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

NYSE:BHP - New York Stock Exchange, Inc. - US0886061086 - ADR - Currency: USD

51.44  -0.67 (-1.29%)

After market: 51.3291 -0.11 (-0.22%)

Fundamental Rating

6

Taking everything into account, BHP scores 6 out of 10 in our fundamental rating. BHP was compared to 151 industry peers in the Metals & Mining industry. BHP gets an excellent profitability rating and is at the same time showing great financial health properties. BHP is valued quite cheap, but it does not seem to be growing. These ratings would make BHP suitable for value investing!


Dividend Valuation Growth Profitability Health

9

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.
BHP had a positive operating cash flow in each of the past 5 years.
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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B

1.2 Ratios

BHP has a better Return On Assets (7.71%) than 83.22% of its industry peers.
BHP has a Return On Equity of 17.62%. This is amongst the best in the industry. BHP outperforms 89.51% of its industry peers.
The Return On Invested Capital of BHP (14.53%) is better than 95.10% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BHP is significantly above the industry average of 8.84%.
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 RankSector 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%
BHP Yearly ROA, ROE, ROICBHP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40 60

1.3 Margins

BHP has a better Profit Margin (14.19%) than 83.92% of its industry peers.
In the last couple of years the Profit Margin of BHP has declined.
With an excellent Operating Margin value of 36.28%, BHP belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
BHP's Operating Margin has improved in the last couple of years.
The Gross Margin of BHP (59.28%) is better than 92.31% 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 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%
BHP Yearly Profit, Operating, Gross MarginsBHP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40 60

7

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), BHP is creating 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 better debt/assets ratio than last year.
BHP Yearly Shares OutstandingBHP Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B 80B 100B

2.2 Solvency

An Altman-Z score of 3.22 indicates that BHP is not in any danger for bankruptcy at the moment.
BHP has a Altman-Z score of 3.22. This is in the better half of the industry: BHP outperforms 60.14% of its industry peers.
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.
With a decent Debt to FCF ratio value of 1.82, BHP is doing good in the industry, outperforming 79.02% of the companies in the same industry.
BHP has a Debt/Equity ratio of 0.42. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.42, BHP is doing worse than 71.33% of the companies in the same industry.
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 RankSector Rank
Debt/Equity 0.42
Debt/FCF 1.82
Altman-Z 3.22
ROIC/WACC1.41
WACC10.29%
BHP Yearly LT Debt VS Equity VS FCFBHP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20B 40B 60B

2.3 Liquidity

BHP has a Current Ratio of 1.70. This is a normal value and indicates that BHP is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.70, BHP is doing worse than 65.73% of the companies in the same industry.
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 of 1.29. This is comparable to the rest of the industry: BHP outperforms 44.76% of its industry peers.
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 RankSector Rank
Current Ratio 1.7
Quick Ratio 1.29
BHP Yearly Current Assets VS Current LiabilitesBHP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2

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.
Looking at the last year, BHP shows a small growth in Revenue. The Revenue has grown by 3.42% in the last year.
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

The Earnings Per Share is expected to decrease by -7.44% on average over the next years.
BHP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.53% yearly.
EPS Next Y-21.07%
EPS Next 2Y-10.14%
EPS Next 3Y-8.45%
EPS Next 5Y-7.44%
Revenue Next Year-9.2%
Revenue Next 2Y-5.19%
Revenue Next 3Y-4.56%
Revenue Next 5Y-0.53%

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.
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 2014 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 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

7

4. Valuation

4.1 Price/Earnings Ratio

BHP is valuated reasonably with a Price/Earnings ratio of 9.54.
BHP's Price/Earnings ratio is rather cheap when compared to the industry. BHP is cheaper than 93.01% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.63. BHP is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.10 indicates a correct valuation of BHP.
Based on the Price/Forward Earnings ratio, BHP is valued a bit cheaper than the industry average as 74.83% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, BHP is valued a bit cheaper.
Industry RankSector Rank
PE 9.54
Fwd PE 12.1
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 cheaper than 83.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BHP is valued cheaper than 87.41% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.45
EV/EBITDA 5.41
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 has an outstanding profitability rating, which may justify a higher PE ratio.
BHP's earnings are expected to decrease with -8.45% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.18
EPS Next 2Y-10.14%
EPS Next 3Y-8.45%

5

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 4.83%, BHP is a good candidate for dividend investing.
BHP's Dividend Yield is rather good when compared to the industry average which is at 3.16. BHP pays more dividend than 89.51% of the companies in the same industry.
BHP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
Industry RankSector Rank
Dividend Yield 4.83%

5.2 History

The dividend of BHP decreases each year by -7.16%.
BHP has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-7.16%
Div Incr Years0
Div Non Decr Years0
BHP Yearly Dividends per shareBHP Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6

5.3 Sustainability

97.19% 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.
DP97.19%
EPS Next 2Y-10.14%
EPS Next 3Y-8.45%
BHP Yearly Income VS Free CF VS DividendBHP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10B 20B 30B
BHP Dividend Payout.BHP Dividend Payout, showing the Payout Ratio.BHP Dividend Payout.PayoutRetained Earnings

BHP GROUP LTD-SPON ADR

NYSE:BHP (2/21/2025, 7:18:29 PM)

After market: 51.3291 -0.11 (-0.22%)

51.44

-0.67 (-1.29%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)02-17 2025-02-17/amc
Earnings (Next)N/A N/A
Inst Owners48.9%
Inst Owner Change-68.44%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap130.41B
Analysts73.33
Price Target57.98 (12.71%)
Short Float %0.43%
Short Ratio4.7
Dividend
Industry RankSector Rank
Dividend Yield 4.83%
Yearly Dividend1.51
Dividend Growth(5Y)-7.16%
DP97.19%
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)0.47%
PT rev (3m)-6.96%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-8.07%
EPS NY rev (3m)-8.07%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-2.58%
Valuation
Industry RankSector Rank
PE 9.54
Fwd PE 12.1
P/S 2.34
P/FCF 11.45
P/OCF 6.31
P/B 2.91
P/tB 3.03
EV/EBITDA 5.41
EPS(TTM)5.39
EY10.48%
EPS(NY)4.25
Fwd EY8.27%
FCF(TTM)4.49
FCFY8.74%
OCF(TTM)8.15
OCFY15.85%
SpS21.95
BVpS17.68
TBVpS17
PEG (NY)N/A
PEG (5Y)1.18
Profitability
Industry RankSector Rank
ROA 7.71%
ROE 17.62%
ROCE 22.93%
ROIC 14.53%
ROICexc 17.02%
ROICexgc 17.42%
OM 36.28%
PM (TTM) 14.19%
GM 59.28%
FCFM 20.47%
ROA(3y)17.65%
ROA(5y)14.17%
ROE(3y)38.46%
ROE(5y)30.81%
ROIC(3y)20.35%
ROIC(5y)18.16%
ROICexc(3y)24.85%
ROICexc(5y)21.99%
ROICexgc(3y)25.42%
ROICexgc(5y)22.48%
ROCE(3y)32.1%
ROCE(5y)28.66%
ROICexcg growth 3Y-6.53%
ROICexcg growth 5Y6.4%
ROICexc growth 3Y-6.66%
ROICexc growth 5Y6.1%
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%
F-Score6
Asset Turnover0.54
Health
Industry RankSector Rank
Debt/Equity 0.42
Debt/FCF 1.82
Debt/EBITDA 0.73
Cap/Depr 175.13%
Cap/Sales 16.66%
Interest Coverage 12.02
Cash Conversion 81.08%
Profit Quality 144.26%
Current Ratio 1.7
Quick Ratio 1.29
Altman-Z 3.22
F-Score6
WACC10.29%
ROIC/WACC1.41
Cap/Depr(3y)140.87%
Cap/Depr(5y)130.39%
Cap/Sales(3y)13.07%
Cap/Sales(5y)14.27%
Profit Quality(3y)106.17%
Profit Quality(5y)119.57%
High Growth Momentum
Growth
EPS 1Y (TTM)1.74%
EPS 3Y-7.23%
EPS 5Y8.1%
EPS Q2Q%3.87%
EPS Next Y-21.07%
EPS Next 2Y-10.14%
EPS Next 3Y-8.45%
EPS Next 5Y-7.44%
Revenue 1Y (TTM)3.42%
Revenue growth 3Y-0.75%
Revenue growth 5Y4.68%
Sales Q2Q%1.15%
Revenue Next Year-9.2%
Revenue Next 2Y-5.19%
Revenue Next 3Y-4.56%
Revenue Next 5Y-0.53%
EBIT growth 1Y-9.57%
EBIT growth 3Y-7.36%
EBIT growth 5Y6.86%
EBIT Next Year21.12%
EBIT Next 3Y3.39%
EBIT Next 5Y2.09%
FCF growth 1Y-1.95%
FCF growth 3Y-17.26%
FCF growth 5Y1.17%
OCF growth 1Y10.5%
OCF growth 3Y-8.79%
OCF growth 5Y2.95%