BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BHP - US0886061086 - ADR
60.92 USD
+0.39 (+0.64%)
61.1 USD
+0.18 (+0.3%)
BHP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 155 industry peers in the Metals & Mining industry. While BHP has a great profitability rating, there are some minor concerns on its financial health. BHP is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year BHP was profitable.
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
BHP has a Return On Assets of 8.29%. This is amongst the best in the industry. BHP outperforms 82.58% of its industry peers.
BHP has a Return On Equity of 18.92%. This is amongst the best in the industry. BHP outperforms 90.97% of its industry peers.
The Return On Invested Capital of BHP (12.49%) is better than 85.81% 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 13.15%.
| 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
BHP has a better Profit Margin (17.59%) than 81.94% of its industry peers.
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 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.
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.
Compared to 1 year ago, BHP has about the same amount of shares outstanding.
BHP has more shares outstanding than it did 5 years ago.
The debt/assets ratio for BHP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.19 indicates that BHP is not in any danger for bankruptcy at the moment.
BHP has a Altman-Z score of 3.19. This is comparable to the rest of the industry: BHP outperforms 50.97% 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.
Looking at the Debt to FCF ratio, with a value of 2.75, BHP is in the better half of the industry, outperforming 74.84% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that BHP is not too dependend on debt financing.
BHP has a Debt to Equity ratio of 0.47. This is in the lower half of the industry: BHP underperforms 76.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 3.19 |
ROIC/WACC1.24
WACC10.11%
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.
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 Quick ratio of 1.11. This is in the lower half of the industry: BHP underperforms 66.45% 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.
The Earnings Per Share has been growing slightly by 2.30% on average over the past years.
BHP shows a decrease in Revenue. In the last year, the revenue decreased by -7.90%.
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.
The Revenue is expected to grow by 0.08% on average over the next years.
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
With a Price/Earnings ratio of 15.19, BHP is valued correctly.
Based on the Price/Earnings ratio, BHP is valued cheaply inside the industry as 92.26% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 26.76, BHP is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.00, 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 69.03% of the companies in the same industry.
BHP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.19 | ||
| Fwd PE | 14 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHP is valued cheaply inside the industry as 90.97% of the companies are valued more expensively.
BHP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BHP is cheaper than 90.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.38 | ||
| EV/EBITDA | 6.65 |
4.3 Compensation for Growth
BHP's 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)1.77
PEG (5Y)6.61
EPS Next 2Y0.61%
EPS Next 3Y1.94%
5. Dividend
5.1 Amount
BHP has a Yearly Dividend Yield of 3.84%.
Compared to an average industry Dividend Yield of 2.54, BHP pays a better dividend. On top of this BHP pays more dividend than 94.84% of the companies listed in the same industry.
BHP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.31.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
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 2Y0.61%
EPS Next 3Y1.94%
60.92
+0.39 (+0.64%)
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 Cap154.68B
Revenue(TTM)51.26B
Net Income(TTM)9.02B
Analysts68.18
Price Target59.68 (-2.04%)
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 | 15.19 | ||
| Fwd PE | 14 | ||
| P/S | 3.02 | ||
| P/FCF | 17.38 | ||
| P/OCF | 8.28 | ||
| P/B | 3.25 | ||
| P/tB | 3.38 | ||
| EV/EBITDA | 6.65 |
EPS(TTM)4.01
EY6.58%
EPS(NY)4.35
Fwd EY7.14%
FCF(TTM)3.5
FCFY5.75%
OCF(TTM)7.36
OCFY12.08%
SpS20.19
BVpS18.77
TBVpS18.01
PEG (NY)1.77
PEG (5Y)6.61
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 | 3.19 |
F-Score4
WACC10.11%
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 15.19 and the Price/Book (PB) ratio is 3.25.
Can you provide the financial health for BHP stock?
The financial health rating of BHP GROUP LTD-SPON ADR (BHP) is 4 / 10.