Executive Summary
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
Snowflake Analysis
Average dividend payer with mediocre balance sheet.
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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 +/- 4% a week.
Volatility Over Time: BHP's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
0.2%
BHP
-0.08%
AU Metals and Mining
1.2%
AU Market
1 Year Return
12.4%
BHP
22.8%
AU Metals and Mining
-1.3%
AU Market
Return vs Industry: BHP underperformed the Australian Metals and Mining industry which returned 22.8% over the past year.
Return vs Market: BHP exceeded the Australian Market which returned -1.3% over the past year.
Shareholder returns
| BHP | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.2% | -0.08% | 1.2% |
| 30 Day | 6.0% | 5.5% | 1.7% |
| 90 Day | 26.9% | 20.5% | 10.1% |
| 1 Year | 18.1%12.4% | 29.5%22.8% | 2.0%-1.3% |
| 3 Year | 83.7%50.9% | 71.3%47.4% | 26.1%10.6% |
| 5 Year | 299.5%208.5% | 279.6%210.8% | 67.5%33.8% |
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
4 weeks ago | Simply Wall St
Did You Participate In Any Of BHP Group's (ASX:BHP) Fantastic 207% Return ?1 month ago | Simply Wall St
What You Need To Know About BHP Group's (ASX:BHP) Investor Composition1 month ago | Simply Wall St
Read This Before Buying BHP Group (ASX:BHP) For Its DividendValuation
Is BHP Group undervalued compared to its fair value and its price relative to the market?
22.65x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: BHP (A$46.3) is trading above our estimate of fair value (A$32.62)
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 (22.6x) compared to the AU Metals and Mining industry average (13.4x).
PE vs Market: BHP's PE Ratio (22.6x) is in line with the Australian market.
Price to Earnings Growth Ratio
PEG Ratio: BHP is poor value based on its PEG Ratio (18.8x)
Price to Book Ratio
PB vs Industry: BHP is overvalued based on its PB Ratio (3.8x) compared to the AU Metals and Mining industry average (2.9x).
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Future Growth
How is BHP Group forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?
1.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: BHP's forecast earnings growth (1.2% per year) is below the savings rate (2%).
Earnings vs Market: BHP's earnings (1.2% per year) are forecast to grow slower than the Australian market (18.1% per year).
High Growth Earnings: BHP's earnings are forecast to grow, but not significantly.
Revenue vs Market: BHP's revenue (0.2% per year) is forecast to grow slower than the Australian market (5.1% per year).
High Growth Revenue: BHP's revenue (0.2% per year) is forecast to grow slower than 20% 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 (18.6%).
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Past Performance
How has BHP Group performed over the past 5 years?
44.8%
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 lower than last year (19.5%).
Past Earnings Growth Analysis
Earnings Trend: BHP's earnings have grown significantly by 44.8% per year over the past 5 years.
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 (-8%) over the past year, making it difficult to compare to the Metals and Mining industry average (38%).
Return on Equity
High ROE: BHP's Return on Equity (16.7%) is considered low.
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Financial Health
How is BHP Group's financial position?
Financial Position Analysis
Short Term Liabilities: BHP's short term assets ($21.5B) exceed its short term liabilities ($14.8B).
Long Term Liabilities: BHP's short term assets ($21.5B) do not cover its long term liabilities ($37.7B).
Debt to Equity History and Analysis
Debt Level: BHP's debt to equity ratio (48.2%) is considered high.
Reducing Debt: BHP's debt to equity ratio has increased from 45.6% to 48.2% over the past 5 years.
Debt Coverage: BHP's debt is well covered by operating cash flow (62.4%).
Interest Coverage: BHP's interest payments on its debt are well covered by EBIT (28.6x coverage).
Balance Sheet
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Dividend
What is BHP Group current dividend yield, its reliability and sustainability?
3.37%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: BHP's dividend (3.37%) is higher than the bottom 25% of dividend payers in the Australian market (2.08%).
High Dividend: BHP's dividend (3.37%) is low compared to the top 25% of dividend payers in the Australian market (5.07%).
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: At its current payout ratio (76.3%), 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 (66.5% payout ratio).
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Management
How experienced are the management team and are they aligned to shareholders interests?
1.3yrs
Average management tenure
CEO
Mike Henry (54 yo)
1
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 ($USD3.87M).
Compensation vs Earnings: Mike's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 1yr | US$6.03m | 0.0078% $ 16.7m | |
| Executive Officer | 0.17yr | US$5.04m | 0.0066% $ 14.1m | |
| President of Petroleum Operations | 1.83yrs | US$2.84m | 0.0019% $ 4.1m | |
| Chief Financial Officer | 0.083yr | no data | no data | |
| Chief Technical Officer | 0.33yr | no data | no data | |
| Group Investor Relations Officer | 1.5yrs | no data | no data | |
| Vice President of Communications | no data | no data | no data | |
| Group Sales & Marketing Officer | no data | no data | no data | |
| Chief People Officer | 6yrs | US$2.52m | no data | |
| Chief Commercial Officer | 1.5yrs | no data | no data | |
| Chief Transformation Officer | 1.83yrs | no data | no data | |
| Chief External Affairs Officer | 0.17yr | no data | no data |
1.3yrs
Average Tenure
50yo
Average Age
Experienced Management: BHP's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Executive Director | 1yr | US$6.03m | 0.0078% $ 16.7m | |
| Independent Non-Executive Director | 1.75yrs | US$310.00k | 0.00024% $ 513.6k | |
| Independent Non-Executive Director | 10.83yrs | US$231.00k | 0.00038% $ 813.2k | |
| Independent Non-Executive Chairman of the Board | 3.33yrs | US$920.00k | 0.0010% $ 2.2m | |
| Independent Non-Executive Director | 1.75yrs | US$288.00k | 0.00014% $ 299.6k | |
| Independent Non-Executive Director | 5.33yrs | US$267.00k | 0.00030% $ 642.0k | |
| Independent Non-Executive Director | 0.25yr | no data | 0.00014% $ 299.6k | |
| Independent Non-Executive Director | 0.92yr | US$105.00k | 0.00051% $ 1.1m | |
| Independent Non-Executive Director | 3.25yrs | US$237.00k | 0.00022% $ 470.8k | |
| Independent Non-Executive Director | 3.25yrs | US$268.00k | 0.00024% $ 513.6k | |
| Independent Non-Executive Director | 0.58yr | US$16.00k | 0.000030% $ 64.2k | |
| Independent Non-Executive Director | 0.25yr | no data | 0.00014% $ 299.6k |
1.8yrs
Average Tenure
60yo
Average Age
Experienced Board: BHP's board of directors are not considered experienced ( 1.8 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 bought more shares than they have sold 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 company bio, 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$214.006b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BHP | NYSE (New York Stock Exchange) | SPONSORED ADS | US | USD | Dec 1972 | |
| BHP N | BMV (Bolsa Mexicana de Valores) | SPONSORED ADS | MX | MXN | Dec 1972 | |
| BHP | DB (Deutsche Boerse AG) | SPONSORED ADS | DE | EUR | Dec 1972 | |
| 0HN3 | LSE (London Stock Exchange) | SPONSORED ADS | GB | USD | Dec 1972 | |
| BHPL.F | OTCPK (Pink Sheets LLC) | Yes | LTD Ordinary Shares | US | USD | Jan 1975 |
| BHP | ASX (Australian Securities Exchange) | Yes | LTD Ordinary Shares | AU | AUD | Jan 1975 |
| BHP1 | DB (Deutsche Boerse AG) | Yes | LTD Ordinary Shares | DE | EUR | Jan 1975 |
| BHP | SWX (SIX Swiss Exchange) | Yes | LTD Ordinary Shares | CH | CHF | Jan 1975 |
| BHP | CHIA (Chi-X Australia) | Yes | LTD Ordinary Shares | AU | AUD | Jan 1975 |
| BBL | NYSE (New York Stock Exchange) | SPONSORED ADR | US | USD | Jul 2001 | |
| BHPB.F | OTCPK (Pink Sheets LLC) | PLC Ordinary Shares | US | USD | Jul 2001 | |
| BHP | LSE (London Stock Exchange) | PLC Ordinary Shares | GB | GBP | Jul 2001 | |
| BIL | DB (Deutsche Boerse AG) | PLC Ordinary Shares | DE | EUR | Jul 2001 | |
| BHP | JSE (The Johannesburg Securities Exchange) | PLC Ordinary Shares | ZA | ZAR | Jul 2001 | |
| BIL | XTRA (XETRA Trading Platform) | PLC Ordinary Shares | DE | EUR | Jul 2001 | |
| BIL1 | DB (Deutsche Boerse AG) | SPONSORED ADR | DE | EUR | Jul 2001 | |
| BHPL | BATS-CHIXE (BATS 'Chi-X Europe') | PLC Ordinary Shares | GB | GBP | Jul 2001 | |
| BLT | SWX (SIX Swiss Exchange) | PLC Ordinary Shares | CH | CHF | Jul 2001 | |
| BHP | BASE (Buenos Aires Stock Exchange) | CEDEAR EACH REP 1 ADR(REP 2 ORD NPV) | AR | ARS | Jul 2007 |
Biography
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 | 2021/01/20 07:01 |
| End of Day Share Price | 2021/01/20 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2020/06/30 |
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.