BHP GROUP LTD-SPON ADR (BHP) Fundamental Analysis & Valuation

NYSE:BHP • US0886061086

Current stock price

79.06 USD
-0.24 (-0.3%)
At close:
79.5499 USD
+0.49 (+0.62%)
After Hours:

This BHP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. BHP Profitability Analysis

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.
  • Each year in the past 5 years BHP had a positive operating cash flow.
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

  • BHP has a Return On Assets of 8.83%. This is amongst the best in the industry. BHP outperforms 80.37% of its industry peers.
  • BHP has a better Return On Equity (20.32%) than 90.18% of its industry peers.
  • BHP's Return On Invested Capital of 13.41% is amongst the best of the industry. BHP outperforms 85.28% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for BHP is significantly below the industry average of 58.77%.
Industry RankSector Rank
ROA 8.83%
ROE 20.32%
ROIC 13.41%
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

  • BHP's Profit Margin of 18.97% is fine compared to the rest of the industry. BHP outperforms 79.14% of its industry peers.
  • In the last couple of years the Profit Margin of BHP has declined.
  • BHP's Operating Margin of 41.34% is amongst the best of the industry. BHP outperforms 86.50% of its industry peers.
  • BHP's Operating Margin has been stable in the last couple of years.
  • BHP has a Gross Margin of 53.84%. This is amongst the best in the industry. BHP outperforms 84.66% of its industry peers.
  • BHP's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 41.34%
PM (TTM) 18.97%
GM 53.84%
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

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5

2. BHP Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BHP is still creating some value.
  • Compared to 1 year ago, BHP has about the same amount of shares outstanding.
  • The number of shares outstanding for BHP has been increased compared to 5 years ago.
  • The debt/assets ratio for BHP is higher compared to a year ago.
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

  • An Altman-Z score of 3.59 indicates that BHP is not in any danger for bankruptcy at the moment.
  • BHP's Altman-Z score of 3.59 is in line compared to the rest of the industry. BHP outperforms 51.53% of its industry peers.
  • The Debt to FCF ratio of BHP is 2.83, which is a good value as it means it would take BHP, 2.83 years of fcf income to pay off all of its debts.
  • With a decent Debt to FCF ratio value of 2.83, BHP is doing good in the industry, outperforming 73.62% of the companies in the same industry.
  • A Debt/Equity ratio of 0.49 indicates that BHP is not too dependend on debt financing.
  • BHP's Debt to Equity ratio of 0.49 is on the low side compared to the rest of the industry. BHP is outperformed by 73.62% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 2.83
Altman-Z 3.59
ROIC/WACC1.02
WACC13.2%
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 1.65 indicates that BHP should not have too much problems paying its short term obligations.
  • BHP's Current ratio of 1.65 is on the low side compared to the rest of the industry. BHP is outperformed by 66.87% of its industry peers.
  • BHP has a Quick Ratio of 1.28. This is a normal value and indicates that BHP is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of BHP (1.28) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.65
Quick Ratio 1.28
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

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. BHP Growth Analysis

3.1 Past

  • BHP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -11.71%.
  • BHP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.30% yearly.
  • BHP shows a small growth in Revenue. In the last year, the Revenue has grown by 0.72%.
  • The Revenue has been growing slightly by 5.66% on average over the past years.
EPS 1Y (TTM)-11.71%
EPS 3Y-21.91%
EPS 5Y2.3%
EPS Q2Q%11.58%
Revenue 1Y (TTM)0.72%
Revenue growth 3Y-7.66%
Revenue growth 5Y5.66%
Sales Q2Q%10.83%

3.2 Future

  • BHP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.80% yearly.
  • BHP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.05% yearly.
EPS Next Y27.49%
EPS Next 2Y10.99%
EPS Next 3Y6.29%
EPS Next 5Y-1.8%
Revenue Next Year10.02%
Revenue Next 2Y4.11%
Revenue Next 3Y2.26%
Revenue Next 5Y0.05%

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.
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

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6

4. BHP Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 18.65, the valuation of BHP can be described as rather expensive.
  • 78.53% of the companies in the same industry are more expensive than BHP, based on the Price/Earnings ratio.
  • The average S&P500 Price/Earnings ratio is at 26.51. BHP is valued slightly cheaper when compared to this.
  • A Price/Forward Earnings ratio of 16.00 indicates a correct valuation of BHP.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of BHP indicates a somewhat cheap valuation: BHP is cheaper than 66.26% of the companies listed in the same industry.
  • BHP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 21.41.
Industry RankSector Rank
PE 18.65
Fwd PE 16
BHP Price Earnings VS Forward Price EarningsBHP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, BHP is valued cheaply inside the industry as 84.05% of the companies are valued more expensively.
  • 87.73% of the companies in the same industry are more expensive than BHP, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 20.3
EV/EBITDA 7.61
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 low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • BHP has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.68
PEG (5Y)8.11
EPS Next 2Y10.99%
EPS Next 3Y6.29%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. BHP Dividend Analysis

5.1 Amount

  • BHP has a Yearly Dividend Yield of 3.56%.
  • Compared to an average industry Dividend Yield of 1.02, BHP pays a better dividend. On top of this BHP pays more dividend than 92.64% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.80, 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 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
BHP Yearly Dividends per shareBHP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • BHP pays out 54.85% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • The Dividend Rate of BHP has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP54.85%
EPS Next 2Y10.99%
EPS Next 3Y6.29%
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

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BHP Fundamentals: All Metrics, Ratios and Statistics

BHP GROUP LTD-SPON ADR

NYSE:BHP (5/1/2026, 8:11:31 PM)

After market: 79.5499 +0.49 (+0.62%)

79.06

-0.24 (-0.3%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Industry StrengthN/A
Industry GrowthN/A
Earnings (Last)02-17
Earnings (Next)08-18
Inst Owners36.49%
Inst Owner Change0.44%
Ins Owners0.02%
Ins Owner Change0%
Market Cap200.84B
Revenue(TTM)53.99B
Net Income(TTM)10.24B
Analysts67.83
Price Target76.54 (-3.19%)
Short Float %0.57%
Short Ratio4.06
Dividend
Industry RankSector Rank
Dividend Yield 3.56%
Yearly Dividend1.26
Dividend Growth(5Y)-1.48%
DP54.85%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-06
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)1.63%
PT rev (3m)25.01%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.1%
EPS NY rev (3m)9.18%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)9.3%
Valuation
Industry RankSector Rank
PE 18.65
Fwd PE 16
P/S 3.72
P/FCF 20.3
P/OCF 10.17
P/B 3.98
P/tB 4.15
EV/EBITDA 7.61
EPS(TTM)4.24
EY5.36%
EPS(NY)4.94
Fwd EY6.25%
FCF(TTM)3.9
FCFY4.93%
OCF(TTM)7.77
OCFY9.83%
SpS21.25
BVpS19.84
TBVpS19.05
PEG (NY)0.68
PEG (5Y)8.11
Graham Number43.5084 (-44.97%)
Profitability
Industry RankSector Rank
ROA 8.83%
ROE 20.32%
ROCE 22.26%
ROIC 13.41%
ROICexc 15.6%
ROICexgc 15.98%
OM 41.34%
PM (TTM) 18.97%
GM 53.84%
FCFM 18.33%
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-Score3
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 2.83
Debt/EBITDA 0.87
Cap/Depr 169.51%
Cap/Sales 18.25%
Interest Coverage 14.75
Cash Conversion 70.19%
Profit Quality 96.6%
Current Ratio 1.65
Quick Ratio 1.28
Altman-Z 3.59
F-Score3
WACC13.2%
ROIC/WACC1.02
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)-11.71%
EPS 3Y-21.91%
EPS 5Y2.3%
EPS Q2Q%11.58%
EPS Next Y27.49%
EPS Next 2Y10.99%
EPS Next 3Y6.29%
EPS Next 5Y-1.8%
Revenue 1Y (TTM)0.72%
Revenue growth 3Y-7.66%
Revenue growth 5Y5.66%
Sales Q2Q%10.83%
Revenue Next Year10.02%
Revenue Next 2Y4.11%
Revenue Next 3Y2.26%
Revenue Next 5Y0.05%
EBIT growth 1Y2.8%
EBIT growth 3Y-16.37%
EBIT growth 5Y6.98%
EBIT Next Year55.55%
EBIT Next 3Y12.94%
EBIT Next 5Y2.22%
FCF growth 1Y-17.64%
FCF growth 3Y-30.11%
FCF growth 5Y1.98%
OCF growth 1Y-5.13%
OCF growth 3Y-16.56%
OCF growth 5Y3.54%

BHP GROUP LTD-SPON ADR / BHP Fundamental Analysis 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.


What is the profitability of BHP stock?

BHP GROUP LTD-SPON ADR (BHP) has a profitability rating of 7 / 10.


How financially healthy is BHP GROUP LTD-SPON ADR?

The financial health rating of BHP GROUP LTD-SPON ADR (BHP) is 5 / 10.


Is the dividend of BHP GROUP LTD-SPON ADR sustainable?

The dividend rating of BHP GROUP LTD-SPON ADR (BHP) is 5 / 10 and the dividend payout ratio is 54.85%.