BHP GROUP LTD-SPON ADR (BHP)
US0886061086 - ADR
We assign a fundamental rating of 6 out of 10 to BHP. BHP was compared to 154 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. This makes BHP very considerable for value investing!
1. Profitability
1.1 Basic Checks
In the past year BHP was profitable.
In the past year BHP had a positive cash flow from operations.
Each year in the past 5 years BHP has been profitable.
In the past 5 years BHP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BHP (7.71%) is better than 82.31% of its industry peers.
BHP's Return On Equity of 17.62% is amongst the best of the industry. BHP outperforms 87.76% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.53%, BHP belongs to the top of the industry, outperforming 95.24% 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 8.76%.
The last Return On Invested Capital (14.53%) for BHP is well below the 3 year average (20.35%), which needs to be investigated, but indicates that BHP had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 17.62% | ||
| ROIC | 14.53% |
ROA(3y)17.65%
ROA(5y)14.17%
ROE(3y)38.46%
ROE(5y)30.81%
ROIC(3y)20.35%
ROIC(5y)18.16%
1.3 Margins
With an excellent Profit Margin value of 14.19%, BHP belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
BHP's Profit Margin has declined in the last couple of years.
The Operating Margin of BHP (36.28%) is better than 93.20% of its industry peers.
BHP's Operating Margin has improved in the last couple of years.
With an excellent Gross Margin value of 59.28%, BHP belongs to the best of the industry, outperforming 92.52% of the companies in the same industry.
BHP's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 36.28% | ||
| PM (TTM) | 14.19% | ||
| GM | 59.28% |
OM growth 3Y-6.66%
OM growth 5Y2.08%
PM growth 3Y-10.6%
PM growth 5Y-5.43%
GM growth 3Y-3.92%
GM growth 5Y-0.42%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 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 increased compared to 5 years ago.
BHP has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.14 indicates that BHP is not in any danger for bankruptcy at the moment.
BHP has a Altman-Z score (3.14) which is in line with its industry peers.
The Debt to FCF ratio of BHP is 1.82, which is an excellent value as it means it would take BHP, only 1.82 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.82, BHP is doing good in the industry, outperforming 76.87% of the companies in the same industry.
A Debt/Equity ratio of 0.42 indicates that BHP is not too dependend on debt financing.
BHP has a Debt to Equity ratio of 0.42. This is in the lower half of the industry: BHP underperforms 71.43% 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 | 0.42 | ||
| Debt/FCF | 1.82 | ||
| Altman-Z | 3.14 |
ROIC/WACC1.32
WACC11.02%
2.3 Liquidity
A Current Ratio of 1.70 indicates that BHP should not have too much problems paying its short term obligations.
BHP has a worse Current ratio (1.70) than 65.99% of its industry peers.
BHP has a Quick Ratio of 1.29. This is a normal value and indicates that BHP is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.29, BHP perfoms like the industry average, outperforming 44.22% of the companies in the same industry.
The current and quick ratio evaluation for BHP is rather negative, while it does have 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 | 1.7 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.74% over the past year.
Measured over the past years, BHP shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.10% on average per year.
Looking at the last year, BHP shows a small growth in Revenue. The Revenue has grown by 3.42% in the last year.
The Revenue has been growing slightly by 4.68% on average over the past years.
EPS 1Y (TTM)1.74%
EPS 3Y-7.23%
EPS 5Y8.1%
EPS Q2Q%3.87%
Revenue 1Y (TTM)3.42%
Revenue growth 3Y-0.75%
Revenue growth 5Y4.68%
Sales Q2Q%1.15%
3.2 Future
Based on estimates for the next years, BHP will show a decrease in Earnings Per Share. The EPS will decrease by -7.65% on average per year.
The Revenue is expected to decrease by -0.26% on average over the next years.
EPS Next Y-14.13%
EPS Next 2Y-7.53%
EPS Next 3Y-8.35%
EPS Next 5Y-7.65%
Revenue Next Year-6.87%
Revenue Next 2Y-4.62%
Revenue Next 3Y-4.34%
Revenue Next 5Y-0.26%
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
Based on the Price/Earnings ratio of 9.13, the valuation of BHP can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of BHP indicates a rather cheap valuation: BHP is cheaper than 91.84% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.91. BHP is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 10.63, the valuation of BHP can be described as very reasonable.
72.11% of the companies in the same industry are more expensive than BHP, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 23.26. BHP is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.13 | ||
| Fwd PE | 10.63 |
4.2 Price Multiples
84.35% of the companies in the same industry are more expensive than BHP, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, BHP is valued cheaper than 88.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.95 | ||
| EV/EBITDA | 5.12 |
4.3 Compensation for Growth
BHP has an outstanding profitability rating, which may justify a higher PE ratio.
A cheap valuation may be justified as BHP's earnings are expected to decrease with -8.35% in the coming years.
PEG (NY)N/A
PEG (5Y)1.13
EPS Next 2Y-7.53%
EPS Next 3Y-8.35%
5. Dividend
5.1 Amount
BHP has a Yearly Dividend Yield of 5.62%, which is a nice return.
Compared to an average industry Dividend Yield of 3.26, BHP pays a better dividend. On top of this BHP pays more dividend than 91.16% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, BHP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.62% |
5.2 History
The dividend of BHP decreases each year by -7.16%.
BHP has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-7.16%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
BHP pays out 97.19% of its income as dividend. 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.
DP97.19%
EPS Next 2Y-7.53%
EPS Next 3Y-8.35%
BHP GROUP LTD-SPON ADR
NYSE:BHP (1/13/2025, 2:24:05 PM)
49.185
+0.65 (+1.33%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners48.21%
Inst Owner Change-0.43%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap124.72B
Analysts73.33
Price Target57.71 (17.33%)
Short Float %0.18%
Short Ratio4.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.62% |
Dividend Growth(5Y)-7.16%
DP97.19%
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)-4.23%
PT rev (3m)-8.13%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-12.04%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)-0.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.13 | ||
| Fwd PE | 10.63 | ||
| P/S | 2.24 | ||
| P/FCF | 10.95 | ||
| P/OCF | 6.04 | ||
| P/B | 2.78 | ||
| P/tB | 2.89 | ||
| EV/EBITDA | 5.12 |
EPS(TTM)5.39
EY10.96%
EPS(NY)4.63
Fwd EY9.4%
FCF(TTM)4.49
FCFY9.13%
OCF(TTM)8.15
OCFY16.57%
SpS21.95
BVpS17.67
TBVpS16.99
PEG (NY)N/A
PEG (5Y)1.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 17.62% | ||
| ROCE | 22.93% | ||
| ROIC | 14.53% | ||
| ROICexc | 17.02% | ||
| ROICexgc | 17.42% | ||
| OM | 36.28% | ||
| PM (TTM) | 14.19% | ||
| GM | 59.28% | ||
| FCFM | 20.47% |
ROA(3y)17.65%
ROA(5y)14.17%
ROE(3y)38.46%
ROE(5y)30.81%
ROIC(3y)20.35%
ROIC(5y)18.16%
ROICexc(3y)24.85%
ROICexc(5y)21.99%
ROICexgc(3y)25.42%
ROICexgc(5y)22.48%
ROCE(3y)32.1%
ROCE(5y)28.66%
ROICexcg growth 3Y-6.53%
ROICexcg growth 5Y6.4%
ROICexc growth 3Y-6.66%
ROICexc growth 5Y6.1%
OM growth 3Y-6.66%
OM growth 5Y2.08%
PM growth 3Y-10.6%
PM growth 5Y-5.43%
GM growth 3Y-3.92%
GM growth 5Y-0.42%
F-Score6
Asset Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.82 | ||
| Debt/EBITDA | 0.73 | ||
| Cap/Depr | 175.13% | ||
| Cap/Sales | 16.66% | ||
| Interest Coverage | 12.02 | ||
| Cash Conversion | 81.08% | ||
| Profit Quality | 144.26% | ||
| Current Ratio | 1.7 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 3.14 |
F-Score6
WACC11.02%
ROIC/WACC1.32
Cap/Depr(3y)140.87%
Cap/Depr(5y)130.39%
Cap/Sales(3y)13.07%
Cap/Sales(5y)14.27%
Profit Quality(3y)106.17%
Profit Quality(5y)119.57%
High Growth Momentum
Growth
EPS 1Y (TTM)1.74%
EPS 3Y-7.23%
EPS 5Y8.1%
EPS Q2Q%3.87%
EPS Next Y-14.13%
EPS Next 2Y-7.53%
EPS Next 3Y-8.35%
EPS Next 5Y-7.65%
Revenue 1Y (TTM)3.42%
Revenue growth 3Y-0.75%
Revenue growth 5Y4.68%
Sales Q2Q%1.15%
Revenue Next Year-6.87%
Revenue Next 2Y-4.62%
Revenue Next 3Y-4.34%
Revenue Next 5Y-0.26%
EBIT growth 1Y-9.57%
EBIT growth 3Y-7.36%
EBIT growth 5Y6.86%
EBIT Next Year21.12%
EBIT Next 3Y3.39%
EBIT Next 5Y2.39%
FCF growth 1Y-1.95%
FCF growth 3Y-17.26%
FCF growth 5Y1.17%
OCF growth 1Y10.5%
OCF growth 3Y-8.79%
OCF growth 5Y2.95%