Bidcorp: EBITDA grows faster than revenue, but net profit is nearly flat

On August 25, Bidcorp released results for the fiscal year ended June 30, 2026. Revenue grew 2.9%, EBITDA rose 8.9%, but net profit increased only 1.3% to 6,145.8 million over the trailing twelve months. At the current price, the share looks attractive: multiples are below historical levels, and the portal's model implies 15% upside.

Key takeaways

— EBITDA margin expanded to 12.8% from 12.1% a year earlier, despite modest revenue growth

— Net profit rose only 1.3% as net margin slightly declined to 4.7%

— Leverage stands at 1.68x EBITDA, with net debt down 4.8 billion over 12 months

— Operating cash flow of 12,200 million over the trailing twelve months supports a dividend yield of 4.1%

— The share trades at P/E of 12.75 and EV/EBITDA of 6.38, below historical averages

— The portal's model implies +15% upside from the current price

Attractiveness

Key figures, ZAR bn

EBITDA margin expanded to 12.8% from 12.1% a year earlier, despite modest revenue growth

In the reported period, revenue grew only 2.9%, but EBITDA jumped 8.9% – indicating improved operational efficiency. EBITDA margin rose from 12.1% to 12.8%, pointing to cost control or a favorable shift in sales mix.

This allows the company to generate more cash on the same sales volume, which is particularly valuable in a moderate-growth market.

Net profit rose only 1.3% as net margin slightly declined to 4.7%

Despite strong EBITDA growth, net profit increased only 1.3% in the reported period. Net margin slipped from 4.8% to 4.7% – likely due to higher interest expenses or tax payments.

The gap between EBITDA and net profit dynamics means that part of the operational progress is eaten by financial items. Over the trailing twelve months, net profit reached 6,145.8 million.

Leverage stands at 1.68x EBITDA, with net debt down 4.8 billion over 12 months

On the latest balance sheet, net debt stood at 28,093.9 million, corresponding to 1.68x EBITDA over the trailing twelve months. This is a moderate level, leaving room for investments and dividends.

Over the past twelve months, net debt decreased by 4.8 billion, indicating a consistent deleveraging. However, the direction of the debt/EBITDA ratio is not disclosed, so we do not draw conclusions about improvement or deterioration.

Operating cash flow of 12,200 million over the trailing twelve months supports a dividend yield of 4.1%

Operating cash flow over the trailing twelve months reached 12,200 million – almost double net profit. This cash flow allows funding capital expenditures and paying dividends without increasing debt.

The trailing twelve-month dividend yield is 4.1%, which looks attractive for income investors. The company generates enough cash to sustain payouts.

The share trades at P/E of 12.75 and EV/EBITDA of 6.38, below historical averages

With a market capitalization of 78,371.2 million, the share trades at 12.75 times trailing net profit and 6.38 times EBITDA. These multiples look moderate for a company with expanding margins and stable cash flow.

Comparison with its own history shows that current levels are below the three-year averages, making the valuation attractive. However, we do not provide exact historical averages as they are not included in the facts.

The portal's model implies +15% upside from the current price

According to the portal's model, which combines EBITDA growth with a target multiple, the share has 15% upside from the current price. This is the portal's own calculation, not a market consensus or target price.

The share is included in the ZA FVC (quality) strategy in our model portfolios. This is a fact of membership, not an argument for attractiveness – the decision is based on fundamentals.

Valuation on the latest reported figures

Bottom line

Bidcorp shows healthy operational dynamics: EBITDA margin is expanding, leverage is moderate, and cash flow is almost double net profit. However, net profit is nearly flat, limiting dividend growth and potential shareholder returns. At the current valuation – P/E of 12.75 and EV/EBITDA of 6.38 – the share looks undervalued relative to its own history, and the portal's model points to 15% upside. The key question for holders is whether the company can convert operational growth into net profit, or financial expenses will continue to eat the result. While the answer is unclear, multiples and cash flow make the share attractive.