BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BHP - US0886061086 - ADR
58.97 USD
+1.05 (+1.81%)
58.81 USD
-0.16 (-0.27%)
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. BHP has an excellent profitability rating, but there are some minor concerns on its financial health. BHP has a bad growth rate and is valued cheaply.
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 better Return On Assets (8.29%) than 82.47% of its industry peers.
BHP has a better Return On Equity (18.92%) than 90.91% of its industry peers.
BHP has a better Return On Invested Capital (12.49%) than 86.36% 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 13.20%.
| 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
The Profit Margin of BHP (17.59%) is better than 81.82% of its industry peers.
BHP's Profit Margin has declined in the last couple of years.
BHP has a better Operating Margin (37.67%) than 88.31% of its industry peers.
BHP's Operating Margin has been stable in the last couple of years.
The Gross Margin of BHP (56.70%) is better than 90.26% 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 | 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), BHP is creating some value.
BHP has about the same amout of shares outstanding than it did 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
BHP has an Altman-Z score of 3.13. This indicates that BHP is financially healthy and has little risk of bankruptcy at the moment.
BHP's Altman-Z score of 3.13 is in line compared to the rest of the industry. BHP outperforms 48.70% of its industry peers.
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 75.97% of its industry peers.
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 76.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 3.13 |
ROIC/WACC1.3
WACC9.61%
2.3 Liquidity
A Current Ratio of 1.46 indicates that BHP should not have too much problems paying its short term obligations.
The Current ratio of BHP (1.46) is worse than 74.03% of its industry peers.
A Quick Ratio of 1.11 indicates that BHP should not have too much problems paying its short term obligations.
BHP has a Quick ratio of 1.11. This is in the lower half of the industry: BHP underperforms 66.23% 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%.
The Earnings Per Share has been growing slightly by 2.30% on average over the past years.
BHP shows a decrease in Revenue. In the last year, the revenue decreased by -7.90%.
Measured over the past years, BHP shows a small growth in Revenue. The Revenue has been growing by 5.66% on average per year.
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 Y8.24%
EPS Next 2Y-0.23%
EPS Next 3Y2.84%
EPS Next 5Y-1.69%
Revenue Next Year-0.23%
Revenue Next 2Y-1.44%
Revenue Next 3Y0.03%
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.
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
A Price/Earnings ratio of 14.71 indicates a correct valuation of BHP.
Based on the Price/Earnings ratio, BHP is valued cheaper than 90.91% of the companies in the same industry.
BHP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.41.
BHP is valuated correctly with a Price/Forward Earnings ratio of 13.59.
Based on the Price/Forward Earnings ratio, BHP is valued a bit cheaper than the industry average as 72.08% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.40, BHP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 13.59 |
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 90.91% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, BHP is valued cheaper than 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.83 | ||
| EV/EBITDA | 6.38 |
4.3 Compensation for Growth
BHP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BHP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.78
PEG (5Y)6.4
EPS Next 2Y-0.23%
EPS Next 3Y2.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.10%, BHP is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.60, BHP pays a better dividend. On top of this BHP pays more dividend than 94.81% 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 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
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
5.3 Sustainability
BHP pays out 70.99% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of BHP has been decling, while earnings will also be declining. This means the current dividend is most likely not sustainable.
DP70.99%
EPS Next 2Y-0.23%
EPS Next 3Y2.84%
58.97
+1.05 (+1.81%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners50.2%
Inst Owner Change6.47%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap149.73B
Revenue(TTM)51.26B
Net Income(TTM)9.02B
Analysts68.18
Price Target58.09 (-1.49%)
Short Float %0.72%
Short Ratio5.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
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)2.66%
PT rev (3m)4.27%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)8.21%
EPS NY rev (3m)8.08%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.56%
Revenue NY rev (3m)3.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.71 | ||
| Fwd PE | 13.59 | ||
| P/S | 2.92 | ||
| P/FCF | 16.83 | ||
| P/OCF | 8.01 | ||
| P/B | 3.14 | ||
| P/tB | 3.27 | ||
| EV/EBITDA | 6.38 |
EPS(TTM)4.01
EY6.8%
EPS(NY)4.34
Fwd EY7.36%
FCF(TTM)3.5
FCFY5.94%
OCF(TTM)7.36
OCFY12.48%
SpS20.19
BVpS18.77
TBVpS18.01
PEG (NY)1.78
PEG (5Y)6.4
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)17.49%
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-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 | 3.13 |
F-Score4
WACC9.61%
ROIC/WACC1.3
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 Y8.24%
EPS Next 2Y-0.23%
EPS Next 3Y2.84%
EPS Next 5Y-1.69%
Revenue 1Y (TTM)-7.9%
Revenue growth 3Y-7.66%
Revenue growth 5Y5.66%
Sales Q2Q%-8.23%
Revenue Next Year-0.23%
Revenue Next 2Y-1.44%
Revenue Next 3Y0.03%
Revenue Next 5Y0.08%
EBIT growth 1Y-4.37%
EBIT growth 3Y-16.37%
EBIT growth 5Y6.98%
EBIT Next Year25.29%
EBIT Next 3Y9.7%
EBIT Next 5Y2.65%
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 7 / 10 to BHP GROUP LTD-SPON ADR (BHP). This can be considered as Undervalued.
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 14.71 and the Price/Book (PB) ratio is 3.14.
Can you provide the financial health for BHP stock?
The financial health rating of BHP GROUP LTD-SPON ADR (BHP) is 4 / 10.