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BHP GROUP LTD-SPON ADR (BHP) Stock Fundamental Analysis

NYSE:BHP - New York Stock Exchange, Inc. - US0886061086 - ADR - Currency: USD

53.59  -0.11 (-0.2%)

Premarket: 53.8 +0.21 (+0.39%)

Fundamental Rating

5

Overall BHP gets a fundamental rating of 5 out of 10. We evaluated BHP against 156 industry peers in the Metals & Mining industry. BHP has an excellent profitability rating, but there are some minor concerns on its financial health. BHP has a bad growth rate and is valued cheaply.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

In the past year BHP was profitable.
BHP had a positive operating cash flow in the past year.
Each year in the past 5 years BHP has been profitable.
Each year in the past 5 years BHP had a positive operating cash flow.
BHP Yearly Net Income VS EBIT VS OCF VS FCFBHP Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B

1.2 Ratios

With an excellent Return On Assets value of 8.29%, BHP belongs to the best of the industry, outperforming 83.97% of the companies in the same industry.
With an excellent Return On Equity value of 18.92%, BHP belongs to the best of the industry, outperforming 90.38% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 12.49%, BHP belongs to the top of the industry, outperforming 89.74% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BHP is above the industry average of 12.76%.
Industry RankSector 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%
BHP Yearly ROA, ROE, ROICBHP Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

1.3 Margins

With an excellent Profit Margin value of 17.59%, BHP belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
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 89.74% of the companies in the same industry.
BHP's Operating Margin has been stable in the last couple of years.
BHP has a Gross Margin of 56.70%. This is amongst the best in the industry. BHP outperforms 90.38% 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 RankSector 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%
BHP Yearly Profit, Operating, Gross MarginsBHP Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 -20 40 60

4

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.
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.
BHP Yearly Shares OutstandingBHP Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
BHP Yearly Total Debt VS Total AssetsBHP Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.2 Solvency

An Altman-Z score of 3.02 indicates that BHP is not in any danger for bankruptcy at the moment.
BHP has a Altman-Z score (3.02) which is in line with 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.
BHP's Debt to FCF ratio of 2.75 is fine compared to the rest of the industry. BHP outperforms 77.56% of its industry peers.
A Debt/Equity ratio of 0.47 indicates that BHP is not too dependend on debt financing.
BHP has a Debt to Equity ratio of 0.47. This is in the lower half of the industry: BHP underperforms 75.64% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.47
Debt/FCF 2.75
Altman-Z 3.02
ROIC/WACC1.27
WACC9.83%
BHP Yearly LT Debt VS Equity VS FCFBHP Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B

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 71.79% 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 63.46% of its industry peers.
Industry RankSector Rank
Current Ratio 1.46
Quick Ratio 1.11
BHP Yearly Current Assets VS Current LiabilitesBHP Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2

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.
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

Based on estimates for the next years, BHP will show a decrease in Earnings Per Share. The EPS will decrease by -5.56% on average per year.
Based on estimates for the next years, BHP will show a small growth in Revenue. The Revenue will grow by 1.10% on average per year.
EPS Next Y3.02%
EPS Next 2Y1.06%
EPS Next 3Y1.35%
EPS Next 5Y-5.56%
Revenue Next Year-3.04%
Revenue Next 2Y-2.48%
Revenue Next 3Y-0.55%
Revenue Next 5Y1.1%

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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
BHP Yearly Revenue VS EstimatesBHP Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 20B 40B 60B
BHP Yearly EPS VS EstimatesBHP Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8

7

4. Valuation

4.1 Price/Earnings Ratio

BHP is valuated correctly with a Price/Earnings ratio of 13.36.
Based on the Price/Earnings ratio, BHP is valued cheaper than 87.18% of the companies in the same industry.
When comparing the Price/Earnings ratio of BHP to the average of the S&P500 Index (26.86), we can say BHP is valued rather cheaply.
The Price/Forward Earnings ratio is 12.97, which indicates a correct valuation of BHP.
Based on the Price/Forward Earnings ratio, BHP is valued a bit cheaper than the industry average as 69.23% of the companies are valued more expensively.
BHP's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.94.
Industry RankSector Rank
PE 13.36
Fwd PE 12.97
BHP Price Earnings VS Forward Price EarningsBHP Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BHP indicates a rather cheap valuation: BHP is cheaper than 87.82% of the companies listed in the same industry.
BHP's Price/Free Cash Flow ratio is rather cheap when compared to the industry. BHP is cheaper than 88.46% of the companies in the same industry.
Industry RankSector Rank
P/FCF 15.28
EV/EBITDA 5.93
BHP Per share dataBHP EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20

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)4.42
PEG (5Y)5.82
EPS Next 2Y1.06%
EPS Next 3Y1.35%

5

5. Dividend

5.1 Amount

BHP has a Yearly Dividend Yield of 5.11%, which is a nice return.
BHP's Dividend Yield is rather good when compared to the industry average which is at 2.61. BHP pays more dividend than 95.51% of the companies in the same industry.
BHP's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
Industry RankSector Rank
Dividend Yield 5.11%

5.2 History

The dividend of BHP decreases each year by -7.16%.
BHP has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-7.16%
Div Incr Years0
Div Non Decr Years0
BHP Yearly Dividends per shareBHP Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 4 6

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 2Y1.06%
EPS Next 3Y1.35%
BHP Yearly Income VS Free CF VS DividendBHP Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10B 20B 30B
BHP Dividend Payout.BHP Dividend Payout, showing the Payout Ratio.BHP Dividend Payout.PayoutRetained Earnings

BHP GROUP LTD-SPON ADR

NYSE:BHP (8/20/2025, 8:04:00 PM)

Premarket: 53.8 +0.21 (+0.39%)

53.59

-0.11 (-0.2%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)08-19 2025-08-19/bmo
Earnings (Next)02-15 2026-02-15
Inst Owners49.86%
Inst Owner Change6.01%
Ins Owners0.03%
Ins Owner ChangeN/A
Market Cap135.98B
Analysts70.91
Price Target55.52 (3.6%)
Short Float %0.66%
Short Ratio4.98
Dividend
Industry RankSector Rank
Dividend Yield 5.11%
Yearly Dividend1.51
Dividend Growth(5Y)-7.16%
DP70.99%
Div Incr Years0
Div Non Decr Years0
Ex-Date03-07 2025-03-07 (1)
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)-2.85%
PT rev (3m)-0.9%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)1.21%
Revenue NY rev (3m)1.21%
Valuation
Industry RankSector Rank
PE 13.36
Fwd PE 12.97
P/S 2.65
P/FCF 15.28
P/OCF 7.27
P/B 2.85
P/tB 2.97
EV/EBITDA 5.93
EPS(TTM)4.01
EY7.48%
EPS(NY)4.13
Fwd EY7.71%
FCF(TTM)3.51
FCFY6.54%
OCF(TTM)7.37
OCFY13.75%
SpS20.2
BVpS18.79
TBVpS18.03
PEG (NY)4.42
PEG (5Y)5.82
Profitability
Industry RankSector 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%
ROICexcg growth 3Y-23.87%
ROICexcg 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 RankSector 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 3.02
F-Score4
WACC9.83%
ROIC/WACC1.27
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 Y3.02%
EPS Next 2Y1.06%
EPS Next 3Y1.35%
EPS Next 5Y-5.56%
Revenue 1Y (TTM)-7.9%
Revenue growth 3Y-7.66%
Revenue growth 5Y5.66%
Sales Q2Q%-8.23%
Revenue Next Year-3.04%
Revenue Next 2Y-2.48%
Revenue Next 3Y-0.55%
Revenue Next 5Y1.1%
EBIT growth 1Y-4.37%
EBIT growth 3Y-16.37%
EBIT growth 5Y6.98%
EBIT Next Year25.41%
EBIT Next 3Y7.6%
EBIT Next 5Y0.68%
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%