BHP may be undervalued with strong growth indicators, but the 6 analysts following the company give it an rating of hold. Their target prices range from $49.0 to $57.0 per share, for an average of $51.14. At today's price of $48.06, BHP is trading -6.02% away from its average target price, suggesting there is an analyst consensus of some upside potential for the stock.
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, Australia, the Large-Cap Energy company has 38,962 full time employees. BHP has offered a 2.6% dividend yield over the last 12 months.
BHP has a trailing twelve month P/E ratio of 10.7, compared to an average of 18.35 for the Energy sector. Considering its EPS guidance of $4.42, the company has a forward P/E ratio of 10.9.
BHP is overpriced compared to its book value, since its P/B ratio of 5.36 is higher than the sector average of 1.6. The company's shares are currently 160.6% below their Graham number, indicating that its shares have a margin of safety.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $44,288 | $38,924 | $30,527 | $25,713 | $53,817 | $55,658 |
| Operating Margins | 19% | 35% | 49% | 42% | 43% | 32% |
| Net Margins | 12% | 22% | 34% | 28% | 27% | 17% |
| Net Income (M) | $5,190 | $8,736 | $10,506 | $7,126 | $14,324 | $9,601 |
| Net Interest Expense (M) | -$524 | -$858 | -$352 | -$652 | -$1,531 | -$1,489 |
| Depreciation & Amort. (M) | $3,014 | $4,667 | $2,851 | $2,456 | $5,061 | $5,295 |
| Diluted Shares (M) | 5,058 | 2,946 | 2,950 | 5,066 | 5,066 | 5,072 |
| Earnings Per Share | $0.96 | $1.57 | $1.86 | $1.27 | $2.55 | $1.56 |
| EPS Growth | n/a | 63.54% | 18.47% | -31.72% | 100.79% | -38.82% |
| Free Cash Flow (M) | $7,442 | $15,706 | $13,277 | $6,770 | $18,701 | $20,665 |
| Current Ratio | 1.62 | 1.45 | 1.63 | 1.69 | 1.23 | 1.7 |
