BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BHP - US0886061086 - ADR
58.85 USD
-0.12 (-0.2%)
58.85 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to BHP. BHP was compared to 154 industry peers in the Metals & Mining industry. BHP scores excellent on profitability, 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.
In the past 5 years BHP has always been profitable.
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 Return On Equity of 18.92%. This is amongst the best in the industry. BHP outperforms 90.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.49%, BHP belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
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
BHP has a better Profit Margin (17.59%) than 81.82% of its industry peers.
BHP's Profit Margin has declined in the last couple of years.
The Operating Margin of BHP (37.67%) is better than 88.31% of its industry peers.
In the last couple of years the Operating Margin of BHP has remained more or less at the same level.
With an excellent Gross Margin value of 56.70%, BHP belongs to the best of the industry, outperforming 90.26% of the companies in the same industry.
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
An Altman-Z score of 3.16 indicates that BHP is not in any danger for bankruptcy at the moment.
BHP's Altman-Z score of 3.16 is in line compared to the rest of the industry. BHP outperforms 50.00% 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.
With a decent Debt to FCF ratio value of 2.75, BHP is doing good in the industry, outperforming 75.97% of the companies in the same industry.
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 76.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 3.16 |
ROIC/WACC1.3
WACC9.61%
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 Current ratio of 1.46. This is in the lower half of the industry: BHP underperforms 74.03% of its industry peers.
BHP has a Quick Ratio of 1.11. This is a normal value and indicates that BHP is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of BHP (1.11) is worse than 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.
Looking at the last year, BHP shows a decrease in Revenue. The Revenue has decreased by -7.90% in the last year.
The Revenue has been growing slightly by 5.66% on average over the past years.
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
The Earnings Per Share is expected to decrease by -1.69% on average over the next years.
BHP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.08% yearly.
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 14.68, which indicates a correct valuation of BHP.
90.91% of the companies in the same industry are more expensive than BHP, based on the Price/Earnings ratio.
BHP is valuated rather cheaply when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
BHP is valuated correctly with a Price/Forward Earnings ratio of 13.57.
Based on the Price/Forward Earnings ratio, BHP is valued a bit cheaper than the industry average as 70.13% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of BHP to the average of the S&P500 Index (36.10), we can say BHP is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.68 | ||
| Fwd PE | 13.57 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHP is valued cheaply inside the industry as 90.91% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BHP is valued cheaper than 90.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.79 | ||
| EV/EBITDA | 6.49 |
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)1.78
PEG (5Y)6.39
EPS Next 2Y-0.23%
EPS Next 3Y2.84%
5. Dividend
5.1 Amount
BHP has a Yearly Dividend Yield of 3.84%. Purely for dividend investing, there may be better candidates out there.
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.
Compared to an average S&P500 Dividend Yield of 2.32, BHP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
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
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-0.23%
EPS Next 3Y2.84%
58.85
-0.12 (-0.2%)
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 Cap149.43B
Revenue(TTM)51.26B
Net Income(TTM)9.02B
Analysts68.18
Price Target59.68 (1.41%)
Short Float %0.72%
Short Ratio5.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.84% |
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 | 14.68 | ||
| Fwd PE | 13.57 | ||
| P/S | 2.91 | ||
| P/FCF | 16.79 | ||
| P/OCF | 7.99 | ||
| P/B | 3.13 | ||
| P/tB | 3.27 | ||
| EV/EBITDA | 6.49 |
EPS(TTM)4.01
EY6.81%
EPS(NY)4.34
Fwd EY7.37%
FCF(TTM)3.5
FCFY5.95%
OCF(TTM)7.36
OCFY12.51%
SpS20.19
BVpS18.77
TBVpS18.01
PEG (NY)1.78
PEG (5Y)6.39
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 | 3.16 |
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 14.68 and the Price/Book (PB) ratio is 3.13.
Can you provide the financial health for BHP stock?
The financial health rating of BHP GROUP LTD-SPON ADR (BHP) is 4 / 10.