Shares of Bid Corporation Limited (JSE:BID) have experienced a significant surge of 79% over the past three years, vastly outperforming the market's 21% return. This surge has been accompanied by an impressive compound annual EPS growth of 68%, despite more moderated market expectations. This suggests a potential misalignment between Bid's share price and its EPS.
Recent gains for the company have decelerated to 37%, including dividends, yet the company's three-year Total Shareholder Return (TSR) stands at 89%. This robust TSR is primarily driven by dividends and offers a comprehensive view of investment return. The TSR also takes into account the value of spin-offs or discounted capital raisings, and assumes that dividends are reinvested.
Over the years, Bid Corporation has improved its bottom line, indicative of its strong financial performance. Investors considering buying or selling the company's stock are advised to examine its balance sheet report closely. This will provide valuable insights into how well shareholder returns are aligned with the company's business fundamentals.
InvestingPro Insights
InvestingPro's real-time data and tips offer valuable insights into Bid Corporation's financial performance. According to InvestingPro, the company has been experiencing accelerated revenue growth and consistently increasing earnings per share. Moreover, Bid Corporation has a strong track record of maintaining its dividend payments, having raised its dividend for three consecutive years and maintained them for eight.
InvestingPro also highlights that Bid Corporation is a prominent player in the Consumer Staples Distribution & Retail industry, yielding high returns on invested capital. Furthermore, the company is trading at a low P/E ratio relative to near-term earnings growth, suggesting potential investment value.
For more in-depth insights and tips, consider subscribing to InvestingPro's premium service, which offers more than 10 additional tips for Bid Corporation. These can be accessed here.
In conclusion, the InvestingPro data and tips confirm the strong financial performance of Bid Corporation as outlined in the article, providing a more comprehensive view of the company's investment potential. The tips also underline the company's robust dividend policy, which has been a major driver of its Total Shareholder Return.
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