Understanding BHP Stock Fundamentals Before Investing

By Kim Brooks • Monday, June 17 16:28 • Permanent Link

BHP logged a -1.0% change during today's evening session, and is now trading at a price of $56.25 per share. The S&P 500 index moved 1.0%. BHP's trading volume is 2,419,096 compared to the stock's average volume of 2,477,401.

BHP trades -11.21% away from its average analyst target price of $63.35 per share. The 5 analysts following the stock have set target prices ranging from $53.0 to $72.75, and on average have given BHP a rating of buy.

Anyone interested in buying BHP should be aware of the facts below:

BHP's current price is 140.0% above its Graham number of $23.44, which implies that at its current valuation it does not offer a margin of safety
BHP has moved -8.9% over the last year, and the S&P 500 logged a change of 23.8%
Based on its trailing earnings per share of 2.92, BHP has a trailing 12 month Price to Earnings (P/E) ratio of 19.3 while the S&P 500 average is 27.65
BHP has a forward P/E ratio of 13.9 based on its forward 12 month price to earnings (EPS) of $4.05 per share
The company has a price to earnings growth (PEG) ratio of -1.29 — a number near or below 1 signifying that BHP is fairly valued compared to its estimated growth potential
Its Price to Book (P/B) ratio is 6.89 compared to its sector average of 2.1
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.
Based in Melbourne, the company has 49,089 full time employees and a market cap of $143.47 Billion. BHP currently returns an annual dividend yield of 2.7%.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.