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. More Details
Excellent balance sheet second-rate dividend payer.
Share Price & News
How has BHP Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: BHP is less volatile than 75% of Australian stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: BHP's weekly volatility (3%) has been stable over the past year.
7 Day Return
AU Metals and Mining
1 Year Return
AU Metals and Mining
Return vs Industry: BHP matched the Australian Metals and Mining industry which returned 31.2% over the past year.
Return vs Market: BHP exceeded the Australian Market which returned 26.8% over the past year.
Long-Term 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
3 days ago | Simply Wall StBHP Group (ASX:BHP) Has A Pretty Healthy Balance Sheet
2 weeks ago | Simply Wall StHow Much Are BHP Group (ASX:BHP) Insiders Spending On Buying Shares?
4 weeks ago | Simply Wall StCalculating The Intrinsic Value Of BHP Group (ASX:BHP)
Is BHP Group undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BHP (A$47.16) is trading above our estimate of fair value (A$46.93)
Significantly Below Fair Value: BHP is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: BHP is poor value based on its PE Ratio (25.8x) compared to the Australian Metals and Mining industry average (11.9x).
PE vs Market: BHP is poor value based on its PE Ratio (25.8x) compared to the Australian market (20.4x).
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 (3.7x) compared to the AU Metals and Mining industry average (2.5x).
How is BHP Group forecast to perform in the next 1 to 3 years based on estimates from 23 analysts?
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 (-8.4% per year).
Earnings vs Market: BHP's earnings are forecast to decline over the next 3 years (-8.4% 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 (-5.5% per year).
High Growth Revenue: BHP's revenue is forecast to decline over the next 3 years (-5.5% 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 (22.4%)
How has BHP Group performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: BHP has high quality earnings.
Growing Profit Margin: BHP's current net profit margins (15%) are lower than last year (20.7%).
Past Earnings Growth Analysis
Earnings Trend: BHP has become profitable over the past 5 years, growing earnings by 39.8% per year.
Accelerating Growth: BHP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: BHP had negative earnings growth (-26.3%) over the past year, making it difficult to compare to the Metals and Mining industry average (26.1%).
Return on Equity
High ROE: BHP's Return on Equity (15.7%) is considered low.
How is BHP Group's financial position?
Financial Position Analysis
Short Term Liabilities: BHP's short term assets ($19.0B) exceed its short term liabilities ($13.4B).
Long Term Liabilities: BHP's short term assets ($19.0B) do not cover its long term liabilities ($36.4B).
Debt to Equity History and Analysis
Debt Level: BHP's debt to equity ratio (35.5%) is considered satisfactory.
Reducing Debt: BHP's debt to equity ratio has reduced from 58.9% to 35.5% over the past 5 years.
Debt Coverage: BHP's debt is well covered by operating cash flow (93.1%).
Interest Coverage: BHP's interest payments on its debt are well covered by EBIT (37.3x coverage).
What is BHP Group current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BHP's dividend (4.4%) is higher than the bottom 25% of dividend payers in the Australian market (1.99%).
High Dividend: BHP's dividend (4.4%) is low compared to the top 25% of dividend payers in the Australian market (5%).
Stability and Growth of Payments
Stable Dividend: BHP's dividend payments have been volatile in the past 10 years.
Growing Dividend: BHP's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (113.3%), BHP's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: BHP's dividends in 3 years are forecast to be covered by earnings (74% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Mike Henry (54 yo)
Mr. Mike P. Henry, BSc (Chem), has been the Chief Executive Officer and Executive Director of BHP Group since January 01, 2020 and served as its President of Operations for Minerals Australia(formerly know...
CEO Compensation Analysis
Compensation vs Market: Mike's total compensation ($USD6.03M) is above average for companies of similar size in the Australian market ($USD3.37M).
Compensation vs Earnings: Mike's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Experienced Management: BHP's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.
Experienced Board: BHP's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
BHP Group's company bio, employee growth, exchange listings and data sources
- Name: BHP Group
- Ticker: BHP
- Exchange: ASX
- Founded: 1851
- Industry: Diversified Metals and Mining
- Sector: Materials
- Market Cap: AU$138.915b
- Shares outstanding: 2.95b
- Website: https://www.bhp.com
Number of Employees
- BHP Group
- 171 Collins Street
- Level 18
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, C...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/24 08:02|
|End of Day Share Price||2021/06/23 00:00|
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.