Bunzl PLC
🇬🇧 BNZL.LSE · London · GB00B0744B38
Consumer
GBX 2254.00 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
16.0
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 2254.00 ÷ 140.86 = 16.0
TTM period through: 2025-12-31
Forward P/E (estimated): 12.2
Based on analyst estimates
Reference: Provider P/E (Trailing): 16.0
Yield (Fwd)
3.28%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 3.28%
Net Debt/EBITDA (TTM)
2.0x
Latest quarter: 2.5x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-12-31
Latest quarter (2025-12-31): 2.5x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
52.5%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 52.7%
Cash Flow Payout (TTM): 28.9%
FCF Coverage (TTM): 3.16x
ROE
16.5%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
8.0x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Bunzl is a high-quality global distributor of essential B2B consumables with an exceptional track record of dividend reliability and massive free cash flow generation. The recent cautious 2026 margin guidance and subsequent market reaction present a classic temporary setback for a proven defensive compounder. Trading at 2254 GBX, below our fair value monopoly estimate of 2535 GBX, this represents an attractive entry point for dividend investors seeking long-term stability and sustainable income growth.
Sector Context
Bunzl operates as a globally dominant B2B distributor of essential non-food consumables, providing critical supplies such as packaging, cleaning, and personal protection equipment to the healthcare, retail, and industrial sectors. For dividend investors, its position as an essential intermediary creates a highly defensive, recurring revenue model that generates reliable cash flows across economic cycles.
Temporary Opportunity Identified
Softening near-term demand in key regional markets and customer resistance to price hikes causing temporary margin compression and slight revenue declines.
📊 Strategy Analysis
- • Exceptional dividend consistency with a 10-year growth CAGR of 7.6% and highly secure FCF coverage of 3.16x (cash flow payout ratio of just 29%).
- • Highly resilient B2B essential services model generating stable recurring revenues and maintaining a strong ROE of 16.5%.
- • Trading at 2254 GBX, the stock sits below our fair value monopoly estimate of 2535 GBX, offering upside potential backed by an attractive forward P/E of 12.2x.
⚠ What to Watch
- • Trailing P/E of 16.0x sits marginally above the ideal 15x strategy threshold, though this is offset by the business's strong defensive moat.
- • Recent quarterly revenue and earnings have experienced slight declines due to softer macroeconomic demand in key North American and European markets.
- • Recent management guidance indicates slight margin compression is expected in 2026 as customers increasingly resist price hikes.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-04
Disclaimer: This information is for educational purposes only. Not financial advice.