ASX:BHP

Stock Analysis Report

Executive Summary

BHP Group discovers, acquires, develops, and markets natural resources worldwide.

Snowflake

Fundamentals

Solid track record average dividend payer.


Similar Companies

Share Price & News

How has BHP Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-2.1%

ASX:BHP

-3.3%

AU Metals and Mining

1.8%

AU Market


1 Year Return

8.3%

ASX:BHP

10.0%

AU Metals and Mining

2.2%

AU Market

BHP underperformed the Metals and Mining industry which returned 9.9% over the past year.

BHP outperformed the Market in Australia which returned 1.9% over the past year.


Share holder returns

BHPIndustryMarket
7 Day-2.1%-3.3%1.8%
30 Day-14.3%-11.9%-3.7%
90 Day-5.4%-2.3%1.1%
1 Year18.6%8.3%17.6%10.0%8.0%2.2%
3 Year100.0%69.6%66.8%48.7%32.9%15.6%
5 Year33.6%-3.4%40.3%9.5%39.3%8.4%

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

Valuation

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

32%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

BHP Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

BHP Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

BHP Group is overvalued based on earnings compared to the AU Metals and Mining industry average.

BHP Group is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

BHP Group is poor value based on expected growth next year.


Price Based on Value of Assets

BHP Group is overvalued based on assets compared to the AU Metals and Mining industry average.


Next Steps

Future Growth

How is BHP Group expected to perform in the next 1 to 3 years based on estimates from 21 analysts?

3.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

BHP Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

BHP Group's earnings are expected to grow by 3.3% yearly, however this is not considered high growth (20% yearly).

BHP Group's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.

BHP Group's earnings growth is positive but not above the Australia market average.

BHP Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

BHP Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has BHP Group performed over the past 5 years?

8.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

BHP Group's year on year earnings growth rate has been positive over the past 5 years.

BHP Group's 1-year earnings growth exceeds its 5-year average (30.4% vs 8.9%)

BHP Group's earnings growth has exceeded the AU Metals and Mining industry average in the past year (30.4% vs 22.4%).


Return on Equity

BHP Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

BHP Group used its assets more efficiently than the AU Metals and Mining industry average last year based on Return on Assets.


Return on Capital Employed

BHP Group has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is BHP Group's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

BHP Group's level of debt (46.4%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (40.6% vs 46.4% today).

Debt is well covered by operating cash flow (74.4%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 11x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1x debt.


Next Steps

Dividend

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

5.58%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase BHP Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

BHP Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.53%).

BHP Group's dividend is below the markets top 25% of dividend payers in Australia (5.8%).

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

Dividends paid are well covered by earnings (2.1x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.6x coverage).


Next Steps

Management

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

4.0yrs

Average management tenure


CEO

Andrew Mackenzie (62yo)

6.3yrs

Tenure

US$8,106,000

Compensation

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 O ...


CEO Compensation Analysis

Andrew's remuneration is higher than average for companies of similar size in Australia.

Andrew's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

4.0yrs

Average Tenure

53yo

Average Age

The tenure for the BHP Group management team is about average.


Board Age and Tenure

5.1yrs

Average Tenure

62yo

Average Age

The tenure for the BHP Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Peter Beaven (52yo)

    Chief Financial Officer

    • Tenure: 4.8yrs
    • Compensation: US$4.33m
  • Andrew Mackenzie (62yo)

    CEO & Executive Director

    • Tenure: 6.3yrs
    • Compensation: US$8.11m
  • Adrian Wood (45yo)

    Head of Investor Relations

    • Tenure: 4.5yrs
  • Mike Henry (53yo)

    President of Operations for Minerals Australia

    • Tenure: 0.0yrs
    • Compensation: US$4.63m
  • Danny Malchuk (53yo)

    President of Operations for Minerals Americas

    • Tenure: 3.5yrs
    • Compensation: US$4.33m
  • Geoff Healy (53yo)

    Chief External Affairs Officer

    • Tenure: 3.5yrs
    • Compensation: US$3.84m
  • Athalie Williams (49yo)

    Chief People Officer

    • Tenure: 4.6yrs
    • Compensation: US$2.52m
  • Diane Jurgens (57yo)

    Chief Technology Officer

    • Tenure: 3.5yrs
  • Laura Tyler (52yo)

    Chief Geoscientist

    • Tenure: 0.4yrs
  • James Agar

    Vice President of Communications

    • Tenure: 0.0yrs

Board Members

  • Malcolm Broomhead (67yo)

    Independent Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: US$244.00k
  • Carolyn Hewson (64yo)

    Independent Non-Executive Director

    • Tenure: 9.4yrs
    • Compensation: US$237.00k
  • Ken MacKenzie (55yo)

    Chairman of the Board

    • Tenure: 1.9yrs
    • Compensation: US$826.00k
  • Susan Kilsby (61yo)

    Independent Non-Executive Director

    • Tenure: 0.3yrs
  • Anita Frew (62yo)

    Independent Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: US$264.00k
  • Andrew Mackenzie (62yo)

    CEO & Executive Director

    • Tenure: 6.3yrs
    • Compensation: US$8.11m
  • Terry Bowen (52yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: US$179.00k
  • John Mogford (66yo)

    Independent Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: US$198.00k
  • Lindsay Maxsted (65yo)

    Independent Non-Executive Director

    • Tenure: 8.4yrs
    • Compensation: US$267.00k
  • Shriti Vadera (57yo)

    Senior Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$298.00k

Company Information

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


Key Information

  • Name: BHP Group
  • Ticker: BHP
  • Exchange: ASX
  • Founded: 1885
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: AU$168.631b
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BHPNYSE (New York Stock Exchange)SPONSORED ADSUSUSDDec 1972
0HN3LSE (London Stock Exchange)SPONSORED ADSGBUSDDec 1972
BHPDB (Deutsche Boerse AG)SPONSORED ADSDEEURDec 1972
BHP NBMV (Bolsa Mexicana de Valores)SPONSORED ADSMXMXNDec 1972
BHPL.FOTCPK (Pink Sheets LLC)YesLTD Ordinary SharesUSUSDJan 1975
BHPASX (Australian Securities Exchange)YesLTD Ordinary SharesAUAUDJan 1975
BHP1DB (Deutsche Boerse AG)YesLTD Ordinary SharesDEEURJan 1975
BHPSWX (SIX Swiss Exchange)YesLTD Ordinary SharesCHCHFJan 1975
BHPCHIA (Chi-X Australia)YesLTD Ordinary SharesAUAUDJan 1975
BILXTRA (XETRA Trading Platform)PLC Ordinary SharesDEEURJul 2001
BILDB (Deutsche Boerse AG)PLC Ordinary SharesDEEURJul 2001
BHPLSE (London Stock Exchange)PLC Ordinary SharesGBGBPJul 2001
BIL1DB (Deutsche Boerse AG)SPONSORED ADRDEEURJul 2001
BBLNYSE (New York Stock Exchange)SPONSORED ADRUSUSDJul 2001
BHPB.FOTCPK (Pink Sheets LLC)PLC Ordinary SharesUSUSDJul 2001
BLTSWX (SIX Swiss Exchange)PLC Ordinary SharesCHCHFJul 2001
BHPJSE (The Johannesburg Securities Exchange)PLC Ordinary SharesZAZARJul 2001

Biography

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 10:34
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.