BHP GROUP LTD-SPON ADR (BHP)
US0886061086 - ADR
Taking everything into account, BHP scores 6 out of 10 in our fundamental rating. BHP was compared to 154 industry peers in the Metals & Mining industry. BHP gets an excellent profitability rating and is at the same time showing great financial health properties. BHP is cheap, but on the other hand it scores bad on growth. With these ratings, BHP could be worth investigating further for value investing!.
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.
BHP had positive earnings in each of the past 5 years.
Each year in the past 5 years BHP had a positive operating cash flow.
1.2 Ratios
BHP's Return On Assets of 12.76% is amongst the best of the industry. BHP outperforms 89.54% of its industry peers.
BHP has a Return On Equity of 29.04%. This is amongst the best in the industry. BHP outperforms 95.42% of its industry peers.
BHP has a better Return On Invested Capital (18.26%) than 93.46% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BHP is significantly above the industry average of 9.45%.
The last Return On Invested Capital (18.26%) for BHP is well below the 3 year average (22.76%), which needs to be investigated, but indicates that BHP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.76% | ||
| ROE | 29.04% | ||
| ROIC | 18.26% |
ROA(3y)18.53%
ROA(5y)14.27%
ROE(3y)39.94%
ROE(5y)30.81%
ROIC(3y)22.76%
ROIC(5y)18.26%
1.3 Margins
BHP has a better Profit Margin (24.01%) than 90.20% of its industry peers.
In the last couple of years the Profit Margin of BHP has grown nicely.
The Operating Margin of BHP (41.49%) is better than 94.12% of its industry peers.
BHP's Operating Margin has improved in the last couple of years.
BHP has a better Gross Margin (58.30%) than 92.81% of its industry peers.
BHP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 41.49% | ||
| PM | 24.01% | ||
| GM | 58.3% |
OM growth 3Y4.97%
OM growth 5Y2.13%
PM growth 3Y5.51%
PM growth 5Y22.82%
GM growth 3Y-0.43%
GM growth 5Y-1.09%
2. Health
2.1 Basic Checks
BHP has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, BHP has about the same amount of shares outstanding.
Compared to 5 years ago, BHP has less shares outstanding
BHP has a worse debt/assets ratio than last year.
2.2 Solvency
BHP has an Altman-Z score of 3.39. This indicates that BHP is financially healthy and has little risk of bankruptcy at the moment.
BHP has a better Altman-Z score (3.39) than 61.44% of its industry peers.
BHP has a debt to FCF ratio of 1.92. This is a very positive value and a sign of high solvency as it would only need 1.92 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.92, BHP belongs to the top of the industry, outperforming 82.35% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that BHP is not too dependend on debt financing.
BHP has a Debt to Equity ratio of 0.34. This is in the lower half of the industry: BHP underperforms 66.01% of its industry peers.
Although BHP does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | 3.39 |
ROIC/WACC2.55
WACC8.71%
2.3 Liquidity
BHP has a Current Ratio of 1.23. This is a normal value and indicates that BHP is financially healthy and should not expect problems in meeting its short term obligations.
BHP's Current ratio of 1.23 is on the low side compared to the rest of the industry. BHP is outperformed by 84.97% of its industry peers.
A Quick Ratio of 0.95 indicates that BHP may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.95, BHP is doing worse than 77.12% of the companies in the same industry.
BHP does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The earnings per share for BHP have decreased strongly by -37.08% in the last year.
BHP shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.97% yearly.
Looking at the last year, BHP shows a very negative growth in Revenue. The Revenue has decreased by -17.33% in the last year.
BHP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.53% yearly.
EPS 1Y-37.08%
EPS 3Y13.96%
EPS 5Y7.97%
EPS growth Q2Q-41.24%
Revenue growth 1Y-17.33%
Revenue growth 3Y11.4%
Revenue growth 5Y4.53%
Revenue growth Q2Q-18.71%
3.2 Future
BHP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -3.97% yearly.
Based on estimates for the next years, BHP will show a decrease in Revenue. The Revenue will decrease by -3.12% on average per year.
EPS Next Y-6.62%
EPS Next 2Y-4%
EPS Next 3Y-4.51%
EPS Next 5Y-3.97%
Revenue Next Year-3.99%
Revenue Next 2Y-1.81%
Revenue Next 3Y-1.83%
Revenue Next 5Y-3.12%
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
BHP is valuated reasonably with a Price/Earnings ratio of 10.73.
Based on the Price/Earnings ratio, BHP is valued cheaply inside the industry as 81.05% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.76, BHP is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 11.50, the valuation of BHP can be described as reasonable.
Based on the Price/Forward Earnings ratio, BHP is valued a bit cheaper than 68.63% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 18.85. BHP is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 11.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHP is valued a bit cheaper than 76.47% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BHP is valued cheaply inside the industry as 86.27% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.4 | ||
| EV/EBITDA | 5.62 |
4.3 Compensation for Growth
The excellent profitability rating of BHP may justify a higher PE ratio.
BHP's earnings are expected to decrease with -4.51% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.35
EPS Next 2Y-4%
EPS Next 3Y-4.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.98%, BHP is a good candidate for dividend investing.
BHP's Dividend Yield is rather good when compared to the industry average which is at 3.41. BHP pays more dividend than 94.12% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.64, BHP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.98% |
5.2 History
The dividend of BHP is nicely growing with an annual growth rate of 21.73%!
BHP has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)21.73%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BHP pays out 102.69% of its income as dividend. This is not a sustainable payout ratio.
The Dividend Rate of BHP has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP102.69%
EPS Next 2Y-4%
EPS Next 3Y-4.51%
BHP GROUP LTD-SPON ADR
NYSE:BHP (9/29/2023, 7:20:05 PM)
After market: 56.88 0 (0%)56.88
-0.32 (-0.56%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)08-22 2023-08-22/bmo
Earnings (Next)02-18 2024-02-18/amc
Inst Owners3.51%
Inst Owner Change0.23%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap144.03B
Analysts70
Price Target58.66 (3.13%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.98% |
Dividend Growth(5Y)21.73%
DP102.69%
Div Incr Years0
Div Non Decr Years0
Ex-Date09-07 2023-09-07 (1.7866439)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-5.02%
Min EPS beat(2)-5.02%
Max EPS beat(2)-5.02%
EPS beat(4)0
Avg EPS beat(4)-4.73%
Min EPS beat(4)-5.02%
Max EPS beat(4)-4.44%
Revenue beat(2)1
Avg Revenue beat(2)97867.7%
Min Revenue beat(2)97867.7%
Max Revenue beat(2)97867.7%
Revenue beat(4)2
Avg Revenue beat(4)97194.8%
Min Revenue beat(4)96521.8%
Max Revenue beat(4)97867.7%
PT rev (1m)-6.68%
PT rev (3m)-5.67%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)-3.71%
EPS NY rev (3m)-15.42%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.4%
Revenue NY rev (3m)-3.44%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 11.5 | ||
| P/S | 2.68 | ||
| P/FCF | 12.4 | ||
| P/OCF | 7.7 | ||
| P/B | 3.24 | ||
| P/tB | 3.36 | ||
| EV/EBITDA | 5.62 |
EPS(TTM)5.3
EY9.32%
EPS(NY)4.95
Fwd EY8.7%
FCF(TTM)4.59
FCFY8.07%
OCF(TTM)7.39
OCFY12.98%
SpS21.25
BVpS17.57
TBVpS16.94
PEG (NY)N/A
PEG (5Y)1.35
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.76% | ||
| ROE | 29.04% | ||
| ROCE | 27.15% | ||
| ROIC | 18.26% | ||
| ROICexc | 21.66% | ||
| ROICexgc | 22.17% | ||
| OM | 41.49% | ||
| PM | 24.01% | ||
| GM | 58.3% | ||
| FCFM | 21.59% |
ROA(3y)18.53%
ROA(5y)14.27%
ROE(3y)39.94%
ROE(5y)30.81%
ROIC(3y)22.76%
ROIC(5y)18.26%
ROICexc(3y)27.96%
ROICexc(5y)22.28%
ROICexgc(3y)28.57%
ROICexgc(5y)22.73%
ROCE(3y)33.84%
ROCE(5y)27.15%
ROICexcg growth 3Y21.19%
ROICexcg growth 5Y10.6%
ROICexc growth 3Y21.08%
ROICexc growth 5Y10.3%
OM growth 3Y4.97%
OM growth 5Y2.13%
PM growth 3Y5.51%
PM growth 5Y22.82%
GM growth 3Y-0.43%
GM growth 5Y-1.09%
F-Score4
Asset Turnover0.53
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 1.92 | ||
| Debt/EBITDA | 0.55 | ||
| Cap/Depr | 139.95% | ||
| Cap/Sales | 13.16% | ||
| Profit Quality | 89.92% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z | 3.39 |
F-Score4
WACC8.71%
ROIC/WACC2.55
Cap/Depr(3y)117.27%
Cap/Depr(5y)119.8%
Cap/Sales(3y)11.69%
Cap/Sales(5y)14.15%
Profit Quality(3y)117.4%
Profit Quality(5y)116.6%
Growth
EPS 1Y-37.08%
EPS 3Y13.96%
EPS 5Y7.97%
EPS growth Q2Q-41.24%
EPS Next Y-6.62%
EPS Next 2Y-4%
EPS Next 3Y-4.51%
EPS Next 5Y-3.97%
Revenue growth 1Y-17.33%
Revenue growth 3Y11.4%
Revenue growth 5Y4.53%
Revenue growth Q2Q-18.71%
Revenue Next Year-3.99%
Revenue Next 2Y-1.81%
Revenue Next 3Y-1.83%
Revenue Next 5Y-3.12%
EBIT growth 1Y-32.9%
EBIT growth 3Y16.94%
EBIT growth 5Y6.76%
EBIT Next Year16.5%
EBIT Next 3Y5.23%
EBIT Next 5Y1.37%
FCF growth 1Y-55.42%
FCF growth 3Y12.93%
FCF growth 5Y-1.62%
OCF growth 1Y-41.88%
OCF growth 3Y5.99%
OCF growth 5Y0.26%