BHP GROUP LTD-SPON ADR (BHP) Fundamental Analysis & Valuation

NYSE:BHP • US0886061086

Current stock price

78.63 USD
-0.67 (-0.84%)
Last:

This BHP fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

7

1. BHP Profitability Analysis

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.
  • In the past 5 years BHP always reported a positive cash flow from operatings.
BHP Yearly Net Income VS EBIT VS OCF VS FCFBHP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B

1.2 Ratios

  • With an excellent Return On Assets value of 8.83%, BHP belongs to the best of the industry, outperforming 80.37% of the companies in the same industry.
  • BHP has a better Return On Equity (20.32%) than 90.18% of its industry peers.
  • With an excellent Return On Invested Capital value of 13.41%, BHP belongs to the best of the industry, outperforming 85.28% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for BHP is significantly below the industry average of 58.77%.
Industry RankSector Rank
ROA 8.83%
ROE 20.32%
ROIC 13.41%
ROA(3y)9.59%
ROA(5y)14.32%
ROE(3y)21.86%
ROE(5y)31.27%
ROIC(3y)14.98%
ROIC(5y)17.95%
BHP Yearly ROA, ROE, ROICBHP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

1.3 Margins

  • Looking at the Profit Margin, with a value of 18.97%, BHP is in the better half of the industry, outperforming 79.14% of the companies in the same industry.
  • In the last couple of years the Profit Margin of BHP has declined.
  • BHP has a better Operating Margin (41.34%) than 86.50% of its industry peers.
  • In the last couple of years the Operating Margin of BHP has remained more or less at the same level.
  • BHP has a better Gross Margin (53.84%) than 84.66% of its industry peers.
  • BHP's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 41.34%
PM (TTM) 18.97%
GM 53.84%
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%
BHP Yearly Profit, Operating, Gross MarginsBHP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

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5

2. BHP Health Analysis

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.
  • The number of shares outstanding for BHP remains at a similar level compared to 1 year ago.
  • BHP has more shares outstanding than it did 5 years ago.
  • The debt/assets ratio for BHP is higher compared to a year ago.
BHP Yearly Shares OutstandingBHP Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
BHP Yearly Total Debt VS Total AssetsBHP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

  • BHP has an Altman-Z score of 3.60. This indicates that BHP is financially healthy and has little risk of bankruptcy at the moment.
  • BHP's Altman-Z score of 3.60 is in line compared to the rest of the industry. BHP outperforms 52.15% of its industry peers.
  • BHP has a debt to FCF ratio of 2.83. This is a good value and a sign of high solvency as BHP would need 2.83 years to pay back of all of its debts.
  • BHP has a better Debt to FCF ratio (2.83) than 73.62% of its industry peers.
  • BHP has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
  • BHP has a worse Debt to Equity ratio (0.49) than 73.62% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 2.83
Altman-Z 3.6
ROIC/WACC1.02
WACC13.09%
BHP Yearly LT Debt VS Equity VS FCFBHP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B 40B 50B

2.3 Liquidity

  • A Current Ratio of 1.65 indicates that BHP should not have too much problems paying its short term obligations.
  • BHP's Current ratio of 1.65 is on the low side compared to the rest of the industry. BHP is outperformed by 66.87% of its industry peers.
  • A Quick Ratio of 1.28 indicates that BHP should not have too much problems paying its short term obligations.
  • The Quick ratio of BHP (1.28) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.65
Quick Ratio 1.28
BHP Yearly Current Assets VS Current LiabilitesBHP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

2

3. BHP Growth Analysis

3.1 Past

  • The earnings per share for BHP have decreased strongly by -11.71% 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.
  • The Revenue has been growing slightly by 0.72% in the past year.
  • BHP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.66% yearly.
EPS 1Y (TTM)-11.71%
EPS 3Y-21.91%
EPS 5Y2.3%
EPS Q2Q%11.58%
Revenue 1Y (TTM)0.72%
Revenue growth 3Y-7.66%
Revenue growth 5Y5.66%
Sales Q2Q%10.83%

3.2 Future

  • BHP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -1.80% yearly.
  • BHP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.05% yearly.
EPS Next Y27.49%
EPS Next 2Y10.99%
EPS Next 3Y6.29%
EPS Next 5Y-1.8%
Revenue Next Year10.02%
Revenue Next 2Y4.11%
Revenue Next 3Y2.26%
Revenue Next 5Y0.05%

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.
BHP Yearly Revenue VS EstimatesBHP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 20B 40B 60B
BHP Yearly EPS VS EstimatesBHP Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2 4 6 8

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6

4. BHP Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 18.54, BHP is valued on the expensive side.
  • 78.53% of the companies in the same industry are more expensive than BHP, based on the Price/Earnings ratio.
  • BHP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.77.
  • The Price/Forward Earnings ratio is 15.92, which indicates a correct valuation of BHP.
  • Based on the Price/Forward Earnings ratio, BHP is valued a bit cheaper than 66.26% of the companies in the same industry.
  • BHP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.75, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 18.54
Fwd PE 15.92
BHP Price Earnings VS Forward Price EarningsBHP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, BHP is valued cheaper than 83.44% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, BHP is valued cheaper than 87.73% of the companies in the same industry.
Industry RankSector Rank
P/FCF 20.19
EV/EBITDA 7.64
BHP Per share dataBHP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

4.3 Compensation for Growth

  • The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • The decent profitability rating of BHP may justify a higher PE ratio.
PEG (NY)0.67
PEG (5Y)8.07
EPS Next 2Y10.99%
EPS Next 3Y6.29%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

5

5. BHP Dividend Analysis

5.1 Amount

  • BHP has a Yearly Dividend Yield of 3.49%.
  • Compared to an average industry Dividend Yield of 0.99, BHP pays a better dividend. On top of this BHP pays more dividend than 93.25% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.82, BHP pays a better dividend.
Industry RankSector Rank
Dividend Yield 3.49%

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
BHP Yearly Dividends per shareBHP Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2 4 6

5.3 Sustainability

  • 54.85% of the earnings are spent on dividend by BHP. This is a bit on the high side, but may be sustainable.
  • BHP's earnings and Dividend Rate are declining. This means the current dividend is most likely not sustainable.
DP54.85%
EPS Next 2Y10.99%
EPS Next 3Y6.29%
BHP Yearly Income VS Free CF VS DividendBHP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B
BHP Dividend Payout.BHP Dividend Payout, showing the Payout Ratio.BHP Dividend Payout.PayoutRetained Earnings

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BHP Fundamentals: All Metrics, Ratios and Statistics

BHP GROUP LTD-SPON ADR

NYSE:BHP (5/1/2026, 9:34:09 AM)

78.63

-0.67 (-0.84%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Industry StrengthN/A
Industry GrowthN/A
Earnings (Last)02-17
Earnings (Next)08-18
Inst Owners36.49%
Inst Owner Change0.08%
Ins Owners0.02%
Ins Owner Change0%
Market Cap199.75B
Revenue(TTM)53.99B
Net Income(TTM)10.24B
Analysts67.83
Price Target73.83 (-6.1%)
Short Float %0.57%
Short Ratio4.06
Dividend
Industry RankSector Rank
Dividend Yield 3.49%
Yearly Dividend1.26
Dividend Growth(5Y)-1.48%
DP54.85%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-06
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)-1.96%
PT rev (3m)20.59%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.1%
EPS NY rev (3m)9.18%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.6%
Revenue NY rev (3m)9.3%
Valuation
Industry RankSector Rank
PE 18.54
Fwd PE 15.92
P/S 3.7
P/FCF 20.19
P/OCF 10.12
P/B 3.96
P/tB 4.13
EV/EBITDA 7.64
EPS(TTM)4.24
EY5.39%
EPS(NY)4.94
Fwd EY6.28%
FCF(TTM)3.9
FCFY4.95%
OCF(TTM)7.77
OCFY9.89%
SpS21.25
BVpS19.84
TBVpS19.05
PEG (NY)0.67
PEG (5Y)8.07
Graham Number43.5084 (-44.67%)
Profitability
Industry RankSector Rank
ROA 8.83%
ROE 20.32%
ROCE 22.26%
ROIC 13.41%
ROICexc 15.6%
ROICexgc 15.98%
OM 41.34%
PM (TTM) 18.97%
GM 53.84%
FCFM 18.33%
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-Score3
Asset Turnover0.47
Health
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 2.83
Debt/EBITDA 0.87
Cap/Depr 169.51%
Cap/Sales 18.25%
Interest Coverage 14.75
Cash Conversion 70.19%
Profit Quality 96.6%
Current Ratio 1.65
Quick Ratio 1.28
Altman-Z 3.6
F-Score3
WACC13.09%
ROIC/WACC1.02
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)-11.71%
EPS 3Y-21.91%
EPS 5Y2.3%
EPS Q2Q%11.58%
EPS Next Y27.49%
EPS Next 2Y10.99%
EPS Next 3Y6.29%
EPS Next 5Y-1.8%
Revenue 1Y (TTM)0.72%
Revenue growth 3Y-7.66%
Revenue growth 5Y5.66%
Sales Q2Q%10.83%
Revenue Next Year10.02%
Revenue Next 2Y4.11%
Revenue Next 3Y2.26%
Revenue Next 5Y0.05%
EBIT growth 1Y2.8%
EBIT growth 3Y-16.37%
EBIT growth 5Y6.98%
EBIT Next Year55.55%
EBIT Next 3Y12.94%
EBIT Next 5Y2.22%
FCF growth 1Y-17.64%
FCF growth 3Y-30.11%
FCF growth 5Y1.98%
OCF growth 1Y-5.13%
OCF growth 3Y-16.56%
OCF growth 5Y3.54%

BHP GROUP LTD-SPON ADR / BHP Fundamental Analysis 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.


What is the profitability of BHP stock?

BHP GROUP LTD-SPON ADR (BHP) has a profitability rating of 7 / 10.


How financially healthy is BHP GROUP LTD-SPON ADR?

The financial health rating of BHP GROUP LTD-SPON ADR (BHP) is 5 / 10.


Is the dividend of BHP GROUP LTD-SPON ADR sustainable?

The dividend rating of BHP GROUP LTD-SPON ADR (BHP) is 5 / 10 and the dividend payout ratio is 54.85%.