Bid Corporation (BID.JO)
Consumer · JSE · South Africa
Fundamentals
Valuation and ratings
Bid Corporation trades at R435.79, which is 100% below the R873.08 our discounted cash flow model puts on the business. On that measure alone it screens as undervalued, though a DCF is an argument rather than a measurement, and the market is frequently right about why something is cheap.
Our moat model scores it 50 out of 100, which is a moat, but not a deep one. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 16.5 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Bid Corporation
Bid Corporation Limited engages in the provision of foodservice solutions in the United Kingdom, Australia, the Netherlands, Italy, New Zealand, Czech Republic, Belgium, South Africa, the People's Republic of China, Hong Kong, and internationally. The company distributes fresh ingredients, including fish, seafood, meat, produce, dairy products, liquor, and ambient goods for the hospitality, institutional, catering, and retail sectors; and develops e-commerce solutions. It also manufactures and distributes meat, poultry, dairy, and general food ingredients, as well as baking ingredients and equipment; manufactures ice cream; and offers a multi-temperature foodservice for various ambient, and chilled and frozen food products, as well as various other non-food catering. Bid Corporation Limited was founded in 1988 and is headquartered in Johannesburg, South Africa.
BID.JO passes 6 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Bid Corporation (BID.JO) undervalued?
Against our discounted cash flow estimate of R873.08, BID.JO at R435.79 is 100% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is BID.JO's P/E ratio?
BID.JO trades at 16.5 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.