OTCPK:BPPP.F

Stock Analysis Report

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Executive Summary

Bid Corporation Limited provides foodservice solutions in South Africa and internationally.


Snowflake Analysis

Solid track record with excellent balance sheet.


Similar Companies

Share Price & News

How has Bid's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BPPP.F's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

BPPP.F

6.4%

US Consumer Retailing

2.3%

US Market


1 Year Return

n/a

BPPP.F

8.0%

US Consumer Retailing

6.7%

US Market

Return vs Industry: Insufficient data to determine how BPPP.F performed against the US Consumer Retailing industry.

Return vs Market: Insufficient data to determine how BPPP.F performed against the US Market.


Shareholder returns

BPPP.FIndustryMarket
7 Day0%6.4%2.3%
30 Day16.8%7.2%7.4%
90 Day18.5%6.7%17.9%
1 Yearn/a10.0%8.0%9.0%6.7%
3 Year-33.7%-33.7%56.7%47.6%36.6%27.7%
5 Yearn/a59.4%42.9%64.2%46.1%

Price Volatility Vs. Market

How volatile is Bid's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Bid undervalued compared to its fair value and its price relative to the market?

18.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BPPP.F ($16) is trading above our estimate of fair value ($6.13)

Significantly Below Fair Value: BPPP.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BPPP.F is good value based on its PE Ratio (18.8x) compared to the US Consumer Retailing industry average (19.8x).

PE vs Market: BPPP.F is poor value based on its PE Ratio (18.8x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: BPPP.F is poor value based on its PEG Ratio (2.2x)


Price to Book Ratio

PB vs Industry: BPPP.F is overvalued based on its PB Ratio (3.6x) compared to the US Consumer Retailing industry average (1.7x).


Next Steps

Future Growth

How is Bid forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BPPP.F's forecast earnings growth (8.5% per year) is above the savings rate (2.2%).

Earnings vs Market: BPPP.F's earnings (8.5% per year) are forecast to grow slower than the US market (22.9% per year).

High Growth Earnings: BPPP.F's earnings are forecast to grow, but not significantly.

Revenue vs Market: BPPP.F's revenue (5.8% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: BPPP.F's revenue (5.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BPPP.F's Return on Equity is forecast to be low in 3 years time (13.9%).


Next Steps

Past Performance

How has Bid performed over the past 5 years?

11.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BPPP.F has high quality earnings.

Growing Profit Margin: BPPP.F's current net profit margins (3.8%) are higher than last year (3.6%).


Past Earnings Growth Analysis

Earnings Trend: BPPP.F's earnings have grown by 11.8% per year over the past 5 years.

Accelerating Growth: BPPP.F's earnings growth over the past year (12.4%) exceeds its 5-year average (11.8% per year).

Earnings vs Industry: BPPP.F earnings growth over the past year (12.4%) exceeded the Consumer Retailing industry 11.2%.


Return on Equity

High ROE: BPPP.F's Return on Equity (19%) is considered low.


Next Steps

Financial Health

How is Bid's financial position?


Financial Position Analysis

Short Term Liabilities: BPPP.F's short term assets (ZAR34.5B) exceed its short term liabilities (ZAR29.6B).

Long Term Liabilities: BPPP.F's short term assets (ZAR34.5B) exceed its long term liabilities (ZAR15.2B).


Debt to Equity History and Analysis

Debt Level: BPPP.F's debt to equity ratio (39.2%) is considered satisfactory.

Reducing Debt: BPPP.F's debt to equity ratio has increased from 35.8% to 39.2% over the past 5 years.

Debt Coverage: BPPP.F's debt is well covered by operating cash flow (59.2%).

Interest Coverage: BPPP.F's interest payments on its debt are well covered by EBIT (14.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Bid current dividend yield, its reliability and sustainability?

2.37%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BPPP.F's dividend (2.37%) is higher than the bottom 25% of dividend payers in the US market (1.68%).

High Dividend: BPPP.F's dividend (2.37%) is low compared to the top 25% of dividend payers in the US market (4.6%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BPPP.F has been paying a dividend for less than 10 years.

Growing Dividend: BPPP.F's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44.7%), BPPP.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BPPP.F's dividends in 3 years are forecast to be well covered by earnings (45.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.3yrs

Average management tenure


CEO

Bernard Berson (54yo)

4.25yrs

Tenure

R33,131,000

Compensation

Mr. Bernard Larry Berson, CA, has been Group Chief Executive and Executive Director of BID Corporation Limited since April 14, 2016 and March 20, 2016 respectively. Mr. Berson serves as the Chief Executive ...


CEO Compensation Analysis

Compensation vs Market: Bernard's total compensation ($USD1.98M) is below average for companies of similar size in the US market ($USD7.36M).

Compensation vs Earnings: Bernard's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Bernard Berson
Chief Executive & Executive Director4.25yrsR33.13m0.067% ZAR3.7m
David Cleasby
CFO & Executive Director12.83yrsR13.45m0.043% ZAR2.4m
Nigel Boswell
Chief Development Officerno datano datano data
Ashley Biggs
Company Secretary4.25yrsno datano data
Leigh Roos
Assistant Company Secretaryno datano datano data

4.3yrs

Average Tenure

Experienced Management: BPPP.F's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Bernard Berson
Chief Executive & Executive Director4.25yrsR33.13m0.067% ZAR3.7m
David Cleasby
CFO & Executive Director12.83yrsR13.45m0.043% ZAR2.4m
Brian Joffe
Non-Executive Director24.92yrsR4.71m0.15% ZAR8.2m
Stephen Koseff
Independent Non-Executive Chairman2.33yrsR2.97m0.00035% ZAR19.4k
Dolly Mokgatle
Independent Non-Executive Director3.75yrsR430.00kno data
Paul Baloyi
Independent Non-Executive Director4.33yrsR696.00kno data
Nigel George Payne
Lead Independent Director0.67yrR954.00kno data
Clifford Rosenberg
Independent Non-Executive Director0.83yrno datano data
Tasneem Abdool-Samad
Independent Non-Executive Director0.83yrno datano data
Helen Wiseman
Independent Non-Executive Director4.33yrsR1.89mno data

4.0yrs

Average Tenure

59yo

Average Age

Experienced Board: BPPP.F's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BPPP.F insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Bid Corporation Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Bid Corporation Limited
  • Ticker: BPPP.F
  • Exchange: OTCPK
  • Founded: 1988
  • Industry: Food Distributors
  • Sector: Consumer Retailing
  • Market Cap: R92.801b
  • Listing Market Cap: R5.536b
  • Shares outstanding: 333.68m
  • Website: https://www.bidcorpgroup.com

Number of Employees


Location

  • Bid Corporation Limited
  • North Wing
  • 2nd Floor
  • Johannesburg
  • Gauteng
  • 2196
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BIDJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARMay 2016
BPPP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2016

Biography

Bid Corporation Limited provides foodservice solutions in South Africa and internationally. The company distributes fresh ingredients, including fish, seafood, meat, produce, dairy products, and ambient goods for the hospitality, institutional, catering, and retail sectors. It also provides foodservice and beverage distribution services for the HoReCa sector; and develops e-commerce solutions. In addition, the company manufactures and distributes meat, poultry, dairy, and general food ingredients, as well as baking ingredients and equipment; and offers a multi-temperature foodservice for various ambient, and chilled and frozen food products. Further, it distributes specialty products for the western styled food market; and frozen, chilled, and ambient local products for the independent street market, as well as offers various catering equipment and non-food essentials. Bid Corporation Limited was founded in 1988 and is headquartered in Johannesburg, South Africa. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/12 00:38
End of Day Share Price2020/06/26 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.