUK£7.52b
Gross ProfitUK£2.61b
ExpensesUK£2.16b
EarningsUK£455.50m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.36
Gross Margin25.77%
Net Profit Margin4.50%
Debt/Equity Ratio109.1%

How did BNZL perform over the long term?

See historical performance and comparison

Dividends

1.9%

Current Dividend Yield

40%

Payout Ratio

Valuation

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

14.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BNZL (£28.68) is trading below our estimate of fair value (£33.56)

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 good value based on its PE Ratio (21.1x) compared to the UK Trade Distributors industry average (24.1x).

PE vs Market: BNZL is poor value based on its PE Ratio (21.1x) compared to the UK market (19x).


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 (5x) compared to the GB Trade Distributors industry average (2x).


Future Growth

How is Bunzl forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

4.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BNZL's forecast earnings growth (4.7% per year) is above the savings rate (0.9%).

Earnings vs Market: BNZL's earnings (4.7% per year) are forecast to grow slower than the UK market (12.6% per year).

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

Revenue vs Market: BNZL's revenue (3.7% per year) is forecast to grow slower than the UK market (4.9% per year).

High Growth Revenue: BNZL's revenue (3.7% 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 (18.4%).


Past Performance

How has Bunzl performed over the past 5 years?

11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BNZL has high quality earnings.

Growing Profit Margin: BNZL's current net profit margins (4.5%) are higher than last year (3.9%).


Past Earnings Growth Analysis

Earnings Trend: BNZL's earnings have grown by 11.1% per year over the past 5 years.

Accelerating Growth: BNZL's earnings growth over the past year (20%) exceeds its 5-year average (11.1% per year).

Earnings vs Industry: BNZL earnings growth over the past year (20%) underperformed the Trade Distributors industry 44.2%.


Return on Equity

High ROE: Whilst BNZL's Return on Equity (23.65%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Bunzl's financial position?


Financial Position Analysis

Short Term Liabilities: BNZL's short term assets (£3.7B) exceed its short term liabilities (£2.7B).

Long Term Liabilities: BNZL's short term assets (£3.7B) exceed its long term liabilities (£2.1B).


Debt to Equity History and Analysis

Debt Level: BNZL's net debt to equity ratio (62.1%) is considered high.

Reducing Debt: BNZL's debt to equity ratio has reduced from 125.7% to 109.1% over the past 5 years.

Debt Coverage: BNZL's debt is well covered by operating cash flow (35.4%).

Interest Coverage: BNZL's interest payments on its debt are well covered by EBIT (12.3x coverage).


Balance Sheet


Dividend

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

1.90%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BNZL's dividend (1.9%) is higher than the bottom 25% of dividend payers in the UK market (1.37%).

High Dividend: BNZL's dividend (1.9%) is low compared to the top 25% of dividend payers in the UK market (4.17%).


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 (39.9%), 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 (38.7% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Frank van Zanten (54 yo)

5.58yrs

Tenure

UK£3,503,900

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 ($USD4.64M) is about average for companies of similar size in the UK market ($USD3.65M).

Compensation vs Earnings: Frank's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: BNZL's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: BNZL's board of directors are considered experienced (3.2 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 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£9.590b
  • Shares outstanding: 334.37m
  • Website: https://www.bunzl.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 21:35
End of Day Share Price2021/11/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.