BHP

BHP GroupASX:BHP Stock Report

Market Cap

AU$115.5b

7D

-5.6%

1Y

4.8%

Updated

20 Sep, 2021

Data

Company Financials +
BHP fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance5/6
Financial Health5/6
Dividends4/6

BHP Overview

BHP Group engages in the natural resources business in Australia, Europe, China, Japan, India, South Korea, rest of Asia, North America, South America, and internationally.

BHP Group Competitors

Pilbara Minerals

ASX:PLS

AU$6.7b

29Metals

ASX:29M

AU$1.2b

Mincor Resources

ASX:MCR

AU$623.0m

Panoramic Resources

ASX:PAN

AU$451.2m

Price History & Performance

Summary of all time highs, changes and price drops for BHP Group
Historical stock prices
Current Share PriceAU$39.16
52 Week HighAU$33.73
52 Week LowAU$54.55
Beta0.83
1 Month Change-11.68%
3 Month Change-16.11%
1 Year Change4.85%
3 Year Change15.76%
5 Year Change81.72%
Change since IPO856.52%

Recent News & Updates

Sep 09
Here's Why We Think BHP Group (ASX:BHP) Is Well Worth Watching

Here's Why We Think BHP Group (ASX:BHP) Is Well Worth Watching

Like a puppy chasing its tail, some new investors often chase 'the next big thing', even if that means buying 'story...

Aug 24
Why BHP Group's (ASX:BHP) Earnings Are Better Than They Seem

Why BHP Group's (ASX:BHP) Earnings Are Better Than They Seem

BHP Group's ( ASX:BHP ) recent earnings report didn't offer any surprises, with the shares unchanged over the last...

Shareholder Returns

BHPAU Metals and MiningAU Market
7D-5.6%-4.9%-0.1%
1Y4.8%12.8%28.8%

Return vs Industry: BHP underperformed the Australian Metals and Mining industry which returned 10.1% over the past year.

Return vs Market: BHP underperformed the Australian Market which returned 27.1% over the past year.

Price Volatility

Is BHP's price volatile compared to industry and market?
BHP volatility
BHP Beta0.83
Industry Beta0.96
Market Beta1

Stable Share Price: BHP is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BHP's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
185140,110Mike Henryhttps://www.bhp.com

BHP Group engages in the natural resources business in Australia, Europe, China, Japan, India, South Korea, rest of Asia, North America, South America, and internationally. It operates through Petroleum, Copper, Iron Ore, and Coal segments. The company engages in the exploration, development, and production of oil and gas properties; and mining of copper, silver, zinc, molybdenum, uranium, gold, iron ore, and metallurgical and energy coal.

Valuation

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

43.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BHP (A$39.16) is trading below our estimate of fair value (A$68.82)

Significantly Below Fair Value: BHP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BHP is poor value based on its PE Ratio (12.8x) compared to the Australian Metals and Mining industry average (12.1x).

PE vs Market: BHP is good value based on its PE Ratio (12.8x) compared to the Australian market (18.7x).


Price to Earnings Growth Ratio

PEG Ratio: BHP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BHP is overvalued based on its PB Ratio (2.8x) compared to the AU Metals and Mining industry average (2.7x).


Future Growth

How is BHP Group forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

-4.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BHP's earnings are forecast to decline over the next 3 years (-4.3% per year).

Earnings vs Market: BHP's earnings are forecast to decline over the next 3 years (-4.3% per year).

High Growth Earnings: BHP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BHP's revenue is expected to decline over the next 3 years (-7.2% per year).

High Growth Revenue: BHP's revenue is forecast to decline over the next 3 years (-7.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BHP's Return on Equity is forecast to be high in 3 years time (20.4%)


Past Performance

How has BHP Group performed over the past 5 years?

25.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BHP has high quality earnings.

Growing Profit Margin: BHP's current net profit margins (18.5%) are higher than last year (18.4%).


Past Earnings Growth Analysis

Earnings Trend: BHP has become profitable over the past 5 years, growing earnings by 25.6% per year.

Accelerating Growth: BHP's earnings growth over the past year (42.1%) exceeds its 5-year average (25.6% per year).

Earnings vs Industry: BHP earnings growth over the past year (42.1%) underperformed the Metals and Mining industry 44.4%.


Return on Equity

High ROE: BHP's Return on Equity (24.2%) is considered high.


Financial Health

How is BHP Group's financial position?


Financial Position Analysis

Short Term Liabilities: BHP's short term assets ($26.7B) exceed its short term liabilities ($16.4B).

Long Term Liabilities: BHP's short term assets ($26.7B) do not cover its long term liabilities ($36.9B).


Debt to Equity History and Analysis

Debt Level: BHP's debt to equity ratio (31.8%) is considered satisfactory.

Reducing Debt: BHP's debt to equity ratio has reduced from 62.9% to 31.8% over the past 5 years.

Debt Coverage: BHP's debt is well covered by operating cash flow (154.1%).

Interest Coverage: BHP's interest payments on its debt are well covered by EBIT (75x coverage).


Balance Sheet


Dividend

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

10.57%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BHP's dividend (10.57%) is higher than the bottom 25% of dividend payers in the Australian market (2.3%).

High Dividend: BHP's dividend (10.57%) is in the top 25% of dividend payers in the Australian market (5.41%)


Stability and Growth of Payments

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: With its high payout ratio (134.7%), BHP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BHP's dividends in 3 years are forecast to be covered by earnings (68.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Mike Henry (55 yo)

1.67yrs

Tenure

US$6,033,000

Compensation

Mr. Mike P. Henry, BSc (Chem), has been the Chief Executive Officer and Executive Director of BHP Group since January 01, 2020 and served as its President of Operations for Minerals Australia(formerly know...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD6.03M) is above average for companies of similar size in the Australian market ($USD3.55M).

Compensation vs Earnings: Mike's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: BHP's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

Experienced Board: BHP's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: BHP Group
  • Ticker: BHP
  • Exchange: ASX
  • Founded: 1851
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$115.524b
  • Shares outstanding: 2.95b
  • Website: https://www.bhp.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/20 01:20
End of Day Share Price2021/09/17 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.