BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BHP - US0886061086 - ADR
58.34 USD
-0.51 (-0.87%)
58.34 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to BHP. BHP was compared to 155 industry peers in the Metals & Mining industry. BHP has an excellent profitability rating, 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.
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.
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.
1.2 Ratios
BHP's Return On Assets of 8.29% is amongst the best of the industry. BHP outperforms 82.58% of its industry peers.
BHP has a better Return On Equity (18.92%) than 90.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.49%, BHP belongs to the top of the industry, outperforming 85.81% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BHP is in line with the industry average of 13.15%.
| 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
The Profit Margin of BHP (17.59%) is better than 81.94% 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 88.39% 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.
With an excellent Gross Margin value of 56.70%, BHP belongs to the best of the industry, outperforming 89.68% of the companies in the same industry.
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
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.
Compared to 5 years ago, BHP has more shares outstanding
Compared to 1 year ago, BHP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.15 indicates that BHP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.15, BHP is in line with its industry, outperforming 50.97% 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.
BHP has a better Debt to FCF ratio (2.75) than 74.84% 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 76.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 3.15 |
ROIC/WACC1.24
WACC10.09%
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: 74.19% 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.
BHP has a worse Quick ratio (1.11) than 66.45% 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%.
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.
BHP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.66% yearly.
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
Based on estimates for the next years, BHP will show a decrease in Earnings Per Share. The EPS will decrease by -1.69% on average per year.
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 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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 14.55, BHP is valued correctly.
91.61% 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 26.49. BHP is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.41, which indicates a correct valuation of BHP.
69.03% of the companies in the same industry are more expensive than BHP, based on the Price/Forward Earnings ratio.
BHP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.69.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 13.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHP is valued cheaply inside the industry as 90.32% of the companies are valued more expensively.
90.32% of the companies in the same industry are more expensive than BHP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.65 | ||
| EV/EBITDA | 6.47 |
4.3 Compensation for Growth
The 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)1.7
PEG (5Y)6.33
EPS Next 2Y0.61%
EPS Next 3Y1.94%
5. Dividend
5.1 Amount
BHP has a Yearly Dividend Yield of 3.84%.
BHP's Dividend Yield is rather good when compared to the industry average which is at 2.54. BHP pays more dividend than 94.84% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, BHP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
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%
58.34
-0.51 (-0.87%)
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 Cap148.13B
Revenue(TTM)51.26B
Net Income(TTM)9.02B
Analysts68.18
Price Target59.68 (2.3%)
Short Float %0.72%
Short Ratio5.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
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)7.11%
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)3.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.55 | ||
| Fwd PE | 13.41 | ||
| P/S | 2.89 | ||
| P/FCF | 16.65 | ||
| P/OCF | 7.92 | ||
| P/B | 3.11 | ||
| P/tB | 3.24 | ||
| EV/EBITDA | 6.47 |
EPS(TTM)4.01
EY6.87%
EPS(NY)4.35
Fwd EY7.46%
FCF(TTM)3.5
FCFY6.01%
OCF(TTM)7.36
OCFY12.62%
SpS20.19
BVpS18.77
TBVpS18.01
PEG (NY)1.7
PEG (5Y)6.33
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 | 3.15 |
F-Score4
WACC10.09%
ROIC/WACC1.24
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 14.55 and the Price/Book (PB) ratio is 3.11.
Can you provide the financial health for BHP stock?
The financial health rating of BHP GROUP LTD-SPON ADR (BHP) is 4 / 10.