BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis
USA - NYSE:BHP - US0886061086 - ADR
57.05 USD
-0.19 (-0.33%)
57.05 USD
0 (0%)
Taking everything into account, BHP scores 5 out of 10 in our fundamental rating. BHP was compared to 154 industry peers in the Metals & Mining industry. While BHP has a great profitability rating, there are some minor concerns on its financial health. BHP has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
BHP had positive earnings in each of the past 5 years.
Each year in the past 5 years BHP had a positive operating cash flow.
1.2 Ratios
The Return On Assets of BHP (8.29%) is better than 85.06% of its industry peers.
BHP has a better Return On Equity (18.92%) than 92.21% of its industry peers.
The Return On Invested Capital of BHP (12.49%) is better than 90.26% of its industry peers.
BHP had an Average Return On Invested Capital over the past 3 years of 14.98%. This is above the industry average of 12.51%.
| 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
Looking at the Profit Margin, with a value of 17.59%, BHP belongs to the top of the industry, outperforming 83.12% of the companies in the same industry.
In the last couple of years the Profit Margin of BHP has declined.
Looking at the Operating Margin, with a value of 37.67%, BHP belongs to the top of the industry, outperforming 90.26% 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.
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
BHP has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some 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 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 3.11. This indicates that BHP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of BHP (3.11) is comparable to the rest of the industry.
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 77.92% 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 has a worse Debt to Equity ratio (0.47) than 77.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.75 | ||
| Altman-Z | 3.11 |
ROIC/WACC1.39
WACC8.97%
2.3 Liquidity
A Current Ratio of 1.46 indicates that BHP should not have too much problems paying its short term obligations.
BHP has a worse Current ratio (1.46) than 72.73% 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.
BHP has a worse Quick ratio (1.11) than 64.29% 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%.
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.
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
BHP is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -2.70% yearly.
BHP is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.59% yearly.
EPS Next Y0.02%
EPS Next 2Y-2.54%
EPS Next 3Y0.78%
EPS Next 5Y-2.7%
Revenue Next Year-2.72%
Revenue Next 2Y-2.55%
Revenue Next 3Y-0.81%
Revenue Next 5Y0.59%
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
A Price/Earnings ratio of 14.23 indicates a correct valuation of BHP.
Based on the Price/Earnings ratio, BHP is valued cheaply inside the industry as 87.66% of the companies are valued more expensively.
BHP's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.10.
With a Price/Forward Earnings ratio of 14.23, BHP is valued correctly.
67.53% of the companies in the same industry are more expensive than BHP, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BHP to the average of the S&P500 Index (22.52), we can say BHP is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 14.23 |
4.2 Price Multiples
90.26% of the companies in the same industry are more expensive than BHP, based on the Enterprise Value to EBITDA ratio.
88.96% of the companies in the same industry are more expensive than BHP, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.28 | ||
| EV/EBITDA | 6.31 |
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.
BHP has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)597.74
PEG (5Y)6.19
EPS Next 2Y-2.54%
EPS Next 3Y0.78%
5. Dividend
5.1 Amount
BHP has a Yearly Dividend Yield of 3.98%.
BHP's Dividend Yield is rather good when compared to the industry average which is at 2.55. BHP pays more dividend than 94.81% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.35, BHP pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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
BHP pays out 70.99% 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.
DP70.99%
EPS Next 2Y-2.54%
EPS Next 3Y0.78%
57.05
-0.19 (-0.33%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners50.2%
Inst Owner Change-1.27%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap144.86B
Revenue(TTM)51.26B
Net Income(TTM)9.02B
Analysts68.18
Price Target56.59 (-0.81%)
Short Float %0.6%
Short Ratio4.47
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.98% |
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)-1.55%
PT rev (3m)3.66%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-2.98%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.53%
Revenue NY rev (3m)0.66%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.23 | ||
| Fwd PE | 14.23 | ||
| P/S | 2.83 | ||
| P/FCF | 16.28 | ||
| P/OCF | 7.75 | ||
| P/B | 3.04 | ||
| P/tB | 3.17 | ||
| EV/EBITDA | 6.31 |
EPS(TTM)4.01
EY7.03%
EPS(NY)4.01
Fwd EY7.03%
FCF(TTM)3.5
FCFY6.14%
OCF(TTM)7.36
OCFY12.9%
SpS20.19
BVpS18.77
TBVpS18.01
PEG (NY)597.74
PEG (5Y)6.19
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)17.47%
ROICexc(5y)21.66%
ROICexgc(3y)17.88%
ROICexgc(5y)22.14%
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 | 3.11 |
F-Score4
WACC8.97%
ROIC/WACC1.39
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 Y0.02%
EPS Next 2Y-2.54%
EPS Next 3Y0.78%
EPS Next 5Y-2.7%
Revenue 1Y (TTM)-7.9%
Revenue growth 3Y-7.66%
Revenue growth 5Y5.66%
Sales Q2Q%-8.23%
Revenue Next Year-2.72%
Revenue Next 2Y-2.55%
Revenue Next 3Y-0.81%
Revenue Next 5Y0.59%
EBIT growth 1Y-4.37%
EBIT growth 3Y-16.37%
EBIT growth 5Y6.98%
EBIT Next Year25.29%
EBIT Next 3Y8.18%
EBIT Next 5Y1.1%
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 6 / 10 to BHP GROUP LTD-SPON ADR (BHP). This can be considered as Fairly Valued.
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 14.23 and the Price/Book (PB) ratio is 3.04.
Can you provide the financial health for BHP stock?
The financial health rating of BHP GROUP LTD-SPON ADR (BHP) is 4 / 10.