BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BHP - US0886061086 - ADR
61.72 USD
-1.23 (-1.95%)
61.81 USD
+0.09 (+0.15%)
Taking everything into account, BHP scores 5 out of 10 in our fundamental rating. BHP was compared to 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.
In the past year BHP had a positive cash flow from operations.
BHP had positive earnings in each of the past 5 years.
BHP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BHP (8.29%) is better than 84.08% of its industry peers.
BHP has a Return On Equity of 18.92%. This is amongst the best in the industry. BHP outperforms 92.36% of its industry peers.
BHP has a Return On Invested Capital of 12.49%. This is amongst the best in the industry. BHP outperforms 85.35% 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 10.33%.
| 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
With an excellent Profit Margin value of 17.59%, BHP belongs to the best of the industry, outperforming 81.53% of the companies in the same industry.
BHP's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 37.67%, BHP belongs to the top of the industry, outperforming 87.90% 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.
Looking at the Gross Margin, with a value of 56.70%, BHP belongs to the top of the industry, outperforming 89.81% of the companies in the same industry.
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
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 3.25 indicates that BHP is not in any danger for bankruptcy at the moment.
BHP has a Altman-Z score (3.25) which is comparable to the rest of the industry.
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.
With a decent Debt to FCF ratio value of 2.75, BHP is doing good in the industry, outperforming 75.16% of the companies in the same industry.
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 Debt to Equity ratio of 0.47. This is in the lower half of the industry: BHP underperforms 74.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 3.25 |
ROIC/WACC1.23
WACC10.15%
2.3 Liquidity
A Current Ratio of 1.46 indicates that BHP should not have too much problems paying 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.
BHP has a worse Quick ratio (1.11) than 63.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The earnings per share for BHP have decreased strongly by -25.60% in the last year.
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
BHP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.69% yearly.
The Revenue is expected to grow by 0.08% on average over the next years.
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
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.
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
Based on the Price/Earnings ratio of 15.39, the valuation of BHP can be described as correct.
92.99% of the companies in the same industry are more expensive than BHP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BHP to the average of the S&P500 Index (27.19), we can say BHP is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.94, which indicates a correct valuation of BHP.
71.34% of the companies in the same industry are more expensive than BHP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BHP to the average of the S&P500 Index (23.88), we can say BHP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.39 | ||
| Fwd PE | 13.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BHP indicates a rather cheap valuation: BHP is cheaper than 91.72% of the companies listed in the same industry.
BHP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BHP is cheaper than 92.99% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.61 | ||
| EV/EBITDA | 6.89 |
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)1.47
PEG (5Y)6.7
EPS Next 2Y1.23%
EPS Next 3Y1.77%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.61%, BHP has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 0.99, BHP pays a better dividend. On top of this BHP pays more dividend than 95.54% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, BHP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
5.2 History
The dividend of BHP decreases each year by -1.48%.
BHP has been paying a dividend for at least 10 years, so it has 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.
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%
61.72
-1.23 (-1.95%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners43.16%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap156.71B
Revenue(TTM)51.26B
Net Income(TTM)9.02B
Analysts68.18
Price Target61.22 (-0.81%)
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)5.39%
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 | 15.39 | ||
| Fwd PE | 13.94 | ||
| P/S | 3.06 | ||
| P/FCF | 17.61 | ||
| P/OCF | 8.38 | ||
| P/B | 3.29 | ||
| P/tB | 3.43 | ||
| EV/EBITDA | 6.89 |
EPS(TTM)4.01
EY6.5%
EPS(NY)4.43
Fwd EY7.17%
FCF(TTM)3.5
FCFY5.68%
OCF(TTM)7.36
OCFY11.93%
SpS20.19
BVpS18.77
TBVpS18.01
PEG (NY)1.47
PEG (5Y)6.7
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 | 3.25 |
F-Score4
WACC10.15%
ROIC/WACC1.23
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 15.39 and the Price/Book (PB) ratio is 3.29.
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.