BHP GROUP LTD-SPON ADR (BHP)
US0886061086 - ADR
Taking everything into account, BHP scores 7 out of 10 in our fundamental rating. BHP was compared to 157 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 has a bad growth rate and is valued cheaply. This makes BHP very considerable 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.
Each year in the past 5 years BHP had a positive operating cash flow.
1.2 Ratios
BHP's Return On Assets of 7.39% is amongst the best of the industry. BHP outperforms 81.53% of its industry peers.
BHP has a better Return On Equity (17.86%) than 89.17% of its industry peers.
BHP's Return On Invested Capital of 15.30% is amongst the best of the industry. BHP outperforms 92.99% of its industry peers.
BHP had an Average Return On Invested Capital over the past 3 years of 22.76%. This is significantly above the industry average of 8.91%.
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 85.99% of its industry peers.
BHP's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 34.86%, BHP belongs to the best of the industry, outperforming 93.63% of the companies in the same industry.
In the last couple of years the Operating Margin of BHP has grown nicely.
The Gross Margin of BHP (56.70%) is better than 92.36% 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.
BHP has about the same amout of shares outstanding than it did 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
An Altman-Z score of 3.22 indicates that BHP is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 3.22, BHP is doing good in the industry, outperforming 60.51% 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.
BHP's Debt to FCF ratio of 1.86 is amongst the best of the industry. BHP outperforms 80.89% of its industry peers.
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 73.89% 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 | 3.22 |
ROIC/WACC1.85
WACC8.25%
2.3 Liquidity
BHP has a Current Ratio of 1.57. 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 1.57 is on the low side compared to the rest of the industry. BHP is outperformed by 69.43% of its industry peers.
A Quick Ratio of 1.22 indicates that BHP should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.22, BHP is in line with its industry, outperforming 45.22% 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 | 1.57 | ||
| 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%.
The Earnings Per Share has been growing slightly by 7.97% on average over the past years.
The Revenue has decreased by -8.21% in the past year.
Measured over the past years, BHP shows a small growth in Revenue. The Revenue has been growing by 4.53% on average per year.
EPS 1Y (TTM)-26.47%
EPS 3Y13.96%
EPS 5Y7.97%
EPS Q2Q%-0.46%
Revenue 1Y (TTM)-8.21%
Revenue growth 3Y11.4%
Revenue growth 5Y4.53%
Sales Q2Q%5.91%
3.2 Future
The Earnings Per Share is expected to decrease by -6.17% on average over the next years.
The Revenue is expected to decrease by -0.26% on average over the next years.
EPS Next Y3.17%
EPS Next 2Y0.87%
EPS Next 3Y-1.73%
EPS Next 5Y-6.17%
Revenue Next Year0.43%
Revenue Next 2Y0.6%
Revenue Next 3Y-0.99%
Revenue Next 5Y-0.26%
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 10.38.
BHP's Price/Earnings ratio is rather cheap when compared to the industry. BHP is cheaper than 87.26% of the companies in the same industry.
When comparing the Price/Earnings ratio of BHP to the average of the S&P500 Index (24.29), we can say BHP is valued rather cheaply.
The Price/Forward Earnings ratio is 10.17, which indicates a very decent valuation of BHP.
BHP's Price/Forward Earnings ratio is rather cheap when compared to the industry. BHP is cheaper than 80.89% of the companies in the same industry.
BHP is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.38 | ||
| Fwd PE | 10.17 |
4.2 Price Multiples
82.80% of the companies in the same industry are more expensive than BHP, based on the Enterprise Value to EBITDA ratio.
BHP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BHP is cheaper than 85.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.56 | ||
| EV/EBITDA | 6.07 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BHP does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of BHP may justify a higher PE ratio.
PEG (NY)3.28
PEG (5Y)1.3
EPS Next 2Y0.87%
EPS Next 3Y-1.73%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.50%, BHP is a good candidate for dividend investing.
BHP's Dividend Yield is rather good when compared to the industry average which is at 2.65. BHP pays more dividend than 96.82% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.29, BHP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.5% |
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
117.07% of the earnings are spent on dividend by BHP. This is not a sustainable payout ratio.
BHP's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP117.07%
EPS Next 2Y0.87%
EPS Next 3Y-1.73%
BHP GROUP LTD-SPON ADR
NYSE:BHP (7/25/2024, 7:04:00 PM)
After market: 55 +0.21 (+0.38%)54.79
+0.36 (+0.66%)
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 Cap138.93B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.5% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 10.38 | ||
| Fwd PE | 10.17 | ||
| 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)3.28
PEG (5Y)1.3
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)
High Growth Momentum
Growth
EPS 1Y (TTM)-26.47%
EPS 3Y13.96%
EPS 5Y
EPS Q2Q%
EPS Next Y3.17%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.21%
Revenue growth 3Y11.4%
Revenue growth 5Y
Sales 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