BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BHP - US0886061086 - ADR
66.02 USD
+2.03 (+3.17%)
65.45 USD
-0.57 (-0.86%)
BHP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 157 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 on the other hand it scores bad on growth.
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.
- Each year in the past 5 years BHP has been profitable.
- In the past 5 years BHP always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 8.29%, BHP belongs to the top of the industry, outperforming 84.08% of the companies in the same industry.
- With an excellent Return On Equity value of 18.92%, BHP belongs to the best of the industry, outperforming 92.36% of the companies in the same industry.
- The Return On Invested Capital of BHP (12.49%) is better than 85.35% of its industry peers.
- BHP had an Average Return On Invested Capital over the past 3 years of 14.98%. This is above the industry average of 10.34%.
| 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 80.89% of its industry peers.
- BHP's Profit Margin has declined in the last couple of years.
- BHP's Operating Margin of 37.67% is amongst the best of the industry. BHP outperforms 87.90% of its industry peers.
- BHP's Operating Margin has been stable in the last couple of years.
- The Gross Margin of BHP (56.70%) is better than 89.81% 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 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.
- BHP has more shares outstanding than it did 5 years ago.
- BHP has a worse debt/assets ratio than last year.
2.2 Solvency
- BHP has an Altman-Z score of 3.33. This indicates that BHP is financially healthy and has little risk of bankruptcy at the moment.
- BHP has a Altman-Z score of 3.33. This is comparable to the rest of the industry: BHP outperforms 48.41% 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 74.52% 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.
- BHP has a worse Debt to Equity ratio (0.47) than 73.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 3.33 |
ROIC/WACC1.24
WACC10.1%
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.
- BHP's Current ratio of 1.46 is on the low side compared to the rest of the industry. BHP is outperformed by 72.61% of its industry peers.
- BHP has a Quick Ratio of 1.11. 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 (1.11) is worse than 63.69% 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
- The Earnings Per Share is expected to decrease by -1.69% on average over the next years.
- 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 Y10.48%
EPS Next 2Y1.23%
EPS Next 3Y1.77%
EPS Next 5Y-1.69%
Revenue Next Year0.84%
Revenue Next 2Y-0.92%
Revenue Next 3Y-0.07%
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
- The Price/Earnings ratio is 16.46, which indicates a correct valuation of BHP.
- BHP's Price/Earnings ratio is rather cheap when compared to the industry. BHP is cheaper than 92.99% of the companies in the same industry.
- BHP is valuated rather cheaply when we compare the Price/Earnings ratio to 27.33, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 14.91, BHP is valued correctly.
- BHP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BHP is cheaper than 71.97% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 24.12. BHP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.46 | ||
| Fwd PE | 14.91 |
4.2 Price Multiples
- BHP's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. BHP is cheaper than 91.72% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, BHP is valued cheaply inside the industry as 92.99% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.84 | ||
| EV/EBITDA | 7.21 |
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)1.57
PEG (5Y)7.16
EPS Next 2Y1.23%
EPS Next 3Y1.77%
5. Dividend
5.1 Amount
- BHP has a Yearly Dividend Yield of 3.61%. Purely for dividend investing, there may be better candidates out there.
- BHP's Dividend Yield is rather good when compared to the industry average which is at 0.98. BHP pays more dividend than 94.27% of the companies in the same industry.
- BHP's Dividend Yield is rather good when compared to the S&P500 average which is at 1.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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.
- BHP's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP70.99%
EPS Next 2Y1.23%
EPS Next 3Y1.77%
66.02
+2.03 (+3.17%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)08-19 2025-08-19/bmo
Earnings (Next)02-16 2026-02-16
Inst Owners43.16%
Inst Owner Change0.14%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap167.63B
Revenue(TTM)51.26B
Net Income(TTM)9.02B
Analysts68.18
Price Target61.22 (-7.27%)
Short Float %0.62%
Short Ratio5.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
Yearly Dividend1.26
Dividend Growth(5Y)-1.48%
DP70.99%
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)2.59%
PT rev (3m)8.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.76%
EPS NY rev (3m)10.46%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)3.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.46 | ||
| Fwd PE | 14.91 | ||
| P/S | 3.27 | ||
| P/FCF | 18.84 | ||
| P/OCF | 8.97 | ||
| P/B | 3.52 | ||
| P/tB | 3.66 | ||
| EV/EBITDA | 7.21 |
EPS(TTM)4.01
EY6.07%
EPS(NY)4.43
Fwd EY6.71%
FCF(TTM)3.5
FCFY5.31%
OCF(TTM)7.36
OCFY11.15%
SpS20.19
BVpS18.77
TBVpS18.01
PEG (NY)1.57
PEG (5Y)7.16
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 | 3.33 |
F-Score4
WACC10.1%
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 Y10.48%
EPS Next 2Y1.23%
EPS Next 3Y1.77%
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 Year0.84%
Revenue Next 2Y-0.92%
Revenue Next 3Y-0.07%
Revenue Next 5Y0.08%
EBIT growth 1Y-4.37%
EBIT growth 3Y-16.37%
EBIT growth 5Y6.98%
EBIT Next Year36.64%
EBIT Next 3Y9.54%
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.
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.
How profitable is BHP GROUP LTD-SPON ADR (BHP) stock?
BHP GROUP LTD-SPON ADR (BHP) has a profitability rating of 8 / 10.
What are the PE and PB ratios of BHP GROUP LTD-SPON ADR (BHP) stock?
The Price/Earnings (PE) ratio for BHP GROUP LTD-SPON ADR (BHP) is 16.46 and the Price/Book (PB) ratio is 3.52.
What is the earnings growth outlook for BHP GROUP LTD-SPON ADR?
The Earnings per Share (EPS) of BHP GROUP LTD-SPON ADR (BHP) is expected to grow by 10.48% in the next year.