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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Diploma Plc

Brickability Group Plc

Currys Plc

RS Group Plc

Glencore Plc

James Latham Plc

Bunzl Plc

Midwich Group 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 Jun 25

INTEREST COVERAGE RATIO(Q) Lowest at 599.16
CASH AND EQV(HY) Lowest at GBP 481 MM
DEBT-EQUITY RATIO (HY) Highest at 88.25 %

With ROE of 19.03%, it has a attractive valuation with a 2.84 Price to Book Value

Over the past year, while the stock has generated a return of -26.37%, its profits have fallen by -0.8% ; the PEG ratio of the company is 7.1

Consistent Underperformance against the benchmark over the last 3 years

Along with generating -26.37% returns in the last 1 year, the stock has also underperformed FTSE 100 in each of the last 3 annual periods

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?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Bunzl Plc

-26.71%

-0.43

33.53%

FTSE 100

13.98%

1.15

13.60%

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)

2.26

Tax Ratio

25.62%

Dividend Payout Ratio

52.38%

Pledged Shares

Institutional Holding

0.07%

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

2.84

EV to EBIT

11.94

EV to EBITDA

7.77

EV to Capital Employed

2.10

EV to Sales

0.76

PEG Ratio

7.07

Dividend Yield

3.36%

ROCE (Latest)

17.62%

ROE (Latest)

19.03%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Mildly Bullish

Mildly Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

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

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 1,683.3 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 36.3%

RAW MATERIAL COST(Y)

Fallen by 0% (YoY

-9What is not working for the Company

INTEREST COVERAGE RATIO(Q)

Lowest at 599.16

CASH AND EQV(HY)

Lowest at GBP 481 MM

DEBT-EQUITY RATIO (HY)

Highest at 88.25 %

OPERATING PROFIT(Q)

Lowest at GBP 500.3 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 8.69 %

PRE-TAX PROFIT(Q)

Lowest at GBP 250.4 MM

NET PROFIT(Q)

Lowest at GBP 182.12 MM

EPS(Q)

Lowest at GBP 0.55

Here's what is working for Bunzl Plc

Operating Cash Flow

Highest at GBP 1,683.3 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 Payout Ratio

Highest at 36.3%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

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

Here's what is not working for Bunzl Plc

Interest Coverage Ratio

Lowest at 599.16

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Operating Profit

Lowest at GBP 500.3 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (GBP MM)

Operating Profit Margin

Lowest at 8.69 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at GBP 250.4 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Net Profit

Lowest at GBP 182.12 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (GBP MM)

EPS

Lowest at GBP 0.55

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (GBP)

Cash and Eqv

Lowest at GBP 481 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 88.25 %

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 0.13 MM

in the last five periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income