BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis
USA - NYSE:BHP - US0886061086 - ADR
55.16 USD
-0.45 (-0.81%)
55.64 USD
+0.48 (+0.87%)
BHP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 154 industry peers in the Metals & Mining industry. BHP scores excellent on profitability, but there are some minor concerns on its financial health. BHP is cheap, 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 has a Return On Assets of 8.29%. This is amongst the best in the industry. BHP outperforms 84.42% of its industry peers.
BHP has a better Return On Equity (18.92%) than 92.21% 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 89.61% of the companies in the same industry.
BHP had an Average Return On Invested Capital over the past 3 years of 14.98%. This is above the industry average of 12.57%.
| 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
Looking at the Profit Margin, with a value of 17.59%, BHP belongs to the top of the industry, outperforming 82.47% of the companies in the same industry.
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 89.61% of its industry peers.
BHP's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 56.70%, BHP belongs to the best of the industry, outperforming 90.26% 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BHP is creating some 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 is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.06 indicates that BHP is not in any danger for bankruptcy at the moment.
BHP has a Altman-Z score of 3.06. This is comparable to the rest of the industry: BHP outperforms 51.30% of 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.
BHP has a Debt to FCF ratio of 2.75. This is in the better half of the industry: BHP outperforms 77.92% of its industry peers.
BHP has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of BHP (0.47) is worse than 76.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 3.06 |
ROIC/WACC1.41
WACC8.88%
2.3 Liquidity
BHP has a Current Ratio of 1.46. 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 1.46, BHP is doing worse than 74.03% of the companies in the same industry.
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 66.23% 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%.
The Revenue has been growing slightly by 5.66% on average over the past years.
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.
BHP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.84% yearly.
EPS Next Y8.24%
EPS Next 2Y-0.23%
EPS Next 3Y2.66%
EPS Next 5Y-1.69%
Revenue Next Year-0.23%
Revenue Next 2Y-1.44%
Revenue Next 3Y-0.1%
Revenue Next 5Y0.84%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 13.76 indicates a correct valuation of BHP.
Compared to the rest of the industry, the Price/Earnings ratio of BHP indicates a rather cheap valuation: BHP is cheaper than 88.96% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.06, BHP is valued a bit cheaper.
The Price/Forward Earnings ratio is 12.72, which indicates a correct valuation of BHP.
BHP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BHP is cheaper than 66.88% of the companies in the same industry.
BHP is valuated cheaply when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.76 | ||
| Fwd PE | 12.72 |
4.2 Price Multiples
BHP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BHP is cheaper than 90.91% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BHP is valued cheaper than 90.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.74 | ||
| EV/EBITDA | 6.1 |
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)1.67
PEG (5Y)5.99
EPS Next 2Y-0.23%
EPS Next 3Y2.66%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.98%, BHP has a reasonable but not impressive dividend return.
BHP's Dividend Yield is rather good when compared to the industry average which is at 2.64. BHP pays more dividend than 94.81% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.36, BHP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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
BHP pays out 70.99% of its income as dividend. 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 2Y-0.23%
EPS Next 3Y2.66%
55.16
-0.45 (-0.81%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners50.2%
Inst Owner Change-3.24%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap140.06B
Revenue(TTM)51.26B
Net Income(TTM)9.02B
Analysts68.18
Price Target58.65 (6.33%)
Short Float %0.6%
Short Ratio4.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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)3.64%
PT rev (3m)5.64%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)8.21%
EPS NY rev (3m)4.99%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.56%
Revenue NY rev (3m)2.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.76 | ||
| Fwd PE | 12.72 | ||
| P/S | 2.73 | ||
| P/FCF | 15.74 | ||
| P/OCF | 7.49 | ||
| P/B | 2.94 | ||
| P/tB | 3.06 | ||
| EV/EBITDA | 6.1 |
EPS(TTM)4.01
EY7.27%
EPS(NY)4.34
Fwd EY7.86%
FCF(TTM)3.5
FCFY6.35%
OCF(TTM)7.36
OCFY13.35%
SpS20.19
BVpS18.77
TBVpS18.01
PEG (NY)1.67
PEG (5Y)5.99
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)17.47%
ROICexc(5y)21.66%
ROICexgc(3y)17.88%
ROICexgc(5y)22.14%
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 | 3.06 |
F-Score4
WACC8.88%
ROIC/WACC1.41
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 Y8.24%
EPS Next 2Y-0.23%
EPS Next 3Y2.66%
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 Year-0.23%
Revenue Next 2Y-1.44%
Revenue Next 3Y-0.1%
Revenue Next 5Y0.84%
EBIT growth 1Y-4.37%
EBIT growth 3Y-16.37%
EBIT growth 5Y6.98%
EBIT Next Year25.29%
EBIT Next 3Y9.41%
EBIT Next 5Y1.57%
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 7 / 10 to BHP GROUP LTD-SPON ADR (BHP). This can be considered as Undervalued.
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 13.76 and the Price/Book (PB) ratio is 2.94.
Can you provide the financial health for BHP stock?
The financial health rating of BHP GROUP LTD-SPON ADR (BHP) is 4 / 10.