Loading...

BHP Group

ASX:BHP
Snowflake Description

Average dividend payer with mediocre balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BHP
ASX
A$176B
Market Cap
  1. Home
  2. AU
  3. Materials
Company description

BHP Group discovers, acquires, develops, and markets natural resources worldwide. The last earnings update was 154 days ago. More info.


Add to Portfolio Compare Print
BHP Share Price and Events
7 Day Returns
2.7%
ASX:BHP
2.5%
AU Metals and Mining
0.4%
AU Market
1 Year Returns
17.7%
ASX:BHP
8.7%
AU Metals and Mining
1.8%
AU Market
BHP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
BHP Group (BHP) 2.7% 11.7% 13.2% 17.7% 115.4% -6%
AU Metals and Mining 2.5% 10.8% 13.3% 8.7% 109.8% 8.1%
AU Market 0.4% 4.3% 5.9% 1.8% 25.9% 3.7%
1 Year Return vs Industry and Market
  • BHP outperformed the Metals and Mining industry which returned 8.7% over the past year.
  • BHP outperformed the Market in Australia which returned 1.8% over the past year.
Price Volatility
BHP
Industry
5yr Volatility vs Market

BHP Value

 Is BHP Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of BHP Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for BHP Group.

ASX:BHP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 25 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:BHP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 7.7%
Metals and Mining Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.851 (1 + (1- 30%) (22.38%))
0.985
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.98
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.985 * 7.69%)
9.88%

Discounted Cash Flow Calculation for ASX:BHP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for BHP Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

ASX:BHP DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 13,023.78 9,526.30 9,724.75 11,036.50 9,659.27
Source Analyst x18 Analyst x18 Analyst x14 Analyst x2 Est @ -12.48%
Present Value
Discounted (@ 9.88%)
11,852.32 7,889.64 7,329.55 7,570.02 6,029.43
Present value of next 5 years cash flows $40,670.96
ASX:BHP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $9,659.27 × (1 + 2.31%) ÷ (9.88% – 2.31%)
$130,518.53
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $130,518.53 ÷ (1 + 9.88%)5
$81,471.19
ASX:BHP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $40,670.96 + $81,471.19
$122,142.14
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $122,142.14 / 5,057.72
$24.15
ASX:BHP Discount to Share Price
Calculation Result
Exchange Rate USD/AUD
(Reporting currency to currency of ASX:BHP)
1.404
Value per Share
(AUD)
= Value per Share in USD x Exchange Rate (USD/AUD)
= $24.15 x 1.404
A$33.9
Value per share (AUD) From above. A$33.90
Current discount Discount to share price of A$37.00
= -1 x (A$37.00 - A$33.90) / A$33.90
-9.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of BHP Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for BHP Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are BHP Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:BHP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in USD $1.24
ASX:BHP Share Price ** ASX (2019-02-18) in AUD A$37
ASX:BHP Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.712 $26.36
Australia Metals and Mining Industry PE Ratio Median Figure of 79 Publicly-Listed Metals and Mining Companies 11.04x
Australia Market PE Ratio Median Figure of 559 Publicly-Listed Companies 15.71x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of BHP Group.

ASX:BHP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:BHP Share Price ÷ EPS (both in USD)

= 26.36 ÷ 1.24

21.18x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BHP Group is overvalued based on earnings compared to the AU Metals and Mining industry average.
  • BHP Group is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does BHP Group's expected growth come at a high price?
Raw Data
ASX:BHP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.18x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts
1.9%per year
Australia Metals and Mining Industry PEG Ratio Median Figure of 42 Publicly-Listed Metals and Mining Companies 0.8x
Australia Market PEG Ratio Median Figure of 361 Publicly-Listed Companies 1.42x

*Line of best fit is calculated by linear regression .

ASX:BHP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.18x ÷ 1.9%

11.09x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BHP Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on BHP Group's assets?
Raw Data
ASX:BHP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in USD $10.44
ASX:BHP Share Price * ASX (2019-02-18) in AUD A$37
ASX:BHP Share Price converted to USD reporting currency Exchange rate (AUD/ USD) 0.712 $26.36
Australia Metals and Mining Industry PB Ratio Median Figure of 580 Publicly-Listed Metals and Mining Companies 1.52x
Australia Market PB Ratio Median Figure of 1,664 Publicly-Listed Companies 1.65x
ASX:BHP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:BHP Share Price ÷ Book Value per Share (both in USD)

= 26.36 ÷ 10.44

2.52x

* Primary Listing of BHP Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BHP Group is overvalued based on assets compared to the AU Metals and Mining industry average.
X
Value checks
We assess BHP Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Metals and Mining industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Metals and Mining industry average (and greater than 0)? (1 check)
  5. BHP Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

BHP Future Performance

 How is BHP Group expected to perform in the next 1 to 3 years based on estimates from 25 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
1.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is BHP Group expected to grow at an attractive rate?
  • BHP Group's earnings growth is positive but not above the low risk savings rate of 2.3%.
Growth vs Market Checks
  • BHP Group's earnings growth is positive but not above the Australia market average.
  • BHP Group's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:BHP Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:BHP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 25 Analysts 1.9%
ASX:BHP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 25 Analysts -0.6%
Australia Metals and Mining Industry Earnings Growth Rate Market Cap Weighted Average -0.3%
Australia Metals and Mining Industry Revenue Growth Rate Market Cap Weighted Average 0.4%
Australia Market Earnings Growth Rate Market Cap Weighted Average 5.9%
Australia Market Revenue Growth Rate Market Cap Weighted Average 2.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:BHP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:BHP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-06-30 44,819 8,024 2
2022-06-30 44,315 17,159 8,865 5
2021-06-30 42,264 16,441 8,599 20
2020-06-30 42,641 16,670 9,270 24
2019-06-30 43,821 17,108 9,641 25
ASX:BHP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-06-30 43,895 18,461 6,626
2018-03-31 42,072 17,456 5,580
2017-12-31 40,259 16,450 4,533
2017-09-30 39,462 16,627 5,212
2017-06-30 36,513 16,804 6,362
2017-03-31 36,682 14,933 4,189
2016-12-31 34,698 13,062 2,488
2016-09-30 33,027 11,844 -1,949
2016-06-30 29,005 10,625 -490
2016-03-31 33,653 12,379 -6,248
2015-12-31 35,936 14,133 -6,111
2015-09-30 40,527 16,715 -1,345

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • BHP Group's earnings are expected to grow by 1.9% yearly, however this is not considered high growth (20% yearly).
  • BHP Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:BHP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (7 months ago) See Below
Future Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below

All data from BHP Group Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:BHP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-06-30 1.58 1.58 1.58 1.00
2022-06-30 1.75 1.81 1.68 2.00
2021-06-30 1.80 2.40 1.40 6.00
2020-06-30 1.90 2.32 1.60 8.00
2019-06-30 1.97 2.17 1.84 6.00
ASX:BHP Past Financials Data
Date (Data in USD Millions) EPS *
2018-06-30 1.24
2018-03-31 1.05
2017-12-31 0.85
2017-09-30 0.98
2017-06-30 1.20
2017-03-31 0.79
2016-12-31 0.47
2016-09-30 -0.37
2016-06-30 -0.09
2016-03-31 -1.17
2015-12-31 -1.15
2015-09-30 -0.25

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • BHP Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess BHP Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
BHP Group has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

BHP Past Performance

  How has BHP Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare BHP Group's growth in the last year to its industry (Metals and Mining).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • BHP Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • BHP Group's 1-year earnings growth exceeds its 5-year average (4.2% vs -30.4%)
  • BHP Group's earnings growth has not exceeded the AU Metals and Mining industry average in the past year (4.2% vs 26.1%).
Earnings and Revenue History
BHP Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from BHP Group Company Filings, last reported 7 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:BHP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 43,895.00 6,626.00 12,440.00
2018-03-31 42,072.00 5,579.50 6,223.00
2017-12-31 40,259.00 4,533.00 11,805.00
2017-09-30 39,462.00 5,211.50 11,805.00
2017-06-30 36,513.00 6,362.00 10,717.00
2017-03-31 36,681.50 4,189.00 11,767.50
2016-12-31 34,698.00 2,488.00 11,730.00
2016-09-30 33,026.50 -1,948.50 11,730.00
2016-06-30 29,005.00 -490.00 10,274.00
2016-03-31 33,652.50 -6,248.00 13,456.48
2015-12-31 35,936.00 -6,111.00 14,807.05
2015-09-30 40,526.50 -1,344.50 14,810.55
2015-06-30 45,124.00 3,422.00 15,002.00
2014-12-31 47,976.00 9,320.00 16,535.00 27.00
2014-09-30 52,378.00 11,441.50 16,610.50 27.00
2014-06-30 57,314.00 13,563.00 16,461.00
2014-03-31 67,547.00 14,364.50 20,911.50 53.50
2013-12-31 67,870.00 14,897.00 21,540.00 64.00
2013-09-30 66,929.00 13,060.00 21,466.00 64.00
2013-06-30 53,895.00 12,535.00 17,396.00 46.00
2013-03-31 64,665.00 10,570.00 21,172.50 69.50
2012-12-31 66,840.00 9,805.00 22,925.00 75.00
2012-09-30 69,547.00 12,611.00 23,283.50 75.00
2012-06-30 70,505.00 15,473.00 22,656.00 75.00
2012-03-31 73,667.00 19,293.00 20,955.50 74.50

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • BHP Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • BHP Group used its assets less efficiently than the AU Metals and Mining industry average last year based on Return on Assets.
  • BHP Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess BHP Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Metals and Mining industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
BHP Group has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

BHP Health

 How is BHP Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up BHP Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • BHP Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • BHP Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of BHP Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from BHP Group Company Filings, last reported 7 months ago.

ASX:BHP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 60,670.00 28,018.00 15,901.00
2018-03-31 60,670.00 26,805.00 16,071.00
2017-12-31 62,161.00 27,733.00 12,373.00
2017-09-30 62,161.00 27,733.00 12,373.00
2017-06-30 62,726.00 31,819.00 14,184.00
2017-03-31 62,726.00 31,819.00 14,184.00
2016-12-31 62,425.00 36,133.00 14,053.00
2016-09-30 62,425.00 36,133.00 14,053.00
2016-06-30 60,071.00 38,189.00 10,398.00
2016-03-31 60,071.00 38,189.00 10,398.00
2015-12-31 61,430.00 36,547.00 10,701.00
2015-09-30 61,430.00 36,547.00 10,701.00
2015-06-30 70,545.00 32,437.00 6,806.00
2014-12-31 86,250.00 31,069.00 6,211.00
2014-09-30 86,250.00 31,069.00 6,211.00
2014-06-30 85,382.00 34,862.00 8,815.00
2014-03-31 85,382.00 34,862.00 8,815.00
2013-12-31 82,279.00 38,035.00 11,099.00
2013-09-30 82,279.00 38,035.00 11,099.00
2013-06-30 75,291.00 33,913.00 5,778.00
2013-03-31 75,291.00 33,913.00 5,778.00
2012-12-31 71,203.00 33,511.00 4,969.00
2012-09-30 71,203.00 33,511.00 4,969.00
2012-06-30 67,085.00 28,592.00 4,832.00
2012-03-31 67,085.00 28,592.00 4,832.00
  • BHP Group's level of debt (46.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (45.1% vs 46.2% today).
  • Debt is well covered by operating cash flow (65.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 22.3x coverage).
X
Financial health checks
We assess BHP Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. BHP Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

BHP Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.83%
Current annual income from BHP Group dividends. Estimated to be 5.83% next year.
If you bought A$2,000 of BHP Group shares you are expected to receive A$77 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • BHP Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.68%).
  • BHP Group's dividend is below the markets top 25% of dividend payers in Australia (6.02%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:BHP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 25 Analyst Estimates (S&P Global) See Below
Australia Metals and Mining Industry Average Dividend Yield Market Cap Weighted Average of 35 Stocks 3.9%
Australia Market Average Dividend Yield Market Cap Weighted Average of 420 Stocks 4.4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.7%
Australia Top 25% Dividend Yield 75th Percentile 6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:BHP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-06-30 0.79 1.00
2022-06-30 1.24 3.00
2021-06-30 1.16 11.00
2020-06-30 1.30 14.00
2019-06-30 2.24 13.00
ASX:BHP Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2018-08-20 1.010 4.248
2018-02-20 1.100 4.578
2017-08-21 0.830 3.796
2017-02-21 0.540 2.911
2016-08-16 0.280 1.569
2016-02-23 0.320 2.309
2015-08-25 1.240 8.982
2015-03-06 1.240 5.720
2014-08-21 1.240 4.592
2014-03-10 1.162 3.469
2014-02-17 1.180 3.420
2013-09-09 1.180 3.502
2013-02-19 1.140 3.464
2012-08-22 1.140 3.149
2012-02-08 1.100 3.202
2011-08-24 1.100 2.940
2011-02-16 0.920 2.004
2010-08-25 0.900 2.164
2010-02-10 0.840 2.366
2009-08-12 0.820 2.335
2009-02-19 0.820 3.301

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of BHP Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.2x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.5x coverage).
X
Income/ dividend checks
We assess BHP Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can BHP Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. BHP Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

BHP Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andrew Mackenzie
COMPENSATION $8,106,000
AGE 61
TENURE AS CEO 5.8 years
CEO Bio

Dr. Andrew Mackenzie, B.Sc. (Geology), Ph.D.(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 Officer and Executive Director has been BHP Group Plc(formerly known as BHP Billiton Group) and BHP Billiton plc since May 10, 2013. He served as the Chief Executive of Non-Ferrous at BHP Billiton Limited from November 15, 2008 to May 10, 2013. He served as the Chief Executive of Non-Ferrous and Group Executive Officer at BHP Billiton Group and BHP Billiton plc from joining on November 15, 2008 to May 10, 2013. He served as the Chief Executive Officer, Diamonds & Minerals of Rio Tinto plc until November 15, 2007 and also served as its Chief Executive of Industrial Minerals Division since 2004. He served as the Head of Non-ferrous Metals of BHP Billiton Limited since November 2007. He served as the Chief Executive of Industrial Minerals Division for Rio Tinto Group and Rio Tinto Ltd. since April 2004. He served as the Chief Executive of Diamonds and Minerals at Rio Tinto Ltd. since June 1, 2007. He joined BHP Billiton in November 2008. Dr. Mackenzie has over 30 years of experience in oil and gas, petrochemicals and minerals , strategy and capital discipline over long-term cycles, technology, global markets, public policy and commodity value chains. He was 22 years with BP, primarily in the UK and North America in a range of Senior Technical and Engineering positions, including Head of Capital Markets in BP Finance, Chief Reservoir Engineer with oversight of oil and gas reserves and production, Head of Government and Public Affairs worldwide and Group Vice President, Technology which included responsibility for Research and Development and Engineering. Dr. Mackenzie served as Group Vice President of BP Petrochemicals. From 2005 to 2007, he served as the Chairman of the Board of trustees of the think tank, Demos. He has been a Non-Independent Director of BHP Billiton plc, BHP Billiton Group and BHP Group (formerly known as BHP Group Limited) since May 10, 2013. He served as an Independent Non-Executive Director of Centrica Plc from September 01, 2005 to May 23, 2013. He served as a Trustee of Think Tank, Demos until June 2008. He is Fellow of the Royal Society of London since May 2014. He is Director and Deputy Chair of the International Council on Mining and Metals since May 2013 and November 2017 respectively. He served as Director of the Grattan Institute from May 2013 to November 2017. Dr. Mackenzie holds a B.Sc. in geology and a PhD in Geology and Chemistry.

CEO Compensation
  • Andrew's compensation has been consistent with company performance over the past year.
  • Andrew's remuneration is higher than average for companies of similar size in Australia.
Management Team Tenure

Average tenure and age of the BHP Group management team in years:

3.5
Average Tenure
52
Average Age
  • The tenure for the BHP Group management team is about average.
Management Team

Andrew Mackenzie

TITLE
CEO & Executive Director
COMPENSATION
$8M
AGE
61
TENURE
5.8 yrs

Peter Beaven

TITLE
Chief Financial Officer
COMPENSATION
$4M
AGE
51
TENURE
4.3 yrs

Mike Henry

TITLE
President of Operations for Minerals Australia
COMPENSATION
$5M
AGE
52

Danny Malchuk

TITLE
President of Operations for Minerals Americas
COMPENSATION
$4M
AGE
52
TENURE
3 yrs

Steve Pastor

TITLE
President of Operations for Petroleum
COMPENSATION
$4M
AGE
52
TENURE
3 yrs

Diane Jurgens

TITLE
Chief Technology Officer
AGE
56
TENURE
3 yrs

Adrian Wood

TITLE
Head of Investor Relations
AGE
44
TENURE
4 yrs

James Agar

TITLE
Vice President of Communications

Athalie Williams

TITLE
Chief People Officer
COMPENSATION
$3M
AGE
48
TENURE
4.1 yrs

Geoff Healy

TITLE
Chief External Affairs Officer
COMPENSATION
$4M
AGE
52
TENURE
3 yrs
Board of Directors Tenure

Average tenure and age of the BHP Group board of directors in years:

5.8
Average Tenure
61
Average Age
  • The tenure for the BHP Group board of directors is about average.
Board of Directors

Ken MacKenzie

TITLE
Chairman of the Board
COMPENSATION
$826K
AGE
54
TENURE
1.4 yrs

Andrew Mackenzie

TITLE
CEO & Executive Director
COMPENSATION
$8M
AGE
61
TENURE
5.8 yrs

Carolyn Hewson

TITLE
Independent Non-Executive Director
COMPENSATION
$237K
AGE
63
TENURE
8.9 yrs

Lindsay Maxsted

TITLE
Independent Non-Executive Director
COMPENSATION
$267K
AGE
64
TENURE
7.9 yrs

Shriti Vadera

TITLE
Senior Independent Director
COMPENSATION
$298K
AGE
56
TENURE
8.1 yrs

Malcolm Broomhead

TITLE
Independent Non-Executive Director
COMPENSATION
$244K
AGE
66
TENURE
8.9 yrs

Anita Frew

TITLE
Independent Non-Executive Director
COMPENSATION
$264K
AGE
61
TENURE
3.4 yrs

Terry Bowen

TITLE
Independent Non-Executive Director
COMPENSATION
$179K
AGE
51
TENURE
1.3 yrs

John Mogford

TITLE
Independent Non-Executive Director
COMPENSATION
$198K
AGE
65
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
30. Oct 18 Buy Ken MacKenzie Individual 25. Aug 17 25. Aug 17 4,495 A$26.73 A$120,151
X
Management checks
We assess BHP Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. BHP Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

BHP News

Simply Wall St News

Our Take On BHP Group's (ASX:BHP) CEO Salary

Andrew Mackenzie became the CEO of BHP Group (ASX:BHP) in 2013. … This analysis aims first to contrast CEO compensation with other large companies. … How Does Andrew Mackenzie's Compensation Compare With Similar Sized Companies?

Simply Wall St -

How Many BHP Group (ASX:BHP) Shares Do Institutions Own?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … We also tend to see lower insider ownership in companies that were previously publicly owned. … institutions own shares in the company.

Simply Wall St -

What Can We Make Of BHP Group’s (ASX:BHP) High Return On Capital?

In particular, we'll consider its Return On Capital Employed (ROCE), as that can give us insight into how profitably the company is able to employ capital in its business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Estimating The Intrinsic Value Of BHP Group (ASX:BHP)

How far off is BHP Group (ASX:BHP) from its intrinsic value? … by taking the foreast future cash flows of the company and discounting them back to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

2 Days Left Before BHP Group Limited (ASX:BHP) Will Be Trading Ex-Dividend

If you are interested in cashing in on BHP Group Limited's (ASX:BHP) upcoming dividend of US$1.02 per share, you only have 2 days left to buy the shares before its ex-dividend date, 10 January 2019, in time for dividends payable on the 30 January 2019. … Is this future income stream a compelling catalyst for dividend investors to think about the stock as an investment today? … When assessing a stock as a potential addition to my dividend Portfolio, I look at these five areas:?

Simply Wall St -

What Should We Expect From BHP Group Limited's (ASX:BHP) Earnings Over The Next Few Years?

The most recent earnings update BHP Group Limited's (ASX:BHP) released in June 2018a … indicated

Simply Wall St -

Who Has Been Buying BHP Group Limited (ASX:BHP) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So shareholders might well want to know whether insiders have been buying or selling shares in BHP Group Limited (ASX:BHP). … Chairman of the Board Ken MacKenzie made the biggest insider purchase in the last 12 months.

Simply Wall St -

How Many BHP Billiton Limited (ASX:BHP) Shares Do Institutions Own?

We'd expect to see institutional investors on the register. … Companies of this size are usually well known to retail investors, too. … institutional investors have bought into the company.

Simply Wall St -

Does BHP Billiton Limited's (ASX:BHP) CEO Pay Compare Well With Peers?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at other big companies. … How Does Andrew Mackenzie's Compensation Compare With Similar Sized Companies. … Our data indicates that BHP Billiton Limited is worth AU$180.1b, and total annual CEO compensation is US$8m.

Simply Wall St -

What Does BHP Billiton Limited's (ASX:BHP) PE Ratio Tell You?

Though this might seem to be a negative, you might change your mind after I explain the assumptions behind the P/E ratio. … I will break down what the P/E ratio is, how to interpret it and what other factors to keep in mind … View our latest analysis for BHP Billiton

Simply Wall St -

BHP Company Info

Map
Description

BHP Group discovers, acquires, develops, and markets natural resources worldwide. The company engages in the exploration, development, and production of oil and gas properties; and mining of copper, silver, lead, zinc, molybdenum, uranium, gold, and iron ores, as well as metallurgical and energy coal. It also engages in the mining, smelting, and refining of nickel; provision of freight, finance, and administrative services, as well as trading, marketing, and support services; and potash development activities. BHP Group is headquartered in Melbourne, Australia.

Details
Name: BHP Group
BHP
Exchange: ASX
Founded:
A$175,739,106,083
5,057,724,421
Website: http://www.bhp.com
Address: BHP Group
171 Collins Street,
Level 18,
Melbourne,
Victoria, 3000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX BHP LTD Ordinary Shares Australian Securities Exchange AU AUD 06. Jan 1975
OTCPK BHPL.F LTD Ordinary Shares Pink Sheets LLC US USD 06. Jan 1975
DB BHP1 LTD Ordinary Shares Deutsche Boerse AG DE EUR 06. Jan 1975
SWX BHP LTD Ordinary Shares SIX Swiss Exchange CH CHF 06. Jan 1975
CHIA BHP LTD Ordinary Shares Chi-X Australia AU AUD 06. Jan 1975
NYSE BBL SPONS ADR EACH REP 2 ORD USD0.50 New York Stock Exchange US USD 01. Jul 2001
NYSE BHP ADR EACH REP 2 ORD NPV(MGT) New York Stock Exchange US USD 14. Dec 1972
LSE BHP PLC Ordinary Shares London Stock Exchange GB GBP 01. Jul 2001
OTCPK BHPB.F PLC Ordinary Shares Pink Sheets LLC US USD 01. Jul 2001
DB BIL PLC Ordinary Shares Deutsche Boerse AG DE EUR 01. Jul 2001
DB BHP ADR EACH REP 2 ORD NPV(MGT) Deutsche Boerse AG DE EUR 14. Dec 1972
DB BIL1 SPONS ADR EACH REP 2 ORD USD0.50 Deutsche Boerse AG DE EUR 01. Jul 2001
XTRA BIL PLC Ordinary Shares XETRA Trading Platform DE EUR 01. Jul 2001
LSE 0HN3 ADR EACH REP 2 ORD NPV(MGT) London Stock Exchange GB USD 14. Dec 1972
SWX BLT PLC Ordinary Shares SIX Swiss Exchange CH CHF 01. Jul 2001
BMV BHP N ADR EACH REP 2 ORD NPV(MGT) Bolsa Mexicana de Valores MX MXN 14. Dec 1972
JSE BHP PLC Ordinary Shares The Johannesburg Securities Exchange ZA ZAR 01. Jul 2001
Number of employees
Current staff
Staff numbers
27,161
BHP Group employees.
Industry
Diversified Metals and Mining
Materials
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/18 10:33
End of day share price update: 2019/02/18 00:00
Last estimates confirmation: 2019/02/17
Last earnings filing: 2018/09/17
Last earnings reported: 2018/06/30
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.