BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis
USA - NYSE:BHP - US0886061086 - ADR
55.62 USD
+0.33 (+0.6%)
55.81 USD
+0.19 (+0.34%)
BHP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 155 industry peers in the Metals & Mining industry. While BHP has a great profitability rating, there are some minor concerns on its financial health. BHP is valued correctly, 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.
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
Looking at the Return On Assets, with a value of 8.29%, BHP belongs to the top of the industry, outperforming 86.45% of the companies in the same industry.
The Return On Equity of BHP (18.92%) is better than 92.90% of its industry peers.
BHP has a Return On Invested Capital of 12.49%. This is amongst the best in the industry. BHP outperforms 91.61% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BHP is above the industry average of 12.29%.
| 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 83.87% of its industry peers.
BHP's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 37.67%, BHP belongs to the best of the industry, outperforming 89.68% 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.
BHP's Gross Margin of 56.70% is amongst the best of the industry. BHP outperforms 89.68% 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.
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.
2.2 Solvency
BHP has an Altman-Z score of 3.06. This indicates that BHP is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.06, BHP is in line with its industry, outperforming 48.39% 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's Debt to FCF ratio of 2.75 is fine compared to the rest of the industry. BHP outperforms 77.42% 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 76.77% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 3.06 |
ROIC/WACC1.4
WACC8.93%
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 Current ratio of 1.46. This is in the lower half of the industry: BHP underperforms 72.90% 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: 64.52% 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
BHP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.60%.
BHP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 2.30% yearly.
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 -2.70% on average per year.
The Revenue is expected to grow by 0.59% on average over the next years.
EPS Next Y0.02%
EPS Next 2Y-2.54%
EPS Next 3Y0.78%
EPS Next 5Y-2.7%
Revenue Next Year-2.72%
Revenue Next 2Y-2.55%
Revenue Next 3Y-0.81%
Revenue Next 5Y0.59%
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 13.87, BHP is valued correctly.
BHP's Price/Earnings ratio is rather cheap when compared to the industry. BHP is cheaper than 90.97% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.91, BHP is valued a bit cheaper.
With a Price/Forward Earnings ratio of 13.87, BHP is valued correctly.
69.03% of the companies in the same industry are more expensive than BHP, based on the Price/Forward Earnings ratio.
BHP is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 13.87 |
4.2 Price Multiples
91.61% of the companies in the same industry are more expensive than BHP, based on the Enterprise Value to EBITDA ratio.
89.68% 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 | 15.87 | ||
| EV/EBITDA | 6.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BHP does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of BHP may justify a higher PE ratio.
PEG (NY)582.76
PEG (5Y)6.04
EPS Next 2Y-2.54%
EPS Next 3Y0.78%
5. Dividend
5.1 Amount
BHP has a Yearly Dividend Yield of 3.91%.
BHP's Dividend Yield is rather good when compared to the industry average which is at 2.42. BHP pays more dividend than 94.19% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, BHP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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
BHP pays out 70.99% of its income as dividend. 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 2Y-2.54%
EPS Next 3Y0.78%
55.62
+0.33 (+0.6%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners50.2%
Inst Owner Change-1.38%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap141.23B
Revenue(TTM)51.26B
Net Income(TTM)9.02B
Analysts68.18
Price Target56.59 (1.74%)
Short Float %0.61%
Short Ratio4.56
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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)-1.55%
PT rev (3m)3.66%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-0.12%
EPS NY rev (3m)-2.98%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.53%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.87 | ||
| Fwd PE | 13.87 | ||
| P/S | 2.75 | ||
| P/FCF | 15.87 | ||
| P/OCF | 7.56 | ||
| P/B | 2.96 | ||
| P/tB | 3.09 | ||
| EV/EBITDA | 6.11 |
EPS(TTM)4.01
EY7.21%
EPS(NY)4.01
Fwd EY7.21%
FCF(TTM)3.5
FCFY6.3%
OCF(TTM)7.36
OCFY13.24%
SpS20.19
BVpS18.77
TBVpS18.01
PEG (NY)582.76
PEG (5Y)6.04
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)17.47%
ROICexc(5y)21.66%
ROICexgc(3y)17.88%
ROICexgc(5y)22.14%
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 | 3.06 |
F-Score4
WACC8.93%
ROIC/WACC1.4
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 Y0.02%
EPS Next 2Y-2.54%
EPS Next 3Y0.78%
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-2.72%
Revenue Next 2Y-2.55%
Revenue Next 3Y-0.81%
Revenue Next 5Y0.59%
EBIT growth 1Y-4.37%
EBIT growth 3Y-16.37%
EBIT growth 5Y6.98%
EBIT Next Year25.29%
EBIT Next 3Y8.18%
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%
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 6 / 10 to BHP GROUP LTD-SPON ADR (BHP). This can be considered as Fairly Valued.
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 13.87 and the Price/Book (PB) ratio is 2.96.
Can you provide the financial health for BHP stock?
The financial health rating of BHP GROUP LTD-SPON ADR (BHP) is 4 / 10.