BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BHP - US0886061086 - ADR
57.92 USD
+1.65 (+2.93%)
57.77 USD
-0.15 (-0.26%)
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
BHP had positive earnings in the past year.
In the past year BHP had a positive cash flow from operations.
Each year in the past 5 years BHP has been profitable.
BHP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.29%, BHP belongs to the best of the industry, outperforming 82.47% of the companies in the same industry.
BHP has a Return On Equity of 18.92%. This is amongst the best in the industry. BHP outperforms 90.91% 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 86.36% 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 in line with the industry average of 13.20%.
| 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 81.82% of the companies in the same industry.
In the last couple of years the Profit Margin of BHP has declined.
Looking at the Operating Margin, with a value of 37.67%, BHP belongs to the top of the industry, outperforming 88.31% of the companies in the same industry.
BHP's Operating Margin has been stable in the last couple of years.
The Gross Margin of BHP (56.70%) is better than 90.26% of its industry peers.
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
BHP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
The debt/assets ratio for BHP is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 3.13 indicates that BHP is not in any danger for bankruptcy at the moment.
BHP has a Altman-Z score (3.13) 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.
BHP's Debt to FCF ratio of 2.75 is fine compared to the rest of the industry. BHP outperforms 75.97% 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.
With a Debt to Equity ratio value of 0.47, BHP is not doing good in the industry: 76.62% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 3.13 |
ROIC/WACC1.3
WACC9.6%
2.3 Liquidity
A Current Ratio of 1.46 indicates that BHP should not have too much problems paying its short term obligations.
The Current ratio of BHP (1.46) is worse than 74.03% 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.
With a Quick ratio value of 1.11, BHP is not doing good in the industry: 66.23% of the companies in the same industry are doing better.
| 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.
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.
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 Y8.24%
EPS Next 2Y-0.23%
EPS Next 3Y2.84%
EPS Next 5Y-1.69%
Revenue Next Year-0.23%
Revenue Next 2Y-1.44%
Revenue Next 3Y0.03%
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
BHP is valuated correctly with a Price/Earnings ratio of 14.44.
Compared to the rest of the industry, the Price/Earnings ratio of BHP indicates a rather cheap valuation: BHP is cheaper than 90.91% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.37, BHP is valued a bit cheaper.
The Price/Forward Earnings ratio is 13.35, which indicates a correct valuation of BHP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BHP indicates a somewhat cheap valuation: BHP is cheaper than 72.08% of the companies listed in the same industry.
BHP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.20.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 13.35 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHP is valued cheaply inside the industry as 90.91% 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 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.53 | ||
| EV/EBITDA | 6.38 |
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)1.75
PEG (5Y)6.28
EPS Next 2Y-0.23%
EPS Next 3Y2.84%
5. Dividend
5.1 Amount
BHP has a Yearly Dividend Yield of 4.10%, which is a nice return.
BHP's Dividend Yield is rather good when compared to the industry average which is at 2.60. BHP pays more dividend than 94.81% of the companies in the same industry.
BHP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
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 2Y-0.23%
EPS Next 3Y2.84%
57.92
+1.65 (+2.93%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners50.2%
Inst Owner Change6.47%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap147.07B
Revenue(TTM)51.26B
Net Income(TTM)9.02B
Analysts68.18
Price Target58.09 (0.29%)
Short Float %0.72%
Short Ratio5.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
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)2.66%
PT rev (3m)4.27%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)8.21%
EPS NY rev (3m)8.08%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.56%
Revenue NY rev (3m)3.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 13.35 | ||
| P/S | 2.87 | ||
| P/FCF | 16.53 | ||
| P/OCF | 7.87 | ||
| P/B | 3.09 | ||
| P/tB | 3.22 | ||
| EV/EBITDA | 6.38 |
EPS(TTM)4.01
EY6.92%
EPS(NY)4.34
Fwd EY7.49%
FCF(TTM)3.5
FCFY6.05%
OCF(TTM)7.36
OCFY12.71%
SpS20.19
BVpS18.77
TBVpS18.01
PEG (NY)1.75
PEG (5Y)6.28
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 | 3.13 |
F-Score4
WACC9.6%
ROIC/WACC1.3
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 3Y2.84%
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 3Y0.03%
Revenue Next 5Y0.08%
EBIT growth 1Y-4.37%
EBIT growth 3Y-16.37%
EBIT growth 5Y6.98%
EBIT Next Year25.29%
EBIT Next 3Y9.7%
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 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 14.44 and the Price/Book (PB) ratio is 3.09.
Can you provide the financial health for BHP stock?
The financial health rating of BHP GROUP LTD-SPON ADR (BHP) is 4 / 10.