Hudaco Industries (JSE:HDC) Operating Income: R1,141 Mil (TTM As of May. 2026)

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JSE:HDC Hudaco Industries Ltd JSE:HDC
88 GF Score
Price R190.50
GF Value R197.85
Valuation Fairly Valued
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What is Hudaco Industries Operating Income?

Hudaco Industries JSE:HDC -0.14% 88 Operating Income is R1,141 Mil as of May. 2026. GuruFocus rates JSE:HDC with a GF Score™ of 88/100 and a GF Value™ of R197.85 (Fairly Valued).

Hudaco Industries's Operating Income for the six months ended in May. 2026 was R485 Mil. Its Operating Income for the trailing twelve months (TTM) ended in May. 2026 was R1,141 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Hudaco Industries's Operating Income for the six months ended in May. 2026 was R485 Mil. Hudaco Industries's Revenue for the six months ended in May. 2026 was R4,212 Mil. Therefore, Hudaco Industries's Operating Margin % for the quarter that ended in May. 2026 was 11.51%.

Good Sign:

Hudaco Industries Ltd operating margin is expanding. Margin expansion is usually a good sign.

Hudaco Industries's 5-Year average Growth Rate for Operating Margin % was 6.70% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Hudaco Industries's annualized ROC % for the quarter that ended in May. 2026 was 13.89%. Hudaco Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2026 was 25.36%.


Hudaco Industries  (JSE:HDC) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Hudaco Industries's annualized ROC % for the quarter that ended in May. 2026 is calculated as:

ROC % (Q: May. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Nov. 2025 ) + Invested Capital (Q: May. 2026 ))/ count )
=970 * ( 1 - 27.17% )/( (5186.596 + 4987)/ 2 )
=706.451/5086.798
=13.89 %

where

Invested Capital(Q: Nov. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=6727.253 - 1188.183 - ( 352.474 - max(0, 1695.274 - 4438.81+352.474))
=5186.596

Note: The Operating Income data used here is two times the semi-annual (May. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Hudaco Industries's annualized ROC (Joel Greenblatt) % for the quarter that ended in May. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: May. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Nov. 2025  Q: May. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=892/( ( (826.116 + max(2653.123, 0)) + (821 + max(2735, 0)) )/ 2 )
=892/( ( 3479.239 + 3556 )/ 2 )
=892/3517.6195
=25.36 %

where Working Capital is:

Working Capital(Q: Nov. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1304.369 + 2638.297 + 76.375) - (1188.183 + 0 + 177.735)
=2653.123

Working Capital(Q: May. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1403 + 2644 + 9) - (1321 + 0 + 0)
=2735

When net working capital is negative, 0 is used.

Note: The EBIT data used here is two times the semi-annual (May. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Hudaco Industries's Operating Margin % for the quarter that ended in May. 2026 is calculated as:

Operating Margin %=Operating Income (Q: May. 2026 )/Revenue (Q: May. 2026 )
=485/4212
=11.51 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Hudaco Industries Operating Income Related Terms


Hudaco Industries Operating Income Historical Data

* Premium members only.

The historical data trend for Hudaco Industries's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Hudaco Industries Operating Income Chart

Hudaco Industries Annual Data
Trend Nov16 Nov17 Nov18 Nov19 Nov20 Nov21 Nov22 Nov23 Nov24 Nov25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 825.82 991.84 1,070.13 1,002.66 1,092.24

Hudaco Industries Semi-Annual Data
Nov16 May17 Nov17 May18 Nov18 May19 Nov19 May20 Nov20 May21 Nov21 May22 Nov22 May23 Nov23 May24 Nov24 May25 Nov25 May26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 414.00 588.66 436.00 656.24 485.00
JSE:HDC
88GF Score
Hudaco Industries Ltd JSE:HDC
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Hudaco Industries Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in May. 2026 adds up the semi-annually data reported by the company within the most recent 12 months, which was R1,141 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of R1,141 Mil mean?
Hudaco Industries (JSE:HDC) has a Operating Income of R1,141 Mil as of May. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Hudaco Industries and its competitors.
Is Hudaco Industries' Operating Income too high?
Hudaco Industries' current Operating Income is R1,141 Mil. Overall, Hudaco Industries has a GF Score™ of 88/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Hudaco Industries' Operating Income compare to GWW and FAST?
Hudaco Industries' Operating Income of R1,141 Mil can be compared against companies in the Industrial Distribution industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for an Industrial Distribution company?
A good Operating Income depends on the Industrial Distribution industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Hudaco Industries and its competitors. Hudaco Industries's current Operating Income is R1,141 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hudaco Industries stock overvalued right now?
Based on GuruFocus' analysis, Hudaco Industries (JSE:HDC) is currently considered Fairly Valued. The stock's GF Value™ is R197.85, compared to a current price of R190.50 — trading 3.7% below its estimated fair value. The current Operating Income is R1,141 Mil. Hudaco Industries' overall GF Score™ is 88/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Hudaco Industries (JSE:HDC), the current Operating Income is R1,141 Mil as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Hudaco Industries (JSE:HDC) Overvalued in 2026?

Based on GuruFocus' analysis, Hudaco Industries stock appears to be undervalued. The current stock price of R190.50 is trading 3.7% below its estimated GF Value™ of R197.85. GuruFocus considers Hudaco Industries to be Fairly Valued.

Key valuation signals for JSE:HDC:

  • Operating Income: R1,141 Mil
  • GF Value™: R197.85 vs. price of R190.50 (3.7% below fair value)
  • GF Score™: 88/100

No single metric tells the full story. See the JSE:HDC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Hudaco Industries Business Description

Address Emerald Boulevard, Greenstone Hill, Building 9, 1st Floor, Greenstone Hill Office Park, Edenvale, GT, ZAF, 1609
Hudaco Industries Ltd is engaged in importing and distributing branded automotive, industrial and electrical consumable products. The company operates in two business segment such as Consumer-related product segment which includes power tools, security equipment, communication equipment, automotive and batteries, and Engineering consumables segment which consist of bearings, diesel engines and spares, and power transmission. It generates maximum revenue from Engineering consumables segment. Geographically, it derives a majority of revenue from South Africa.
88GF Score

Get the complete analysis for JSE:HDC

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

R190.50
Price
R197.85
GF Value