Is BHP Group Stock a Good Investment?
BHP Group Investment Advice | BHP |
- 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 |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Strong | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
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 generated a negative expected return over the last 90 days | |
| BHP Group Limited has a strong financial position based on the latest SEC filings | |
| Latest headline from kalkinemedia.com: BHP Stock Outlook for the Upcoming Month |
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 |
Earnings surprises can significantly impact BHP Group's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises BHP Group's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2003-10-28 | 2003-09-30 | 0.16 | 0.18 | 0.02 | 12 | ||
1994-09-23 | 1994-06-30 | 0.15 | 0.17 | 0.02 | 13 | ||
2003-02-23 | 2002-12-31 | 0.17 | 0.12 | -0.05 | 29 | ||
2002-10-30 | 2002-09-30 | 0.1 | 0.18 | 0.08 | 80 | ||
1995-06-30 | 1995-03-31 | 0.15 | 0.23 | 0.08 | 53 | ||
1994-03-25 | 1993-12-31 | 0.09 | 0.17 | 0.08 | 88 | ||
2002-08-07 | 2002-06-30 | 0.02 | 0.14 | 0.12 | 600 | ||
2004-02-18 | 2003-12-31 | 0.28 | 0.42 | 0.14 | 50 |
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 Canada | 2024-03-31 | 1.4 M | State Farm Mutual Automobile Ins Co | 2024-03-31 | 1.3 M | Fmr Inc | 2024-03-31 | 1.3 M | Westwood Global Investments Llc | 2024-03-31 | 1.2 M | Jane Street Group, Llc | 2023-12-31 | 823.5 K | Wells Fargo & Co | 2024-03-31 | 809.6 K | Capital Research & Mgmt Co - Division 3 | 2024-03-31 | 757.2 K | Pacer Advisors, Inc. | 2023-12-31 | 600.1 K | Jpmorgan Chase & Co | 2024-03-31 | 589.4 K | Fisher Asset Management, Llc | 2024-03-31 | 20.5 M | Harding Loevner L.p. | 2024-03-31 | 7.5 M |
BHP Group's market capitalization trends
The company currently falls under 'Mega-Cap' category with a total capitalization of 138.93 B.Market Cap |
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BHP Group's profitablity analysis
| Last Reported | Projected 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) |
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.
BHP Group's Earnings Breakdown by Geography
The data published in BHP Group's official financial statements typically reflect BHP Group's business processes, product offerings, services, and other fundamental events. However, there are additional fundamental indicators that are easier to understand and visualize along the underlying realities that are driving BHP Group's quantitative information. For example, before you start analyzing numbers published by BHP accountants, it's essential to understand BHP Group's liquidity, profitability, and earnings quality within the context of the Metals & Mining space in which it operates.
Please note, 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. Check BHP Group's Beneish M Score to see 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 07/26/2024, 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 07/26/2024, 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 Reported | Projected for Next Year | ||
| Book Value Per Share | 3.13 | 2.98 | |
| 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 Value | 19.1 B | 18.1 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 0.0555 | Forward Dividend Yield 0.0555 | Forward Dividend Rate 3.04 | Beta 0.871 |
Basic technical analysis of BHP Stock
As of the 26th of July, BHP Group shows the risk adjusted performance of (0.04), and Mean Deviation of 1.11. 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.BHP Group's Outstanding Corporate Bonds
BHP Group issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. BHP Group Limited uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most BHP bonds can be classified according to their maturity, which is the date when BHP Group Limited has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| CVS Health Corp Corp BondUS126650DE72 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View | |
| BHARTI 4375 10 JUN 25 Corp BondUS08860HAA23 | View |
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.
| Risk Adjusted Performance | (0.04) | |||
| Market Risk Adjusted Performance | (1.14) | |||
| Mean Deviation | 1.11 | |||
| Coefficient Of Variation | (1,641) | |||
| Standard Deviation | 1.46 | |||
| Variance | 2.13 | |||
| Information Ratio | (0.12) | |||
| Jensen Alpha | (0.11) | |||
| Total Risk Alpha | (0.25) | |||
| Treynor Ratio | (1.15) | |||
| Maximum Drawdown | 7.52 | |||
| Value At Risk | (2.76) | |||
| Potential Upside | 1.84 | |||
| Skewness | (0.61) | |||
| Kurtosis | 0.8512 |
| Risk Adjusted Performance | (0.04) | |||
| Market Risk Adjusted Performance | (1.14) | |||
| Mean Deviation | 1.11 | |||
| Coefficient Of Variation | (1,641) | |||
| Standard Deviation | 1.46 | |||
| Variance | 2.13 | |||
| Information Ratio | (0.12) | |||
| Jensen Alpha | (0.11) | |||
| Total Risk Alpha | (0.25) | |||
| Treynor Ratio | (1.15) | |||
| Maximum Drawdown | 7.52 | |||
| Value At Risk | (2.76) | |||
| Potential Upside | 1.84 | |||
| Skewness | (0.61) | |||
| Kurtosis | 0.8512 |
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 | 12th of July 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 |
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 2024-08-16 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.
BHP Group Corporate Directors
| Anita Frew | Non-Executive Independent Director | Profile | |
| Malcolm Broomhead | Non-Executive Independent Director | Profile | |
| Lindsay Maxsted | Independent Non-Executive Director | Profile | |
| Gary Goldberg | Senior Non-Executive Independent Director | Profile |
Additional Tools for BHP Stock Analysis
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.