BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis
USA - NYSE:BHP - US0886061086 - ADR
54.21 USD
+0.96 (+1.8%)
54.2 USD
-0.01 (-0.02%)
BHP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 155 industry peers in the Metals & Mining industry. BHP scores excellent on profitability, but 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.
In the past year BHP had a positive cash flow from operations.
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 85.16% of the companies in the same industry.
With an excellent Return On Equity value of 18.92%, BHP belongs to the best of the industry, outperforming 90.97% of the companies in the same industry.
The Return On Invested Capital of BHP (12.49%) is better than 89.68% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BHP is in line with the industry average of 13.00%.
| 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
With an excellent Profit Margin value of 17.59%, BHP belongs to the best of the industry, outperforming 83.23% of the companies in the same industry.
BHP's Profit Margin has declined in the last couple of years.
BHP's Operating Margin of 37.67% is amongst the best of the industry. BHP outperforms 89.03% of its industry peers.
BHP's Operating Margin has been stable in the last couple of years.
BHP has a Gross Margin of 56.70%. This is amongst the best in the industry. BHP outperforms 90.32% 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
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.
BHP has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.04 indicates that BHP is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.04, BHP is in line with its industry, outperforming 53.55% of the companies in the same industry.
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.
BHP's Debt to FCF ratio of 2.75 is fine compared to the rest of the industry. BHP outperforms 76.13% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that BHP is not too dependend on debt financing.
BHP has a Debt to Equity ratio of 0.47. This is in the lower half of the industry: BHP underperforms 75.48% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 3.04 |
ROIC/WACC1.29
WACC9.67%
2.3 Liquidity
A Current Ratio of 1.46 indicates that BHP should not have too much problems paying its short term obligations.
BHP's Current ratio of 1.46 is on the low side compared to the rest of the industry. BHP is outperformed by 71.61% of its industry peers.
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: 63.87% 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.
Looking at the last year, BHP shows a decrease in Revenue. The Revenue has decreased by -7.90% in the last 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)-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.
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-3.43%
Revenue Next 2Y-2.51%
Revenue Next 3Y-1.11%
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.
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
With a Price/Earnings ratio of 13.52, BHP is valued correctly.
91.61% of the companies in the same industry are more expensive than BHP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BHP to the average of the S&P500 Index (27.43), we can say BHP is valued rather cheaply.
The Price/Forward Earnings ratio is 13.51, which indicates a correct valuation of BHP.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BHP indicates a somewhat cheap valuation: BHP is cheaper than 68.39% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BHP to the average of the S&P500 Index (22.87), we can say BHP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.52 | ||
| Fwd PE | 13.51 |
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 90.32% of the companies listed in the same industry.
BHP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BHP is cheaper than 89.03% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.47 | ||
| EV/EBITDA | 6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of BHP may justify a higher PE ratio.
PEG (NY)91.71
PEG (5Y)5.88
EPS Next 2Y-1.75%
EPS Next 3Y-0.15%
5. Dividend
5.1 Amount
BHP has a Yearly Dividend Yield of 3.97%.
BHP's Dividend Yield is rather good when compared to the industry average which is at 2.74. BHP pays more dividend than 92.90% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, BHP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
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
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 2Y-1.75%
EPS Next 3Y-0.15%
54.21
+0.96 (+1.8%)
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 Cap137.64B
Analysts68.18
Price Target55.72 (2.79%)
Short Float %0.67%
Short Ratio5.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.97% |
Yearly Dividend1.51
Dividend Growth(5Y)-7.16%
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)2.06%
PT rev (3m)0.33%
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)-0.52%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.52 | ||
| Fwd PE | 13.51 | ||
| P/S | 2.69 | ||
| P/FCF | 15.47 | ||
| P/OCF | 7.36 | ||
| P/B | 2.89 | ||
| P/tB | 3.01 | ||
| EV/EBITDA | 6 |
EPS(TTM)4.01
EY7.4%
EPS(NY)4.01
Fwd EY7.4%
FCF(TTM)3.5
FCFY6.46%
OCF(TTM)7.36
OCFY13.58%
SpS20.19
BVpS18.77
TBVpS18.01
PEG (NY)91.71
PEG (5Y)5.88
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 | 3.04 |
F-Score4
WACC9.67%
ROIC/WACC1.29
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-3.43%
Revenue Next 2Y-2.51%
Revenue Next 3Y-1.11%
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%