BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BHP - US0886061086 - ADR
59.19 USD
-0.45 (-0.75%)
58.9 USD
-0.29 (-0.49%)
We assign a fundamental rating of 5 out of 10 to BHP. BHP was compared to 156 industry peers in the Metals & Mining industry. While BHP belongs to the best of the industry regarding profitability, 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
BHP had positive earnings in the past year.
BHP had a positive operating cash flow in the past year.
In the past 5 years BHP has always been profitable.
Each year in the past 5 years BHP had a positive operating cash flow.
1.2 Ratios
BHP's Return On Assets of 8.29% is amongst the best of the industry. BHP outperforms 82.69% of its industry peers.
BHP has a better Return On Equity (18.92%) than 91.03% of its industry peers.
BHP has a Return On Invested Capital of 12.49%. This is amongst the best in the industry. BHP outperforms 85.26% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BHP is in line with the industry average of 13.23%.
| 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
BHP has a better Profit Margin (17.59%) than 81.41% of its industry peers.
In the last couple of years the Profit Margin of BHP has declined.
BHP's Operating Margin of 37.67% is amongst the best of the industry. BHP outperforms 87.82% of its industry peers.
In the last couple of years the Operating Margin of BHP has remained more or less at the same level.
BHP has a better Gross Margin (56.70%) than 89.74% 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
BHP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
BHP has about the same amout of shares outstanding than it did 1 year ago.
BHP has more shares outstanding than it did 5 years ago.
BHP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.17 indicates that BHP is not in any danger for bankruptcy at the moment.
BHP has a Altman-Z score (3.17) which is in line with its industry peers.
BHP has a debt to FCF ratio of 2.75. This is a good value and a sign of high solvency as BHP would need 2.75 years to pay back of all of its debts.
The Debt to FCF ratio of BHP (2.75) is better than 74.36% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that BHP is not too dependend on debt financing.
BHP's Debt to Equity ratio of 0.47 is on the low side compared to the rest of the industry. BHP is outperformed by 76.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 3.17 |
ROIC/WACC1.26
WACC9.88%
2.3 Liquidity
A Current Ratio of 1.46 indicates that BHP should not have too much problems paying its short term obligations.
With a Current ratio value of 1.46, BHP is not doing good in the industry: 74.36% of the companies in the same industry are doing better.
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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.11 |
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%.
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 decrease in Revenue. In the last year, the revenue decreased by -7.90%.
Measured over the past years, BHP shows a small growth in Revenue. The Revenue has been growing by 5.66% on average per year.
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.
BHP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.08% yearly.
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
BHP is valuated correctly with a Price/Earnings ratio of 14.76.
Based on the Price/Earnings ratio, BHP is valued cheaply inside the industry as 92.31% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.55. BHP is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.60, BHP is valued correctly.
BHP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BHP is cheaper than 69.87% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BHP to the average of the S&P500 Index (23.78), we can say BHP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 13.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHP is valued cheaper than 90.38% of the companies in the same industry.
BHP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BHP is cheaper than 91.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.89 | ||
| EV/EBITDA | 6.56 |
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)6.42
EPS Next 2Y0.61%
EPS Next 3Y1.94%
5. Dividend
5.1 Amount
BHP has a Yearly Dividend Yield of 3.79%.
Compared to an average industry Dividend Yield of 1.03, BHP pays a better dividend. On top of this BHP pays more dividend than 94.87% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.87, BHP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
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
5.3 Sustainability
70.99% of the earnings are spent on dividend by BHP. This is not a sustainable payout ratio.
The Dividend Rate of BHP has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP70.99%
EPS Next 2Y0.61%
EPS Next 3Y1.94%
59.19
-0.45 (-0.75%)
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 Cap150.29B
Revenue(TTM)51.26B
Net Income(TTM)9.02B
Analysts68.18
Price Target59.68 (0.83%)
Short Float %0.72%
Short Ratio5.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.79% |
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)3.83%
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)4.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.76 | ||
| Fwd PE | 13.6 | ||
| P/S | 2.93 | ||
| P/FCF | 16.89 | ||
| P/OCF | 8.04 | ||
| P/B | 3.15 | ||
| P/tB | 3.29 | ||
| EV/EBITDA | 6.56 |
EPS(TTM)4.01
EY6.77%
EPS(NY)4.35
Fwd EY7.35%
FCF(TTM)3.5
FCFY5.92%
OCF(TTM)7.36
OCFY12.44%
SpS20.19
BVpS18.77
TBVpS18.01
PEG (NY)1.72
PEG (5Y)6.42
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 | 3.17 |
F-Score4
WACC9.88%
ROIC/WACC1.26
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 14.76 and the Price/Book (PB) ratio is 3.15.
Can you provide the financial health for BHP stock?
The financial health rating of BHP GROUP LTD-SPON ADR (BHP) is 4 / 10.