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BHP

BHP GroupASX:BHP Stock Report

Market Cap

AU$197.6b

7D

4.3%

1Y

1.5%

Updated

01 Dec, 2021

Data

Company Financials +
BHP fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance6/6
Financial Health5/6
Dividends4/6

BHP Stock 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$7.4b

29Metals

ASX:29M

AU$1.2b

Mincor Resources

ASX:MCR

AU$595.7m

Aurelia Metals

ASX:AMI

AU$512.7m

Price History & Performance

Summary of all time highs, changes and price drops for BHP Group
Historical stock prices
Current Share PriceAU$39.90
52 Week HighAU$54.55
52 Week LowAU$35.56
Beta0.89
1 Month Change9.59%
3 Month Change-4.86%
1 Year Change1.50%
3 Year Change25.35%
5 Year Change55.07%
Change since IPO874.59%

Recent News & Updates

Oct 27
Calculating The Fair Value Of BHP Group (ASX:BHP)

Calculating The Fair Value Of BHP Group (ASX:BHP)

Today we'll do a simple run through of a valuation method used to estimate the attractiveness of BHP Group ( ASX:BHP...

Sep 21
These 4 Measures Indicate That BHP Group (ASX:BHP) Is Using Debt Safely

These 4 Measures Indicate That BHP Group (ASX:BHP) Is Using Debt Safely

Howard Marks put it nicely when he said that, rather than worrying about share price volatility, 'The possibility of...

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...

Shareholder Returns

BHPAU Metals and MiningAU Market
7D4.3%0.4%-1.9%
1Y1.5%10.3%11.7%

Return vs Industry: BHP underperformed the Australian Metals and Mining industry which returned 10.3% over the past year.

Return vs Market: BHP underperformed the Australian Market which returned 11.4% over the past year.

Price Volatility

Is BHP's price volatile compared to industry and market?
BHP volatility
BHP Average Weekly Movement3.9%
Metals and Mining Industry Average Movement10.4%
Market Average Movement8.3%
10% most volatile stocks in AU Market15.9%
10% least volatile stocks in AU Market3.6%

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.

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.

BHP Group Fundamentals Summary

How do BHP Group's earnings and revenue compare to its market cap?
BHP fundamental statistics
Market CapUS$140.21b
Earnings (TTM)US$11.30b
Revenue (TTM)US$61.23b

12.7x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BHP income statement (TTM)
RevenueUS$61.23b
Cost of RevenueUS$7.22b
Gross ProfitUS$54.01b
ExpensesUS$42.70b
EarningsUS$11.30b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 14, 2022

Earnings per share (EPS)2.23
Gross Margin88.20%
Net Profit Margin18.46%
Debt/Equity Ratio31.8%

How did BHP perform over the long term?

See historical performance and comparison

Dividends

10.6%

Current Dividend Yield

135%

Payout Ratio

Valuation

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

33.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BHP (A$39.37) is trading below our estimate of fair value (A$59.63)

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


Price To Earnings Ratio

PE vs Industry: Insufficient data to calculate BHP's PE Ratio to determine if it is good value compared to the Australian Metals and Mining industry average.

PE vs Market: Insufficient data to calculate BHP's PE Ratio to determine if it is good value compared to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BHP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: Insufficient data to calculate BHP's PB Ratio to determine if it is good value.


Future Growth

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

-1.7%

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 (-1.7% per year).

Earnings vs Market: BHP's earnings are forecast to decline over the next 3 years (-1.7% 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 (-6.1% per year).

High Growth Revenue: BHP's revenue is forecast to decline over the next 3 years (-6.1% 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%)


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%) exceeded the Metals and Mining industry 35.3%.


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 net debt to equity ratio (4.3%) 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?

10.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BHP's dividend (10.74%) is higher than the bottom 25% of dividend payers in the Australian market (2.33%).

High Dividend: BHP's dividend (10.74%) is in the top 25% of dividend payers in the Australian market (5.64%)


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 (70.8% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Mike Henry (55 yo)

1.83yrs

Tenure

US$7,356,000

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 ($USD7.36M) is above average for companies of similar size in the Australian market ($USD3.74M).

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 ( 1.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: BHP's board of directors are not considered experienced ( 2.2 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: Insufficient data to determine if shareholders have been 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$197.610b
  • 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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 07:02
End of Day Share Price2021/12/01 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.