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The Bidvest Group
(OTC:BDVSY)
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Rating:73Outperform
Price Target:
$34.00
â–²(17.97% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by solid underlying financial performance (growth with stable profitability) but held back by weaker cash-flow consistency and elevated leverage risk. Technicals are supportive with the stock trading above key moving averages, though momentum looks near-term stretched. Valuation is attractive for the profile (moderate P/E and ~3.7% yield), and the latest earnings call reinforced improving cash generation while acknowledging manageable headwinds (notably delayed deleveraging and Automotive margin pressure).
Positive Factors
Diversified cash-generative portfolio
Bidvest's diversified business model — combining distribution, trading and recurring outsourced services — provides durable cash generation across cycles. Scale in procurement, logistics and contract revenue reduces single-market exposure and supports stable earnings and reinvestment capacity over the medium term.
Negative Factors
Elevated leverage and delayed deleveraging
Leverage metrics remain elevated with net debt/EBITDA near covenant levels and debt-to-equity at 1.17. The terminated bank sale delays a formerly material source of proceeds, slowing deleveraging and leaving the group more exposed to interest-rate and cyclical earnings swings until targeted reductions are realized.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified cash-generative portfolio
Bidvest's diversified business model — combining distribution, trading and recurring outsourced services — provides durable cash generation across cycles. Scale in procurement, logistics and contract revenue reduces single-market exposure and supports stable earnings and reinvestment capacity over the medium term.
Read all positive factors
The Bidvest Group (BDVSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$5.09B
Dividend Yield3.68%
Average Volume (3M)8.81K
Price to Earnings (P/E)13.3
Beta (1Y)0.85
Revenue Growth5.74%
EPS Growth-4.58%
CountryUS
Employees134,083
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)34.74
Shares Outstanding170,137,180
10 Day Avg. Volume1,058
30 Day Avg. Volume8,811
Financial Highlights & Ratios
PEG Ratio-1.22
Price to Book (P/B)2.27
Price to Sales (P/S)0.68
P/FCF Ratio31.55
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.71
Revenue Forecast (FY)$8.40B
The Bidvest Group Business Overview & Revenue Model
Company Description
The Bidvest Group Limited, founded in 1988 and based in Johannesburg, South Africa, is a diverse international conglomerate with primary activities in trading, various services, and distribution. The company's extensive operations are structured a...
How the Company Makes Money
Bidvest makes money by operating a portfolio of cash-generative businesses that earn revenue from (1) distributing and trading goods and (2) providing outsourced, contract-based services. A significant portion of revenue is generated through the s...
The Bidvest Group Earnings Call Summary
Earnings Call Date:Mar 02, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Sep 07, 2026
Earnings Call Sentiment Positive
The call communicated a broadly positive operating and financial performance characterized by revenue and trading profit growth, meaningful improvement in cash generation and conversion, strong hygiene segment momentum, successful refinancing at favorable rates, and sustained cost control. Notable challenges were acknowledged: margin compression in Automotive, certain divisional revenue pressures (Freight clearing/forwarding, parts of Branded/Commercial Products), softer returns (ROFE/ROIC) due to prior acquisitive growth, and the termination of the prior Bidvest Bank sale which delays expected deleveraging proceeds. Management’s liquidity position and active capital markets execution, together with operational discipline and clear priorities (accelerate organic growth, improve cash generation and returns), support a constructive outlook, with the negatives seen as manageable near-term headwinds rather than structural failures.Positive Updates
Group revenue and profit growth
Group revenue of ~ZAR 67.0 billion (transcript ZAR 66.7–67.0bn) increased ~4% year-on-year; trading profit rose 7% to ZAR 6.7 billion and trading margin expanded from 9.8% to 10.1%.
Negative Updates
Return metrics softened
ROFE declined to 37.6% (from 37.9%) and ROIC fell to 13.4% (from 14.4%). Management noted returns have tapered due to multi‑year capital deployment while rebuilding the international footprint.
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Q2-2026 Updates
Positive
Negative
Group revenue and profit growth
Group revenue of ~ZAR 67.0 billion (transcript ZAR 66.7–67.0bn) increased ~4% year-on-year; trading profit rose 7% to ZAR 6.7 billion and trading margin expanded from 9.8% to 10.1%.
Read all positive updates
Company Guidance
The guidance from the call was that management expects a stronger second half and is focused on three priorities—accelerating organic growth, improving cash generation and lifting returns—funded by improved free cash flow and deleveraging: group revenue was ~ZAR 66.7–67.0bn (up ~4%), trading profit ZAR 6.7bn (up ~7%), gross margin 28.1% (+43bps) and trading margin 10.1% (from 9.8%); cash conversion has improved to 70% (from 45%), underlying cash generated before working capital ZAR 8.7bn, working capital absorption ZAR 2.6bn (vs ZAR 3.6bn prior), free cash flow ZAR 3.8bn (about ZAR 2bn higher), net debt/EBITDA 2.2x (unchanged, covenant 2x, target <2x, internal sweet spot ~1.5x), ROFE 37.6% (prior 37.9%) and ROIC 13.4% (prior 14.4%), HEPS ~+5.1% (normalized +5.3%) with an interim dividend of ZAR 4.95/sh (+5.3%); management expects cash and working-capital release, slower M&A to free up cash for debt reduction, continued strong hygiene momentum (hygiene profit +20%, margins ~18.2%, 55% of Services International profit; Services International revenue ZAR 22.5bn, trading profit ZAR 2.2bn), and to use these levers to improve returns and hit the stated gearing and return targets.The Bidvest Group Financial Statement Overview
Summary
Income Statement
75
Positive
Balance Sheet
70
Positive
Cash Flow
65
Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 125.64B | 126.61B | 122.62B | 114.91B | 99.93B | 88.31B |
| Gross Profit | 34.63B | 35.06B | 34.88B | 33.34B | 29.96B | 27.17B |
| EBITDA | 15.44B | 15.33B | 16.40B | 14.95B | 13.25B | 11.12B |
| Net Income | 5.92B | 6.07B | 6.37B | 5.97B | 5.07B | 3.84B |
Balance Sheet | ||||||
| Total Assets | 121.63B | 124.59B | 112.58B | 107.51B | 96.02B | 86.40B |
| Cash, Cash Equivalents and Short-Term Investments | 4.97B | 6.19B | 6.97B | 9.25B | 11.52B | 7.44B |
| Total Debt | 43.53B | 44.51B | 36.83B | 33.41B | 30.17B | 25.89B |
| Total Liabilities | 79.00B | 83.18B | 74.05B | 71.18B | 64.14B | 57.61B |
| Stockholders Equity | 39.21B | 38.04B | 35.32B | 32.99B | 28.37B | 25.54B |
Cash Flow | ||||||
| Free Cash Flow | 7.99B | 2.74B | 1.95B | 1.34B | 2.33B | 7.14B |
| Operating Cash Flow | 11.01B | 6.23B | 6.00B | 5.06B | 5.59B | 9.74B |
| Investing Cash Flow | -9.43B | -12.33B | -7.14B | -5.90B | -2.95B | -1.79B |
| Financing Cash Flow | -1.50B | 5.46B | -1.66B | -2.45B | 2.03B | -7.08B |
The Bidvest Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $5.09B | 13.32 | 15.74% | 3.93% | 5.74% | -4.58% | |
71 Outperform | $4.05B | 6.39 | 12.09% | 0.19% | 8.17% | 361.79% | |
67 Neutral | $4.59B | 22.43 | 198.41% | 0.93% | -12.03% | 209.72% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
57 Neutral | $4.20B | 21.01 | 6.95% | 2.64% | -29.93% | -9.37% | |
55 Neutral | $868.98M | -5.58 | -21.01% | 2.49% | 8.37% | 51.01% | |
47 Neutral | $4.79B | -9.13 | -22.42% | 26.39% | 12.39% | 40.27% |
* Industrials Sector Average
BDVSY
The Bidvest Group
29.94
4.33
16.89%
CODI
Compass Diversified Holdings
11.52
4.03
53.81%
GFF
Griffon
101.38
24.87
32.51%
IEP
Icahn Enterprises
6.64
0.16
2.53%
MDU
Mdu Resources Group
19.98
4.12
25.96%
SEB
Seaboard
4,136.00
434.94
11.75%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.