BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis
USA - NYSE:BHP - US0886061086 - ADR
52.18 USD
-0.99 (-1.86%)
52.18 USD
0 (0%)
BHP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 156 industry peers in the Metals & Mining industry. While BHP has a great profitability rating, there are some minor concerns on its financial health. BHP has a valuation in line with the averages, but it does not seem to be growing.
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.
BHP had positive earnings in each of the past 5 years.
Each year in the past 5 years BHP had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.29%, BHP belongs to the top of the industry, outperforming 85.90% of the companies in the same industry.
BHP has a better Return On Equity (18.92%) than 91.03% of its industry peers.
With an excellent Return On Invested Capital value of 12.49%, BHP belongs to the best of the industry, outperforming 90.38% 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 12.92%.
| 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 83.97% of its industry peers.
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 89.74% 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 90.38% 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so BHP is still 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
Compared to 1 year ago, BHP has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.99 indicates that BHP is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.99, BHP perfoms like the industry average, outperforming 51.92% of the companies in the same industry.
The Debt to FCF ratio of BHP is 2.75, which is a good value as it means it would take BHP, 2.75 years of fcf income to pay off all of its debts.
BHP has a better Debt to FCF ratio (2.75) than 76.28% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that BHP is not too dependend on debt financing.
BHP has a worse Debt to Equity ratio (0.47) than 75.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 2.99 |
ROIC/WACC1.34
WACC9.3%
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: 71.15% of the companies in the same industry are doing better.
A Quick Ratio of 1.11 indicates that BHP should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.11, BHP is not doing good in the industry: 63.46% 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.
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
The Earnings Per Share is expected to decrease by -2.70% 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 0.37% on average per year.
EPS Next Y0.15%
EPS Next 2Y-1.75%
EPS Next 3Y-0.15%
EPS Next 5Y-2.7%
Revenue Next Year-4.19%
Revenue Next 2Y-2.69%
Revenue Next 3Y-0.75%
Revenue Next 5Y0.37%
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 13.01, BHP is valued correctly.
Compared to the rest of the industry, the Price/Earnings ratio of BHP indicates a rather cheap valuation: BHP is cheaper than 91.03% of the companies listed in the same industry.
BHP is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.00, which indicates a correct valuation of BHP.
Based on the Price/Forward Earnings ratio, BHP is valued a bit cheaper than 71.15% of the companies in the same industry.
BHP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHP is valued cheaply inside the industry as 90.38% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BHP is valued cheaply inside the industry as 89.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.89 | ||
| EV/EBITDA | 5.79 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
BHP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)88.28
PEG (5Y)5.66
EPS Next 2Y-1.75%
EPS Next 3Y-0.15%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.25%, BHP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.51, BHP pays a better dividend. On top of this BHP pays more dividend than 94.87% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, BHP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
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-1.75%
EPS Next 3Y-0.15%
52.18
-0.99 (-1.86%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners49.86%
Inst Owner Change6%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap132.49B
Analysts68.18
Price Target57.48 (10.16%)
Short Float %0.69%
Short Ratio5.46
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.25% |
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)3.53%
PT rev (3m)3.5%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-2.86%
EPS NY rev (3m)-2.86%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-1.31%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.01 | ||
| Fwd PE | 13 | ||
| P/S | 2.58 | ||
| P/FCF | 14.89 | ||
| P/OCF | 7.09 | ||
| P/B | 2.78 | ||
| P/tB | 2.9 | ||
| EV/EBITDA | 5.79 |
EPS(TTM)4.01
EY7.68%
EPS(NY)4.01
Fwd EY7.69%
FCF(TTM)3.5
FCFY6.72%
OCF(TTM)7.36
OCFY14.11%
SpS20.19
BVpS18.77
TBVpS18.01
PEG (NY)88.28
PEG (5Y)5.66
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%
ROICexcg growth 3Y-23.87%
ROICexcg 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 | 2.99 |
F-Score4
WACC9.3%
ROIC/WACC1.34
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 Y0.15%
EPS Next 2Y-1.75%
EPS Next 3Y-0.15%
EPS Next 5Y-2.7%
Revenue 1Y (TTM)-7.9%
Revenue growth 3Y-7.66%
Revenue growth 5Y5.66%
Sales Q2Q%-8.23%
Revenue Next Year-4.19%
Revenue Next 2Y-2.69%
Revenue Next 3Y-0.75%
Revenue Next 5Y0.37%
EBIT growth 1Y-4.37%
EBIT growth 3Y-16.37%
EBIT growth 5Y6.98%
EBIT Next Year25.01%
EBIT Next 3Y7.38%
EBIT Next 5Y1.1%
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%