BHP GROUP LTD-SPON ADR (BHP)
US0886061086 - ADR
We assign a fundamental rating of 7 out of 10 to BHP. BHP was compared to 157 industry peers in the Metals & Mining industry. BHP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. BHP has a bad growth rate and is valued cheaply. With these ratings, BHP could be worth investigating further for value investing!.
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
BHP has a better Return On Assets (7.71%) than 82.80% of its industry peers.
The Return On Equity of BHP (17.62%) is better than 87.90% of its industry peers.
BHP has a better Return On Invested Capital (14.53%) than 94.27% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BHP is significantly above the industry average of 8.31%.
The 3 year average ROIC (20.35%) for BHP is well above the current ROIC(14.53%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 17.62% | ||
| ROIC | 14.53% |
ROA(3y)17.65%
ROA(5y)14.17%
ROE(3y)38.46%
ROE(5y)30.81%
ROIC(3y)20.35%
ROIC(5y)18.16%
1.3 Margins
The Profit Margin of BHP (14.19%) is better than 86.62% of its industry peers.
BHP's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 36.28%, BHP belongs to the best of the industry, outperforming 93.63% of the companies in the same industry.
In the last couple of years the Operating Margin of BHP has grown nicely.
With an excellent Gross Margin value of 59.28%, BHP belongs to the best of the industry, outperforming 92.99% of the companies in the same industry.
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 | 36.28% | ||
| PM (TTM) | 14.19% | ||
| GM | 59.28% |
OM growth 3Y-6.66%
OM growth 5Y2.08%
PM growth 3Y-10.6%
PM growth 5Y-5.43%
GM growth 3Y-3.92%
GM growth 5Y-0.42%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BHP is creating 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 has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.23 indicates that BHP is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.23, BHP is doing good in the industry, outperforming 60.51% of the companies in the same industry.
The Debt to FCF ratio of BHP is 1.82, which is an excellent value as it means it would take BHP, only 1.82 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BHP (1.82) is better than 80.89% of its industry peers.
BHP has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
BHP has a Debt to Equity ratio of 0.42. This is in the lower half of the industry: BHP underperforms 71.97% of its industry peers.
Although BHP does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 3.23 |
ROIC/WACC1.36
WACC10.66%
2.3 Liquidity
A Current Ratio of 1.70 indicates that BHP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.70, BHP is not doing good in the industry: 68.79% of the companies in the same industry are doing better.
BHP has a Quick Ratio of 1.29. This is a normal value and indicates that BHP is financially healthy and should not expect problems in meeting its short term obligations.
BHP has a Quick ratio (1.29) which is comparable to the rest of the industry.
The current and quick ratio evaluation for BHP is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.74% over the past year.
Measured over the past years, BHP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.10% on average per year.
BHP shows a small growth in Revenue. In the last year, the Revenue has grown by 3.42%.
The Revenue has been growing slightly by 4.68% on average over the past years.
EPS 1Y (TTM)1.74%
EPS 3Y-7.23%
EPS 5Y8.1%
EPS Q2Q%3.87%
Revenue 1Y (TTM)3.42%
Revenue growth 3Y-0.75%
Revenue growth 5Y4.68%
Sales Q2Q%1.15%
3.2 Future
BHP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.04% yearly.
The Revenue is expected to decrease by -0.70% on average over the next years.
EPS Next Y-14.13%
EPS Next 2Y-7.53%
EPS Next 3Y-8.78%
EPS Next 5Y-8.04%
Revenue Next Year-6.79%
Revenue Next 2Y-4.21%
Revenue Next 3Y-4.2%
Revenue Next 5Y-0.7%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 9.65, the valuation of BHP can be described as very reasonable.
Based on the Price/Earnings ratio, BHP is valued cheaper than 93.63% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.96. BHP is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 11.25 indicates a reasonable valuation of BHP.
75.16% of the companies in the same industry are more expensive than BHP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, BHP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.65 | ||
| Fwd PE | 11.25 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHP is valued cheaper than 86.62% 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 89.81% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.58 | ||
| EV/EBITDA | 5.47 |
4.3 Compensation for Growth
The excellent profitability rating of BHP may justify a higher PE ratio.
A cheap valuation may be justified as BHP's earnings are expected to decrease with -8.78% in the coming years.
PEG (NY)N/A
PEG (5Y)1.19
EPS Next 2Y-7.53%
EPS Next 3Y-8.78%
5. Dividend
5.1 Amount
BHP has a Yearly Dividend Yield of 5.51%, which is a nice return.
BHP's Dividend Yield is rather good when compared to the industry average which is at 2.98. BHP pays more dividend than 94.90% of the companies in the same industry.
BHP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.51% |
5.2 History
The dividend of BHP decreases each year by -7.16%.
BHP has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-7.16%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BHP pays out 97.19% 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.
DP97.19%
EPS Next 2Y-7.53%
EPS Next 3Y-8.78%
BHP GROUP LTD-SPON ADR
NYSE:BHP (11/21/2024, 8:14:57 PM)
Premarket: 51.58 -0.44 (-0.85%)52.02
-0.25 (-0.48%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap131.91B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.51% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.65 | ||
| Fwd PE | 11.25 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 17.62% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 36.28% | ||
| PM (TTM) | 14.19% | ||
| GM | 59.28% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)1.74%
EPS 3Y-7.23%
EPS 5Y
EPS Q2Q%
EPS Next Y-14.13%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.42%
Revenue growth 3Y-0.75%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y