Bunzl Plc (BNZL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Currys Plc

Diploma Plc

Brickability Group Plc

RS Group Plc

Bunzl Plc

James Latham Plc

Midwich Group Plc

Glencore Plc

SIG Plc

Headlam Group Plc

Yellow Cake Plc

Why is Bunzl Plc ?

High Management Efficiency with a high ROCE of 18.11%

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 5.69% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 5.69% of over the last 5 years

Flat results in Dec 24

ROCE(HY) Lowest at 17.39%
DEBT-EQUITY RATIO (HY) Highest at 82.16 %
INTEREST(Q) Highest at GBP 88.4 MM

With ROE of 19.03%, it has a fair valuation with a 3.05 Price to Book Value

Over the past year, while the stock has generated a return of -40.00%, its profits have fallen by -0.8% ; the PEG ratio of the company is 7.6

Below par performance in long term as well as near term

Along with generating -40.00% returns in the last 1 year, the stock has also underperformed FTSE 100 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Bunzl Plc should be less than 10%
Overall Portfolio exposure to Trading & Distributors should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Trading & Distributors)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Bunzl Plc for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bunzl Plc

-40.0%

-0.48

33.72%

FTSE 100

15.94%

1.23

12.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

4.16%

EBIT Growth (5y)

5.69%

EBIT to Interest (avg)

7.65

Debt to EBITDA (avg)

1.36

Net Debt to Equity (avg)

0.62

Sales to Capital Employed (avg)

2.27

Tax Ratio

25.62%

Dividend Payout Ratio

49.39%

Pledged Shares

Institutional Holding

0.17%

ROCE (avg)

18.11%

ROE (avg)

19.12%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.05

EV to EBIT

12.65

EV to EBITDA

8.24

EV to Capital Employed

2.23

EV to Sales

0.80

PEG Ratio

7.59

Dividend Yield

89.61%

ROCE (Latest)

17.62%

ROE (Latest)

19.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

Not enough Data to analyse Financial Trend

Here's what is working for Bunzl Plc

Operating Cash Flow

Highest at GBP 1,696.5 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Dividend per share

Highest at GBP 7.7 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Operating Profit

Highest at GBP 651.8 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (GBP MM)

Operating Profit Margin

Highest at 10.75 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at GBP 394.3 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (GBP MM)

Net Profit

Highest at GBP 301.78 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (GBP MM)

EPS

Highest at GBP 0.9

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (GBP)

Raw Material Cost

Fallen by 0% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at GBP 202.1 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (GBP MM)

Here's what is not working for Bunzl Plc

Interest

Highest at GBP 88.4 MM

in the last five periods and Increased by 18.34% (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Debt-Equity Ratio

Highest at 82.16 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Non Operating Income

Highest at GBP 0.08 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income