ASX:BHP

Stock Analysis Report

Executive Summary

BHP Group engages in the natural resources business worldwide.

Snowflake

Fundamentals

Proven track record average dividend payer.


Similar Companies

Share Price & News

How has BHP Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.8%

BHP

-1.4%

AU Metals and Mining

0.1%

AU Market


1 Year Return

10.4%

BHP

10.2%

AU Metals and Mining

11.9%

AU Market

Return vs Industry: BHP matched the Australian Metals and Mining industry which returned 10.2% over the past year.

Return vs Market: BHP underperformed the Australian Market which returned 11.9% over the past year.


Shareholder returns

BHPIndustryMarket
7 Day-1.8%-1.4%0.1%
30 Day-5.9%-6.2%-1.1%
90 Day-12.8%-11.8%-1.4%
1 Year21.4%10.4%18.2%10.2%18.5%11.9%
3 Year87.0%55.0%57.7%38.7%36.4%18.1%
5 Year47.0%4.8%70.4%29.8%50.9%16.7%

Price Volatility Vs. Market

How volatile is BHP Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BHP Group undervalued compared to its fair value and its price relative to the market?

17.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BHP (A$35.4) is trading below our estimate of fair value (A$42.79)

Significantly Below Fair Value: BHP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: BHP is poor value based on its PE Ratio (14.6x) compared to the Metals and Mining industry average (13x).

PE vs Market: BHP is good value based on its PE Ratio (14.6x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: BHP is poor value based on its PEG Ratio (40.8x)


Price to Book Ratio

PB vs Industry: BHP is overvalued based on its PB Ratio (2.6x) compared to the AU Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is BHP Group forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BHP's forecast earnings growth (0.4% per year) is below the savings rate (2.3%).

Earnings vs Market: BHP's earnings (0.4% per year) are forecast to grow slower than the Australian market (10.2% per year).

High Growth Earnings: BHP's earnings are forecast to grow, but not significantly.

Revenue vs Market: BHP's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: BHP's revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BHP's Return on Equity is forecast to be low in 3 years time (17.3%).


Next Steps

Past Performance

How has BHP Group performed over the past 5 years?

8.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BHP's earnings have grown by 8.9% per year over the past 5 years.

Accelerating Growth: BHP's earnings growth over the past year (30.4%) exceeds its 5-year average (8.9% per year).

Earnings vs Industry: BHP earnings growth over the past year (30.4%) exceeded the Metals and Mining industry 14.4%.


Return on Equity

High ROE: BHP's Return on Equity (18.4%) is considered low.


Return on Assets

ROA vs Industry: BHP's Return on Assets is below or equal to the Metals and Mining industry average last year.


Return on Capital Employed

ROCE Improving: BHP has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is BHP Group's financial position?


Financial Position Analysis

Short Term Liabilities: BHP's short term assets ($23.4B) exceeds its short term liabilities ($12.3B)

Long Term Liabilities: BHP's short term assets (23.4B) do not cover its long term liabilities (36.7B)


Debt to Equity History and Analysis

Debt Level: BHP's debt to equity ratio (48.4%) is considered high

Reducing Debt: BHP's debt to equity ratio has increased from 39.2% to 48.4% over the past 5 years.

Debt Coverage: BHP's debt is well covered by operating cash flow (71.3%).

Interest Coverage: BHP's interest payments on its debt are well covered by EBIT (25.3x coverage).


Balance Sheet

Inventory Level: BHP has a high level of physical assets or inventory.

Debt Coverage by Assets: BHP's debt is not covered by short term assets (assets are 0.9x debt).


Next Steps

Dividend

What is BHP Group's current dividend yield, its reliability and sustainability?

5.47%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%2.4%markettop25%5.6%industryaverage4.8%forecastin3Years5.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: BHP's dividend (5.47%) is higher than the bottom 25% of dividend payers in the Australian market (2.44%).

High Dividend: BHP's dividend (5.47%) is low compared to the top 25% of dividend payers in the Australian market (5.58%).

Stable Dividend: BHP's dividend payments have been volatile in the past 10 years.

Growing Dividend: BHP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.7%), BHP's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BHP's dividends in 3 years are forecast to be covered by earnings (65.6% payout ratio).


Next Steps

Management

What is the CEO of BHP Group's salary, the management and board of directors tenure and is there insider trading?

4.7yrs

Average management tenure


CEO

Andrew Mackenzie (62yo)

6.4yrs

Tenure

US$7,905,000

Compensation

Dr. Andrew Mackenzie, B.Sc. (Geology), PhD. (Chemistry), has been the Chief Executive Officer of BHP Group (formerly known as BHP Group Limited) since February 2013. Dr. Mackenzie has been Chief Executive  ...


CEO Compensation Analysis

Compensation vs. Market: Andrew's total compensation ($USD7.91M) is about average for companies of similar size in the Australian market ($USD3.86M).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.7yrs

Average Tenure

52yo

Average Age

Experienced Management: BHP's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

62yo

Average Age

Experienced Board: BHP's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: BHP insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,119,29725 Aug 19
Andrew Mackenzie
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares31,309
Max PriceUS$35.75

Ownership Breakdown


Management Team

  • Peter Beaven (52yo)

    Chief Financial Officer

    • Tenure: 5yrs
    • Compensation: US$4.45m
  • Andrew Mackenzie (62yo)

    CEO & Executive Director

    • Tenure: 6.4yrs
    • Compensation: US$7.91m
  • Adrian Wood (45yo)

    Head of Investor Relations

    • Tenure: 4.7yrs
  • Mike Henry (53yo)

    President of Operations for Minerals Australia

    • Tenure: 4.8yrs
    • Compensation: US$4.73m
  • Danny Malchuk (53yo)

    President of Operations for Minerals Americas

    • Tenure: 3.7yrs
    • Compensation: US$4.38m
  • Athalie Williams (49yo)

    Chief People Officer

    • Tenure: 4.8yrs
    • Compensation: US$2.52m
  • Diane Jurgens (57yo)

    Chief Technology Officer

    • Tenure: 3.7yrs
  • Caroline Cox (49yo)

    General Counsel & Group Company Secretary

    • Tenure: 3.6yrs
  • Geraldine Slattery (50yo)

    President of Operations Petroleum

    • Tenure: 0.6yrs
    • Compensation: US$1.24m
  • James Agar

    Vice President of Communications

    • Tenure: 0yrs

Board Members

  • Malcolm Broomhead (67yo)

    Independent Non-Executive Director

    • Tenure: 9.6yrs
    • Compensation: US$263.00k
  • Carolyn Hewson (64yo)

    Independent Non-Executive Director

    • Tenure: 9.6yrs
    • Compensation: US$255.00k
  • Ken MacKenzie (55yo)

    Independent Chairman of the Board

    • Tenure: 2.1yrs
    • Compensation: US$912.00k
  • Susan Kilsby (61yo)

    Independent Non-Executive Director

    • Tenure: 0.5yrs
    • Compensation: US$69.00k
  • Anita Frew (62yo)

    Independent Non-Executive Director

    • Tenure: 4.1yrs
    • Compensation: US$268.00k
  • Andrew Mackenzie (62yo)

    CEO & Executive Director

    • Tenure: 6.4yrs
    • Compensation: US$7.91m
  • Terry Bowen (52yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
    • Compensation: US$223.00k
  • John Mogford (66yo)

    Independent Non-Executive Director

    • Tenure: 2yrs
    • Compensation: US$248.00k
  • Lindsay Maxsted (65yo)

    Independent Non-Executive Director

    • Tenure: 8.6yrs
    • Compensation: US$252.00k
  • Shriti Vadera (57yo)

    Senior Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$301.00k

Company Information

BHP Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BHP Group
  • Ticker: BHP
  • Exchange: ASX
  • Founded: 1885
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$168.701b
  • Shares outstanding: 5.06b
  • Website: https://www.bhp.com

Number of Employees


Location

  • BHP Group
  • 171 Collins Street
  • Level 18
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BHPNYSE (New York Stock Exchange)ADR EACH REP 2 ORD NPV(MGT)USUSDDec 1972
0HN3LSE (London Stock Exchange)ADR EACH REP 2 ORD NPV(MGT)GBUSDDec 1972
BHPDB (Deutsche Boerse AG)ADR EACH REP 2 ORD NPV(MGT)DEEURDec 1972
BHP NBMV (Bolsa Mexicana de Valores)ADR EACH REP 2 ORD NPV(MGT)MXMXNDec 1972
BHPL.FOTCPK (Pink Sheets LLC)YesLTD Ordinary SharesUSUSDJan 1975
BHPASX (Australian Securities Exchange)YesLTD Ordinary SharesAUAUDJan 1975
BHP1DB (Deutsche Boerse AG)YesLTD Ordinary SharesDEEURJan 1975
BHPSWX (SIX Swiss Exchange)YesLTD Ordinary SharesCHCHFJan 1975
BHPCHIA (Chi-X Australia)YesLTD Ordinary SharesAUAUDJan 1975
BILXTRA (XETRA Trading Platform)PLC Ordinary SharesDEEURJul 2001
BILDB (Deutsche Boerse AG)PLC Ordinary SharesDEEURJul 2001
BHPLSE (London Stock Exchange)PLC Ordinary SharesGBGBPJul 2001
BIL1DB (Deutsche Boerse AG)SPONS ADR EACH REP 2 ORD USD0.50DEEURJul 2001
BBLNYSE (New York Stock Exchange)SPONS ADR EACH REP 2 ORD USD0.50USUSDJul 2001
BHPB.FOTCPK (Pink Sheets LLC)PLC Ordinary SharesUSUSDJul 2001
BLTSWX (SIX Swiss Exchange)PLC Ordinary SharesCHCHFJul 2001
BHPJSE (The Johannesburg Securities Exchange)PLC Ordinary SharesZAZARJul 2001

Biography

BHP Group engages in the natural resources business worldwide. It operates through Petroleum, Copper, Iron Ore, and Coal segments. The company engages in the exploration, development, and production of oil ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 10:33
End of Day Share Price2019/10/23 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.