BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BHP - US0886061086 - ADR
70.49 USD
+2.72 (+4.01%)
69.75 USD
-0.74 (-1.05%)
Taking everything into account, BHP scores 5 out of 10 in our fundamental rating. BHP was compared to 154 industry peers in the Metals & Mining industry. While BHP belongs to the best of the industry regarding profitability, 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
- BHP had positive earnings in the past year.
- 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
- BHP has a Return On Assets of 8.29%. This is amongst the best in the industry. BHP outperforms 83.77% of its industry peers.
- BHP's Return On Equity of 18.92% is amongst the best of the industry. BHP outperforms 91.56% of its industry peers.
- BHP has a Return On Invested Capital of 12.49%. This is amongst the best in the industry. BHP outperforms 85.06% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BHP is above the industry average of 10.32%.
| 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's Profit Margin of 17.59% is amongst the best of the industry. BHP outperforms 81.17% of its industry peers.
- In the last couple of years the Profit Margin of BHP has declined.
- BHP has a Operating Margin of 37.67%. This is amongst the best in the industry. BHP outperforms 88.31% of its industry peers.
- BHP's Operating Margin has been stable in the last couple of years.
- Looking at the Gross Margin, with a value of 56.70%, BHP belongs to the top of the industry, outperforming 89.61% 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
- 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.
- The number of shares outstanding for BHP has been increased compared to 5 years ago.
- Compared to 1 year ago, BHP has a worse debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 3.44 indicates that BHP is not in any danger for bankruptcy at the moment.
- BHP's Altman-Z score of 3.44 is in line compared to the rest of the industry. BHP outperforms 46.10% 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 75.32% of the companies in the same industry.
- BHP has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
- BHP has a Debt to Equity ratio of 0.47. This is in the lower half of the industry: BHP underperforms 74.03% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 3.44 |
ROIC/WACC1.17
WACC10.72%
2.3 Liquidity
- BHP has a Current Ratio of 1.46. 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 worse Current ratio (1.46) than 72.08% 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.
- The Quick ratio of BHP (1.11) is worse than 62.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.46 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- BHP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.60%.
- 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 Y16.85%
EPS Next 2Y5.34%
EPS Next 3Y3.79%
EPS Next 5Y-1.69%
Revenue Next Year0.84%
Revenue Next 2Y-0.92%
Revenue Next 3Y-0.07%
Revenue Next 5Y0.08%
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.
- 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 17.58, which indicates a rather expensive current valuation of BHP.
- Based on the Price/Earnings ratio, BHP is valued cheaper than 92.21% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 28.82, BHP is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 15.05, BHP is valued correctly.
- Based on the Price/Forward Earnings ratio, BHP is valued a bit cheaper than 74.68% of the companies in the same industry.
- BHP's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.95.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.58 | ||
| Fwd PE | 15.05 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, BHP is valued cheaper than 92.21% of the companies in the same industry.
- 92.86% of the companies in the same industry are more expensive than BHP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.11 | ||
| EV/EBITDA | 7.66 |
4.3 Compensation for Growth
- The 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)1.04
PEG (5Y)7.65
EPS Next 2Y5.34%
EPS Next 3Y3.79%
5. Dividend
5.1 Amount
- BHP has a Yearly Dividend Yield of 3.56%. Purely for dividend investing, there may be better candidates out there.
- BHP's Dividend Yield is rather good when compared to the industry average which is at 1.02. 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 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.56% |
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 2Y5.34%
EPS Next 3Y3.79%
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.
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.
How profitable is BHP GROUP LTD-SPON ADR (BHP) stock?
BHP GROUP LTD-SPON ADR (BHP) has a profitability rating of 8 / 10.
What are the PE and PB ratios of BHP GROUP LTD-SPON ADR (BHP) stock?
The Price/Earnings (PE) ratio for BHP GROUP LTD-SPON ADR (BHP) is 17.58 and the Price/Book (PB) ratio is 3.75.
What is the earnings growth outlook for BHP GROUP LTD-SPON ADR?
The Earnings per Share (EPS) of BHP GROUP LTD-SPON ADR (BHP) is expected to grow by 16.85% in the next year.