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 155 industry peers in the Metals & Mining industry. BHP has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. BHP has a bad growth rate and is valued cheaply. These ratings would make BHP suitable 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.
In the past 5 years BHP has always been profitable.
In the past 5 years BHP always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 7.39%, BHP belongs to the best of the industry, outperforming 83.23% of the companies in the same industry.
BHP has a better Return On Equity (17.86%) than 87.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 15.30%, BHP belongs to the top of the industry, outperforming 92.26% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BHP is significantly above the industry average of 9.17%.
The 3 year average ROIC (22.76%) for BHP is well above the current ROIC(15.30%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.39% | ||
| ROE | 17.86% | ||
| ROIC | 15.3% |
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 (13.36%) than 84.52% of its industry peers.
BHP's Profit Margin has improved in the last couple of years.
BHP's Operating Margin of 34.86% is amongst the best of the industry. BHP outperforms 92.90% of its industry peers.
In the last couple of years the Operating Margin of BHP has grown nicely.
BHP has a better Gross Margin (56.70%) than 93.55% of its industry peers.
BHP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.86% | ||
| PM (TTM) | 13.36% | ||
| GM | 56.7% |
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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so BHP is creating value.
The number of shares outstanding for BHP remains at a similar level compared to 1 year ago.
The number of shares outstanding for BHP has been reduced compared to 5 years ago.
BHP has a worse debt/assets ratio than last year.
2.2 Solvency
BHP has an Altman-Z score of 3.29. 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 3.29, BHP is in the better half of the industry, outperforming 62.58% of the companies in the same industry.
The Debt to FCF ratio of BHP is 1.86, which is an excellent value as it means it would take BHP, only 1.86 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.86, BHP is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that BHP is not too dependend on debt financing.
BHP's Debt to Equity ratio of 0.47 is on the low side compared to the rest of the industry. BHP is outperformed by 74.19% 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 | 0.47 | ||
| Debt/FCF | 1.86 | ||
| Altman-Z | 3.29 |
ROIC/WACC1.89
WACC8.1%
2.3 Liquidity
A Current Ratio of 1.57 indicates that BHP should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.57, BHP is doing worse than 72.26% of the companies in the same industry.
A Quick Ratio of 1.22 indicates that BHP should not have too much problems paying its short term obligations.
BHP has a Quick ratio (1.22) which is comparable to the rest of the 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 | 1.57 | ||
| Quick Ratio | 1.22 |
3. Growth
3.1 Past
BHP shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -26.47%.
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 decrease in Revenue. The Revenue has decreased by -8.21% in the last year.
The Revenue has been growing slightly by 4.53% on average over the past years.
EPS 1Y (TTM)-26.47%
EPS 3Y13.96%
EPS 5Y7.97%
EPS growth Q2Q-0.46%
Revenue 1Y (TTM)-8.21%
Revenue growth 3Y11.4%
Revenue growth 5Y4.53%
Revenue growth Q2Q5.91%
3.2 Future
The Earnings Per Share is expected to decrease by -5.01% on average over the next years.
BHP is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -2.55% yearly.
EPS Next Y7.5%
EPS Next 2Y1.28%
EPS Next 3Y-1.47%
EPS Next 5Y-5.01%
Revenue Next Year2.38%
Revenue Next 2Y0.65%
Revenue Next 3Y-0.69%
Revenue Next 5Y-2.55%
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 10.67, the valuation of BHP can be described as very reasonable.
Based on the Price/Earnings ratio, BHP is valued cheaply inside the industry as 83.87% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 24.92, BHP is valued rather cheaply.
A Price/Forward Earnings ratio of 10.37 indicates a reasonable valuation of BHP.
BHP's Price/Forward Earnings ratio is rather cheap when compared to the industry. BHP is cheaper than 87.10% of the companies in the same industry.
BHP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 10.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHP is valued a bit cheaper than 77.42% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BHP is valued cheaper than 85.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.89 | ||
| EV/EBITDA | 6.35 |
4.3 Compensation for Growth
BHP's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of BHP may justify a higher PE ratio.
PEG (NY)1.42
PEG (5Y)1.34
EPS Next 2Y1.28%
EPS Next 3Y-1.47%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.20%, BHP is a good candidate for dividend investing.
BHP's Dividend Yield is rather good when compared to the industry average which is at 2.88. BHP pays more dividend than 94.19% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, BHP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.2% |
5.2 History
On average, the dividend of BHP grows each year by 21.73%, which is quite nice.
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 117.07% 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.
DP117.07%
EPS Next 2Y1.28%
EPS Next 3Y-1.47%
BHP GROUP LTD-SPON ADR
NYSE:BHP (4/26/2024, 7:04:00 PM)
After market: 56.2403 -0.19 (-0.34%)56.43
-0.78 (-1.36%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap142.89B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.2% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.67 | ||
| Fwd PE | 10.37 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.42
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.39% | ||
| ROE | 17.86% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 34.86% | ||
| PM (TTM) | 13.36% | ||
| GM | 56.7% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.57 | ||
| Quick Ratio | 1.22 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-26.47%
EPS 3Y13.96%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.5%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.21%
Revenue growth 3Y11.4%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y