Logo image of BHP

BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:BHP - US0886061086 - ADR

69.735 USD
+1.97 (+2.9%)
Last: 1/27/2026, 3:01:05 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to BHP. BHP was compared to 154 industry peers in the Metals & Mining industry. BHP scores excellent on profitability, but there are some minor concerns on its financial health. BHP has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

8

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.
  • In the past 5 years BHP has always been profitable.
  • In the past 5 years BHP always reported a positive cash flow from operatings.
BHP Yearly Net Income VS EBIT VS OCF VS FCFBHP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 8.29%, BHP belongs to the top of the industry, outperforming 83.77% of the companies in the same industry.
  • With an excellent Return On Equity value of 18.92%, BHP belongs to the best of the industry, outperforming 91.56% of the companies in the same industry.
  • The Return On Invested Capital of BHP (12.49%) is better than 85.06% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for BHP is above the industry average of 10.32%.
Industry RankSector 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%
BHP Yearly ROA, ROE, ROICBHP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

1.3 Margins

  • The Profit Margin of BHP (17.59%) is better than 81.17% of its industry peers.
  • In the last couple of years the Profit Margin of BHP has declined.
  • With an excellent Operating Margin value of 37.67%, BHP belongs to the best of the industry, outperforming 88.31% 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 89.61% 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 RankSector 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%
BHP Yearly Profit, Operating, Gross MarginsBHP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

4

2. Health

2.1 Basic Checks

  • BHP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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.
BHP Yearly Shares OutstandingBHP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
BHP Yearly Total Debt VS Total AssetsBHP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

  • BHP has an Altman-Z score of 3.37. 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 3.37, BHP is in line with its industry, outperforming 45.45% 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.
  • With a decent Debt to FCF ratio value of 2.75, BHP is doing good in the industry, outperforming 75.32% of the companies in the same industry.
  • A Debt/Equity ratio of 0.47 indicates that BHP is not too dependend on debt financing.
  • With a Debt to Equity ratio value of 0.47, BHP is not doing good in the industry: 74.03% of the companies in the same industry are doing better.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 2.75
Altman-Z 3.37
ROIC/WACC1.17
WACC10.71%
BHP Yearly LT Debt VS Equity VS FCFBHP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.3 Liquidity

  • A Current Ratio of 1.46 indicates that BHP should not have too much problems paying its short term obligations.
  • BHP's Current ratio of 1.46 is on the low side compared to the rest of the industry. BHP is outperformed by 72.08% of its industry peers.
  • BHP has a Quick Ratio of 1.11. This is a normal value and indicates that BHP is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Quick ratio value of 1.11, BHP is not doing good in the industry: 62.99% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.46
Quick Ratio 1.11
BHP Yearly Current Assets VS Current LiabilitesBHP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2

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.
  • The Revenue has decreased by -7.90% in the past 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

  • The Earnings Per Share is expected to decrease by -1.69% on average over the next years.
  • 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 Y16.85%
EPS Next 2Y5.34%
EPS Next 3Y3.79%
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.
  • 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.
BHP Yearly Revenue VS EstimatesBHP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20B 40B 60B
BHP Yearly EPS VS EstimatesBHP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

6

4. Valuation

4.1 Price/Earnings Ratio

  • BHP is valuated rather expensively with a Price/Earnings ratio of 17.39.
  • 92.21% of the companies in the same industry are more expensive than BHP, based on the Price/Earnings ratio.
  • When comparing the Price/Earnings ratio of BHP to the average of the S&P500 Index (27.25), we can say BHP is valued slightly cheaper.
  • BHP is valuated correctly with a Price/Forward Earnings ratio of 14.89.
  • Based on the Price/Forward Earnings ratio, BHP is valued a bit cheaper than 75.32% of the companies in the same industry.
  • BHP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 17.39
Fwd PE 14.89
BHP Price Earnings VS Forward Price EarningsBHP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • 92.21% of the companies in the same industry are more expensive than BHP, based on the Enterprise Value to EBITDA ratio.
  • Based on the Price/Free Cash Flow ratio, BHP is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 19.9
EV/EBITDA 7.39
BHP Per share dataBHP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • BHP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • BHP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.03
PEG (5Y)7.57
EPS Next 2Y5.34%
EPS Next 3Y3.79%

5

5. Dividend

5.1 Amount

  • BHP has a Yearly Dividend Yield of 3.56%. 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 1.02. BHP pays more dividend than 94.81% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, BHP pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.56%

5.2 History

  • The dividend of BHP decreases each year by -1.48%.
  • BHP has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-1.48%
Div Incr Years0
Div Non Decr Years0
BHP Yearly Dividends per shareBHP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

5.3 Sustainability

  • BHP pays out 70.99% of its income as dividend. 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 2Y5.34%
EPS Next 3Y3.79%
BHP Yearly Income VS Free CF VS DividendBHP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B
BHP Dividend Payout.BHP Dividend Payout, showing the Payout Ratio.BHP Dividend Payout.PayoutRetained Earnings

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 7 / 10 to BHP GROUP LTD-SPON ADR (BHP). This can be considered as Undervalued.


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 17.39 and the Price/Book (PB) ratio is 3.71.


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 16.85% in the next year.