Now trading at a price of $66.0, BHP has moved 0.6% so far today on a volume of 1,057,191, compared to its average of 3,339,370. In contrast, the S&P 500 index moved -0.0%.
BHP shares moved 14.1% over the last 52 weeks, with a high of $71.06 and a low of $46.92. During this time, the stock outperformed the S&P 500 index by 31.5%. As of January 2022, the company's 50-day average price is $59.0. BHP Group Limited operates as a resources company in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America, and internationally. The large-cap Basic Materials company has 45,295 full time employees and is based in Melbourne, Australia. BHP has returned a 5.0% dividend yield over the last 12 months.
Snapshot of the Company's Strong operating Margins with a Positive Growth Rate:
| 2019-06-30 | 2020-06-30 | 2021-06-30 | 2022-06-30 | |
|---|---|---|---|---|
| Revenue (MM) | $44,288 | $42,931 | $60,817 | $65,098 |
| Revenue Growth | n/a | -3.06% | 41.66% | 7.04% |
| Gross Margins | 69.6% | 68.2% | 75.9% | 77.1% |
| Gross Margins Growth | n/a | -2.01% | 11.29% | 1.58% |
| Operating Margins | 37.0% | 33.7% | 48.4% | 50.5% |
| Operating Margins Growth | n/a | -8.92% | 43.62% | 4.34% |
| Earnings Per Share | $3.2 | $3.14 | $4.46 | $7.9 |
| EPS Growth | n/a | -1.88% | 42.04% | 77.13% |
| Free Cash Flow (MM) | $11,621 | $8,806 | $20,628 | $26,319 |
| FCF Growth | n/a | -24.22% | 134.25% | 27.59% |
| Capital Expenditures (MM) | -$6,250 | -$6,900 | -$6,606 | -$5,855 |
| Net Debt / EBITDA | 0.38 | 0.53 | 0.08 | -0.07 |
BHP Is Reasonably Valued:
Compared to the Basic Materials sector's average of 8.57, BHP has a trailing twelve month price to earnings (P/E) ratio of 8.4 and, based on its EPS guidance of 2.04, an expected P/E ratio of 32.4.
BHP's price to book (P/B) ratio is 3.7 compared to its sector average of 1.86. The company is likely overvalued in terms of its net tangible assets. The company's shares are currently trading 52.6% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 4-year average EPS * book value per share) = √(22.5 * 4.68 * 17.766) = $43.25
Most of the Market Indicators on BHP Are Negative:
4 analysts are following BHP and have set target prices ranging from $64 to $77 per share. On average, they have given the company a rating of buy. At the current price of $66.0, BHP is trading -4.36% away from its average analyst target price of $69 per share, implying an analyst consensus of some upside potential for the stock.
