Is BHP Group Stock a Good Investment?

BHP Group Investment Advice

  BHP
To provide specific investment advice or recommendations on BHP Group Limited stock, we recommend investors consider the following general factors when evaluating BHP Group Limited. This will help you to make an informed decision on whether to include BHP Group in one of your diversified portfolios:
  • Examine BHP Group's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research BHP Group's leadership team and their track record. Good management can help BHP Group navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Diversified Metals & Mining space and any emerging trends that could impact BHP Group's business and its evolving consumer preferences.
  • Compare BHP Group's performance and market position to its competitors. Analyze how BHP Group is positioned in terms of product offerings, innovation, and market share.
  • Check if BHP Group pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about BHP Group's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in BHP Group Limited stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if BHP Group Limited is a good investment.
 
Sell
 
Buy
Strong Hold
Our advice module provides unbiased investment recommendation that can be used to complement current average analyst sentiment on BHP Group Limited. Our advice engine provides an advice for the firm potential to grow from the perspective of an investor's risk tolerance and investing horizon. To make sure BHP Group is not overpriced, please confirm all BHP Group Limited fundamentals, including its cash per share, target price, and the relationship between the gross profit and book value per share . Given that BHP Group Limited has a price to earning of 7.62 X, we suggest you to validate BHP Group Limited market performance and probability of bankruptcy to ensure the company can sustain itself for few more years given your prevailing risk tolerance and investing horizon.

Market Performance

Very WeakDetails

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Responds to the marketDetails

Investor Sentiment

InterestedDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

Examine BHP Group Stock

Researching BHP Group's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). The book value of the company was currently reported as 8.17. The company last dividend was issued on the 7th of March 2024. BHP Group Limited had 1121:1000 split on the 2nd of June 2022.
To determine if BHP Group is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding BHP Group's research are outlined below:
BHP Group Limited has a strong financial position based on the latest SEC filings
On 28th of March 2024 BHP Group paid $ 1.44 per share dividend to its current shareholders
Latest headline from investorplace.com: 3 Copper Miners to Buy as Supply Crisis Sends Prices Soaring
BHP Group uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in BHP Group Limited. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to BHP Group's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
20th of February 2024
Upcoming Quarterly Report
View
31st of December 2023
Next Fiscal Quarter End
View
27th of August 2024
Next Fiscal Year End
View
30th of September 2023
Last Quarter Report
View
30th of June 2023
Last Financial Announcement
View

Know BHP Group's Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as BHP Group is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading BHP Group Limited backward and forwards among themselves. BHP Group's institutional investor refers to the entity that pools money to purchase BHP Group's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Royal Bank Of Canada2023-12-31
1.5 M
Fmr Inc2023-12-31
1.5 M
State Farm Mutual Automobile Ins Co2023-12-31
1.3 M
Sih Partners Lllp2023-12-31
1.3 M
Westwood Global Investments Llc2023-12-31
1.2 M
Atlantic Trust Group, Llc2023-12-31
942 K
Lmr Partners Llp2023-12-31
901.9 K
Wells Fargo & Co2023-12-31
836.7 K
Jane Street Group, Llc2023-12-31
823.5 K
Fisher Asset Management, Llc2023-12-31
19.9 M
Harding Loevner L.p.2023-12-31
10.7 M
Note, although BHP Group's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

BHP Group's market capitalization trends

The company currently falls under 'Mega-Cap' category with a total capitalization of 150.09 B. Market capitalization usually refers to the total value of a company's stock within the entire market. To calculate BHP Group's market, we take the total number of its shares issued and multiply it by BHP Group's current market price. To manage market risk and economic uncertainty, many investors today build portfolios that are diversified across equities with different market capitalizations. However, as a general rule, conservative investors tend to hold large-cap stocks, and those looking for more risk prefer small-cap and mid-cap equities.

Market Cap

12.17 Billion

BHP Group's profitablity analysis

BHP Group's profitability indicators refer to fundamental financial ratios that showcase BHP Group's ability to generate income relative to its revenue or operating costs. If, let's say, BHP Group is currently losing money, the management's focus should be on how to reverse that trend. However, when revenue exceeds expenses, BHP Group's executives or investors may be in less hurry to break that information down - which is where profitability analysis comes into play. Gaining a greater understanding of BHP Group's profitability requires more research than a typical breakdown of BHP Group's financial statements. By doing a profitability analysis, companies can identify areas needing attention, and investors can make a profitable trade.
Last ReportedProjected for Next Year
Return On Tangible Assets(0.07)(0.07)
Return On Capital Employed(0.16)(0.15)
Return On Assets(0.07)(0.07)
Return On Equity(0.27)(0.25)
The company has Net Profit Margin of 0.13 %, which implies that it may need a different competitive strategy as even a very small decline in it revenue may erase profits and result in a net loss. This is way below average. In the same way, it shows Net Operating Margin of 0.39 %, which entails that for every 100 dollars of revenue, it generated $0.39 of operating income.
Determining BHP Group's profitability involves analyzing its financial statements and using various financial metrics to determine if BHP Group is a good buy. For example, gross profit margin measures BHP Group's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of BHP Group's profitability and make more informed investment decisions.
The data published in BHP Group's official financial statements usually reflect BHP Group's business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of BHP Group Limited. For example, before you start analyzing numbers published by BHP accountants, it's critical to develop an understanding of what BHP Group's liquidity, profitability, and earnings quality are in the context of the Metals & Mining space in which it operates.
Please note, the presentation of BHP Group's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, BHP Group's management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in BHP Group's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of BHP Group Limited. Please utilize our Beneish M Score to check the likelihood of BHP Group's management manipulating its earnings.

Evaluate BHP Group's management efficiency

BHP Group Limited has Return on Asset of 0.1474 % which means that on every $100 spent on assets, it made $0.1474 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.1933 %, implying that it generated $0.1933 on every 100 dollars invested. BHP Group's management efficiency ratios could be used to measure how well BHP Group manages its routine affairs as well as how well it operates its assets and liabilities. As of 04/16/2024, Return On Tangible Assets is likely to grow to -0.07. In addition to that, Return On Capital Employed is likely to grow to -0.15. At this time, BHP Group's Total Current Liabilities is relatively stable compared to the past year. As of 04/16/2024, Change To Liabilities is likely to grow to about 877.9 M, while Liabilities And Stockholders Equity is likely to drop slightly above 68.1 B.
Last ReportedProjected for Next Year
Book Value Per Share 3.13  2.98 
Net Current Asset Value 0.00  0.00 
Tangible Asset Value 0.00  0.00 
Tangible Book Value Per Share 3.33  3.16 
Enterprise Value Over EBITDA(7.09)(6.74)
Price Book Value Ratio 2.52  2.16 
Enterprise Value Multiple(7.09)(6.74)
Price Fair Value 2.52  2.16 
Enterprise Value19.1 B18.1 B
The analysis of BHP Group's management efficiency is an essential part of evaluating and assessing the financial and operational performance of the entity. It is also vital to analyze BHP Group's future growth prospects and the overall market conditions to determine the value and potential of its stock. The analysis involves studying a range of financial metrics such as revenue, earnings, profit margins, cash flow, debt, market share, and external factors such as economic trends, industry outlook, competition, and government regulations. The goal of BHP Stock analysis is to determine whether it is undervalued, fairly valued, or overvalued and to make informed investment decisions.
Dividend Yield
0.0515
Forward Dividend Yield
0.0515
Forward Dividend Rate
3.04
Beta
0.858

Basic technical analysis of BHP Stock

As of the 16th of April 2024, BHP Group shows the mean deviation of 1.08, and Risk Adjusted Performance of (0.03). BHP Group Limited technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We have analyze and collected data for thirteen technical drivers for BHP Group Limited, which can be compared to its peers. Please confirm BHP Group Limited variance and value at risk to decide if BHP Group Limited is priced favorably, providing market reflects its regular price of 59.06 per share. Given that BHP Group has information ratio of (0.09), we suggest you to validate BHP Group Limited's prevailing market performance to make sure the company can sustain itself in the future.

Understand BHP Group's technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing BHP Group's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider BHP Group's intraday indicators

BHP Group intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of BHP Group stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

BHP Group Corporate Filings

6K
9th of April 2024
A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges.
ViewVerify
26th of March 2024
Other Reports
ViewVerify
13A
14th of February 2024
An amended filing to the original Schedule 13G
ViewVerify
BHP Group time-series forecasting models is one of many BHP Group's stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary BHP Group's historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

BHP Stock media impact

Far too much social signal, news, headlines, and media speculation about BHP Group that are available to investors today. That information is available publicly through BHP media outlets and privately through word of mouth or via BHP internal channels. However, regardless of the origin, that massive amount of BHP data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of BHP Group news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of BHP Group relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to BHP Group's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive BHP Group alpha.

BHP Group Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards BHP Group can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

BHP Group Limited Historical Investor Sentiment

Investor biases related to BHP Group's public news can be used to forecast risks associated with an investment in BHP. The trend in average sentiment can be used to explain how an investor holding BHP can time the market purely based on public headlines and social activities around BHP Group Limited. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
BHP Group's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for BHP Group and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average BHP Group news discussions. The higher the estimate score, the more favorable the investor's outlook on BHP Group.

BHP Group Maximum Pain Price across 2024-04-19 Option Contracts

BHP Group's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of BHP Group close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of BHP Group's options.

Be your own money manager

Our tools can tell you how much better you can do entering a position in BHP Group without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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BHP Group Corporate Directors

BHP Group corporate directors refer to members of a BHP Group board of directors. The board of directors generally takes responsibility for the BHP Group's affairs and long-term direction of the entity. A corporate director does not make decisions for the corporation on his own. As a member of the board of directors, she or he must function as a part of a group that makes decisions on behalf of the business only by the board of directors' meetings. To pass a resolution, a majority of BHP Group's board members must vote for the resolution. The BHP Group board of directors' duties also include the election, removal, and supervision of officers, including the adoption, amendment, and repeal of bylaws.
Anita FrewNon-Executive Independent DirectorProfile
Malcolm BroomheadNon-Executive Independent DirectorProfile
John SchubertNon-Executive Independent DirectorProfile
Malcolm BrindedNon-Executive DirectorProfile

How to buy BHP Stock?

To provide specific investment advice or recommendations on BHP Group Limited stock, we recommend investors consider the following general factors when evaluating BHP Group Limited. This will help you to make an informed decision on whether to include BHP Group in one of your diversified portfolios:
  • Examine BHP Group's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research BHP Group's leadership team and their track record. Good management can help BHP Group navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Diversified Metals & Mining space and any emerging trends that could impact BHP Group's business and its evolving consumer preferences.
  • Compare BHP Group's performance and market position to its competitors. Analyze how BHP Group is positioned in terms of product offerings, innovation, and market share.
  • Check if BHP Group pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about BHP Group's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in BHP Group Limited stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if BHP Group Limited is a good investment.

Already Invested in BHP Group Limited?

The danger of trading BHP Group Limited is mainly related to its market volatility and Company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of BHP Group is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than BHP Group. The Sharpe ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile BHP Group Limited is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
When determining whether BHP Group Limited is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if BHP Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Bhp Group Limited Stock. Highlighted below are key reports to facilitate an investment decision about Bhp Group Limited Stock:
Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in BHP Group Limited. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in rate.
Note that the BHP Group Limited information on this page should be used as a complementary analysis to other BHP Group's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.

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When running BHP Group's price analysis, check to measure BHP Group's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy BHP Group is operating at the current time. Most of BHP Group's value examination focuses on studying past and present price action to predict the probability of BHP Group's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move BHP Group's price. Additionally, you may evaluate how the addition of BHP Group to your portfolios can decrease your overall portfolio volatility.
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Is BHP Group's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of BHP Group. If investors know BHP will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about BHP Group listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.86)
Dividend Share
1.52
Earnings Share
2.91
Revenue Per Share
21.974
Quarterly Revenue Growth
0.057
The market value of BHP Group Limited is measured differently than its book value, which is the value of BHP that is recorded on the company's balance sheet. Investors also form their own opinion of BHP Group's value that differs from its market value or its book value, called intrinsic value, which is BHP Group's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because BHP Group's market value can be influenced by many factors that don't directly affect BHP Group's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between BHP Group's value and its price, as these two are different measures arrived at by various means. Investors typically determine if BHP Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, BHP Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.