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Bid

JSE:BID
Snowflake Description

Excellent balance sheet with proven track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BID
JSE
ZAR114B
Market Cap
  1. Home
  2. ZA
  3. Consumer Retailing
Company description

Bid Corporation Limited provides foodservice solutions in South Africa and internationally. The last earnings update was 31 days ago. More info.


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BID Share Price and Events
7 Day Returns
-2.2%
JSE:BID
-0.9%
ZA Consumer Retailing
-1%
ZA Market
1 Year Returns
21%
JSE:BID
-3%
ZA Consumer Retailing
-2%
ZA Market
BID Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Bid (BID) -2.2% 2.6% 14.8% 21% 38.8% -
ZA Consumer Retailing -0.9% 4.5% 12.8% -3% 10.2% 14.5%
ZA Market -1% 1.7% -1% -2% 3.2% 2.4%
1 Year Return vs Industry and Market
  • BID outperformed the Consumer Retailing industry which returned -3% over the past year.
  • BID outperformed the Market in South Africa which returned -2% over the past year.
Price Volatility
BID
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Bid undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Bid to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Bid.

JSE:BID Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.5%
Perpetual Growth Rate 10-Year ZA Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for JSE:BID
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year ZA Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Consumer Retailing Unlevered Beta Simply Wall St/ S&P Global 0.49
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.487 (1 + (1- 28%) (9.22%))
0.678
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.8 * 5.96%)
7.5%

Discounted Cash Flow Calculation for JSE:BID using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Bid is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

JSE:BID DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (ZAR, Millions) Source Present Value
Discounted (@ 7.5%)
2020 4,416.00 Analyst x2 4,107.98
2021 4,138.20 Analyst x3 3,581.05
2022 4,694.13 Analyst x3 3,778.80
2023 5,113.36 Est @ 8.93% 3,829.17
2024 5,474.91 Est @ 7.07% 3,813.95
2025 5,790.72 Est @ 5.77% 3,752.58
2026 6,071.97 Est @ 4.86% 3,660.39
2027 6,328.14 Est @ 4.22% 3,548.73
2028 6,566.85 Est @ 3.77% 3,425.73
2029 6,794.03 Est @ 3.46% 3,297.04
Present value of next 10 years cash flows ZAR36,795.00
JSE:BID DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ZAR6,794.03 × (1 + 2.73%) ÷ (7.5% – 2.73%)
ZAR146,382.29
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ZAR146,382.29 ÷ (1 + 7.5%)10
ZAR71,037.02
JSE:BID Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ZAR36,795.00 + ZAR71,037.02
ZAR107,832.02
Equity Value per Share
(ZAR)
= Total value / Shares Outstanding
= ZAR107,832.02 / 333.68
ZAR323.16
JSE:BID Discount to Share Price
Calculation Result
Value per share (ZAR) From above. ZAR323.16
Current discount Discount to share price of ZAR341.36
= -1 x (ZAR341.36 - ZAR323.16) / ZAR323.16
-5.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Bid is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Bid's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Bid's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
JSE:BID PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in ZAR ZAR14.51
JSE:BID Share Price ** JSE (2019-11-14) in ZAR ZAR341.36
South Africa Consumer Retailing Industry PE Ratio Median Figure of 7 Publicly-Listed Consumer Retailing Companies 20.07x
South Africa Market PE Ratio Median Figure of 207 Publicly-Listed Companies 10.74x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Bid.

JSE:BID PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= JSE:BID Share Price ÷ EPS (both in ZAR)

= 341.36 ÷ 14.51

23.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bid is overvalued based on earnings compared to the ZA Consumer Retailing industry average.
  • Bid is overvalued based on earnings compared to the South Africa market.
Price based on expected Growth
Does Bid's expected growth come at a high price?
Raw Data
JSE:BID PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 23.53x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
9.6%per year
South Africa Consumer Retailing Industry PEG Ratio Median Figure of 6 Publicly-Listed Consumer Retailing Companies 1.98x
South Africa Market PEG Ratio Median Figure of 75 Publicly-Listed Companies 1.11x

*Line of best fit is calculated by linear regression .

JSE:BID PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 23.53x ÷ 9.6%

2.45x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bid is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Bid's assets?
Raw Data
JSE:BID PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in ZAR ZAR85.41
JSE:BID Share Price * JSE (2019-11-14) in ZAR ZAR341.36
South Africa Consumer Retailing Industry PB Ratio Median Figure of 8 Publicly-Listed Consumer Retailing Companies 4.72x
South Africa Market PB Ratio Median Figure of 267 Publicly-Listed Companies 0.89x
JSE:BID PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= JSE:BID Share Price ÷ Book Value per Share (both in ZAR)

= 341.36 ÷ 85.41

4x

* Primary Listing of Bid.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Bid is good value based on assets compared to the ZA Consumer Retailing industry average.
X
Value checks
We assess Bid's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Retailing industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Retailing industry average (and greater than 0)? (1 check)
  5. Bid has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Bid expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Bid expected to grow at an attractive rate?
  • Bid's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Bid's earnings growth is positive but not above the South Africa market average.
  • Bid's revenue growth is positive but not above the South Africa market average.
Annual Growth Rates Comparison
Raw Data
JSE:BID Future Growth Rates Data Sources
Data Point Source Value (per year)
JSE:BID Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 9.6%
JSE:BID Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 6.1%
South Africa Consumer Retailing Industry Earnings Growth Rate Market Cap Weighted Average 13.6%
South Africa Consumer Retailing Industry Revenue Growth Rate Market Cap Weighted Average 7.1%
South Africa Market Earnings Growth Rate Market Cap Weighted Average 16.8%
South Africa Market Revenue Growth Rate Market Cap Weighted Average 8.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
JSE:BID Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in ZAR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
JSE:BID Future Estimates Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 156,615 10,169 1
2022-06-30 157,847 9,571 6,504 6
2021-06-30 148,244 8,753 5,789 7
2020-06-30 138,610 8,266 5,246 7
2019-11-15
JSE:BID Past Financials Data
Date (Data in ZAR Millions) Revenue Cash Flow Net Income *
2019-06-30 129,250 4,312 4,836
2019-03-31 126,247 4,647 4,611
2018-12-31 124,900 4,788 4,253
2018-09-30 122,130 4,497 4,163
2018-06-30 117,703 4,399 4,206
2018-03-31 115,984 3,849 4,208
2017-12-31 114,266 3,300 4,210
2017-09-30 112,367 3,601 4,115
2017-06-30 110,468 3,902 4,020
2017-03-31 119,163 4,913 3,866
2016-12-31 127,858 5,924 3,712
2016-09-30 131,698 5,601 3,496

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Bid's earnings are expected to grow by 9.6% yearly, however this is not considered high growth (20% yearly).
  • Bid's revenue is expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
JSE:BID Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Bid Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:BID Future Estimates Data
Date (Data in ZAR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30
2022-06-30 19.42 19.42 19.42 1.00
2021-06-30 17.45 17.90 16.96 3.00
2020-06-30 15.89 16.39 15.55 3.00
2019-11-15
JSE:BID Past Financials Data
Date (Data in ZAR Millions) EPS *
2019-06-30 14.51
2019-03-31 13.84
2018-12-31 12.77
2018-09-30 12.51
2018-06-30 12.64
2018-03-31 12.65
2017-12-31 12.67
2017-09-30 12.39
2017-06-30 12.10
2017-03-31 13.32
2016-12-31 14.94
2016-09-30 21.13

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Bid is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Bid's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the South Africa market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the South Africa market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Bid has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Bid performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Bid's growth in the last year to its industry (Consumer Retailing).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Bid's year on year earnings growth rate has been positive over the past 5 years.
  • Bid's 1-year earnings growth exceeds its 5-year average (15% vs 13.7%)
  • Bid's earnings growth has not exceeded the ZA Consumer Retailing industry average in the past year (15% vs 15%).
Earnings and Revenue History
Bid's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Bid Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

JSE:BID Past Revenue, Cash Flow and Net Income Data
Date (Data in ZAR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 129,249.99 4,836.14 24,151.53
2019-03-31 126,246.50 4,611.46 23,489.64
2018-12-31 124,899.69 4,253.40 23,891.10
2018-09-30 122,129.66 4,162.83 23,226.22
2018-06-30 117,702.96 4,205.64 21,497.98
2018-03-31 115,984.25 4,207.61 21,186.78
2017-12-31 114,265.54 4,209.59 20,875.59
2017-09-30 112,366.85 4,114.56 20,807.63
2017-06-30 110,468.15 4,019.53 20,739.67
2017-03-31 119,163.06 3,865.60 21,793.22
2016-12-31 127,857.96 3,711.67 22,846.76
2016-09-30 131,697.75 3,495.62 22,808.74
2016-06-30 135,537.53 3,279.58 22,770.72
2015-06-30 109,803.52 2,514.86 16,401.25
2014-06-30 95,760.07 1,954.63 13,349.39
2013-06-30 76,877.41 1,475.61 10,550.38

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Bid has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Bid used its assets more efficiently than the ZA Consumer Retailing industry average last year based on Return on Assets.
  • Bid has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Bid's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Retailing industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Bid has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Bid's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Bid's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Bid is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Bid's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Bid's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Bid Company Filings, last reported 4 months ago.

JSE:BID Past Debt and Equity Data
Date (Data in ZAR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 28,735.97 10,500.95 5,925.95
2019-03-31 28,735.97 10,500.95 5,925.95
2018-12-31 28,250.17 10,338.53 5,279.91
2018-09-30 28,250.17 10,338.53 5,279.91
2018-06-30 26,788.90 9,559.49 6,117.82
2018-03-31 26,788.90 9,559.49 6,117.82
2017-12-31 24,599.57 8,471.42 5,268.49
2017-09-30 24,599.57 8,471.42 5,268.49
2017-06-30 23,671.52 8,057.46 6,493.01
2017-03-31 23,671.52 8,057.46 6,493.01
2016-12-31 22,275.78 7,033.09 5,360.13
2016-09-30 22,275.78 7,033.09 5,360.13
2016-06-30 24,217.57 7,188.15 5,505.51
2015-06-30 17,749.31 6,359.27 3,632.61
2014-06-30 15,410.80 5,523.96 4,405.61
2013-06-30 11,577.86 5,187.88 4,326.92
  • Bid's level of debt (36.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (35.8% vs 36.5% today).
  • Debt is well covered by operating cash flow (41.1%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 23.3x coverage).
X
Financial health checks
We assess Bid's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Bid has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.93%
Current annual income from Bid dividends. Estimated to be 2.3% next year.
If you bought ZAR2,000 of Bid shares you are expected to receive ZAR39 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Bid's pays a lower dividend yield than the bottom 25% of dividend payers in South Africa (3.3%).
  • Bid's dividend is below the markets top 25% of dividend payers in South Africa (8.76%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
JSE:BID Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
South Africa Consumer Retailing Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 2.3%
South Africa Market Average Dividend Yield Market Cap Weighted Average of 179 Stocks 4%
South Africa Minimum Threshold Dividend Yield 10th Percentile 1.9%
South Africa Bottom 25% Dividend Yield 25th Percentile 3.3%
South Africa Top 25% Dividend Yield 75th Percentile 8.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

JSE:BID Future Dividends Estimate Data
Date (Data in ZAR) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 8.74 1.00
2022-06-30 8.62 5.00
2021-06-30 7.84 6.00
2020-06-30 7.05 6.00
2019-11-15
JSE:BID Past Annualized Dividends Data
Date (Data in ZAR) Dividend per share (annual) Avg. Yield (%)
2019-08-28 6.600 1.985
2019-02-20 6.200 2.062
2018-10-30 5.600 2.044
2018-08-22 5.600 1.903
2018-02-21 5.600 2.068
2018-01-15 5.600 2.067
2017-10-11 5.000 1.668
2017-08-24 5.000 1.666
2017-02-28 5.000 1.718
2016-09-16 2.410 0.982

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Bid has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Bid only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of Bid's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.3x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.2x coverage).
X
Income/ dividend checks
We assess Bid's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Bid afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Bid has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Bid's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bernard Berson
COMPENSATION ZAR33,131,000
AGE 53
TENURE AS CEO 3.6 years
CEO Bio

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 of Bidvest Foodservice of Bidvest Group Ltd., holding company of Bidvest Australia Limited. Mr. Berson serves as a Managing Director of Bidvest Australia Limited. Mr. Berson has 14 years of international and administrative management experience. A Chartered Accountant, he has been with the Bidvest group in Australia since 1996, starting as Finance Director. Mr. Berson joined Bidvest in South Africa in 1990, as the Financial Director of the Packaging and Strapping division. Mr. Berson then moved to Toronto, Canada in 1993 and worked in a financial role in an aged care development business and then in a home fabrics distribution company. After immigrating to Sydney in early 1996, Mr. Berson rejoined Bidvest, who had just bought into Manettas Limited, their first foray out of South Africa. Mr. Berson has been involved in all aspects of the development of Bidvest's business in Australia, New Zealand and Asia and in 2010 assumed responsibility as Chief Executive Officer of the Bidvest's global foodservice business, including its operations in the UK and Europe. During the past 20 years with Bidvest' s foodservice business, Mr. Berson has been involved in all acquisitions and strategic direction setting of the business. He served as an Executive Director of The Bidvest Group Limited from October 27, 2003 to May 23, 2016. Mr. Berson served as Chief Executive of Bidvest Asia Pacific at Bidvest Group Ltd. He has been an Executive Director of Bidvest Group Ltd. since October 27 2003 and Bidvest Australia Limited since July 1997. Mr. Berson serves as a Director of Bidvest PLC.

CEO Compensation
  • Bernard's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Bernard's remuneration is higher than average for companies of similar size in South Africa.
Management Team Tenure

Average tenure of the Bid management team in years:

3.6
Average Tenure
  • The tenure for the Bid management team is about average.
Management Team

Bernard Berson

TITLE
Chief Executive & Executive Director
COMPENSATION
ZAR33M
AGE
53
TENURE
3.6 yrs

David Cleasby

TITLE
CFO & Executive Director
COMPENSATION
ZAR13M
AGE
57
TENURE
3.6 yrs

Nigel Boswell

TITLE
Chief Development Officer

Ashley Biggs

TITLE
Company Secretary
TENURE
3.6 yrs
Board of Directors Tenure

Average tenure and age of the Bid board of directors in years:

3.7
Average Tenure
60.5
Average Age
  • The tenure for the Bid board of directors is about average.
Board of Directors

Stephen Koseff

TITLE
Independent Non-Executive Chairman
COMPENSATION
ZAR3M
AGE
67
TENURE
1.7 yrs

Bernard Berson

TITLE
Chief Executive & Executive Director
COMPENSATION
ZAR33M
AGE
53
TENURE
3.7 yrs

David Cleasby

TITLE
CFO & Executive Director
COMPENSATION
ZAR13M
AGE
57
TENURE
12.2 yrs

Doug Band

TITLE
Lead Independent Non-Executive Director
COMPENSATION
ZAR868K
AGE
75

Nigel George Payne

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR954K
AGE
59
TENURE
3.7 yrs

Helen Wiseman

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR2M
AGE
53
TENURE
3.7 yrs

Paul Baloyi

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR696K
AGE
63
TENURE
3.7 yrs

Brian Joffe

TITLE
Non-Executive Director
COMPENSATION
ZAR5M
AGE
72
TENURE
24.3 yrs

Dolly Mokgatle

TITLE
Independent Non-Executive Director
COMPENSATION
ZAR430K
AGE
62
TENURE
3.1 yrs

Cliff Rosenberg

TITLE
Independent Non-Executive Director
AGE
55
TENURE
0.2 yrs
Who owns this company?
Recent Insider Trading
  • Bid individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (ZAR) Value (ZAR)
04. Nov 19 Sell Brian Joffe Individual 01. Nov 19 01. Nov 19 -20,060 ZAR352.51 ZAR-7,071,351
04. Oct 19 Sell David Cleasby Individual 03. Oct 19 03. Oct 19 -34,381 ZAR325.23 ZAR-11,181,602
03. Dec 18 Buy David Cleasby Individual 30. Nov 18 30. Nov 18 1,000 ZAR263.13 ZAR263,133
X
Management checks
We assess Bid's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Bid has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

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.

Details
Name: Bid Corporation Limited
BID
Exchange: JSE
Founded: 1988
ZAR113,906,217,310
333,683,552
Website: http://www.bidcorpgroup.com
Address: Bid Corporation Limited
North Wing,
2nd Floor,
Johannesburg,
Gauteng, 2196,
South Africa
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
JSE BID Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 30. May 2016
OTCPK BPPP.F Ordinary Shares Pink Sheets LLC US USD 30. May 2016
Number of employees
Current staff
Staff numbers
25,858
Bid employees.
Industry
Food Distributors
Consumer Retailing
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/15 16:40
End of day share price update: 2019/11/14 00:00
Last estimates confirmation: 2019/11/12
Last earnings filing: 2019/10/15
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.