BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis
USA - NYSE:BHP - US0886061086 - ADR
55.5 USD
-0.25 (-0.45%)
55.5 USD
0 (0%)
Overall BHP gets a fundamental rating of 5 out of 10. We evaluated BHP against 156 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.
BHP had a positive operating cash flow in the past year.
In the past 5 years BHP has always been profitable.
Each year in the past 5 years BHP had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.29%, BHP belongs to the best of the industry, outperforming 85.90% 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 91.67% of the companies in the same industry.
With an excellent Return On Invested Capital value of 12.49%, BHP belongs to the best of the industry, outperforming 90.38% of the companies in the same industry.
BHP had an Average Return On Invested Capital over the past 3 years of 14.98%. This is above the industry average of 12.87%.
| 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 83.97% 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 89.74% 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.
The Gross Margin of BHP (56.70%) is better than 90.38% 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.
Compared to 1 year ago, BHP has about the same amount of shares outstanding.
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 3.07. 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 3.07, BHP is in line with its industry, outperforming 49.36% 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 has a better Debt to FCF ratio (2.75) than 78.21% 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 worse Debt to Equity ratio (0.47) than 75.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 3.07 |
ROIC/WACC1.37
WACC9.11%
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 71.79% of its industry peers.
A Quick Ratio of 1.11 indicates that BHP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.11, BHP is doing worse than 62.82% of the companies in the same industry.
| 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.
The Revenue has decreased by -7.90% in the past year.
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
BHP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.70% yearly.
BHP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.37% yearly.
EPS Next Y0.02%
EPS Next 2Y-2.54%
EPS Next 3Y0.12%
EPS Next 5Y-2.7%
Revenue Next Year-4.19%
Revenue Next 2Y-2.69%
Revenue Next 3Y-0.75%
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
BHP is valuated correctly with a Price/Earnings ratio of 13.84.
Based on the Price/Earnings ratio, BHP is valued cheaper than 91.03% of the companies in the same industry.
When comparing the Price/Earnings ratio of BHP to the average of the S&P500 Index (27.86), we can say BHP is valued rather cheaply.
The Price/Forward Earnings ratio is 13.84, 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 70.51% 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 (23.29), we can say BHP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.84 | ||
| Fwd PE | 13.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHP is valued cheaper than 91.03% of the companies in the same industry.
BHP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BHP is cheaper than 90.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.84 | ||
| EV/EBITDA | 6.16 |
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)581.5
PEG (5Y)6.02
EPS Next 2Y-2.54%
EPS Next 3Y0.12%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.10%, BHP is a good candidate for dividend investing.
BHP's Dividend Yield is rather good when compared to the industry average which is at 2.48. BHP pays more dividend than 94.23% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.41, BHP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.1% |
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 3Y0.12%
55.5
-0.25 (-0.45%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners50.2%
Inst Owner Change6%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap140.92B
Analysts68.18
Price Target57.48 (3.57%)
Short Float %0.66%
Short Ratio5.39
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)3.16%
PT rev (3m)0.58%
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)-0.79%
Revenue NY rev (3m)-0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.84 | ||
| Fwd PE | 13.84 | ||
| P/S | 2.75 | ||
| P/FCF | 15.84 | ||
| P/OCF | 7.54 | ||
| P/B | 2.96 | ||
| P/tB | 3.08 | ||
| EV/EBITDA | 6.16 |
EPS(TTM)4.01
EY7.23%
EPS(NY)4.01
Fwd EY7.22%
FCF(TTM)3.5
FCFY6.31%
OCF(TTM)7.36
OCFY13.26%
SpS20.19
BVpS18.77
TBVpS18.01
PEG (NY)581.5
PEG (5Y)6.02
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 | 3.07 |
F-Score4
WACC9.11%
ROIC/WACC1.37
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 3Y0.12%
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-4.19%
Revenue Next 2Y-2.69%
Revenue Next 3Y-0.75%
Revenue Next 5Y0.37%
EBIT growth 1Y-4.37%
EBIT growth 3Y-16.37%
EBIT growth 5Y6.98%
EBIT Next Year25.29%
EBIT Next 3Y8.02%
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%