BHP may be undervalued with mixed growth prospects, but the 7 analysts following the company give it an rating of hold. Their target prices range from $56.0 to $89.0 per share, for an average of $67.07. At today's price of $87.57, BHP is trading 30.56% away from its average target price, suggesting there is an analyst belief that shares are overpriced for the stock.
BHP Group Limited operates as a resources company in Australia, Europe, China, Japan, India, South Korea, rest of Asia, North America, South America, and internationally. Based in Melbourne, Australia, the Large-Cap Energy company has 39,369 full time employees. BHP has offered a 1.6% dividend yield over the last 12 months.
BHP has a trailing twelve month P/E ratio of 21.8, compared to an average of 18.35 for the Energy sector. Considering its EPS guidance of $5.32, the company has a forward P/E ratio of 16.5.
BHP is overpriced compared to its book value, since its P/B ratio of 4.41 is higher than the sector average of 1.6. The company's shares are currently 332.7% below their Graham number, indicating that its shares have a margin of safety.
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $38,924 | $30,527 | $25,713 | $53,817 | $55,658 | $51,262 |
| Operating Margins | 35% | 49% | 42% | 43% | 32% | 38% |
| Net Margins | 22% | 34% | 28% | 27% | 17% | 22% |
| Net Income (M) | $8,736 | $10,506 | $7,126 | $14,324 | $9,601 | $11,143 |
| Net Interest Expense (M) | -$858 | -$352 | -$652 | -$1,531 | -$1,489 | -$1,111 |
| Depreciation & Amort. (M) | $4,667 | $2,851 | $2,456 | $5,061 | $5,295 | $5,540 |
| Diluted Shares (M) | 2,946 | 2,950 | 5,066 | 5,066 | 5,072 | 5,076 |
| Earnings Per Share | $1.57 | $1.86 | $1.27 | $2.55 | $1.56 | $1.77 |
| EPS Growth | n/a | 18.47% | -31.72% | 100.79% | -38.82% | 13.46% |
| Free Cash Flow (M) | $15,706 | $13,277 | $6,770 | $18,701 | $20,665 | $18,692 |
| Current Ratio | 1.45 | 1.63 | 1.69 | 1.23 | 1.7 | 1.46 |
