BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BHP - US0886061086 - ADR
63.99 USD
+1.19 (+1.89%)
64.29 USD
+0.3 (+0.47%)
BHP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 157 industry peers in the Metals & Mining industry. BHP has an excellent profitability rating, but there are some minor concerns on its financial health. BHP is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
- BHP had positive earnings in the past year.
- BHP had a positive operating cash flow in the past year.
- Each year in the past 5 years BHP has been profitable.
- BHP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of BHP (8.29%) is better than 84.08% of its industry peers.
- With an excellent Return On Equity value of 18.92%, BHP belongs to the best of the industry, outperforming 92.36% of the companies in the same industry.
- BHP's Return On Invested Capital of 12.49% is amongst the best of the industry. BHP outperforms 85.35% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BHP is above the industry average of 10.34%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.29% | ||
| ROE | 18.92% | ||
| ROIC | 12.49% |
ROA(3y)9.59%
ROA(5y)14.32%
ROE(3y)21.86%
ROE(5y)31.27%
ROIC(3y)14.98%
ROIC(5y)17.95%
1.3 Margins
- BHP has a better Profit Margin (17.59%) than 80.89% of its industry peers.
- In the last couple of years the Profit Margin of BHP has declined.
- The Operating Margin of BHP (37.67%) is better than 87.90% of its industry peers.
- In the last couple of years the Operating Margin of BHP has remained more or less at the same level.
- The Gross Margin of BHP (56.70%) is better than 89.81% of its industry peers.
- In the last couple of years the Gross Margin of BHP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.67% | ||
| PM (TTM) | 17.59% | ||
| GM | 56.7% |
OM growth 3Y-9.43%
OM growth 5Y1.25%
PM growth 3Y-28.17%
PM growth 5Y-2.95%
GM growth 3Y-5.52%
GM growth 5Y-0.81%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BHP is creating some value.
- The number of shares outstanding for BHP remains at a similar level compared to 1 year ago.
- BHP has more shares outstanding than it did 5 years ago.
- BHP has a worse debt/assets ratio than last year.
2.2 Solvency
- BHP has an Altman-Z score of 3.28. This indicates that BHP is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 3.28, BHP is in line with its industry, outperforming 48.41% of the companies in the same industry.
- The Debt to FCF ratio of BHP is 2.75, which is a good value as it means it would take BHP, 2.75 years of fcf income to pay off all of its debts.
- BHP has a Debt to FCF ratio of 2.75. This is in the better half of the industry: BHP outperforms 74.52% of its industry peers.
- BHP has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
- BHP has a Debt to Equity ratio of 0.47. This is in the lower half of the industry: BHP underperforms 73.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 3.28 |
ROIC/WACC1.24
WACC10.09%
2.3 Liquidity
- A Current Ratio of 1.46 indicates that BHP should not have too much problems paying its short term obligations.
- BHP has a worse Current ratio (1.46) than 72.61% of its industry peers.
- A Quick Ratio of 1.11 indicates that BHP should not have too much problems paying its short term obligations.
- BHP has a worse Quick ratio (1.11) than 63.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- BHP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.60%.
- Measured over the past 5 years, BHP shows a small growth in Earnings Per Share. The EPS has been growing by 2.30% on average per year.
- BHP shows a decrease in Revenue. In the last year, the revenue decreased by -7.90%.
- BHP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.66% yearly.
EPS 1Y (TTM)-25.6%
EPS 3Y-21.91%
EPS 5Y2.3%
EPS Q2Q%-28.42%
Revenue 1Y (TTM)-7.9%
Revenue growth 3Y-7.66%
Revenue growth 5Y5.66%
Sales Q2Q%-8.23%
3.2 Future
- The Earnings Per Share is expected to decrease by -1.69% on average over the next years.
- BHP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.08% yearly.
EPS Next Y10.48%
EPS Next 2Y1.23%
EPS Next 3Y1.77%
EPS Next 5Y-1.69%
Revenue Next Year0.84%
Revenue Next 2Y-0.92%
Revenue Next 3Y-0.07%
Revenue Next 5Y0.08%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 15.96, BHP is valued correctly.
- Based on the Price/Earnings ratio, BHP is valued cheaper than 92.99% of the companies in the same industry.
- When comparing the Price/Earnings ratio of BHP to the average of the S&P500 Index (27.30), we can say BHP is valued slightly cheaper.
- The Price/Forward Earnings ratio is 14.45, which indicates a correct valuation of BHP.
- Based on the Price/Forward Earnings ratio, BHP is valued a bit cheaper than 73.25% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.04. BHP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.96 | ||
| Fwd PE | 14.45 |
4.2 Price Multiples
- BHP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BHP is cheaper than 91.72% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, BHP is valued cheaply inside the industry as 92.99% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.26 | ||
| EV/EBITDA | 7 |
4.3 Compensation for Growth
- BHP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of BHP may justify a higher PE ratio.
PEG (NY)1.52
PEG (5Y)6.94
EPS Next 2Y1.23%
EPS Next 3Y1.77%
5. Dividend
5.1 Amount
- BHP has a Yearly Dividend Yield of 3.61%.
- Compared to an average industry Dividend Yield of 0.98, BHP pays a better dividend. On top of this BHP pays more dividend than 94.27% of the companies listed in the same industry.
- BHP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
5.2 History
- The dividend of BHP decreases each year by -1.48%.
- BHP has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-1.48%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
- 70.99% of the earnings are spent on dividend by BHP. This is not a sustainable payout ratio.
- The Dividend Rate of BHP has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP70.99%
EPS Next 2Y1.23%
EPS Next 3Y1.77%
63.99
+1.19 (+1.89%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)08-19 2025-08-19/bmo
Earnings (Next)02-16 2026-02-16
Inst Owners43.16%
Inst Owner Change0.14%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap162.48B
Revenue(TTM)51.26B
Net Income(TTM)9.02B
Analysts68.18
Price Target61.22 (-4.33%)
Short Float %0.62%
Short Ratio5.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
Yearly Dividend1.26
Dividend Growth(5Y)-1.48%
DP70.99%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)2.59%
PT rev (3m)8.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.76%
EPS NY rev (3m)10.46%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)3.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.96 | ||
| Fwd PE | 14.45 | ||
| P/S | 3.17 | ||
| P/FCF | 18.26 | ||
| P/OCF | 8.69 | ||
| P/B | 3.41 | ||
| P/tB | 3.55 | ||
| EV/EBITDA | 7 |
EPS(TTM)4.01
EY6.27%
EPS(NY)4.43
Fwd EY6.92%
FCF(TTM)3.5
FCFY5.48%
OCF(TTM)7.36
OCFY11.5%
SpS20.19
BVpS18.77
TBVpS18.01
PEG (NY)1.52
PEG (5Y)6.94
Graham Number41.16
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.29% | ||
| ROE | 18.92% | ||
| ROCE | 20.73% | ||
| ROIC | 12.49% | ||
| ROICexc | 14.42% | ||
| ROICexgc | 14.78% | ||
| OM | 37.67% | ||
| PM (TTM) | 17.59% | ||
| GM | 56.7% | ||
| FCFM | 17.36% |
ROA(3y)9.59%
ROA(5y)14.32%
ROE(3y)21.86%
ROE(5y)31.27%
ROIC(3y)14.98%
ROIC(5y)17.95%
ROICexc(3y)17.49%
ROICexc(5y)21.67%
ROICexgc(3y)17.9%
ROICexgc(5y)22.15%
ROCE(3y)24.86%
ROCE(5y)29.79%
ROICexgc growth 3Y-23.87%
ROICexgc growth 5Y6.11%
ROICexc growth 3Y-23.9%
ROICexc growth 5Y6.04%
OM growth 3Y-9.43%
OM growth 5Y1.25%
PM growth 3Y-28.17%
PM growth 5Y-2.95%
GM growth 3Y-5.52%
GM growth 5Y-0.81%
F-Score4
Asset Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.75 | ||
| Debt/EBITDA | 0.9 | ||
| Cap/Depr | 176.79% | ||
| Cap/Sales | 19.11% | ||
| Interest Coverage | 13.07 | ||
| Cash Conversion | 75.22% | ||
| Profit Quality | 98.66% | ||
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 3.28 |
F-Score4
WACC10.09%
ROIC/WACC1.24
Cap/Depr(3y)163.96%
Cap/Depr(5y)140.75%
Cap/Sales(3y)16.31%
Cap/Sales(5y)14.16%
Profit Quality(3y)110.94%
Profit Quality(5y)119.02%
High Growth Momentum
Growth
EPS 1Y (TTM)-25.6%
EPS 3Y-21.91%
EPS 5Y2.3%
EPS Q2Q%-28.42%
EPS Next Y10.48%
EPS Next 2Y1.23%
EPS Next 3Y1.77%
EPS Next 5Y-1.69%
Revenue 1Y (TTM)-7.9%
Revenue growth 3Y-7.66%
Revenue growth 5Y5.66%
Sales Q2Q%-8.23%
Revenue Next Year0.84%
Revenue Next 2Y-0.92%
Revenue Next 3Y-0.07%
Revenue Next 5Y0.08%
EBIT growth 1Y-4.37%
EBIT growth 3Y-16.37%
EBIT growth 5Y6.98%
EBIT Next Year36.64%
EBIT Next 3Y9.54%
EBIT Next 5Y2.65%
FCF growth 1Y-21.89%
FCF growth 3Y-30.11%
FCF growth 5Y1.98%
OCF growth 1Y-9.55%
OCF growth 3Y-16.56%
OCF growth 5Y3.54%
BHP GROUP LTD-SPON ADR / BHP FAQ
What is the ChartMill fundamental rating of BHP GROUP LTD-SPON ADR (BHP) stock?
ChartMill assigns a fundamental rating of 5 / 10 to BHP.
Can you provide the valuation status for BHP GROUP LTD-SPON ADR?
ChartMill assigns a valuation rating of 6 / 10 to BHP GROUP LTD-SPON ADR (BHP). This can be considered as Fairly Valued.
How profitable is BHP GROUP LTD-SPON ADR (BHP) stock?
BHP GROUP LTD-SPON ADR (BHP) has a profitability rating of 8 / 10.
What are the PE and PB ratios of BHP GROUP LTD-SPON ADR (BHP) stock?
The Price/Earnings (PE) ratio for BHP GROUP LTD-SPON ADR (BHP) is 15.96 and the Price/Book (PB) ratio is 3.41.
What is the earnings growth outlook for BHP GROUP LTD-SPON ADR?
The Earnings per Share (EPS) of BHP GROUP LTD-SPON ADR (BHP) is expected to grow by 10.48% in the next year.