Stock Review: BHP Group outperforms 89% of the market


Dateline: Monday March 30, 2020
BHP Group Limited (ASX:BHP), Australia's largest Materials company by market cap, has climbed $A1.17 (4.0%) from its previous trading session to close at $A30.20. Compared with the All Ordinaries Index which rose 319.8 points (6.6%) in the day, the relative price change was -2.5%. The rise has been propped up by robust volume of 1.5 times the average daily volume of 6.8 million shares. In the Australian market of 1,330 stocks and 21 units traded today, BHP Group's stock has a 14-day relative price strength of 89 indicating it has outperformed 89% of the market. A price rise combined with a high relative strength is a bullish signal. There were 10,097,154 shares worth $A304.9 million traded today. Today the stock traded between its three-day high of $A30.20 and six-day low of $A28.03.

BHP GROUP DIVIDENDS
The company paid a dividend of 97.13c per share; the ex-dividend date was March 05.

Bullish Turning Point

Price/Earnings
The P/E of 11.6 is 0.2 times the highest average P/E of 56.9 in the last five years.This is a value criterion, according to Benjamin Graham who described as a value criterion "A P/E ratio down to less than four-tenth of the highest average P/E ratio the stock attained in the most recent five years".

Stock Summary
CurrencyAustralian Dollar (AUD) 1 AUD = 0.62 USD Yield7%
Mar 30 close$A30.20SectorMaterials
Ave Daily Volume6,837,364 sharesShares Outstanding5,180,000,000
52-Week Range24.05 - 40.27Market Cap$A156.4 billion [US$96.3 billion]
P/E11.6EPS Growth (Annual)128.6%


Financials Summary
Year ended JunFY2019FY2018FY2017
Sales (USD B)44.343.136.1
Pretax (USD B)1514.811.1
Net (USD B)8.33.75.9
EPS (USD)1.60.71.107

+ Net profit was up 124.2% from US$3.7 billion in FY2018 to US$8.3 billion in FY2019.
+ Earnings Per Share (EPS) was up 128.6% from 70.0c in FY2018 to $US1.60 in FY2019.

Click here to export Financials table in xls

INDEX

SECTION 1 Today's Bullish Signals

SECTION 2 Ongoing Bullish Parameters

SECTION 3 Today's Bearish Signals

SECTION 4 Ongoing Bearish Parameters

SECTION 5 News

SECTION 6 Price Volume Dynamics

SECTION 7 Period-based Shareholder Returns

SECTION 8 Peer Group Analysis & Ranking

SECTION 9 American Depositary Receipts

SECTION 10 Financials Half-Yearly Report 2019, Annual FY 2019, Past 10 Years

SECTION 11 Other Financials

SECTION 12 BHP Group Board of Directors

SECTION 13 Corporate Profile

SECTION 14 Independent Ratings

Glossary

SECTION 1 Today's Bullish Signals

1.1 Momentum Up 11.7% Past Week
BHP Group stock was up $A3.17 or 11.7% in the past week. Volume in the week was 2.1 times average trading of 34.2 million shares. It outperformed the All Ordinaries index in 3 out of 5 days. The price ranged between a low of 27.03 on Monday, Mar 23 and a high of 31.3 on Wednesday, Mar 25.
DayBHP GroupClose price [AUD]Price change %Relative change %Comment
FridaySinks 5.3% weakening below moving average price29.03-5.3-0.3Steepest Fall; VI*=2.8
ThursdayLoses $A3.3 billion in MCap, steepest heavyweight fall in All Ordinaries Index30.67-2.0-4.6VI*=1.9
WednesdayAccelerates rise, up 15.8% in 2 days31.310.24.9Week-high of 31.3
Top Rise; VI*=2.3
TuesdayAdds $A7.1 billion in MCap, top heavyweight rise in All Ordinaries Index28.45.10.9VI*=1.9
MondayIncreases, 3 days' volume in a day27.030.16.0VI*=2.7

[Volume Index (VI); 1 is average]

1.2 Uptrend

Past Quarter:
- In the last three months the stock has hit a new 52-week high twice.

Relative Strength (6 months) 79 percentile:
- The stock has a 6-month relative strength of 79 in the Australian market of 1,330 stocks and 21 units indicating it has outperformed 79% of the market.

1.3 Undervaluation
Dividend Yield:
- The relative yield of the stock, defined by its yield of 7%, divided by average yield of dividend yielding stocks in the All Ordinaries Index of 6.0% is 116.6%. This suggests the stock is undervalued in dividend yield terms.
MCap/Total Assets:
- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.9. Compared with the rest of the market the stock is undervalued.

1.4 Other Bullish Signals
- Return on Equity of 18.4% versus sector average of 13.0% and market average of 10.1%.
- Total Liabilities/EBITDA of 3 is less than 5, this compares favourably with the Joseph Piotroski benchmark of 5.
- Return on Assets of 9.4% versus sector average of 7.0% and market average of 1.8%.
- Return on Capital Employed of 18.7% versus sector average of 13.6% and market average of 5.9%.
- Interest cover defined by EBIT/I is 11 times. This indicates it is less leveraged.
- Net profit margin has averaged 19.3% in the last 3 years. This is considered superior and suggests a high margin of safety.
- As per the Du Pont analysis, Return on Equity of 18.4% is better than sector average of 13.0%. This is computed as net profit margin of 21.5% times asset turnover [sales/assets] of 0.44 times leverage factor [total assets/shareholders' equity] of 1.9.

SECTION 2 Ongoing Bullish Parameters


2.1 Annual Buybacks and 5-Years Decrease in Total Shares on Issue
In the past 5 years total shares on issue have decreased by 141 million [2.6%] from 5.3 billion to 5.2 billion. Buybacks have averaged 23.8 million shares [0.4%] per financial year. Based on a dynamic start date of 5 years ago, there have been declines in issued capital in 2 out of 5 years. A reduction in total shares on issue is a favourable indicator in Joseph Piotroski's 9 indicators.

Year End (Jun 30)Total Shares on IssueFYBuybacksBuyback %
20195,180,000,0002019143,000,0002.7%
20185,323,000,0002018--
20175,323,000,0002017--
20165,322,000,0002016--
20155,318,000,0002015--
20145,321,000,0002014--
Total  143,000,000 
Average per FY  23,833,333 


2.2 Created Market Value [CMV] past 14 yrs ($A B)
- Market Capitalization has increased by $A69.4 billion from $A87 billion to $A156.4 billion in the last 14 years. This increase comprises cumulative retained earnings (RETE) of $A46.7 billion and Created Market Value of $A22.7 billion. The Created Market Value multiple, defined by the change in MCap for every $A1 of retained earnings is $A1.49.

2.3 Earnings Yield of 8.6% > Bond Yield of 0.9%
- The earnings yield of 8.6% is 9.6 times the 10-year bond yield of 0.9%.
(All figures in %)
Earnings Yield8.6
Dividend Yield7.0
Bond Yield0.9


2.4 Dividend Yield > Bond Yield
(All figures in %)
Dividend Yield7.02
Bond Yield0.9
Spread6.12

The dividend yield of 7.02% is 7.8 times the triple-A bond yield of 0.9%. This is above the benchmark of 0.67 set by Benjamin Graham.

2.5 Safe Interest Cover and Improving
YearsInterest cover
201910.97
201810.41

Interest cover of 11.0 is above a safe benchmark figure of 3. Moreover, it has improved from 10.4 a year ago.

2.6 Low Debt to Equity (%)
YearsDebt to Equity (%)
Jun 201948.15
Jun 201844.41
Jun 201747.23
Jun 20168.59
Jun 201548.13

The debt to equity ratio of 48.2% is under a safe benchmark figure of 50%. However, it has deteriorated from 44.4% a year ago.

2.7 MCap: 4-Year Increase
In the past 4 years Market Capitalization has increased by $A101.8 billion from $A54.6 billion to $A156.4 billion. Based on a dynamic start date of 4 years ago, there has been only 1 decline in MCap over the last 4 years.
  PriceMCap (AUD B)MCap (US$ B)
Last$A30.20156.496.3
1 Year ago$A35.96203.6144.4
2 Years ago$A24.92154.3119.4
3 Years ago$A19.37125.495.5
4 Years ago$A13.5754.641.1


2.8 Moving Annual Return (Past 5 years) averaged 18.4%
Based on a dynamic start date of 5 years ago, the real rate of return has averaged 18.4%. The Moving Annual Return has been positive in 3 out of 5 years.
BHPClose (AUD)Dividends (AUD)Capital Gain / (Loss) %% YieldAnnual Return %
Mar 3030.22.12(16.0)5.9(10.1)
1 Yr ago35.963.0544.312.256.6
2 Yrs ago24.921.2528.66.435.1
3 Yrs ago19.370.742.75.247.9
4 Yrs ago13.571.08(42.0)4.6(37.4)


Close 5 years ago $A23.40

2.9 Present Value of AUD1,000 invested 30 years ago is $A26,312
- The present value of AUD1,000 (PV1000) invested thirty years ago in BHP Group is $A26,312, including a capital gain of $A11,822 and dividend reinvested of $A13,491.
- 30 years Multiplier in AUD = 26.312x
- Annualized Total Shareholder Returns (TSR) in AUD = 11.4%

2.10 Present Value of USD1,000 invested 30 years ago is $US19,861
- The present value of USD1,000 (PV1000) invested thirty years ago in BHP Group is $US19,861, including a capital gain of $US8,977 and dividend reinvested of $US9,884.
- 30 years ago AUD 1 equalled USD 0.7912
- 30 years Multiplier in USD = 19.861x
- Annualized Total Shareholder Returns (TSR) in USD = 10.4%

2.11 High Performance Indicators and rank in the Australian market:
DescriptionValueRank In Market
MCap$US96.3 billionIn Top 1%
Annual Revenue$US44.3 billionIn Top 1%
Turnover in Quarter$A12.2 billionIn Top 1%
EPS Growth %128.6In Top 9%
Return on Capital Employed [ROCE] %18.7In Top 20%
Relative Strength (6Mo)*79In Top 22%
Return on Equity [ROE] %18.4In Top 23%
YTD Relative Price Change %3.5In Top 24%

* Relative Strength: Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

2.12 Increased VWAP, up 105% in 5 years
In the past five years Volume Weighted Average Price (VWAP) has increased by 104.8% to $A34.75. Based on a dynamic start date of five years ago, there has been no decline in VWAP over the last 5 years.
Past five years, 12 months ended Mar 30 (AUD)
YearHigh PriceVWAPLow Price
202040.2734.7524.05
201936.2929.5724.28
201826.9822.1518.14
201722.5117.5412.65
201625.3516.9711.08


2.13 Increased Average Daily Turnover, up 45% in 5 years
In the past five years, average daily share turnover has increased 44.6% to $A232.3 million. This suggests increased liquidity.
Increased Average Daily Turnover, up 45% in 5 years
In the past five years, average daily share turnover has increased 44.6% to $A232.3 million. Past five years, 12 months ended Mar 30 (AUD million)
YearAverage Daily Turnover
2020232.3
2019221.2
2018169.5
2017164.6
2016160.6


2.14 Increase in Institutional Ownership (stocks)
Quarter-endSeptember 30, 2019December 31, 2019
Holdings (%)4.04.2

As at December 31, 2019 Institutions held 4.2% of total stocks on issue; an increase from 4.0% as at September 30, 2019.

2.15 Satisfies five criteria of Benjamin Graham
- The P/E of 11.6 multiplied by the P/NTA of 1.8 is 21.0. Being less than the Benjamin Graham benchmark of 22.5 the stock appears undervalued.
- "An earnings-to-price yield of at least twice the triple-A bond"; the stock's earning yield of 8.6% is 9.6 times the triple-A bond yield of 0.9%.
- The P/E of 11.6 is 0.2 times the highest average P/E of 56.9 in the last five years.This is a value criterion, according to Benjamin Graham who described as a value criterion "A P/E ratio down to less than four-tenth of the highest average P/E ratio the stock attained in the most recent five years".
- "A dividend yield of at least two-thirds the triple-A bond yield"; the stock's dividend yield is 7.8 times the triple-A bond yield of 0.9%.
-"Total debt less than tangible book value"; total debt of USD25 billion is less than tangible book value of USD51.1 billion.-"Earnings growth over the most recent ten years of 7% compounded - that is a doubling of earnings in a five-year period"; the earnings per share have more than doubled in the last 5 years.

2.16 Satisfies 5 out of 9 criteria of Joseph Piotroski [pass mark 5]:
- Positive net income.
- Positive operating cashflow.
- Return of Assets improvement [from 6.9% to 9.4%].
- Good quality of earnings [operating cashflow exceeds net income].
- Reduction in total shares on issue.

SECTION 3 Today's Bearish Signals

3.1 Momentum Down 7.4% Past Month
In the past quarter the steepest fall of 17.0% took place in the week beginning Monday March 09. The fall was exacerbated by volume of 3.8 times average.
The Worst 3 weeks in the past quarter:
Mon-FriChange %All Ordinaries index Change %RPC %Vol Ind [1 is avg]
Mar 09-13-17-11.1-5.93.8
Feb 24-28-12.1-9.9-2.11.7
Jan 27-31-2.6-1.1-1.51.2


3.2 Downtrend
Price/Moving Average Price of 0.84 and MACD:
- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 29.22 minus the 26-day EMA of 30.49 is negative, suggesting a bearish signal.
- The price to 50-day EMAP ratio is 0.9, a bearish indicator. In the past 200 days this ratio has been under 0.9 21 times suggesting further downside. The 50-day EMAP has decreased to $A32.54. A decrease is another bearish indicator.
- The price to 200-day MAP ratio is 0.84, a bearish indicator. In the past 200 days this ratio has been under 0.84, 13 times suggesting further downside. The stock is trading below both its MAPs and the 50-day MAP of $A34.01 is lower than the 200-day MAP of $A35.92, a bearish indicator. The 200-day MAP has decreased to $A35.92. A decrease is another bearish indicator.

Past Quarter:
- Falls to Rises: In the last three months the number of falls outnumbered rises 32:31 or 1.03:1.
- In the last three months the stock has hit a new 52-week low five times, pointing to a downtrend.

3.3 Overvaluation
Price/Earnings:
- Price/Earnings of 11.6 versus sector average of 9.5. We estimate the shares are trading at a current year P/E of 8.1 and a forward year P/E of 5.6.
Price/Sales:
- Price/Sales of 2.1 versus sector average of 1.3 and market average of 1.5. We estimate the shares are trading at a current year Price/Sales of 2 and a forward year Price/Sales of 1.8.
Price to Book of 1.8 > Sector average of 1.4:
- The Price to Book of 1.8 is higher than average of 1.4 for the Materials sector. We estimate the shares are trading at a current year Price to Book of 1.9 and a forward year Price to Book of 1.2.

3.4 Overbought/Bearish Signals:
- The stock is overbought according to the Williams % R indicator of -19.8, suggesting the price is close to its 14-day high of $A31.72.

SECTION 4 Ongoing Bearish Parameters

4.1 Year-to-Date
BHP Group decreases 20% in 2020
BHP Group Limited (ASX:BHP), decreased $A7.63 (or 20.2%) year-to-date (YTD) in 2020 to close at $A30.20 today. Compared with the All Ordinaries Index which has fallen 23.6% YTD, this is a relative price increase of 3.5%.

4.2 Past Year
BHP Group decreases 16% in past year
BHP Group Limited (ASX:BHP), decreased $A5.76 (or 16.0%) in the past year to close at $A30.20 today. Compared with the All Ordinaries Index which has fallen 17.2% over the same period, this is a relative price increase of 1.2%.

4.3 Declining ADVT, down 27% in 5 years
In the past five years, Average Daily Volume of Trading (ADVT) has decreased 26.9% to 6.8 million shares.
Avg. Daily Volume Traded 12 months ended Mar 30, million shares
YearADVT
20206.8
20197.4
20187.6
20179.2
20169.4


SECTION 5 News

5.1 Financial News
Quarterly Report (Q2/2019):
February 18, 2020
Interim Report (Half Year) Analysis H2 2019: BHP Group half year profits hit by 41.4% fall
BHP Group (ASX:BHP), announced net profit of $US4.9b for the half year-ended 31 December 2019, down 41.4% from the previous corresponding period.
Compared with the previous corresponding period [PCP; H/31 Dec 2018], year-over-year [y.o.y.] Revenue was down 49.7% and Net Profit was down 41.4%.
Read more in SECTION 10 on Financials

5.2 Meetings
November 07 2019: BHP 2019 AGM Results
As required by the Dual Listed Compan y Structure, a poll was conducted on each of the proposed resolutions. Each resolution is a Joint Electorate Action. The poll results for BHP Group Limited and BHP Group Plc are attached.
Source: Australian Securities Exchange

5.3 Changes in Board (TTM)
January 14: BHP Board Update and Director Declaration
In accordance with UK Listing Rule 9.6.14, BHP Group Plc advises that Terry Bowen, Director of BHP Group Plc and BHP Group Limited ( BHP ), has been appointed to the Board of Transurban Group ( Transurban ) with effect from 1 February 2020.
Source: Australian Securities Exchange

December 23 2019: BHP Group will appoint Chief Executive Officer
BHP Group will appoint Mike Henry as Chief Executive Officer. The effective date is Wednesday, January 01, 2020.

November 14 2019: Mike Henry to become BHP CEO effective 1 January 2020
The Board of BHP today announced that Mike Henry has been appointed Chief Executive Officer ( CEO ) of BHP, following a thorough succession process.
Mr. Henry will assume the role of CEO and Executive Director effective 1 January 2020, replacing Andrew Macke nzie who will retire as CEO on 31 December 2019.
Source: Australian Securities Exchange

5.4 Dividends
February 20: BHP Group announces dividend
BHP Group today announced an interim dividend of 97.13c per share, franked to 100%. The ex-dividend date is Thursday, March 05, 2020 and the record date is Friday, March 06, 2020 and it is payable on Tuesday, March 24.

August 21 2019: BHP Group announces dividend
BHP Group today announced a final dividend of $A1.15 per share, franked to 100%. The ex dividend date is Thursday, September 05, 2019 and the record date is Friday, September 06, 2019 and it is payable on Wednesday, September 25.

5.5 Press Releases
February 18: BHP Group: Half Yearly Report and Accounts
This statement includes the consolidated results of BHP for the half year ended 3 1 December 2019 compared with the half year ended 3 1 December 2018.
This page and the following 64 pages comprise the half year end information given to the ASX under Listing Rule 4. 2 A and released to the market under UK Disclosure and Transparency Rule 4.2.2R and should be read in conjunction with the 2019 BHP Group annual financial report.
Source: Australian Securities Exchange

January 21: BHP Group: Quarterly Activities Report
All production and unit cost guidance (1) (based on exchange rates of AUD/USD 0.70 and USD/CLP 683) remains unchanged for the 2020 financial year. Escondida unit costs tracking below full year guidance at the December 2019 half year largely as a result of higher by - product credits.
Group copper e quivalent production was broadly unchanged in the Dec ember 2019 half year, with v olumes for the full year expected to be slightly higher than last year.
Source: Australian Securities Exchange

October 17 2019: BHP Group: Quarterly Activities Report
Group copper equivalent production de creased by 3 % in the September 2019 quarter largely due to planned maintenance across a number of operations and natural field decline in Petroleum. Volumes for the 2020 financial year are expected to be slightly higher than last year.
Source: Australian Securities Exchange

September 17 2019: BHP Group: 2019 US Annual Report (Form 20-F)
Please find attached a copy of BHP's 201 9 US Annual Report (Form 20 - F), which has been filed with the United States Securities and Exchange Commission.
This document has been prepared in accordance with the requirements of the United States Securities and Exchange Commission and, as such, does n ot comply with the reporting requirements under the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 Edition).
Source: Australian Securities Exchange

August 20 2019: BHP Group: Preliminary Final Report
This statement includes the consolidated results of BHP for the year ended 30 June 2019 compared with the year ended 30 June 2018.
This page and the following 54 pages comprise the year end information given to the ASX under Listing Rule 4. 3 A and released to the market under UK Listing Rule 9.7A. The 2019 BHP Group annual financial report will be released in September.
Source: Australian Securities Exchange

July 17 2019: BHP Group: Quarterly Activities Report
Exceeded full year production guidance for petroleum and met revised guidance for copper and iron ore. Metallurgical coal and energy coal production marginally below guidance predominantly as a result of lower than expected wash plant yield s and adverse weather impacts during the June 2019 quarter.
Source: Australian Securities Exchange

June 07 2019: BHP Group: Tailings Facilities Management Presentation
BHP will be hosting an investor briefing today on the management of tailings storage facilities across the portfolio.
The purpose of the briefing is to provide an update on BHP's approach to tailings storage facilities ' management and to give further information on the number, design and classification of tailings faci lities.
Source: Australian Securities Exchange

April 17 2019: BHP Group: Quarterly Activities Report
Production guidance for the 2019 financial year remains unchanged for petroleum, copper, metallurgical coal and energy coal. Iron ore production guidance decreased to between 26 5 and 27 0 Mt (100% basis), reflecting impacts of Tropical Cyclone Veronica.
Source: Australian Securities Exchange

5.6 People's News
Thu Jan 23, 2020
Peter Beaven's performance as CFO of BHP Group (ASX:BHP) is ranked in the top 19% of BuySellSignals performers for the past five years; a percentile ranking of 81.3. In the last 5 years the average annualized return to shareholders was 13.6%. The 5-year average return is ranked 8,098 out of 43,321 public companies traded globally. The present value of US$1,000 (PV1000) invested 5 years ago is now worth US$1,895, a capital gain of US$440 and dividend reinvested of US$455.

SECTION 6 Price Volume Dynamics

6.1 YTD Aggregate Volumes

+ASX: BHP.ASX year-to-date volume is 599,583,468; volume 93.39% of aggregate. Average daily volume is 9,517,198.
Year-to-date (YTD) Volume Weighted Average Price (VWAP): $A33.0.
+OTCBB: BHPLF.OTCBB year-to-date volume is 41,782,393; volume 6.51% of aggregate. Average daily volume is 819,263.
Year-to-date (YTD) VWAP: $US21.0.
Using the current exchange rate of USD1 equals 1.6243AUD, the shares are at a 3.4% premium to the year-to-date VWAP on ASX.
+Frankfurt: BHP1.FRA year-to-date volume is 652,229; volume 0.1% of aggregate. Average daily volume is 13,073.
Year-to-date (YTD) VWAP: EUR21.0.
Using the current exchange rate of EUR1 equals 1.8015AUD, the shares are at a 14.6% premium to the year-to-date VWAP on ASX.
+YTD Aggregate volume: there were 642,018,090 shares of BHP Group worth AUD21 billion traded year-to-date.

6.2 Stock Trading Volume and Turnover
TurnoverUS$7.5 billion
Avg daily trading turnoverUS$117.2 million
Volume327,044,689
Avg daily volume5,110,073


6.3 Period-based Price Change %
3-Year price change of 55.9% for BHP Group outperformed the change of -12.1% in the All Ordinaries index for a relative price change of 68.1%.
Price Change %QuarterYear3 Years
BHP Group-21.1-1655.9
Materials sector-22-15-8
All Ordinaries index-25-17.2-12.1


6.4 Alpha, Beta & Standard Deviation
The Alpha of the stock is -2.0. The actual return of -18.5% fell short of the expected return of -16.7%, reflecting underperformance.
The Beta of this stock is 0.8. A Beta lower than 1 suggests this is a lower risk, lower return stock with volatility less than that of the market.
SD is a statistical measure of deviation from the mean. The SD of 2.1% gives it a percentile rank of 11 meaning that 11% of stocks in the Australian market are less volatile than this stock.
 StockInterpretation
Alpha-2.0Underperform
Beta0.8Lower risk, lower return
Standard Deviation2.1Less volatile


SECTION 7 Period-based Shareholder Returns

7.1 Present Value of $A1000 Invested in the Past [3 Mo, 1 Yr, 3 Yrs]
PV$A1,0003 mo ago1 yr ago3 yrs ago
BHP.ASX$A812$A893$A1,925
Materials sector$A780$A850$A919
All Ordinaries Index$A762$A828$A876


7.2 Annualised Period-based Total Shareholder Returns [TSR %]
TSR %3 yrs5 yrs10 yrs20 yrs30 yrs
BHP.ASX24.111.95.813.911.4


SECTION 8 Peer Group Analysis & Ranking

8.1 Global Peer Group (all figures in USD): Key Financials
In its Global Peer Group of 9 companies BHP is ranked first by MCap, Revenue, Net Profit, Total Assets, seventh by PV $1000 (1 yr) and eighth by Relative Str. (6 mo).
Name (Code)Relative Str. (6 mo)MCapPV $1000 (1 yr)RevenueNet ProfitTotal Assets
Rank of BHP817111
BHP Group (BHP)4696.3B774.244.3B8.3B100.9B
Rio Tinto (RIO)6070B903.243.2B8B87.8B
China Shenhua Energy - A Share (601088)6345.8B866.737.2B6.2B82.8B
GMK Norilsk Nickel (GMKN)8839.3B1,523.011.7B3.1B15.3B
Newmont Goldcorp (NGT)9337.8B 9.7B2.8B40B
Newmont Goldcorp (NEM)9337.4B1,403.69.7B2.8B40B
Barrick Gold (ABX)9033.6B1,376.29.7B4B44.4B
BHP Group (BHP)3930.7B 44.3B8.3B100.9B
China Steel Preference (2002A)8927.4B1,216.111.3B680.9M21B

Global Peer Group: Relative Value Indicators
BHP is ranked fourth by P/S, P/Book and fifth by P/E, Turnover Rate.
Name (Code)Country CodeLast PriceP/EP/SP/BookTurnover Rate (%)% Disc to 52-w Hi
Rank of BHP  5445 
BHP Group (BHP)AUAUDA30.2010.82.01.839.827.9
Rio Tinto (RIO)GBGBX3,528.08.81.61.661.523.6
China Shenhua Energy - A Share (601088)CNCNY16.278.11.21.127.618.8
GMK Norilsk Nickel (GMKN)RURUB19,216.012.73.311.724.118.8
Newmont Goldcorp (NGT)CACAD64.43 3.81.9  
Newmont Goldcorp (NEM)US$US46.3512.23.81.9223.711.7
Barrick Gold (ABX)CACAD26.898.53.41.354.39.9
BHP Group (BHP)GBGBX1,187.609.10.7 59.738.7
China Steel Preference (2002A)TWTWD52.50   0.15.4


8.2 BuySellSignals Fundamentals Valuation Ranking: BHP Group vs Australian Market
Out of 1,330 stocks and 21 units in the Australian Market, BHP Group is ranked first by Market Cap $A, first by Revenue, second by Net Profit and Seventy-seventh by EBITDA Margin.
 Australian AvgBHPRankRank 1Rank 2Rank 3Lowest Rank
Market Cap $A1.3 B156.4 B1156.4 B BHP141.9 B CSL113.2 B CBA32,489 MAN
Revenue $A602.3 M71.9 B171.9 B BHP70.1 B RIO60 B WOW 
Net Profit60.7 million8.3 B28.4 B CBA8.3 B BHP8 B RIO 
EBITDA Margin18.537.47789.1 EGF88.6 DUI86.5 FGX(88.6) NZM
Yield (%)5.87.0217220 UNV18.8 NTD18.8 OML0.1 CUV
ROA (%)1.89.4192170.9 NZS168.2 TLM69.3 FUN0.04 AMP
P/Earnings14.7x11.6x2361.6x BKY1.6x SGH1.6x BLT-
Free Cash Flow(172.8 M) 39010.6 B CBA2 B WPL2 B QBE 
Price/Net Tangible Assets1.9x1.8x6350.1x HRR0.1x CTO0.1x EWC-
Total Debt/Equity (the lower the better)0.7x0.5x642KINTNEFWD8.9x SIV
Premium to 52-Wk Low (%)20.125.66840.5 DGH1.03 SWK1.4 PG12550.8 ZNO
Discount to 52-Wk High (%)29.325.01147897.5 SE196.8 ARQ96.8 JXT4 AFP

Negative values are shown in brackets.

8.3 Market Share
BHP Group vs Materials sector [Materials sector Total in Brackets]
Revenue of $US71.9 billion[26.1% of aggregate sector revenue of $A276.7 billion; down from 27.3% in the previous year.]
Net Profit of $US13.5 billion [34.7% of aggregate sector net profit of $A39 billion; up from 16.4% in the previous year.]
EBIT of $US26.9 billion [41.6% of aggregate sector EBIT of $A64.8 billion; up from 38.5% in the previous year.]

8.4 Share in Index
BHP Group is a constituent of the following indices. Its market capitalisation accounts for 51.0% of the combined MCap of the S&P/ASX 300 Metals and Mining (Industry).
Index NameMCap of Index (USD B)MCap as % of Index
S&P/ASX 300 Metals and Mining (Industry)189 51.0
S&P/ASX 200 Materials Index216 44.5
S&P/ASX 200 Resources218 44.1
S&P/ASX 20 Index559 17.2
S&P/ASX All Australian 50724 13.3
S&P/ASX 50 Index730 13.2
S&P/ASX 100 Index872 11.0
S&P/ASX All Australian 200916 10.5
S&P/ASX 200 Index969 9.9
S&P/ASX 300 Index998 9.6
All Ordinaries Index1,037 9.3


8.5 Global Rank [out of 47,135 stocks] and Rank of BHP Group in the Asia Pacific Region [out of 2,007 stocks]
DescriptionValueGlobal RankIn APAC Region
MCap (US$)96.3B1021
Total Assets (US$)100.9B5407
Revenue (US$)44.3B2641
Net Profit (US$)8.3B921
Return on Equity %18.44,531160
Net Profit Margin %21.55,422235
Price to Book1.824,477978
Price/Earnings10.810,134319
Yield %7.34,846214
PV1000 (1Year) USD*77421,207559
US$* Change (1Year) %-30.022,676603


* 1 year ago AUD 1 = USD 0.71
Mar 30, 2020: AUD 1 equals USD 0.62

8.6 Rank of BHP Group in the All Ordinaries Index [out of 460 stocks], in the Total Australian Market [out of 1779 stocks] and in the Materials sector [out of 529 stocks]
DescriptionValueIn All Ordinaries IndexIn Total Australian MarketIn Materials sector
MCap (AUD)156.4B111
Total Assets (AUD)163.8B771
Revenue (AUD)71.9B111
Net Profit (AUD)13.5B111
Return on Equity %18.48915030
Net Profit Margin %21.59621032
Price to Book1.8214935366
Price/Earnings11.617030157
Yield %7.013219518
PV1000 (1Year) AUD893144466137


8.7 Long-Term Fundamental Ranking: 5 out of 5 [5 is best]
BHP Group is ranked number 1 out of 619 listed materials companies in the Australia with a market capitalization of $A156.4 billion.

It has a strong relative ROE of 18.4% and ROA of 9.4%. The company paid a dividend of 97.13c in the last twelve months. The dividend yield is high at 7%. Finally, its earnings growth in the past 12 months has been a comparatively high 128.6%.
Stocks are scored on a set of parameters reflecting fundamental analytical tools involving valuation, size and financial performance. They are ranked according to the average values of those parameters. The highest ranking is 5 and the lowest ranking is 1.

SECTION 9 American Depositary Receipts

BHP Group Limited, the ADR market's largest Mining company by market cap, climbed $US5.10 (or 11.7%) in the trailing 12 months to October 14, 2019 to close at $US48.62. This means the ADR has outperformed 81% of NYSE-listed ADRs in the same period. Compared with the Bank of New York Mellon Composite ADR Index which has fallen 0.5% over the same period, this is a relative price increase of 12.2%. Average daily volume of 2.2 million ADRs in the trailing year was 0.9 times average daily volume in the previous year.

9.1 ADR Summary
SymbolBHP
PriceUSD 35.59
% Change YTD-34.9
ISINUS0886061086
CUSIP088606108
Ratio1 ADR equals 2 ordinary shares
TypeSponsored
Avg. Daily Volume2,285,047


9.2 ADR BUZZ
To view the ADR BUZZ on BHP Group, http://www.buysellsignals.net/BuySellSignals/report/Adr/Stock/Daily/Link/BHP-Group.html

SECTION 10 Financials Half-Yearly Report 2019, Annual FY 2019, Past 10 Years


10.1 Half-Yearly Report: Key Parameters
BHP Group half year profits hit by 41.4% fall
Release Date: February 18, 2020
BHP Group (ASX:BHP), announced net profit of $US4.9b for the half year-ended 31 December 2019, down 41.4% from the previous corresponding period.

Compared with the previous corresponding period [PCP; H/31 Dec 2018], year-over-year [y.o.y.] Revenue was down 49.7% and Net Profit was down 41.4%.
Half year-ended31 Dec 201931 Dec 2018
EPS96c$US1.6
PCP growth in EPS %-39.9322
Revenue, $US--
PCP growth in Revenue %-49.7116
Net Profit, $US billion4.98.3
PCP growth in Net Profit %-41.4312


Major changes compared with previous corresponding period [H2/2019 vs H2/2018]:
Favourable Changes:
- EBIT to Sales up from 34% to 34.9%
- Profit before tax to Sales up from 34% to 34.9%
- Profit after tax to Sales up from 18.8% to 21.8%
Unfavourable Changes:
- Net profit slumped 41.4% from $US8.3b to $US4.9b

10.2 Financial Results as reported (Half Year)

RESULTS OF OPERATIONS AND FINANCIAL CONDITION
(In $US Million, except per share data and shares outstanding)

INCOME STATEMENT AS REPORTED
Description$US Million$US Million 
Dec 3120192018Change %
Continuing operations   
Revenue22,29444,288Down 49.7
Other income209393Down 46.8
Expenses excluding net finance costs-14,315-28,022Improved 48.9
Piofii./(loss) from equity accounted investments related impairments and expenses126-546Recovery
Profit from operations8,31416,113Down 48.4
Financial expenses-741-1,510Improved 50.9
Financial income217446Down 51.3
Net finance costs-524-1,064Improved 50.8
Profit before taxation7,79015,049Down 48.2
Income tax expense-2,525-5,335Improved 52.7
Royalty-related taxation (net of income tax benefit)-75-194Improved 61.3
Total taxation expense-2,600-5,529Improved 53.0
Profit after taxation from Continuing operations5,1909,520Down 45.5
Discontinued operations   
Loss after taxation from Discontinued operations -335 
Profit after taxation from Continuing and Discontinued operations5,1909,185Down 43.5
Attributable to non-controlling interests322879Down 63.4
Attributable to BHP shareholders4,8688,306Down 41.4
Basic earnings per ordinary share (cents)96.30c$US1.60Down 39.9
Diluted earnings per ordinary share (cents)96.0c$US1.60Down 40.0
Basic earnings from Continuing operations per ordinary share (cents)96.30c$US1.67Down 42.3
Diluted earnings from Continuing operations per ordinary share (cents)96.0c$US1.67Down 42.3
Weighted average number of share outstanding Basic5,057,000,0005,303,000,000Down 4.6
Weighted average number of share outstanding Diluted5,070,000,0005,318,000,000Down 4.7


BALANCE SHEET AS REPORTED
Description$US Million$US Million 
 Dec 31, 2019Jun 30, 2019Change %
ASSETS   
Current assets   
Cash and cash equivalents14,32115,613Down 8.3
Trade and other receivables3,5953,462Up 3.8
Other financial assets5487Down 37.9
Inventories3,9393,840Up 2.6
Current tax assets137124Up 10.5
Other200247Down 19.0
Total current assets22,24623,373Down 4.8
Non-current assets   
Trade and other receivables254313Down 18.8
Other financial assets1,2651,303Down 2.9
Inventories1,108768Up 44.3
Property plant and equipment70,19668,041Up 3.2
Intangible assets670675Down 0.7
Investments accounted for using the equity method2,6372,569Up 2.6
DEFERRed tax assets3,8663,764Up 2.7
Other4855Down 12.7
Total non-current assets80,04477,488Up 3.3
Total assets102,290100,861Up 1.4
LIABILITIES Current liabilities   
Trade and other payables5,7986,717Down 13.7
Interest bearing liabilities4,2731,661Up 157.3
Other financial liabilities363127Up 185.8
Current tax payable1,1041,546Down 28.6
Provisions2,1062,175Down 3.2
Deferred income118113Up 4.4
Total current liabilities13,76212,339Up 11.5
Non-current liabilities   
Trade and other payables55Steady
Interest bearing liabilities22,53523,167Down 2.7
Other financial liabilities731896Down 18.4
Non-current tax payable112187Down 40.1
Deferred tax liabilities3,0323,234Down 6.2
Provisions9,4598,928Up 5.9
Deferred income236281Down 16.0
Total non-current liabilities36,11036,698Down 1.6
Total liabilities49,87249,037Up 1.7
Net assets52,41851,824Up 1.1
EQUITY Share capital - BHP Group Limited1,1111,111Steady
?Mare capital - BHP Group Plc1,0571,057Steady
Treasury shares-14-32Improved 56.2
Reserves2,2612,285Down 1.1
Retained earnings43,70742,819Up 2.1
Total equity attributable to BHP shareholders48,12247,240Up 1.9
Non-controlling interests4,2964,584Down 6.3
Total equity52,41851,824Up 1.1


CASH FLOW AS REPORTED
Description$US Million$US Million 
Dec 3120192018Change %
Operating activities   
Profit before taxation7,79015,049Down 48.2
Adjustments for:   
Depreciation and amortisation expense3,0145,829Down 48.3
Impairments of property plant and equipment financial assets and intangibles29264Down 89.0
Net finance costs5241,064Down 50.8
(Profit)/loss from equity accounted investments related impairments and expenses-126546Deterioration
Other401308Up 30.2
Changes in assets and liabilities:   
Trade and other receivables100-211Recovery
Inventories-441298Deterioration
Trade and other payables-710406Deterioration
Provisions and other assets and liabilities436-125Recovery
Cash generated from operations11,01723,428Down 53.0
Dividends received108516Down 79.1
Interest received221443Down 50.1
Interest paid-643-1,346Improved 52.2
Proceeds/(settlements) of cash management related instruments69296Down 76.7
Net income tax and royalty-related taxation refunded559Down 91.5
Net income tax and royalty-related taxation paid-3,335-5,999Improved 44.4
Net operating cash flows from Continuing operations7,44217,397Down 57.2
Net operating cash flows from Discontinued operations 474 
Net operating cash flows7,44217,871Down 58.4
Investing activities   
Purchases of property plant and equipment-3,405-6,250Improved 45.5
Exploration expenditure-390-873Improved 55.3
Exploration expenditure expensed and included in operating cash flows231516Down 55.2
Net investment and funding of equity accounted investments-292-630Improved 53.7
Proceeds from sale of assets172145Up 18.6
Other investing-48-285Improved 83.2
Net investing cash flows from Continuing operations-3,732-7,377Improved 49.4
Net investing cash flows from Discontinued operations -443 
Proceeds from divestment of Onshore US net of its cash 10,427 
Net investing cash flows-3,7322,607Deterioration
Proceeds from interest bearing liabilities300250Up 20.0
(Settlements)/proceeds of debt related instruments -160 
R. epayment of interest bearing liabilities-653-2,604Improved 74.9
Purchase of shares by Employee Share Ownership Plan (ESOP) Trusts-103-188Improved 45.2
Share buy-back - BHP Group Limited -5,220 
Dividends paid-3,934-11,395Improved 65.5
Dividends paid to non-controlling interests-610-1,198Improved 49.1
Net financing cash flows from Continuing operations-5,000-20,515Improved 75.6
Net financing cash flows from Discontinued operations -13 
Net financing cash flows-5,000-20,528Improved 75.6
Net decrease in cash and cash equivalents from Continuing operations-1,290-10,495Improved 87.7
Net increase in cash and cash equivalents from Discontinued operations 18 
Proceeds from divestment of Onshore US net of its cash 10,427 
wash and cash equivalents net of overdrafts at the beginning of the period15,59315,813Down 1.4
Foreign currency exchange rate changes on cash and cash equivalents18-170Recovery
Cash and cash equivalents net of overdrafts at the end of the period14,32115,593Down 8.2


10.3 Annual Report (FY 2019): Key Parameters
BHP Group Net Profit up 124%
Release Date: September 17, 2019
BHP Group (ASX:BHP) reported net profit for the year-ended 30 June 2019 [FY2019] of $US8.3b, up 124.2% from $US3.7b in the previous year [FY2018]. Earnings per share (EPS) were up 128.6% from 70.0c in FY2018 to $US1.6 in FY2019.

Major changes compared with previous year (FY2019 vs FY2018):
Favourable Changes:
- Interest cover up 5.4% from 10.4 to 11.0
- EBIT to total assets up from 14.6% to 16.4%
- Interest expenses to Sales down from 3.6% to 3.4%
- Interest revenue to Sales up from 0.7% to 1%
- Total non-current assets to Total Assets up from 68.6% to 76.8%
- Fixed Assets to Total Assets up from 60% to 67.5%
- Long-term investments to Total Assets up from 3.1% to 3.8%
- Total Liabilities to EBITDA of 3.0 compares favourably with the Joseph Piotroski benchmark of <5. This ratio has improved by 6% from the previous year's ratio of 3.1.
- Total Liabilities to Operating Cash Flow of 2.7 compares favourably with the Joseph Piotroski benchmark of <4. Unfavourable Changes:
- Debt to Equity up 9.1% from 0.4 to 0.5
- Current ratio down 24.7% from 2.5 to 1.9
- Working capital to total assets down from 18.9% to 10.9%
- Retained earnings to total assets down from 45.6% to 42.5%
- Total current assets to Total Assets down from 31.4% to 23.2%
- Net tangible assets per share down 12.2% from $US11.22 to $US9.85
Note:
- EBIT Margin steady at 37.4%
- Total revenue to total assets steady at 0.4
- Profit before tax to Sales down from 34.2% to 34%
- Total liabilities to Total assets steady at 0.5
- Current Inventory to Total Assets up from 3.4% to 3.8%

Annual Report [FY2019 vs FY2018]
Company Name : BHP Group Limited (BHP)   
June 30FY2019FY2018Change
Description$US m$US m(%)
Sales Revenue44,28843,129Up 2.7
EBITDA16,55916,318Up 1.5
EBIT16,55916,318Up 1.5
Interest1,5101,567Down 3.6
Pre-Tax Profit/(Loss)15,04914,751Up 2
Working Capital11,03421,141Down 47.8
Current Assets23,37335,130Down 33.5
Current Liabilities12,33913,989Down 11.8
Shareholders' Funds47,24055,592Down 15
Total Liabilities49,03751,323Down 4.5
Total Assets100,861111,993Down 9.9
Current Debt1,7882,874Down 37.8
Non-Current Debt23,16724,069Down 3.7
Total Debt24,95526,943Down 7.4
Operating Cash Flow17,87118,461Down 3.2
Net Assets51,82460,670Down 14.6
Net Tangible Assets51,14959,892Down 14.6
AuditorKPMG  


Year-on-year comparison of Per Share figures [FY2019 vs FY2018] (FY 2019)
June 30FY2019FY2018Change (%)
Description$US $US  
Sales8.58.1Up 5.5
EBIT3.23.1Up 4.3
EBITDA3.23.1Up 4.3
Shareholders' Funds9.110.4Down 12.7
Total Liabilities9.59.6Down 1.8
Total Assets19.521Down 7.5
Current Debt34.5c54 cDown 36.1
Non-Current Debt4.54.5Down 1.1
Total Debt4.85.1Down 4.8
Net Tangible Assets9.811.2Down 12.2


Year-on-year comparison of Performance Ratios [FY2019 vs FY2018] (FY 2019)
June 30FY2019FY2018Change (%)
Return on Equity (%)18.412.8Up 43.7
Return on Assets (%)9.46.9Up 36.2
Total debt to net tangible assets (%)48.845Up 8.4
Total Liabilities to Operating Cash Flow2.72.8Down 1.4
Debt/Equity0.50.4Up 9.1
Total Liabilities/Total Assets (Up 6.5% from 0.46 to 0.49)0.50.5Up 6.5
Interest Cover1110.4Up 5.4
Current Ratio1.92.5Down 24.7
Common Size Ratios by Assets %   
Total non-current assets to Total Assets 76.8 68.6 Up 11.9
Fixed Assets to Total Assets 67.5 60.0 Up 12.5
Total current assets to Total Assets 23.2 31.4 Down 26.0
Long-term investments to Total Assets 3.8 3.1 Up 22.6
Current Inventory to Total Assets 3.8 3.4 Up 13.1
Common Size Ratios by Sales %   
Profit before tax to Sales 34.0 34.2 Down 0.6
Interest expenses to Sales 3.4 3.6 Down 6.4
Interest revenue to Sales 1.0 0.7 Up 33.9
Tax expenses to Sales (12.5) (16.2) Up 23.1


Five-year record of growth and performance:
In the last 5 years EBITDA averaged $US11.2B and Net Profit averaged $US3.9B.
DescriptionAnnual ($US B)5-year Avg ($US B)5-year CAGR %
EBITDA16.611.2(11.5)
Operating Profit16.69.3(6.1)
Net Profit8.33.9(9.7)


Five-year record of EBITDA, Operating Profit, Net Profit, ROE, ROA and ROCE
In 2019 Net Profit Margin of 21.5% was above its 5-year Avg of 8.4% (All Figures in %)
Description20195-year Avg
EBITDA Margin37.425.3
Operating Profit Margin37.421.2
Net Profit Margin21.58.4
Return on Equity18.46.7
Return on Assets9.43.7
Return on Capital Employed18.79.6


10.4 Financial Results as reported (FY 2019)

RESULTS OF OPERATIONS AND FINANCIAL CONDITION
(In $US Million, except per share data and shares outstanding)

INCOME STATEMENT AS REPORTED (FY 2019)
Description$US Million$US Million 
Jun 3020192018Change %
Continuing operations   
Revenue44,28843,129Up 2.7
Other income393247Up 59.1
Expenses excluding net finance costs-28,022-27,527Deterioration 1.8
(Loss)/profit from equity accounted investments related impairments and expenses-546147Deterioration
Profit from operations16,11315,996Up 0.7
Financial expenses-1,510-1,567Improved 3.6
Financial income446322Up 38.5
Net finance costs-1,064-1,245Improved 14.5
Profit before taxation15,04914,751Up 2.0
Income tax expense-5,335-6,879Improved 22.4
Royalty-related taxation (net of income tax benefit)-194-128Deterioration 51.6
Total taxation expense-5,529-7,007Improved 21.1
Profit after taxation from Continuing operations9,5207,744Up 22.9
Discontinued operations   
Loss after taxation from Discontinued operations-335-2,921Improved 88.5
Profit after taxation from Continuing and Discontinued operations9,1854,823Up 90.4
Attributable to non-controlling interests8791,118Down 21.4
Attributable to BHP shareholders8,3063,705Up 124.2
Basic earnings per ordinary share (cents)$US1.6070.0cUp 128.6
Diluted earnings per ordinary share (cents)$US1.6069.0cUp 131.9
Basic earnings from Continuing operations per ordinary share (cents)$US1.67$US1.25Up 33.6
Diluted earnings from Continuing operations per ordinary share (cents)$US1.67$US1.25Up 33.6
Weighted average numbers of shares basic5,180,000,0005,323,000,000Down 2.7
Weighted average numbers of shares diluted5,193,000,0005,337,000,000Down 2.7


BALANCE SHEET AS REPORTED (FY 2019)
Description$US Million$US Million 
Jun 3020192018Change %
ASSETS   
Current assets   
Cash and cash equivalents15,61315,871Down 1.6
Trade and other receivables3,4623,096Up 11.8
Other financial assets87200Down 56.5
Inventories3,8403,764Up 2.0
Assets held for sale 11,939 
Current tax assets124106Up 17.0
Other247154Up 60.4
Total current assets23,37335,130Down 33.5
Non-current assets   
Trade and other receivables313180Up 73.9
Other financial assets1,303999Up 30.4
Inventories7681,141Down 32.7
Property plant and equipment68,04167,182Up 1.3
Intangible assets675778Down 13.2
Investments accounted for using the equity method2,5692,473Up 3.9
Deferred tax assets3,7644,041Down 6.9
Other5569Down 20.3
Total non-current assets77,48876,863Up 0.8
Total assets100,861111,993Down 9.9
LIABILITIES   
Current liabilities   
Trade and other payables6,7175,977Up 12.4
Interest bearing liabilities1,6612,736Down 39.3
Liabilities held for sale 1,222 
Other financial liabilities127138Down 8.0
Current tax payable1,5461,773Down 12.8
Provisions2,1752,025Up 7.4
Deferred income113118Down 4.2
Total current liabilities12,33913,989Down 11.8
Non-current liabilities   
Trade and other payables53Up 66.7
Interest bearing liabilities23,16724,069Down 3.7
Other financial liabilities8961,093Down 18.0
Non-current tax payable187137Up 36.5
Deferred tax liabilities3,2343,472Down 6.9
Provisions8,9288,223Up 8.6
Deferred income281337Down 16.6
Total non-current liabilities36,69837,334Down 1.7
Total liabilities49,03751,323Down 4.5
Net assets51,82460,670Down 14.6
EQUITY   
Share capital - BHP Group Limited1,1111,186Down 6.3
Share capital - BHP Group Plc1,0571,057Steady
Treasury shares-32-5Deterioration 540.0
Reserves2,2852,290Down 0.2
Retained earnings42,81951,064Down 16.1
Total equity attributable to BHP shareholders47,24055,592Down 15.0
Non-controlling interests4,5845,078Down 9.7
Total equity51,82460,670Down 14.6


CASH FLOW AS REPORTED (FY 2019)
Description$US Million$US Million 
Jun 3020192018Change %
Operating activities   
Profit before taxation15,04914,751Up 2.0
Adjustments for:   
Depreciation and amortisation expense5,8296,288Down 7.3
Impairments of property plant and equipment financial assets and intangibles264333Down 20.7
Net finance costs1,0641,245Down 14.5
Loss/(profit) from equity accounted investments related impairments and expenses546-147Recovery
Other308597Down 48.4
Changes in assets and liabilities:   
Trade and other receivables-211-662Improved 68.1
Inventories298-182Recovery
Trade and other payables406719Down 43.5
Provisions and other assets and liabilities-1257Deterioration
Cash generated from operations23,42822,949Up 2.1
Dividends received516709Down 27.2
Interest received443290Up 52.8
Interest paid-1,346-1,177Deterioration 14.4
Proceeds/(settlements) of cash management related instruments296-292Recovery
Net income tax and royalty-related taxation refunded5917Up 247.1
Net income tax and royalty-related taxation paid-5,999-4,935Deterioration 21.6
Net operating cash flows from Continuing operations17,39717,561Down 0.9
Net operating cash flows from Discontinued operations474900Down 47.3
Net operating cash flows17,87118,461Down 3.2
Investing activities   
Purchases of property plant and equipment-6,250-4,979Deterioration 25.5
Exploration expenditure-873-874Improved 0.1
Exploration expenditure expensed and included in operating cash flows516641Down 19.5
Net investment and funding of equity accounted investments-630204Deterioration
Proceeds from sale of assets14589Up 62.9
Proceeds from divestment of subsidiaries operations and joint operations net of their cash4  
Other investing-289-141Deterioration 105.0
Net investing cash flows from Continuing operations-7,377-5,060Deterioration 45.8
Net investing cash flows from Discontinued operations-443-861Improved 48.5
Proceeds from divestment of Onshore US net of its cash10,427  
Net investing cash flows2,607-5,921Recovery
Financing activities   
Proceeds from interest bearing liabilities250528Down 52.7
(Settlements)/proceeds of debt related instruments-160-218Improved 26.6
Repayment of interest bearing liabilities-2,604-4,188Improved 37.8
Purchase of shares by Employee Share Ownership Plan (ESOP) Trusts-188-171Deterioration 9.9
Share buy-back - BHP Group Limited-5,220  
Dividends paid-11,395-5,220Deterioration 118.3
Dividends paid to non-controlling interests-1,198-1,582Improved 24.3
Net financing cash flows from Continuing operations-20,515-10,851Deterioration 89.1
Net financing cash flows from Discontinued operations-13-40Improved 67.5
Net financing cash flows-20,528-10,891Deterioration 88.5
Net (decrease)/increase in cash and cash equivalents from Continuing operations-10,4951,650Deterioration
Net increase/(decrease) in cash and cash equivalents from Discontinued operations18-1Recovery
Proceeds from divestment of Onshore US net of its cash10,427  
 -501,649Deterioration
cash and cash equivalents net of overdrafts at the beginning of the financial year15,81314,108Up 12.1
Foreign currency exchange rate changes on cash and cash equivalents-17056Deterioration
Cash and cash equivalents net of overdrafts at the end of the financial year15,59315,813Down 1.4


Margins % (FY 2019)
Jun 3020192018
EBITDA Margin37.437.8
Earnings from Cont. Ops. Margin37.437.8
Net Income Margin21.518


10.5 Download BHP GROUP Financials Past 10 Years

Description (June 30)2019201820172016201520142013201220112010
Income Statement          
Revenue per share 8.538.086.795.818.511.1413.3713.7813.169.58
Other Revenue     496 M2.4 B5.1 B906 M531 M528 M
EBITDA (B)    17.930.428.130.437.124.8
Depreciation (B)    9.27.776.454.8
EBIT (B)16.616.3 (6.1)8.822.721.12432.120
Interest 1.5 B1.6 B 1.2 B702 M995 M1.4 B955 M806 M459 M
Profit before tax (B)1514.8 (7.3)8.121.719.72331.319.6
Tax (B)(5.5)(7)(4.4)(1.1)3.76.86.97.57.36.6
Net profit (B)8.33.75.9(6.4)1.913.811.215.423.612.7
EPS 1.60.71.11(1.2)0.362.592.12.884.272.28
Balance Sheet          
Equity Share Capital (B)47.255.662.754.364.879.170.765.956.848.5
Retained Earnings 42.8 B51.1 B52.6 B49.5 B60 B74.5 B67 B62.2 B680 M557 M
Total Debt (B)2526.929.64.731.234.633.228.315.915.8
Total Assets (B)100.9112117119124.6151.4139.2129.3102.988.9
Current Asset (B)23.435.121.117.716.422.31920.525.325.1
Fixed Asset (B)6867.280.58494.1108.8100.695.267.955.6
Working Capital (B)1121.19.75.43.54.2(1.2)(1.6)5.512.1
Cash Flow          
Operating Cash Flow (B)17.918.516.810.619.325.420.224.430.116.9
Investing Cash Flow (B)2.6(5.9)(4.2)(7.2)(13.2)(15.8)(18.7)(32.4)(16.7)(10)
Financing Cash Flow (20.5 B)(10.9 B)(9.1 B)284 M(8.3 B)(6.5 B)(198 M)2.5 B(16 B)(5.3 B)
Net Cash Flow (50 M)1.6 B3.5 B3.7 B(2.1 B)3.1 B1.2 B(5.5 B)(2.6 B)1.6 B


SECTION 11 Other Financials

11.1 Footprint of Low Tax Subsidiaries
Corporate Tax rate of BHP Group in country of incorporation:
100% owned subsidiaries:
SubsidiaryIncorporated inCorporate Tax Rate (%)
BHP Billton Petroleum Great Britain LimitedUK19
BHP Billton Freight Singapore Pte LimitedSingapore17
BHP Billton International Services LimitedUK19
BHP Billton Marketing Asia Pte Ltd.Singapore17


11.2 Dividend History
In the past 5 years annual dividends have increased by AUD1.0 from AUD1.1 to AUD2.1. Based on a start date of 5 years ago, there has been only two decline in dividends over the last 5 years.
Date PaidValue (AUD)Type
05 Mar 20200.97Interim
05 Sep 20191.15Final
Tr 12 Months2.12 
07 Mar 20190.78Interim
10 Jan 20191.41Special
06 Sep 20180.86Final
2018 - 20193.05 
08 Mar 20180.71Interim
07 Sep 20170.54Final
2017 - 20181.25 
09 Mar 20170.52Interim
01 Sep 20160.18Final
2016 - 20170.7 
10 Mar 20160.22Interim
09 Sep 20150.86Final
2015 - 20161.08 


SECTION 12 BHP Group Board of Directors

12.1 Board and Management
NameDesignationSince Appointment
Mike HenryChief Executive Officer2 Mos
Andrew MackenzieChief Executive Officer, Director6 Yrs, 10 Mos
Ken MacKenzieChairman, Independent Non-Executive Director3 Yrs, 6 Mos
Peter BeavenChief Financial Officer5 Yrs, 6 Mos
John MogfordDirector-
Carolyn HewsonDirector10 Yrs, 1 Mo
Lindsay MaxstedDirector9 Yrs, 1 Mo
Malcolm BroomheadDirector10 Yrs, 1 Mo
Terry BowenDirector-
Wayne MurdyDirector10 Yrs, 10 Mos
Shriti VaderaIndependent Director-
Anita FrewIndependent Director-
Susan KilsbyIndependent Non-Executive Director12 Mos
Ian CockerillIndependent Non-Executive Director12 Mos


12.2 Resignations in the past 3 years
NameDesignationDate of Resignation
Andrew MackenzieChief Executive Officer31 March 2020
Margaret TaylorCompany Secretary01 March 2019
Megan PepperCompany Secretary12 September 2018
Jacques NasserChairman,Non-Executive Director01 September 2017
John SchubertDirector17 November 2016


12.3 Profiles
Mike Henry
CEO

Andrew Mackenzie
CEO & Director
Experience:
Andrew commenced as Chief Executive Officer in May 2013. He joined BHP Billiton in November 2008 as Chief Executive Non-Ferrous. Prior to BHP Billiton, Andrew worked at Rio Tinto, where he was Chief Executive of Diamonds and Minerals, and BP, where he held a number of senior roles, including Group Vice President for Technology and Engineering, and Group Vice President for Chemicals. ​
Shareholder Value:
Creation of shareholder value in BHP Group:
Since appointment as CEO: The present value of AUD1,000 invested on the appointment date of May 10, 2013 at close price of $A24.42 is $A1,746, including a capital gain of $A237 and dividend reinvested of $A510.

Ken MacKenzie
Chairman & Independent Non-Executive Director
Ken has been a Director of BHP Billiton Limited and BHP Billiton Plc since September 2016. He was appointed Chairman with effect from 1 September 2017.
Skills and experience:
Ken has extensive global and executive experience, and a deeply strategic approach. From 2005 until 2015, he served as the Managing Director and Chief Executive Officer of Amcor Limited, a global packaging company with operations in over 40 countries. During his 23 year career with Amcor, Ken gained extensive experience across all of Amcor's major business segments in developed and emerging markets in the Americas, Australia, Asia and Europe.
Other directorships and offices (current and recent):
Former Managing Director and Chief Executive Officer of Amcor Limited (from July 2005 to April 2015).
Advisory Board member of American Securities Capital Partners LLC (since January 2016).
Advisory Board member of Adamantem Capital (since September 2016).
Former Senior Adviser to McKinsey & Company (from January 2016 to June 2017).
Board Committee memberships:
Chairman of the Nomination and Governance Committee.
Member of the Sustainability Committee.
Shareholder Value:
Creation of shareholder value in BHP Group:
Since appointment as Independent Non-Executive Director: The present value of AUD1,000 invested on the appointment date of September 22, 2016 at close price of $A17.14 is $A2,206, including a capital gain of $A762 and dividend reinvested of $A444.

Peter Beaven
CFO
Experience:
Peter was appointed Chief Financial Officer in October 2014. Previously he was the President of Copper and prior to that appointment in May 2013, President of Base Metals, President of Manganese, and Vice President and Chief Development Officer for Carbon Steel Materials. He has wide experience across a range of regions and businesses in BHP Billiton, UBS Warburg, Kleinwort Benson and PricewaterhouseCoopers. Peter holds a Bachelor of Accountancy from University of Natal, Pietermaritzburg, South Africa and is a Chartered Accountant.
Shareholder Value:
Creation of shareholder value in BHP Group:
Since appointment as CFO: The present value of AUD1,000 invested on the appointment date of October 01, 2014 at close price of $A25.19 is $A1,658, including a capital gain of $A199 and dividend reinvested of $A459.

John Mogford
Director
Mr Mogford has over 40 years of experience in the oil and gas sector, including 33 years at BP Plc in technical, operational and leadership roles. While at BP, Mr Mogford acquired deep experience across the oil and gas business, working in the areas of exploration, downstream, upstream, safety and technology. Mr Mogford also has private equity and strategic experience in the energy sector, holding the roles of Managing Director and Operating Partner at First Reserve Corporation from 2009 to 2015, and as a Senior Advisor to the Head of the Oil and Gas Practice at Nomura Investment Bank from 2010 to 2013.

Carolyn Hewson
Director
Carolyn has been a Director of BHP Billiton Limited and BHP Billiton Plc since March 2010.
Skills and experience:
Carolyn is a former investment banker and has over 30 years' experience in the finance sector. She was previously an Executive Director of Schroders Australia Limited and has extensive financial markets, risk management and investment management expertise. Carolyn is a former Director of BT Investment Management Limited, Westpac Banking Corporation, AMP Limited, CSR Limited, AGL Energy Limited, the Australian Gas Light Company, South Australian Water and the Economic Development Board of South Australia.
Other directorships and offices (current and recent):
Member of Federal Government Growth Centres Advisory Committee (from January 2015).
Director of Stockland Group (since March 2009).
Trustee Westpac Foundation (since May 2015).
Former Member of Australian Federal Government Financial Systems Inquiry (from January 2014 to December 2014).
Former Member of the Advisory Board of Nanosonics Limited (from June 2007 to August 2015).
Former Director of BT Investment Management Limited (from December 2007 to December 2013).
Former Director of Australian Charities Fund Operations Limited (from June 2000 to February 2014).
Former Director and Patron of the Neurosurgical Research Foundation (from April 1993 to December 2013).
Former Trustee and Chairman of Westpac Buckland Fund (from January 2011 to December 2013) and Chairman of Westpac Matching Gifts Limited (from August 2011 to December 2013), together known as the Westpac Foundation.
Former Director of Westpac Banking Corporation (from February 2003 to June 2012).
Board Committee membership:
Chairman of the Remuneration Committee.
Member of the Nomination and Governance Committee.
Shareholder Value:
Creation of shareholder value in BHP Group:
Month of appointment: March 2010
In the last 10 years the average annualized return to shareholders was 5.8%. The present value of AUD1,000 (PV1000) invested 10 years ago is now $A1,758, a gain of $A30 and dividend reinvested of $A729.

Lindsay Maxsted
Director
Lindsay has been a Director of BHP Billiton Limited and BHP Billiton Plc since March 2011.
Skills and experience:
Lindsay is a corporate recovery specialist who has managed a number of Australia's largest corporate insolvency and restructuring engagements and, until 2011, continued to undertake consultancy work in the restructuring advisory field. He was the Chief Executive Officer of KPMG Australia between 2001 and 2007. Lindsay is the Board's nominated 'audit committee financial expert' for the purposes of the US Securities and Exchange Commission Rules, and the Board is satisfied that he has recent and relevant financial experience for the purposes of the UK Financial Conduct Authority's Disclosure and Transparency Rules and the UK Corporate Governance Code.
Other directorships and offices (current and recent):
Chairman of Westpac Banking Corporation (since December 2011) and a Director (since March 2008).
Chairman of Transurban Group (since August 2010) and a Director (since March 2008).
Director and Honorary Treasurer of Baker IDI Heart and Diabetes Institute (since June 2005).
Board Committee membership:
Chairman of the Risk and Audit Committee.
Shareholder Value:
Creation of shareholder value in BHP Group:
Month of appointment: March 2011
In the last 5 years the average annualized return to shareholders was 11.9%. The present value of AUD1,000 (PV1000) invested 5 years ago is now $A1,754, a gain of $A291 and dividend reinvested of $A464.

Wayne Murdy
Director
Wayne has been a Director of BHP Billiton Limited and BHP Billiton Plc since June 2009.
Skills and experience:
Wayne has a background in finance and accounting, where he has gained comprehensive experience in the financial management of mining, oil and gas companies during his career with Getty Oil, Apache Corporation and Newmont Mining Corporation. He served as the Chief Executive Officer of Newmont Mining Corporation from 2001 to 2007 and Chairman of Newmont from 2002 to 2007. Wayne is also a former Chairman of the International Council on Mining and Metals, a former Director of the US National Mining Association and a former member of the Manufacturing Council of the US Department of Commerce.
Other directorships and offices (current and recent):
Director of Weyerhaeuser Company (since January 2009).
Former Director of Qwest Communication International Inc (from September 2005 to April 2011).
Former Chief Executive Officer (from January 2001 to June 2007) and Chairman (from January 2002 to December 2007) of Newmont Mining Corporation.
Former Chairman of the International Council of Mining and Metals (from January 2004 to December 2006).
Former Director of the US National Mining Association (from January 2002 to December 2007).
Board Committee membership:
Member of the Risk and Audit Committee.
Shareholder Value:
Creation of shareholder value in BHP Group:
Month of appointment: June 2009
In the last 10 years the average annualized return to shareholders was 5.8%. The present value of AUD1,000 (PV1000) invested 10 years ago is now $A1,758, a gain of $A30 and dividend reinvested of $A729.

Malcolm Broomhead
Director
Malcolm has been a Director of BHP Billiton Limited and BHP Billiton Plc since March 2010.
Skills and experience:
Malcolm has extensive experience in running industrial and mining companies with a global footprint and broad global experience in project development in many of the countries in which BHP Billiton operates. He was Managing Director and Chief Executive Officer of Orica Limited from 2001 until September 2005. Prior to joining Orica, Malcolm held a number of senior positions at North Limited, including Managing Director and Chief Executive Officer and, prior to that, held senior management positions with Halcrow (UK), MIM Holdings, Peko Wallsend and Industrial Equity.
Other directorships and offices (current and recent):
Chairman of Orica Limited (since January 2016).
Chairman of Asciano Limited (since October 2009).
Former Director of Coates Group Holdings Pty Ltd (from January 2008 to July 2013).
Director of the Walter and Eliza Hall Institute of Medical Research (since July 2014).
Board Committee membership:
Member of the Sustainability Committee. Member of the Risk and Audit Committee.
Shareholder Value:
Creation of shareholder value in BHP Group:
Month of appointment: March 2010
In the last 10 years the average annualized return to shareholders was 5.8%. The present value of AUD1,000 (PV1000) invested 10 years ago is now $A1,758, a gain of $A30 and dividend reinvested of $A729.

Terry Bowen
Director

Anita Frew
Independent Director
Anita has been a Director of BHP Billiton Limited and BHP Billiton Plc since September 2015.
Skills and experience: Anita Frew has extensive board, strategy, marketing, governance and risk management experience in the chemicals, engineering, water and finance industries. She is the Chairman of Croda International Plc and Deputy Chairman of Lloyds Banking Group. She was until recently the Chairman of Victrex Plc, Senior Independent Director of Aberdeen Asset Management Plc and IMI Plc, and a Non-executive Director of Northumbrian Water.

Shriti Vadera
Independent Director
Shriti has been a Director of BHP Billiton Limited and BHP Billiton Plc since January 2011 and the Senior Independent Director of BHP Billiton Plc since 14 August 2015.
Skills and experience: Shriti brings wide-ranging experience in finance, economics and public policy as well as extensive experience of emerging markets and international institutions. Shriti is Chairman of Santander UK and has been a Director of AstraZeneca since 2011. She was an investment banker with S G Warburg / UBS from 1984 to 1999, on the Council of Economic Advisers, HM Treasury 1999 to 2007, Minister in the UK Department of International Development in 2007, Minister in the Cabinet Office and Business Department 2008 to 2009 with responsibility for dealing with the financial crisis, G20 Adviser 2009 to 2010, and advised Governments, banks and investors on the Eurozone crisis, banking sector, debt restructuring and markets from 2010 to 2014.

Ian Cockerill
Independent Non-Executive Director

Susan Kilsby
Independent Non-Executive Director
Mr Cockerill has extensive mining experience, in cluding in chief executive, operational, strategic and technical roles. He was former ly the Chief Executive Officer of Anglo Coal and Gold Fields Limited, and a senior executive with AngloGold Ashanti and Anglo American Group. Mr Cockerill has considerable public company board experience, including as a Non - executive Director of Orica Limited, Ivanhoe Mines Ltd and Endeavour Mining Corporation, and as Chairman of the board of Blackrock World Mining Trust plc.

SECTION 13 Corporate Profile

13.1 Stock Identifiers
ISIN: AU000000BHP4
PermID: 4295856983

13.2 Contact Details
Websitehttp://www.bhpbilliton.com/
Physical AddressLevel 18, 171 Collins Street, MELBOURNE, VIC, AUSTRALIA, 3000
Phone(61) 1300 55 47 57
Fax(61 3) 9609 3015
EmailJames.Agar@bhpbilliton.com


13.3 Industry & Sector
Classification LevelName of Sector
Economic SectorBasic Materials
Business SectorMineral Resources
Industry GroupMetals & Mining
IndustrySpecialty Mining & Metals


13.4 Primary Exchange and Other Listings
ExchangeTickerLast PriceAvg. Daily VolumeVolume % of TotalVol Index*
ASXBHP$A30.206,837,35596.11.5
OTCBBBHPLF$US17.79272,6483.71.4
FrankfurtBHP1EUR16.278,3530.22.3
Total   100.00 

* 1-day (1 is avg)

13.5 Activities
BHP Group Limited (BHP, formerly BHP Billiton Limited) is a diversified natural resources company producing commodities along with substantial interests in oil and gas. BHP's principal business lines are mineral exploration and production as well as petroleum exploration, production and refining. BHP's assets, operations and interests are separated into Petroleum and Potash, Copper, Iron ore, Coal and Nickel.

SECTION 14 Independent Ratings

+ Top 100 Polluters:
According to environmental non-profit Carbon Disclosure Project (CDP) just 100 companies have been the source of more than 70% of the world's greenhouse gas emissions from 1988 to 2015. The CDP ranked BHP Group Limited 20 [rank 1 is worst] in the top 100 polluters. BHP Group Limited contributed .91% of global industrial greenhouse gas emissions in that period.
+ Fortune 500:
It was ranked 350 by total revenues in the Fortune 500 annual list for 2017; a deterioration over a year from rank 168 in 2016.
+ Top 40 Miners:
It is the largest by MCap among the PwC Top 40 Miners.
+ Industryweek 1000:
It is a new entrant in the Industry Week list of the world's largest 1000 manufacturers by Revenues in 2016, ranked 77.
+ Newsweek 500:
It was ranked 226 by Newsweek and Corporate Knights Capital in the World's 500 Greenest Companies 2016. It had outstanding scores of 7.5% in Waste productivity, 7.3% in Water productivity and 5.2% in Carbon productivity.
+ PwC 100:
It was ranked 54 by MCap as at March 31, 2015 by PwC in the Top 100 Global companies; a deterioration over 6 years from rank 19 as at March 31, 2009.
+ Forbes 2000:
It is the 130th largest by revenue in the Forbes Global 2000.
+ FT 500:
It is the 76th largest by revenue in the FT Global 500.
+ IHS Energy 50:
It was ranked 44 in IHS Energy's list of Top 50 Energy Companies 2013; a deterioration over a year from rank 23 in 2012.

Glossary

ADVT: Average Daily Volume of shares Traded
Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)
Capital Gain/Loss from n Years Ago to n-1 Years Ago: Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)
Current Ratio: Current Assets/Current Liabiliites (times)
Debt/Equity: Net Debt/Net Assets %
Dividend Yield: Dividend Per Share/Share Price (%)
EBIT Margin : Earnings Before Interest and Tax/Revenue (%)
Earnings Yield: Earnings Per Share/Share Price (%)
Income during the n years (3/2/1): Dividends received during the Period
Interest Cover: Earnings Before Interest and Tax/Interest (times)
Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods
PCP: Previous Corresponding Period
PV1000: Present value of 1000 invested 1 year/'n' years ago
Price/Earnings: Share Price/Earnings Per Share (times)
Price/NTA: Closing Share Price/Net Tangible Assets Per Share (times)
Price/Sales: Share Price/Sales Per Share (times)
Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index
Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.
Return on Assets: Net Profit/Total Assets (%)
Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)
TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend
TTM: Trailing 12 Months
Total Liabilities/Total Assets: Total Liabilities/Total Assets
Turnover: Price * Volume
Turnover Rate: value of annual trading volume as a percentage of market capitalisation
Volatility: Highest Price minus Lowest Price/Lowest Price (%)
Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

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