BHP Group Limited
BHP Group Limited Fundamental Analysis
BHP Group Limited (BBL) shows moderate financial fundamentals with a PE ratio of 36.10, profit margin of 17.59%, and ROE of 19.66%. The company generates N/A in annual revenue with moderate year-over-year growth of 4.11%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.7/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze BBL's fundamental strength across five key dimensions:
Efficiency Score
WeakBBL struggles to generate sufficient returns from assets.
Valuation Score
ModerateBBL shows balanced valuation metrics.
Growth Score
WeakBBL faces weak or negative growth trends.
Financial Health Score
ExcellentBBL maintains a strong and stable balance sheet.
Profitability Score
ModerateBBL maintains healthy but balanced margins.
Key Financial Metrics
Is BBL Expensive or Cheap?
P/E Ratio
BBL trades at 36.10 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, BBL's PEG of -1.76 indicates potential undervaluation.
Price to Book
The market values BHP Group Limited at 7.04 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -0.49 times EBITDA. This is generally considered low.
How Well Does BBL Make Money?
Net Profit Margin
For every $100 in sales, BHP Group Limited keeps $17.59 as profit after all expenses.
Operating Margin
Core operations generate 37.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $19.66 in profit for every $100 of shareholder equity.
ROA
BHP Group Limited generates $8.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
FCF Per Share
Each share generates $1.83 in free cash annually.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
36.10
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.76
vs 25 benchmark
P/B Ratio
Price to book value ratio
7.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.53
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.46
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.20
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.21
vs 25 benchmark
How BBL Stacks Against Its Sector Peers
| Metric | BBL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 36.10 | 27.01 | Worse (Expensive) |
| ROE | 19.66% | 949.00% | Weak |
| Net Margin | 17.59% | -16219.00% (disorted) | Strong |
| Debt/Equity | 0.53 | 0.48 | Neutral |
| Current Ratio | 1.46 | 4.42 | Neutral |
| ROA | 8.29% | -6413.00% (disorted) | Weak |
BBL outperforms its industry in 1 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews BHP Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
29.40%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
-2.75%
Industry Style: Cyclical, Commodity, Value
DecliningFCF CAGR
18.28%
Industry Style: Cyclical, Commodity, Value
High Growth