BHP GROUP LTD-SPON ADR (BHP)
US0886061086 - ADR
We assign a fundamental rating of 6 out of 10 to BHP. BHP was compared to 155 industry peers in the Metals & Mining industry. BHP gets an excellent profitability rating and is at the same time showing great financial health properties. BHP is valued quite cheap, but it does not seem to be growing. These ratings could make BHP a good candidate for value investing.
1. Profitability
1.1 Basic Checks
In the past year BHP was profitable.
BHP had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 7.71%, BHP belongs to the top of the industry, outperforming 82.58% of the companies in the same industry.
BHP has a Return On Equity of 17.62%. This is amongst the best in the industry. BHP outperforms 87.74% of its industry peers.
BHP has a better Return On Invested Capital (14.53%) than 94.84% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BHP is significantly above the industry average of 8.82%.
The last Return On Invested Capital (14.53%) for BHP is well below the 3 year average (20.35%), which needs to be investigated, but indicates that BHP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 17.62% | ||
| ROIC | 14.53% |
ROA(3y)17.65%
ROA(5y)14.17%
ROE(3y)38.46%
ROE(5y)30.81%
ROIC(3y)20.35%
ROIC(5y)18.16%
1.3 Margins
The Profit Margin of BHP (14.19%) is better than 85.81% of its industry peers.
In the last couple of years the Profit Margin of BHP has declined.
BHP's Operating Margin of 36.28% is amongst the best of the industry. BHP outperforms 93.55% of its industry peers.
BHP's Operating Margin has improved in the last couple of years.
BHP has a Gross Margin of 59.28%. This is amongst the best in the industry. BHP outperforms 92.90% 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 | 36.28% | ||
| PM (TTM) | 14.19% | ||
| GM | 59.28% |
OM growth 3Y-6.66%
OM growth 5Y2.08%
PM growth 3Y-10.6%
PM growth 5Y-5.43%
GM growth 3Y-3.92%
GM growth 5Y-0.42%
2. Health
2.1 Basic Checks
BHP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for BHP remains at a similar level compared to 1 year ago.
Compared to 5 years ago, BHP has more shares outstanding
BHP has a better debt/assets ratio than last year.
2.2 Solvency
BHP has an Altman-Z score of 3.17. This indicates that BHP is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.17, BHP is doing good in the industry, outperforming 60.65% of the companies in the same industry.
BHP has a debt to FCF ratio of 1.82. This is a very positive value and a sign of high solvency as it would only need 1.82 years to pay back of all of its debts.
BHP has a Debt to FCF ratio of 1.82. This is in the better half of the industry: BHP outperforms 77.42% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that BHP is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.42, BHP is not doing good in the industry: 71.61% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for BHP, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 3.17 |
ROIC/WACC1.35
WACC10.79%
2.3 Liquidity
A Current Ratio of 1.70 indicates that BHP should not have too much problems paying its short term obligations.
BHP has a Current ratio of 1.70. This is in the lower half of the industry: BHP underperforms 67.10% of its industry peers.
BHP has a Quick Ratio of 1.29. 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 Quick ratio of 1.29 is in line compared to the rest of the industry. BHP outperforms 43.87% of its industry peers.
BHP does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.74% over the past year.
Measured over the past years, BHP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.10% on average per year.
BHP shows a small growth in Revenue. In the last year, the Revenue has grown by 3.42%.
The Revenue has been growing slightly by 4.68% on average over the past years.
EPS 1Y (TTM)1.74%
EPS 3Y-7.23%
EPS 5Y8.1%
EPS Q2Q%3.87%
Revenue 1Y (TTM)3.42%
Revenue growth 3Y-0.75%
Revenue growth 5Y4.68%
Sales Q2Q%1.15%
3.2 Future
The Earnings Per Share is expected to decrease by -7.24% on average over the next years.
BHP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.26% yearly.
EPS Next Y-14.13%
EPS Next 2Y-7.53%
EPS Next 3Y-8.35%
EPS Next 5Y-7.24%
Revenue Next Year-6.79%
Revenue Next 2Y-4.21%
Revenue Next 3Y-4.31%
Revenue Next 5Y-0.26%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 9.17, which indicates a very decent valuation of BHP.
BHP's Price/Earnings ratio is rather cheap when compared to the industry. BHP is cheaper than 92.26% of the companies in the same industry.
When comparing the Price/Earnings ratio of BHP to the average of the S&P500 Index (27.54), we can say BHP is valued rather cheaply.
The Price/Forward Earnings ratio is 10.68, which indicates a very decent valuation of BHP.
BHP's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. BHP is cheaper than 70.97% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BHP to the average of the S&P500 Index (23.99), we can say BHP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.17 | ||
| Fwd PE | 10.68 |
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 81.94% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BHP indicates a rather cheap valuation: BHP is cheaper than 87.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11 | ||
| EV/EBITDA | 5.21 |
4.3 Compensation for Growth
The excellent profitability rating of BHP may justify a higher PE ratio.
BHP's earnings are expected to decrease with -8.35% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.13
EPS Next 2Y-7.53%
EPS Next 3Y-8.35%
5. Dividend
5.1 Amount
BHP has a Yearly Dividend Yield of 5.56%, which is a nice return.
In the last 3 months the price of BHP has falen by -20.30%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.22, BHP pays a better dividend. On top of this BHP pays more dividend than 93.55% 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 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.56% |
5.2 History
The dividend of BHP decreases each year by -7.16%.
BHP has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-7.16%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
97.19% 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.
DP97.19%
EPS Next 2Y-7.53%
EPS Next 3Y-8.35%
BHP GROUP LTD-SPON ADR
NYSE:BHP (12/24/2024, 7:57:59 PM)
After market: 49.35 -0.07 (-0.14%)49.42
+0.01 (+0.02%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners48.21%
Inst Owner Change1.76%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap125.32B
Analysts73.33
Price Target60.26 (21.93%)
Short Float %0.22%
Short Ratio4.86
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.56% |
Dividend Growth(5Y)-7.16%
DP97.19%
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)-3.31%
PT rev (3m)-6.63%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-12.04%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.17 | ||
| Fwd PE | 10.68 | ||
| P/S | 2.25 | ||
| P/FCF | 11 | ||
| P/OCF | 6.06 | ||
| P/B | 2.8 | ||
| P/tB | 2.91 | ||
| EV/EBITDA | 5.21 |
EPS(TTM)5.39
EY10.91%
EPS(NY)4.63
Fwd EY9.36%
FCF(TTM)4.49
FCFY9.09%
OCF(TTM)8.15
OCFY16.49%
SpS21.95
BVpS17.67
TBVpS16.99
PEG (NY)N/A
PEG (5Y)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 17.62% | ||
| ROCE | 22.93% | ||
| ROIC | 14.53% | ||
| ROICexc | 17.02% | ||
| ROICexgc | 17.42% | ||
| OM | 36.28% | ||
| PM (TTM) | 14.19% | ||
| GM | 59.28% | ||
| FCFM | 20.47% |
ROA(3y)17.65%
ROA(5y)14.17%
ROE(3y)38.46%
ROE(5y)30.81%
ROIC(3y)20.35%
ROIC(5y)18.16%
ROICexc(3y)24.85%
ROICexc(5y)21.99%
ROICexgc(3y)25.42%
ROICexgc(5y)22.48%
ROCE(3y)32.1%
ROCE(5y)28.66%
ROICexcg growth 3Y-6.53%
ROICexcg growth 5Y6.4%
ROICexc growth 3Y-6.66%
ROICexc growth 5Y6.1%
OM growth 3Y-6.66%
OM growth 5Y2.08%
PM growth 3Y-10.6%
PM growth 5Y-5.43%
GM growth 3Y-3.92%
GM growth 5Y-0.42%
F-Score6
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.82 | ||
| Debt/EBITDA | 0.73 | ||
| Cap/Depr | 175.13% | ||
| Cap/Sales | 16.66% | ||
| Interest Coverage | 12.02 | ||
| Cash Conversion | 81.08% | ||
| Profit Quality | 144.26% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.17 |
F-Score6
WACC10.79%
ROIC/WACC1.35
Cap/Depr(3y)140.87%
Cap/Depr(5y)130.39%
Cap/Sales(3y)13.07%
Cap/Sales(5y)14.27%
Profit Quality(3y)106.17%
Profit Quality(5y)119.57%
High Growth Momentum
Growth
EPS 1Y (TTM)1.74%
EPS 3Y-7.23%
EPS 5Y8.1%
EPS Q2Q%3.87%
EPS Next Y-14.13%
EPS Next 2Y-7.53%
EPS Next 3Y-8.35%
EPS Next 5Y-7.24%
Revenue 1Y (TTM)3.42%
Revenue growth 3Y-0.75%
Revenue growth 5Y4.68%
Sales Q2Q%1.15%
Revenue Next Year-6.79%
Revenue Next 2Y-4.21%
Revenue Next 3Y-4.31%
Revenue Next 5Y-0.26%
EBIT growth 1Y-9.57%
EBIT growth 3Y-7.36%
EBIT growth 5Y6.86%
EBIT Next Year21.12%
EBIT Next 3Y3.39%
EBIT Next 5Y2.48%
FCF growth 1Y-1.95%
FCF growth 3Y-17.26%
FCF growth 5Y1.17%
OCF growth 1Y10.5%
OCF growth 3Y-8.79%
OCF growth 5Y2.95%