Latest news with #BidvestGroup
Bloomberg
7 days ago
- Business
- Bloomberg
Adcock Surges to Record as India's Natco Agrees to Acquire Stake
Adcock Ingram Holdings Ltd. surged the most on record after India's Natco Pharma Ltd. said it will acquire a stake in the South African drugmaker for about $232 million. Hyderabad-based Natco is offering 75 rand per share for about 35.75% of stock not already owned by Adcock's biggest holder, Bidvest Group Ltd., the Johannesburg-based firm said in a statement Wednesday. Adcock will de-list from the Johannesburg Stock Exchange.
Daily Maverick
22-07-2025
- Business
- Daily Maverick
Why punish the children of 2025 for the apartheid sins of their parents?
Bidvest's recent handling of its bursary scheme deeply unsettles me. The company has a bursary programme for students from grades 4 to 12. The bursary covers school fees, stationery, school uniforms and assistance with extra classes. Full-time employees earning less than R15,300 per month before deductions may apply. However, the programme is only for black, coloured or Indian employees. White employees' children are explicitly excluded. It reminds me of the day I was chased out of the post office because the child in me was too naïve to see the 'whites only' notice. The door for coloured people was at the back. It also reminded me of the time when I had to wait for the train as a student at the University of the Western Cape, but couldn't sit on the bench that had the words 'for whites only' written on it. I vowed to myself that I would do everything in my power to prevent any child from being hurt like that again. If it hadn't been for a good Samaritan who took care of me when I was a poor student so that I could receive a bursary, I would not be in the position to write this article today. In its defence, Bidvest states that the trust was established in 2003 as part of a corporate social investment structure that formed part of a consortium for black economic empowerment. They further argue that in accordance with the principles and philosophy of the Broad-Based Black Economic Empowerment Act 53 of 2003, the trust was established with the sole purpose of uplifting historically disadvantaged individuals who are employees of the Bidvest Group. It has been in operation for 22 years and has been very successful in changing the lives of their employees and their families, states a release from the company's communications firm. With regards to the success of the programme, I will not argue, and I want to give Bidvest credit for the fact that 22 years ago it was indeed important to uplift historically disadvantaged black people. However, this is not what is being discussed here. On its website, the company states that they want to make a meaningful 'impact on society' in a way that is 'innovative' and that the company is 'influenced by the context within which it operates'. They want to do this in a 'unique and resilient' way within an adaptable structure. The board members of Bidvest will agree with me that the circumstances today look significantly different than 22 years ago. After 30 years of a democratic order, the playing field is completely different. Today you find poor children across a wide spectrum of South African society. It is no longer restricted to just black children. As vice-dean at the University of Stellenbosch's Faculty of Education, it was my task to administer bursaries. I am also involved in the Foundation for Empowerment through Afrikaans (Stigting vir Bemagtiging deur Afrikaans, SBA) Honours programme and Rapport's education bursary fund. Over the past 20 years I have seen how our financial landscape has changed. Poverty knows – unlike 22 years ago – no colour. Students who are dependent on bursaries have increased among all families. Therefore, no student should be disadvantaged. The only criterion should be whether the child qualifies for the bursary and whether or not their parents can afford their studies. Also, the context in which the company currently operates differs from when the bursary scheme was established. Today, all employees can progress to the boardroom. I would really like to know how Bidvest looks its staff in the eye knowing that the company has failed to help all the needy children. What impact does this have on healthy relationships in the boardroom when employees who earn the same do not receive equal treatment? I acknowledge the terms of the trust that was established 22 years ago, but surely a company that prides itself on being adaptable and innovative could have made a plan to start a new bursary scheme from which all its employees can benefit? Nelson Mandela once said: 'Education is the most powerful weapon which you can use to change the world.' These words of Madiba emphasise the transformative potential of education and highlight the critical role that education plays in promoting social, economic and political change. It is time for all of us – including Bidvest – to act on Madiba's words. Therefore, I could not remain silent when Bidvest ran a bursary programme 'only for black, coloured and Indian' children. It brings back all the pain and sorrow of the past. Children of 2025 had no part in South Africa's apartheid past. Why punish them for the sins of their forefathers? All children have dreams. All children are born in innocence. It is adults who raise children to be racists. After 30 years of democracy, it's time for us to banish words like whites, blacks, coloureds and Indians from our vocabulary. They do not belong in a democratic dispensation. According to their website, Bidvest deems all forms of discrimination based on race as illegal and they will not tolerate it. Furthermore, the company says: 'We do the right thing, even when no one else is looking.'
Yahoo
27-05-2025
- Business
- Yahoo
Declining Stock and Solid Fundamentals: Is The Market Wrong About The Bidvest Group Limited (JSE:BVT)?
With its stock down 5.0% over the past three months, it is easy to disregard Bidvest Group (JSE:BVT). However, a closer look at its sound financials might cause you to think again. Given that fundamentals usually drive long-term market outcomes, the company is worth looking at. In this article, we decided to focus on Bidvest Group's ROE. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In simpler terms, it measures the profitability of a company in relation to shareholder's equity. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Bidvest Group is: 17% = R6.7b ÷ R40b (Based on the trailing twelve months to December 2024). The 'return' is the yearly profit. That means that for every ZAR1 worth of shareholders' equity, the company generated ZAR0.17 in profit. See our latest analysis for Bidvest Group We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. At first glance, Bidvest Group's ROE doesn't look very promising. Although a closer study shows that the company's ROE is higher than the industry average of 13% which we definitely can't overlook. Especially when you consider Bidvest Group's exceptional 27% net income growth over the past five years. That being said, the company does have a slightly low ROE to begin with, just that it is higher than the industry average. Therefore, the growth in earnings could also be the result of other factors. E.g the company has a low payout ratio or could belong to a high growth industry. We then performed a comparison between Bidvest Group's net income growth with the industry, which revealed that the company's growth is similar to the average industry growth of 31% in the same 5-year period. Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. Is BVT fairly valued? This infographic on the company's intrinsic value has everything you need to know. Bidvest Group has a three-year median payout ratio of 50% (where it is retaining 50% of its income) which is not too low or not too high. So it seems that Bidvest Group is reinvesting efficiently in a way that it sees impressive growth in its earnings (discussed above) and pays a dividend that's well covered. Besides, Bidvest Group has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 47%. As a result, Bidvest Group's ROE is not expected to change by much either, which we inferred from the analyst estimate of 18% for future ROE. On the whole, we feel that Bidvest Group's performance has been quite good. In particular, it's great to see that the company has seen significant growth in its earnings backed by a respectable ROE and a high reinvestment rate. Having said that, the company's earnings growth is expected to slow down, as forecasted in the current analyst estimates. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-04-2025
- Business
- Yahoo
Those who invested in Bidvest Group (JSE:BVT) five years ago are up 86%
When you buy and hold a stock for the long term, you definitely want it to provide a positive return. Better yet, you'd like to see the share price move up more than the market average. But The Bidvest Group Limited (JSE:BVT) has fallen short of that second goal, with a share price rise of 59% over five years, which is below the market return. Zooming in, the stock is actually down 5.6% in the last year. Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business. We've discovered 2 warning signs about Bidvest Group. View them for free. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. Over half a decade, Bidvest Group managed to grow its earnings per share at 14% a year. This EPS growth is higher than the 10% average annual increase in the share price. Therefore, it seems the market has become relatively pessimistic about the company. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). This free interactive report on Bidvest Group's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of Bidvest Group, it has a TSR of 86% for the last 5 years. That exceeds its share price return that we previously mentioned. This is largely a result of its dividend payments! Bidvest Group shareholders are down 2.3% for the year (even including dividends), but the market itself is up 24%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. On the bright side, long term shareholders have made money, with a gain of 13% per year over half a decade. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Case in point: We've spotted 2 warning signs for Bidvest Group you should be aware of. Of course Bidvest Group may not be the best stock to buy. So you may wish to see this free collection of growth stocks. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on South African exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
10-03-2025
- Business
- Yahoo
Bidvest Group's (JSE:BVT) Shareholders May Want To Dig Deeper Than Statutory Profit
The Bidvest Group Limited's (JSE:BVT ) stock didn't jump after it announced some healthy earnings. We think that investors might be worried about some concerning underlying factors. Check out our latest analysis for Bidvest Group Most companies divide classify their revenue as either 'operating revenue', which comes from normal operations, and other revenue, which could include government grants, for example. Where possible, we prefer rely on operating revenue to get a better understanding of how the business is functioning. Importantly, the non-operating revenue often comes without associated ongoing costs, so it can boost profit by letting it fall straight to the bottom line, making the operating business seem better than it really is. It's worth noting that Bidvest Group saw a big increase in non-operating revenue over the last year. Indeed, its non-operating revenue rose from R57.8b last year to R122.6b this year. The high levels of non-operating revenue are problematic because if (and when) they do not repeat, then overall revenue (and profitability) of the firm will fall. In order to better understand a company's profit result, it can sometimes help to consider whether the result would be very different without a sudden increase in non-operating revenue. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Since Bidvest Group saw a big increase in its non-operating revenue over the last twelve months, we'd be very cautious about relying too heavily on the statutory profit number, which would have benefitted from this potentially unsustainable change. As a result, we think it may well be the case that Bidvest Group's underlying earnings power is lower than its statutory profit. Nonetheless, it's still worth noting that its earnings per share have grown at 35% over the last three years. The goal of this article has been to assess how well we can rely on the statutory earnings to reflect the company's potential, but there is plenty more to consider. If you want to do dive deeper into Bidvest Group, you'd also look into what risks it is currently facing. At Simply Wall St, we found 2 warning signs for Bidvest Group and we think they deserve your attention. Today we've zoomed in on a single data point to better understand the nature of Bidvest Group's profit. But there are plenty of other ways to inform your opinion of a company. For example, many people consider a high return on equity as an indication of favorable business economics, while others like to 'follow the money' and search out stocks that insiders are buying. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
