BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BHP - US0886061086 - ADR
64.8 USD
+1.66 (+2.63%)
64.23 USD
-0.57 (-0.88%)
Overall BHP gets a fundamental rating of 5 out of 10. We evaluated BHP against 157 industry peers in the Metals & Mining industry. While BHP belongs to the best of the industry regarding profitability, 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.
BHP had positive earnings in each of the past 5 years.
In the past 5 years BHP always reported a positive cash flow from operatings.
1.2 Ratios
BHP has a Return On Assets of 8.29%. This is amongst the best in the industry. BHP outperforms 84.08% of its industry peers.
The Return On Equity of BHP (18.92%) is better than 92.36% 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 85.35% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BHP is above the industry average of 10.33%.
| 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 Profit Margin of 17.59%. This is amongst the best in the industry. BHP outperforms 81.53% of its industry peers.
In the last couple of years the Profit Margin of BHP has declined.
With an excellent Operating Margin value of 37.67%, BHP belongs to the best of the industry, outperforming 87.90% 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.
BHP has a better Gross Margin (56.70%) than 89.81% 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.
The number of shares outstanding for BHP has been increased compared to 5 years ago.
Compared to 1 year ago, BHP has a worse debt to assets ratio.
2.2 Solvency
BHP has an Altman-Z score of 3.26. This indicates that BHP is financially healthy and has little risk of bankruptcy at the moment.
With a Altman-Z score value of 3.26, BHP perfoms like the industry average, outperforming 49.68% of the companies in the same industry.
BHP has a debt to FCF ratio of 2.75. This is a good value and a sign of high solvency as BHP would need 2.75 years to pay back of all of its debts.
BHP's Debt to FCF ratio of 2.75 is fine compared to the rest of the industry. BHP outperforms 75.16% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that BHP is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.47, BHP is doing worse than 74.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 3.26 |
ROIC/WACC1.23
WACC10.16%
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.
The Current ratio of BHP (1.46) is worse than 72.61% 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 worse Quick ratio (1.11) than 63.69% of its industry peers.
| 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.
Measured over the past 5 years, BHP shows a small growth in Earnings Per Share. The EPS has been growing by 2.30% on average per year.
BHP shows a decrease in Revenue. In the last year, the revenue decreased by -7.90%.
BHP shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.66% yearly.
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.
BHP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.08% yearly.
EPS Next Y10.48%
EPS Next 2Y1.23%
EPS Next 3Y1.77%
EPS Next 5Y-1.69%
Revenue Next Year0.84%
Revenue Next 2Y-0.92%
Revenue Next 3Y-0.07%
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
The Price/Earnings ratio is 16.16, which indicates a correct valuation of BHP.
92.99% of the companies in the same industry are more expensive than BHP, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BHP to the average of the S&P500 Index (27.17), we can say BHP is valued slightly cheaper.
BHP is valuated correctly with a Price/Forward Earnings ratio of 14.63.
70.06% of the companies in the same industry are more expensive than BHP, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.79, BHP is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.16 | ||
| Fwd PE | 14.63 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BHP is valued cheaper than 91.72% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BHP is valued cheaper than 91.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.49 | ||
| EV/EBITDA | 6.91 |
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)1.54
PEG (5Y)7.03
EPS Next 2Y1.23%
EPS Next 3Y1.77%
5. Dividend
5.1 Amount
BHP has a Yearly Dividend Yield of 3.76%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 0.99, BHP pays a better dividend. On top of this BHP pays more dividend than 95.54% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, BHP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
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
70.99% of the earnings are spent on dividend by BHP. 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 2Y1.23%
EPS Next 3Y1.77%
64.8
+1.66 (+2.63%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners43.16%
Inst Owner Change0%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap164.53B
Revenue(TTM)51.26B
Net Income(TTM)9.02B
Analysts68.18
Price Target61.22 (-5.52%)
Short Float %0.62%
Short Ratio5.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.76% |
Yearly Dividend1.26
Dividend Growth(5Y)-1.48%
DP70.99%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)5.39%
PT rev (3m)8.19%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.76%
EPS NY rev (3m)10.46%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.69%
Revenue NY rev (3m)3.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.16 | ||
| Fwd PE | 14.63 | ||
| P/S | 3.21 | ||
| P/FCF | 18.49 | ||
| P/OCF | 8.8 | ||
| P/B | 3.45 | ||
| P/tB | 3.6 | ||
| EV/EBITDA | 6.91 |
EPS(TTM)4.01
EY6.19%
EPS(NY)4.43
Fwd EY6.83%
FCF(TTM)3.5
FCFY5.41%
OCF(TTM)7.36
OCFY11.36%
SpS20.19
BVpS18.77
TBVpS18.01
PEG (NY)1.54
PEG (5Y)7.03
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 | 3.26 |
F-Score4
WACC10.16%
ROIC/WACC1.23
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 Y10.48%
EPS Next 2Y1.23%
EPS Next 3Y1.77%
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 Year0.84%
Revenue Next 2Y-0.92%
Revenue Next 3Y-0.07%
Revenue Next 5Y0.08%
EBIT growth 1Y-4.37%
EBIT growth 3Y-16.37%
EBIT growth 5Y6.98%
EBIT Next Year36.64%
EBIT Next 3Y9.54%
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.
Can you provide the valuation status for BHP GROUP LTD-SPON ADR?
ChartMill assigns a valuation rating of 6 / 10 to BHP GROUP LTD-SPON ADR (BHP). This can be considered as Fairly Valued.
How profitable is BHP GROUP LTD-SPON ADR (BHP) stock?
BHP GROUP LTD-SPON ADR (BHP) has a profitability rating of 8 / 10.
What are the PE and PB ratios of BHP GROUP LTD-SPON ADR (BHP) stock?
The Price/Earnings (PE) ratio for BHP GROUP LTD-SPON ADR (BHP) is 16.16 and the Price/Book (PB) ratio is 3.45.
What is the earnings growth outlook for BHP GROUP LTD-SPON ADR?
The Earnings per Share (EPS) of BHP GROUP LTD-SPON ADR (BHP) is expected to grow by 10.48% in the next year.