Operating Margin

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Price: 23 570 Zac 0.77%

Market Cap: 801.1m ZAR

8.6%

Declining

by 0.6%

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

8.6%

Operating Income

10.9B

Revenue

126.6B

Operating Margin shows how much profit a company makes from its regular business activities after covering operating costs. It helps measure how efficiently the company turns sales into profit.

Operating Margin

8.6%

Operating Income

Zac10.9B

Revenue

126.6B

Peer Comparison

Country		Company	Market Cap	Operating Margin
ZA	B	Bidvest Group Ltd JSE:BVT	801.1m ZAR	Loading...
ZA	R	Remgro Ltd JSE:REM	1B ZAR	Loading...
ZA	A	Aspen Pharmacare Holdings Ltd JSE:APN	486.8m ZAR	Loading...
MU	A	African Rainbow Capital Investments Ltd JSE:AIL	147.2m ZAR	Loading...
ZA	M	Murray & Roberts Holdings Ltd JSE:MUR	4.9m ZAR	Loading...
US		General Electric Co NYSE:GE	311.5B USD	Loading...
DE		Siemens AG XETRA:SIE	200.1B EUR	Loading...
JP		Hitachi Ltd TSE:6501	24.3T JPY	Loading...
US		Honeywell International Inc NASDAQ:HON	143.5B USD	Loading...
US		3M Co NYSE:MMM	82.5B USD	Loading...
CN		CITIC Ltd HKEX:267	365.1B HKD	Loading...

Market Distribution

Min	-2.8%
30th Percentile	2.2%
Median	17.3%
70th Percentile	38%
Max	468.2%

Other Profitability Ratios

Bidvest Group Ltd
Glance View

Market Cap

801.1m Zac

Industry

Industrial Conglomerates

Bidvest Group Ltd, a titan in the South African business landscape, has carved out a narrative of diversification and strategic expansion since its inception. Born in 1988 from founder Brian Joffe’s vision, the company embarked on a trajectory that would see its evolution into a powerhouse conglomerate. At its core, Bidvest thrives on a decentralized model that spans an immense portfolio of services and products, methodically segmented into distinct operational divisions. Each division operates with a high degree of autonomy, allowing for swift adaptation to market demands and focused expertise that fuels growth. From freight management and logistics to broad-ranging services in the fields of financial services, commercial products, and automotive retailing, Bidvest has positioned itself as an indispensible player across various sectors. This structure enables the company not only to mitigate risk through diversification but also to capitalize on cross-industry synergies that bolster its market presence. The financial lifeline of Bidvest is its robust revenue streams, driven by a mosaic of businesses that span the globe yet are firmly rooted in African soil. The company’s income is substantially derived from its expansive service offerings, which encompass everything from integrated facilities management and office supplies to specialized distribution and community services. Additionally, Bidvest has entrenched itself in consumer and industrial products that continuously feed its revenue engine. It operates on a philosophy steeped in value creation, delivering essential services while maintaining astute cost management practices. The entrepreneurial spirit embedded in its DNA encourages innovation and performance, drawing on a culture that promotes self-reliance and continual improvement. Through this multifaceted approach, Bidvest harnesses its expertise and infrastructure to not only generate profit but to maintain a competitive edge in the bustling and dynamic economic landscapes it occupies.

View BVT Analysis

BVT Intrinsic Value

What is Intrinsic Value?

Economic Moat is a concept popularized by Warren Buffett to describe a company's durable competitive advantage. It represents the 'moat' that protects a company from competitors and helps it sustain profitability over the long term. Our analysis of the past 10 years showed that companies with a wide economic moat significantly outperformed the market, delivering +645% returns compared to +189% for the S&P 500.

Our research into Economic Moat performance spans the past 10 years and focuses on companies with a wide economic moat. For this analysis, we calculated the average stock price returns of these companies, comparing them to the performance of the S&P 500 index over the same period.

The results were compelling: wide moat stocks achieved a remarkable +645% average return, compared to +188% for the broader market. This difference highlights the long-term benefits of investing in businesses that can maintain their market position and pricing power over time.

Note: This research does not account for survivorship bias. Past performance is not indicative of future results.

Determining whether a company has an economic moat requires both a deep dive into financial metrics and a qualitative assessment of its competitive position. Our analysts conduct a rigorous evaluation that focuses on identifying structural advantages that enable a company to sustain profitability and defend its market share over the long term.

The process begins with an analysis of a company’s historical financial performance. We assess how consistently the company has generated returns above its cost of capital and whether those returns have been stable or improving. However, financial performance alone doesn’t reveal the full picture. To understand the sources of these advantages, we evaluate five key drivers of economic moats:

Network Effect: We analyze whether the value of a company’s product or service grows as its user base expands. Platforms like payment systems or marketplaces benefit from this self-reinforcing.

Switching Costs: We assess whether customers face significant costs or disruptions when switching to a competitor’s product or service. High switching costs create customer stickiness and provide pricing power.

Intangible Assets: Strong brands, patents, and regulatory licenses can protect a company’s market position by creating barriers for competitors or enabling premium pricing. For example, a well-recognized consumer brand may command higher customer loyalty and margins.

Efficient scale: Occurs when a market is optimally served by one or a few players, making it unprofitable for new entrants to compete. This typically happens in industries with high fixed costs or geographic constraints, such as utilities or pipelines.

Cost Advantage: Companies with structural cost advantages can produce goods or services at a lower cost than their competitors, enabling them to offer competitive pricing or maintain higher margins. These advantages often arise from economies of scale, superior supply chain management, or proprietary technology. Firms like Walmart leverage their massive scale to negotiate better terms with suppliers, allowing them to undercut competitors on price.

By examining these factors in combination with a company’s financial performance and market positioning, we classify each company into one of three categories:

This rigorous evaluation ensures that our moat ratings are both comprehensive and reliable, giving investors the tools they need to make well-informed, long-term decisions.

The AI Assistant may sometimes provide inaccurate information.

Make your own investment decisions or consult a licensed financial advisor.

Bidvest Group Ltd
JSE:BVT

Peer Comparison

Market Distribution

Other Profitability Ratios

Bidvest Group Ltd
Glance View

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Bidvest Group Ltd JSE:BVT