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The Bidvest Group
(OTC:BDVSY)
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Rating:67Neutral
Price Target:
$30.00
▲(2.11% Upside)
Action:Downgraded
Date:09/30/26
The score reflects solid financial performance with a notable 2026 free-cash-flow rebound and a shareholder-friendly valuation (P/E 12.44, ~4.27% yield). These positives are tempered by weak technical momentum (below major moving averages, negative MACD, low RSI) and balance-sheet leverage (debt-to-equity ~1.05x).
Positive Factors
Multi-year revenue growth
The substantial multi-year revenue increase indicates that Bidvest’s diversified distribution and outsourced-services portfolio has expanded its earning base. Although recent growth slowed, the larger revenue platform can support ongoing scale benefits, customer reach, and resilience across served markets.
Negative Factors
Recent growth slowdown
The marked deceleration in annual revenue growth means Bidvest’s enlarged revenue base is currently producing limited incremental expansion. If this persists, slower operating leverage and fewer growth opportunities could constrain earnings progression over the next several reporting periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-year revenue growth
The substantial multi-year revenue increase indicates that Bidvest’s diversified distribution and outsourced-services portfolio has expanded its earning base. Although recent growth slowed, the larger revenue platform can support ongoing scale benefits, customer reach, and resilience across served markets.
Read all positive factors
The Bidvest Group (BDVSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.57B
Dividend Yield4.28%
Average Volume (3M)9.64K
Price to Earnings (P/E)12.3
Beta (1Y)0.87
Revenue Growth10.64%
EPS Growth8.39%
CountryUS
Employees130,354
SectorIndustrials
Sector Strength72
IndustryConglomerates
Share Statistics
EPS (TTM)35.66
Shares Outstanding170,137,180
10 Day Avg. Volume7,768
30 Day Avg. Volume9,644
Financial Highlights & Ratios
PEG Ratio-24.42
Price to Book (P/B)2.08
Price to Sales (P/S)0.65
P/FCF Ratio8.97
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)2.73
Revenue Forecast (FY)$8.45B
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:Mar 08, 2027
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.
Read all updates
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
78
Positive
Balance Sheet
67
Positive
Cash Flow
74
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 127.61B | 126.61B | 122.62B | 114.91B | 99.93B |
| Gross Profit | 35.57B | 35.06B | 34.88B | 33.34B | 29.96B |
| EBITDA | 16.42B | 15.33B | 16.40B | 14.95B | 13.25B |
| Net Income | 6.02B | 6.07B | 6.37B | 5.97B | 5.07B |
Balance Sheet | |||||
| Total Assets | 121.65B | 124.59B | 112.58B | 107.51B | 96.02B |
| Cash, Cash Equivalents and Short-Term Investments | 6.22B | 6.19B | 6.97B | 9.25B | 11.52B |
| Total Debt | 41.45B | 44.51B | 36.83B | 33.41B | 30.17B |
| Total Liabilities | 78.57B | 83.18B | 74.05B | 71.18B | 64.14B |
| Stockholders Equity | 39.64B | 38.04B | 35.32B | 32.99B | 28.37B |
Cash Flow | |||||
| Free Cash Flow | 9.20B | 2.74B | 1.95B | 1.34B | 2.33B |
| Operating Cash Flow | 12.23B | 6.23B | 6.00B | 5.06B | 5.59B |
| Investing Cash Flow | -3.92B | -12.33B | -7.14B | -5.90B | -2.95B |
| Financing Cash Flow | -7.20B | 5.46B | -1.66B | -2.45B | 2.03B |
The Bidvest Group Technical Analysis
Negative
29.38
Price Trends
28.66
Negative
28.51
Negative
28.27
Negative
Market Momentum
-0.45
Positive
31.21
Neutral
2.94
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BDVSY, the sentiment is Negative. The current price of 29.38 is above the 20-day moving average (MA) of 27.78, above the 50-day MA of 28.66, and above the 200-day MA of 28.27, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 31.21 is Neutral, neither overbought nor oversold. The STOCH value of 2.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BDVSY.
The Bidvest Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $3.78B | 6.08 | 12.09% | 0.22% | 8.17% | 361.79% | |
67 Neutral | $4.57B | 12.35 | 15.52% | 4.28% | 10.64% | 8.39% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
59 Neutral | $84.07B | 28.60 | 77.12% | 1.90% | 2.35% | -21.55% | |
59 Neutral | $80.08M | 1.26 | 177.36% | 4.62% | 25.44% | ― | |
48 Neutral | $828.35M | -5.28 | -21.01% | 214.04% | 8.37% | 51.01% | |
47 Neutral | $5.22B | -3.70 | -18.05% | 0.98% | 97.51% | 34.53% |
* Industrials Sector Average
BDVSY
The Bidvest Group
26.85
2.38
9.72%
MMM
3M
161.89
6.11
3.92%
AIRT
Air T
29.80
7.09
31.22%
CODI
Compass Diversified Holdings
10.93
4.20
62.41%
SEB
Seaboard
4,024.28
471.60
13.27%
BBUC
Brookfield Business Corp. Class A
25.60
-8.19
-24.23%
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.