BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BHP - US0886061086 - ADR
59.01 USD
+0.67 (+1.15%)
59.81 USD
+0.8 (+1.36%)
Taking everything into account, BHP scores 5 out of 10 in our fundamental rating. BHP was compared to 155 industry peers in the Metals & Mining industry. BHP has an excellent profitability rating, but there are some minor concerns on its financial health. BHP has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BHP was profitable.
In the past year BHP had a positive cash flow from operations.
BHP had positive earnings in each of the past 5 years.
Each year in the past 5 years BHP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BHP (8.29%) is better than 82.58% of its industry peers.
BHP has a better Return On Equity (18.92%) than 90.97% of its industry peers.
BHP's Return On Invested Capital of 12.49% is amongst the best of the industry. BHP outperforms 85.81% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BHP is in line with the industry average of 13.15%.
| 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
With an excellent Profit Margin value of 17.59%, BHP belongs to the best of the industry, outperforming 81.94% of the companies in the same industry.
In the last couple of years the Profit Margin of BHP has declined.
Looking at the Operating Margin, with a value of 37.67%, BHP belongs to the top of the industry, outperforming 88.39% of the companies in the same industry.
In the last couple of years the Operating Margin of BHP has remained more or less at the same level.
BHP's Gross Margin of 56.70% is amongst the best of the industry. BHP outperforms 89.68% of its industry peers.
BHP's Gross Margin has been stable in the last couple of years.
| 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.
Compared to 5 years ago, BHP has more shares outstanding
The debt/assets ratio for BHP is higher compared to a year ago.
2.2 Solvency
BHP has an Altman-Z score of 3.16. 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 3.16, BHP is in line with its industry, outperforming 50.32% 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 74.84% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that BHP is not too dependend on debt financing.
BHP has a worse Debt to Equity ratio (0.47) than 76.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 3.16 |
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.
The Current ratio of BHP (1.46) is worse than 74.19% of its industry peers.
A Quick Ratio of 1.11 indicates that BHP should not have too much problems paying its short term obligations.
The Quick ratio of BHP (1.11) is worse than 66.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for BHP have decreased strongly by -25.60% in the last year.
The Earnings Per Share has been growing slightly by 2.30% on average over the past years.
Looking at the last year, BHP shows a decrease in Revenue. The Revenue has decreased by -7.90% in the last year.
The Revenue has been growing slightly by 5.66% on average over the past years.
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
BHP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.69% yearly.
Based on estimates for the next years, BHP will show a small growth in Revenue. The Revenue will grow by 0.08% on average per year.
EPS Next Y8.57%
EPS Next 2Y0.61%
EPS Next 3Y1.94%
EPS Next 5Y-1.69%
Revenue Next Year0.14%
Revenue Next 2Y-1.27%
Revenue Next 3Y-0.19%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.72, which indicates a correct valuation of BHP.
Based on the Price/Earnings ratio, BHP is valued cheaply inside the industry as 92.26% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.28, BHP is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.56, which indicates a correct valuation of BHP.
Based on the Price/Forward Earnings ratio, BHP is valued a bit cheaper than 70.32% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.52, BHP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 13.56 |
4.2 Price Multiples
BHP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BHP is cheaper than 90.97% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BHP indicates a rather cheap valuation: BHP is cheaper than 90.32% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.84 | ||
| EV/EBITDA | 6.49 |
4.3 Compensation for Growth
The 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)1.72
PEG (5Y)6.4
EPS Next 2Y0.61%
EPS Next 3Y1.94%
5. Dividend
5.1 Amount
BHP has a Yearly Dividend Yield of 3.84%. Purely for dividend investing, there may be better candidates out there.
BHP's Dividend Yield is rather good when compared to the industry average which is at 2.54. BHP pays more dividend than 94.84% of the companies in the same industry.
BHP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
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.
BHP's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP70.99%
EPS Next 2Y0.61%
EPS Next 3Y1.94%
59.01
+0.67 (+1.15%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners50.2%
Inst Owner Change6.48%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap149.83B
Revenue(TTM)51.26B
Net Income(TTM)9.02B
Analysts68.18
Price Target59.68 (1.14%)
Short Float %0.72%
Short Ratio5.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
Yearly Dividend1.26
Dividend Growth(5Y)-1.48%
DP70.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date
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)1.76%
PT rev (3m)7.11%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0.3%
EPS NY rev (3m)8.41%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.38%
Revenue NY rev (3m)3.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.72 | ||
| Fwd PE | 13.56 | ||
| P/S | 2.92 | ||
| P/FCF | 16.84 | ||
| P/OCF | 8.02 | ||
| P/B | 3.14 | ||
| P/tB | 3.28 | ||
| EV/EBITDA | 6.49 |
EPS(TTM)4.01
EY6.8%
EPS(NY)4.35
Fwd EY7.37%
FCF(TTM)3.5
FCFY5.94%
OCF(TTM)7.36
OCFY12.48%
SpS20.19
BVpS18.77
TBVpS18.01
PEG (NY)1.72
PEG (5Y)6.4
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 | 3.16 |
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 Y8.57%
EPS Next 2Y0.61%
EPS Next 3Y1.94%
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 Year0.14%
Revenue Next 2Y-1.27%
Revenue Next 3Y-0.19%
Revenue Next 5Y0.08%
EBIT growth 1Y-4.37%
EBIT growth 3Y-16.37%
EBIT growth 5Y6.98%
EBIT Next Year35.47%
EBIT Next 3Y9.24%
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.
What is the valuation status for BHP stock?
ChartMill assigns a valuation rating of 6 / 10 to BHP GROUP LTD-SPON ADR (BHP). This can be considered as Fairly Valued.
Can you provide the profitability details for BHP GROUP LTD-SPON ADR?
BHP GROUP LTD-SPON ADR (BHP) has a profitability rating of 8 / 10.
What is the valuation of BHP GROUP LTD-SPON ADR based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BHP GROUP LTD-SPON ADR (BHP) is 14.72 and the Price/Book (PB) ratio is 3.14.
Can you provide the financial health for BHP stock?
The financial health rating of BHP GROUP LTD-SPON ADR (BHP) is 4 / 10.