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

Fundamentals

Established dividend payer with adequate balance sheet.


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


Market Performance


7 Day Return

0.6%

BNZL

1.2%

GB Trade Distributors

2.0%

GB Market


1 Year Return

-8.0%

BNZL

5.7%

GB Trade Distributors

3.3%

GB Market

Return vs Industry: BNZL underperformed the UK Trade Distributors industry which returned 5.7% over the past year.

Return vs Market: BNZL underperformed the UK Market which returned 3.3% over the past year.


Share holder returns

BNZLIndustryMarket
7 Day0.6%1.2%2.0%
30 Day-4.6%-0.9%-1.0%
90 Day-5.8%2.4%-1.7%
1 Year-5.8%-8.0%10.1%5.7%8.3%3.3%
3 Year-7.1%-12.7%39.4%26.5%19.0%4.5%
5 Year36.2%23.2%83.8%59.6%38.4%8.4%

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 based on future cash flows and its price relative to the stock market?

20.29x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: BNZL (£20.25) is trading above our estimate of fair value (£16.8)

Significantly Undervalued: BNZL is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: BNZL is poor value based on its PE Ratio (20.3x) compared to the Trade Distributors industry average (15.8x).

PE vs Market: BNZL is poor value based on its PE Ratio (20.3x) compared to the UK market (16.4x).


Price Based on Expected Growth

Low PEG Ratio: BNZL is poor value based on its PEG Ratio (3.3x)


Price Based on Value of Assets

PB vs Industry: BNZL is overvalued based on its PB Ratio (4.1x) compared to the GB Trade Distributors industry average (1.8x).


Next Steps

Future Growth

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

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: BNZL's forecast earnings growth (6.2% per year) is above the savings rate (1.2%).

Earnings vs Market: BNZL's earnings (6.2% per year) are forecast to grow slower than the UK market (12.3% per year).

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

Revenue vs Market: BNZL's revenue (2.4% per year) is forecast to grow slower than the UK market (4% per year).

High Growth Revenue: BNZL's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: BNZL's Return on Equity is forecast to be high in 3 years time (22%)


Next Steps

Past Performance

How has Bunzl performed over the past 5 years?

11.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BNZL's earnings have grown by 11% per year over the past 5 years.

Accelerating Growth: BNZL's earnings growth over the past year (1.3%) is below its 5-year average (11% per year).

Earnings vs Industry: BNZL earnings growth over the past year (1.3%) underperformed the Trade Distributors industry 3.4%.


Return on Equity

High ROE: Whilst BNZL's Return on Equity (20.26%) is high, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: BNZL's Return on Assets is below or equal to the Trade Distributors industry average last year.


Return on Capital Employed

ROCE Improving: BNZL's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Bunzl's financial position?


Financial Position Analysis

Short Term Liabilities: BNZL's short term assets (£3.2B) exceeds its short term liabilities (£2.5B)

Long Term Liabilities: BNZL's short term assets (3.2B) exceeds its long term liabilities (2.1B)


Debt to Equity History and Analysis

Debt Level: BNZL's debt to equity ratio (124.7%) is considered high

Reducing Debt: BNZL's debt to equity ratio has increased from 112.8% to 124.7% over the past 5 years.

Debt Coverage: BNZL's debt is well covered by operating cash flow (27.5%).

Interest Coverage: BNZL's interest payments on its debt are well covered by EBIT (7.8x 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 1.549760x debt).


Next Steps

Dividend

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

2.65%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Bunzl before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company2.5%marketbottom25%2.0%markettop25%5.4%industryaverage2.8%forecastin3Years2.7%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: BNZL's dividend (2.49%) is higher than the bottom 25% of dividend payers in the UK market (2%).

High Dividend: BNZL's dividend (2.49%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

Stable Dividend: BNZL's dividends per share have been stable 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 reasonable payout ratio (50.6%), BNZL's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BNZL's dividends in 3 years are forecast to be well covered by earnings (40.3% payout ratio).


Next Steps

Management

What is the CEO of Bunzl's salary, the management and board of directors tenure and is there insider trading?

8.6yrs

Average management tenure


CEO

Frank van Zanten (52yo)

3.5yrs

Tenure

UK£2,816,000

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 ($USD3.57M) is about average for companies of similar size in the UK market ($USD3.36M).

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


Management Age and Tenure

8.6yrs

Average Tenure

52yo

Average Age

Experienced Management: BNZL's management team is seasoned and experienced (8.6 years average tenure).


Board Age and Tenure

3.1yrs

Average Tenure

58yo

Average Age

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


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUK£32,16314 Jun 19
Andrew Mooney
EntityIndividual
Role
Head of Corporate Development
Director of Corporate Development
Shares1,500
Max PriceUK£21.44

Ownership Breakdown


Management Team

  • Brian May (55yo)

    Finance Director & Director

    • Tenure: 13.8yrs
    • Compensation: UK£1.81m
  • Frank van Zanten (52yo)

    CEO & Executive Director

    • Tenure: 3.5yrs
    • Compensation: UK£2.82m
  • Paul Hussey

    General Counsel & Company Secretary

    • Tenure: 0yrs
  • Kim Hetherington

    Managing Director of Asia Pacific

    • Tenure: 20.3yrs
  • Diana Breeze (51yo)

    Director of Group Human Resources

    • Tenure: 0yrs
  • Andrew Mooney

    Director of Corporate Development

    • Tenure: 0yrs
  • Andrew Tedbury

    Managing Director of UK & Ireland

    • Tenure: 0yrs
  • Jonathan Taylor

    Managing Director of Latin America

    • Tenure: 0yrs
  • James McCool

    Chief Executive Officer of North America

    • Tenure: 0.8yrs
  • Alberto Grau

    Managing Director of Continental Europe

    • Tenure: 0yrs

Board Members

  • Philip Rogerson (74yo)

    Chairman

    • Tenure: 9.6yrs
    • Compensation: UK£358.00k
  • Peter Ventress (58yo)

    Non-Executive Director

    • Tenure: 0.3yrs
  • Eugenia Ulasewicz (65yo)

    Independent Non-Executive Director

    • Tenure: 8.5yrs
    • Compensation: UK£141.60k
  • Vanda Murray (58yo)

    Senior Independent Director

    • Tenure: 2.5yrs
    • Compensation: UK£112.20k
  • Stephan Nanninga (62yo)

    Independent Non-Executive Director

    • Tenure: 2.4yrs
    • Compensation: UK£80.00k
  • Brian May (55yo)

    Finance Director & Director

    • Tenure: 13.8yrs
    • Compensation: UK£1.81m
  • Frank van Zanten (52yo)

    CEO & Executive Director

    • Tenure: 3.5yrs
    • Compensation: UK£2.82m
  • Lloyd Pitchford (47yo)

    Independent Non-Executive Director

    • Tenure: 2.6yrs
    • Compensation: UK£88.60k

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£6.765b
  • Shares outstanding: 334.06m
  • 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 provides non-food consumables, including fo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 20:41
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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