Stock Review: BHP Group hits six-month high


Dateline: Saturday January 18, 2020
BHP Group Limited (ASX:BHP), Australia's largest Materials company by market cap, traded at its 177-day high of $A40.63. BHP Group's stock price has increased 47.0c (1.2%) from its previous trading session to close at $A40.60. Compared with the All Ordinaries Index which rose 21.7 points (0.3%) in the day, the relative price increase was 0.9%. The volume was 0.8 times the average daily trading volume of 6 million shares. There were 4,935,442 shares worth $A200.4 million traded today.

THE PAST WEEK
Weekly: BHP Group shares post best week in six months Friday January 17, 2020 16:00 AEST
BHP Group Limited (ASX:BHP), Australia's largest Materials company by market cap, has increased 70.0c (or 1.8%) in the past week to close at $A40.60. The shares had their best week in six months since the week ended Jul 24, 2019. Compared with the All Ordinaries Index which rose 138.4 points (or 2.0%) in the week, this represented a relative price change of -0.2%. The volume was 0.7 times average trading per week of 30 million shares. In the past week the market cap has risen $A3.6 billion.

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BULLISH TURNING POINT

Price/Earnings
The P/E of 17.5 is 0.3 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 = 0.69 USD
Last$A40.60
Shares Outstanding5,180,000,000
SectorMaterials
Market Cap$A210.3 billion ($US145.2 billion)
52-Week Range($A)30.58 - 40.99
Ave Daily Volume6 million


INDEX

SECTION 1 THE PAST WEEK

SECTION 2 DOWNLOAD BHP GROUP FINANCIALS PAST 10 YEARS

SECTION 3 TODAY'S BULLISH SIGNALS

SECTION 4 TODAY'S BEARISH SIGNALS

SECTION 5 ONGOING BULLISH PARAMETERS

SECTION 6 ONGOING BEARISH PARAMETERS

SECTION 7 PRICE VOLUME DYNAMICS (PAST QUARTER)

SECTION 8 PERIOD-BASED SHAREHOLDER RETURNS

SECTION 9 BHP GROUP PEER GROUP ANALYSIS & RANKING

SECTION 10 AMERICAN DEPOSITARY RECEIPTS

SECTION 11 STOCK NEWS

SECTION 12 BHP GROUP FINANCIALS

SECTION 13 BHP GROUP BOARD OF DIRECTORS

SECTION 14 CORPORATE PROFILE

SECTION 15 GLOSSARY

SECTION 1 THE PAST WEEK

Snapshot: BHP Group stock was up 70.0c or 1.8% in the past week. Volume in the week was 0.7 times average trading of 30 million shares. It underperformed the All Ordinaries index in 4 out of 5 days.
DayBHP GroupClose price [AUD]Price change %Relative change %Comment
ThursdayDecreases on average volume40.13-0.1-0.8Price fall on slipping relative strength
WednesdayHits one-month high40.180.3-0.2Price/MAP50 above 1 and rising
TuesdayAdds $A2.7 billion in MCap, top heavyweight rise in All Ordinaries Index40.051.30.5Top Rise
MondayFalls for a second consecutive day, a two-day fall of 1.2%39.53-0.9-0.5Steepest Fall
FridayDecreases39.9-0.3-1.0Price fall on slipping relative strength


SECTION 2 DOWNLOAD BHP GROUP FINANCIALS PAST 10 YEARS

Description (June 30)2019201820172016201520142013201220112010
Income Statement          
Sales (B)44.343.136.130.945.259.371.273.472.553.3
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 3 TODAY'S BULLISH SIGNALS

3.1 Short Selling
+ The current short volume equalled its own historical average of 0.04%.

3.2 Uptrend
Price/Moving Average Price and MACD:
- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 39.88 minus the 26-day EMA of 39.4 is positive, suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.
- The price to 50-day EMAP ratio is 1.1, a bullish indicator. In the past 50 days this ratio has exceeded 1.1, five times suggesting further upside. The 50-day EMAP has increased to $A38.72. An increase is another bullish indicator.
- The price to 200-day MAP ratio is 1.08, a bullish indicator. In the past 200 days this ratio has exceeded 1.08, 83 times suggesting further upside. The stock is trading above both its MAPs and the 50-day MAP of $A38.58 is higher than the 200-day MAP of $A37.48, a bullish indicator. The 200-day MAP has increased to $A37.48. An increase is another bullish indicator.

Past Week:
- In the past week, volume was 0.7 times average and the shares were up 1.8%. Friday's close price is at a 1.1% premium to its 5-day Volume Weighted Average Price (VWAP) of $A40.16.

Past Month:
- The present value of $A1,000 (PV1000) invested one month ago in BHP Group is $A1,010, for a capital gain of $A10.
PV$10001-week1-month1-year
BHP.ASX1,0181,0101,374
All Ordinaries Index1,0201,0401,215


Past Quarter:
- Rises to Falls: In the last three months the number of rises outnumbered falls 38:24 or 1.6:1.

3.3 High Price Performance Indicators and rank of BHP Group in the Australian market:
DescriptionBHP ValueRank In Market
Today's Trading Turnover$A200.4 millionIn Top 1%
MCap$A210.3 billionIn Top 1%
Volatility %0.9In Top Quartile


3.4 Undervaluation
Dividend Yield
- The relative yield of the stock, defined by its yield of 4.8%, divided by average yield of dividend yielding stocks in the All Ordinaries Index of 4.5% is 106.2%. 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 1.4. Compared with the rest of the market the stock is undervalued.

3.5 Other Bullish Signals
- Return on Equity of 18.4% versus sector average of 15.5% and market average of 11.4%.
- 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 8.5% and market average of 2.1%.
- Return on Capital Employed of 18.7% versus sector average of 15.6% and market average of 7.2%.
- 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 15.5%. 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.
- Market Capitalization has increased by $A130.7 billion from $A79.6 billion to $A210.3 billion in the last 14 years. This increase comprises cumulative retained earnings (RETE) of $A41.6 billion and Created Market Value of $A89 billion. The Created Market Value multiple, defined by the change in MCap for every $A1 of retained earnings is exemplary at $A3.14.

SECTION 4 TODAY'S BEARISH SIGNALS

4.1 Downtrend
Today's Volatility:
The 0.9% discount to 12-month high of $A40.99 against the 32.8% premium to 12-month low of $A30.58 suggests the climb might be peaking.

Relative Strength (6 months):
- The stock has a 6-month relative strength of 46 in the Australian market which means it has underperformed 54% of the market.

4.2 Overvaluation
Price/Earnings
- Price/Earnings of 17.5 versus sector average of 11.4. We estimate the shares are trading at a current year P/E of 12.2 and a forward year P/E of 8.5.
Price/Sales
- Price/Sales of 3.28 versus sector average of 2.0 and market average of 2.1. We estimate the shares are trading at a current year Price/Sales of 3 and a forward year Price/Sales of 2.7.
Price to Book
- The Price to Book of 2.8 higher than average of 2.0 for the Materials sector. We estimate the shares are trading at a current year Price to Book of 2.9 and a forward year Price to Book of 2.1.

4.3 Overbought/Bearish/Resistance Signals:
- At $A40.60 the price has risen above the upper Bollinger band resistance of $A40.56, indicating a downside risk for it to fall back within the band.
- The stock is overbought according to the Williams % R indicator of -1.6, suggesting the price is close to its 14-day high of $A40.63.

SECTION 5 ONGOING BULLISH PARAMETERS

5.1 P/E/G < 1
EPS Growth (%)128.57
P/E/G0.14
P/E17.52

The price earnings ratio of 17.5 divided by trailing twelve months eps growth of 128.6% corresponds to an attractive P/E/G of 0.1 times; being less than the value benchmark of 1.0.

5.2 Earnings yield > Bond Yield
(All figures in %)
Earnings Yield5.7
Dividend Yield4.76
Bond Yield1.18


- Earnings yield of 5.7% is 4.9 times the 10-year bond yield of 1.18%.

5.3 Dividend yield > Bond yield
(All figures in %)
Dividend Yield4.76
Bond Yield1.18
Spread3.58

The dividend yield of 4.76% is 4.03 times the triple-A bond yield of 1.18%. This is above the benchmark of 0.67 set by Benjamin Graham.

5.4 Safe interest cover and improving
YearsInterest cover
Jun 201910.97
Jun 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.

5.5 Dividend payout > Market Average
Dividend Payout (%)120.66
Market Average (%)3.39
Spread (PP)117.27

The dividend payout ratio of 120.7% is more than the market average of 3.4% for dividend paying stocks.

5.6 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.

5.7 MCap: 5-Year Increase
In the past 5 years Market Capitalization has increased by $A70.3 billion from $A140 billion to $A210.3 billion. Based on a dynamic start date of 5 years ago, there have been declines in MCap in 2 out of 5 years.
  PriceMCap (AUD B)MCap (US$ B)
Last$A40.60210.3145.2
1 Year ago$A31.17175125.3
2 Years ago$A27.35168.6134.3
3 Years ago$A22.20142.5106.9
4 Years ago$A12.2380.256
5 Years ago$A20.62140115.1


5.8 Total Shares on Issue: 5-Year Decrease
In the past 5 years total shares on issue have decreased by 141 million [2.6%] from 5.3 billion to 5.2 billion. 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 Issue
20195,180,000,000
20185,323,000,000
20175,323,000,000
20165,322,000,000
20155,318,000,000
20145,321,000,000


5.9 Moving Annual Return (Past 5 years)
Based on a dynamic start date of 5 years ago, the real rate of return has averaged 28.3%. The Moving Annual Return has been positive in 4 of the last 5 years. An investment a year ago in BHP would have produced a return of 36.5%.
BHPClose (AUD)Dividends (AUD)Capital Gain / (Loss) %% YieldAnnual Return %
Jan 1740.61.9330.36.236.5
1 Yr ago31.172.971410.924.8
2 Yrs ago27.351.0623.24.828.0
3 Yrs ago22.20.4181.53.384.8
4 Yrs ago12.231.67(40.7)8.1(32.6)


Close 5 years ago $A20.62

5.10 Annualised Period-based Total Shareholder Returns [TSR %]
TSR %1 yr3 yrs5 yrs10 yrs20 yrs30 yrs
BHP.ASX37.430.521.78.414.212.2

The annualised period-based Total Shareholder Returns [TSR %] for 1 yr, 3 yrs, 5 yrs, 10 yrs, 20 yrs and 30 yrs has consistently exceeded 8.3%.

5.11 Present Value of AUD1,000 invested 30 years ago
- The present value of AUD1,000 (PV1000) invested thirty years ago in BHP Group is $A33,006, including a capital gain of $A15,877 and dividend reinvested of $A16,129.
- 30 years Multiplier in AUD = 33.006x
- Annualized Total Shareholder Returns (TSR) in AUD = 12.2%

5.12 Present Value of USD1,000 invested 30 years ago
- The present value of USD1,000 (PV1000) invested thirty years ago in BHP Group is $US27,971, including a capital gain of $US13,731 and dividend reinvested of $US13,240.
- 30 years ago AUD 1 equalled USD 0.7912
- 30 years Multiplier in USD = 27.971x
- Annualized Total Shareholder Returns (TSR) in USD = 11.6%

- The average annual compound return on the share price in the last 5 years was 21.7%, exceeding the average annual compound return on the All Ordinaries Index of 6.3%.

5.13 High Performance Indicators and rank in the Australian market:
DescriptionValueRank In Market
Turnover in Quarter$A11.8 billionIn Top 1%
MCap$US145.2 billionIn Top 1%
Annual Revenue$US44.3 billionIn Top 1%
Price/Earning/Growth0.1In Top 8%
EPS Growth %128.6In Top 8%
Volatility %0.9In Top Quartile
Return on Capital Employed [ROCE] %18.7In Top Quartile
Return on Equity [ROE] %18.4In Top Quartile


5.14 Increased VWAP
Past five years, 12 months ended Jan 17 (AUD)
YearHigh PriceVWAPLow Price
202040.9936.7730.58
201932.4428.7624.9
201827.7821.8718.68
201722.3716.4411.41
201626.1919.6911.73

In the past five years Volume Weighted Average Price (VWAP) has increased by 86.8% to $A36.77. Based on a dynamic start date of five years ago, there have been declines in VWAP in 2 out of 5 years.

5.15 Increased Average Daily Turnover
Past five years, 12 months ended Jan 17 (AUD million)
YearAverage Daily Turnover
2020217.0
2019219.2
2018168.3
2017168.3
2016164.4

In the past five years, average daily share turnover has increased 32.1% to $A217 million. This suggests increased liquidity.

5.16 Satisfies four criteria of Benjamin Graham
- "An earnings-to-price yield of at least twice the triple-A bond"; the stock's earning yield of 5.7% is 4.9 times the triple-A bond yield of 1.2%.
- The P/E of 17.5 is 0.3 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 4 times the triple-A bond yield of 1.2%.
-"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.

5.17 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.

5.18 Year-over-year (%) change in dividend:
PeriodendingFY 2018FY 2019
Dividend (AUD Cents)86.0115.0

Final dividend for FY 2019 was $A1.15. The year-on-year change was up 33.7% from 86.0c in the previous corresponding period FY 2018.

SECTION 6 ONGOING BEARISH PARAMETERS

6.1 Declining ADVT past five years
Avg. Daily Volume Traded 12 months ended Jan 17, million shares
YearADVT
20206.0
20197.6
20187.6
201710.1
20168.2

In the past five years, Average Daily Volume of Trading (ADVT) has decreased 27.3% to 6 million shares.

6.2 Decrease in Institutional Ownership (stocks)
Quarter-endJune 30, 2019September 30, 2019
Holdings (%)4.04.0

As at September 30, 2019 Institutions held 4.0% of total stocks on issue; a decrease from 4.0% as at June 30, 2019.

SECTION 7 PRICE VOLUME DYNAMICS (PAST QUARTER)

7.1 TTM Aggregate Volumes

+ASX: BHP.ASX Trailing Twelve Month (TTM) volume is 1,526,765,740; volume 97.28% of aggregate. Average daily volume is 5,987,317.
TTM Volume Weighted Average Price (VWAP): $A37.0.
+OTCBB: BHPLF.OTCBB Trailing Twelve Month (TTM) volume is 41,987,760; volume 2.68% of aggregate. Average daily volume is 252,938.
TTM VWAP: $US26.0.
Using the current exchange rate of USD1 equals 1.4501AUD, the shares are at a 1.9% premium to the Trailing Twelve Month (TTM) VWAP on ASX.
+Frankfurt: BHP1.FRA Trailing Twelve Month (TTM) volume is 778,749; volume 0.05% of aggregate. Average daily volume is 3,115.
TTM VWAP: EUR23.0.
Using the current exchange rate of EUR1 equals 1.6147AUD, the shares are at a 0.4% premium to the Trailing Twelve Month (TTM) VWAP on ASX.
+TTM Aggregate volume: there were 1,569,532,249 shares of BHP Group worth AUD58.7 billion traded Trailing Twelve Month (TTM).

7.2 The Best 3 weeks in the past quarter
Mon-FriChange %All Ordinaries index Change %RPC %Vol Ind [1 is avg]
Dec 09-135.30.54.90.7
Nov 04-084.50.83.70.9
Oct 21-252.81.21.60.5

In the past quarter the week beginning Monday December 09 saw the highest weekly rise of 5.3% for a relative price increase of 4.9%.

7.3 The Worst 3 weeks in the past quarter
Mon-FriChange %All Ordinaries index Change %RPC %Vol Ind [1 is avg]
Oct 14-18-2.90.5-3.40.8
Dec 02-06-2.3-1.9-0.30.7
Dec 23-27-1.30.1-1.40.4

In the past quarter the steepest fall of 2.9% took place in the week beginning Monday October 14.

7.4 Stock Trading Volume and Turnover in the past 3 months
TurnoverUS$8.2 billion
Avg daily turnoverUS$129.8 million
Volume311,488,879
Avg daily volume4,944,268


7.5 Period-based Price Change %
3-Year price change of 82.9% for BHP outperformed the change of 23.7% in the All Ordinaries index for a relative price change of 59.1%.
Price Change %QuarterYear3 Years
BHP16.530.382.9
Materials16.230.616.4
All Ordinaries index5.721.823.7


7.6 Beta & Standard Deviation
The Beta of this stock is 0.9. 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 1.2% gives it a percentile rank of 8 meaning that 8% of stocks in the Australian market are less volatile than this stock.
 StockInterpretation
Beta0.9Lower risk, lower return
Standard Deviation1.2Less volatile

SECTION 8 PERIOD-BASED SHAREHOLDER RETURNS

8.1 Past Quarter
The stock rose 38 times (60.3% of the time), fell 24 times (38.1% of the time) and was unchanged 1 time (1.6% of the time). The aggregate volume was 0.8 times average trading of 6 million shares. The value of $A1,000 invested 3 months ago is $A1,165 [vs $A1,064 for the All Ordinaries Index] for a capital gain of $A165.

8.2 Past Year
BHP Group lifts 30% in past year
BHP Group Limited (ASX:BHP), lifted $A9.43 (or 30.3%) in the past year to close at $A40.60 today. Compared with the All Ordinaries Index which has risen 21.8% over the same period, this is a relative price increase of 8.4%.
The stock rose 133 times (52.6% of the time), fell 117 times (46.2% of the time) and was unchanged 3 times (1.2% of the time). The value of $A1,000 invested a year ago is $A1,374 [vs $A1,215 for the All Ordinaries Index], including a capital gain of $A303 and dividend reinvested of $A72.

8.3 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$A1,165$A1,374$A2,239
Materials sector$A1,162$A1,300$A1,170
All Ordinaries Index$A1,064$A1,215$A1,248


The present value of $A1,000 invested 3 mo ago, 1 Yr ago and 3 Yrs ago has consistently exceeded $A1,164.

SECTION 9 BHP GROUP PEER GROUP ANALYSIS & RANKING

9.1 Global Peer Group (all figures in USD): Key Financials
In its Global Peer Group of 9 companies BHP is ranked first by MCap, second by Revenue, Total Assets, third by Net Profit and seventh by Relative Strength, PV$1000.
Name (Code)Relative Str.
(6 mo)
MCapPV $1000
(1 yr)
RevenueNet ProfitTotal Assets
Rank of BHP717232
BHP Group (BHP)49145.2B1,317.144.3B8.3B100.9B
Rio Tinto (RIO)5098.5B1,543.040.5B13.9B90.9B
GMK Norilsk Nickel (GMKN)9655B2,338.211.7B3.1B15.3B
China Shenhua Energy - A Share (601088)3951.8B1,042.038.3B6.4B85.3B
Glencore (GLEN)3942.4B957.7219.8B3.4B128.7B
Anglo American (AAL)6040.2B1,416.327.6B3.5B52.2B
Barrick Gold (ABX)7731.7B1,550.07.2B(1.5B)22.6B
China Steel Preference (2002A)8128.7B1,345.811.3B680.9M21B
Rio Tinto (RIO)5827B1,526.240.5B13.6B90.9B

Global Peer Group: Relative Value Indicators
BHP is ranked fifth by P/Book and sixth by P/E, P/S, Turnover Rate.
CodeCountry CodeLast PriceP/EP/SP/BookTurnover Rate (%)% Disc to 52-w Hi
Rank of BHP  6656 
BHPAUAUDA40.6017.53.32.827.60.9
RIOGBGBX4,651.07.72.42.148.13.8
GMKNRURUB21,446.017.84.716.716.60.2
601088CNCNY17.908.91.41.224.813.8
GLENGBGBX243.2013.20.21.184.625.0
AALGBGBX2,245.5010.51.41.572.30.6
ABXCACAD23.46 4.34.056.211.7
2002ATWTWD54.40    1.8
RIOAUAUDA105.249.20.7 102.50.3


9.2 BuySellSignals Fundamentals Valuation Ranking: BHP Group vs Australian Market
Out of 1,415 stocks and 25 units in the Australian Market, BHP Group is ranked first by Market Cap $A, first by Revenue, thirteenth by P/Earnings Growth and Seventy-ninth by EBITDA Margin.
 Australian AvgBHPRankRank 1Rank 2Rank 3Lowest Rank
Market Cap $A1.7 B210.3 B1210.3 B BHP148.8 B CBA136.2 B CSL51,982 MAN
Revenue $A559.3 M64.1 B164.1 B BHP60 B WOW58.7 B RIO 
P/Earnings Growth1.04x0.1x130.1x CGR0.1x D2O0.1x SHV-
EBITDA Margin17.837.47989.8 RND89.1 EGF88.6 DUI(88.6) NZM
ROA (%)2.19.4190170.9 NZS168.2 TLM69.3 FUN0.04 AMP
Yield (%)4.34.819120 TAP19.2 WHC16.96 GMA0.1 CUV
P/Earnings18.6x17.5x2491.6x OBM1.7x MMJ1.7x AUH-
Free Cash Flow(145.2 M) 39512.8 B WBC10.6 B CBA2.8 B WPL 
P/Sales2.1x3.3x4250.1x IEC0.1x OVT0.1x C6C-
Total Debt/Equity (the lower the better)1.2x0.5x646KINTNEFWD8.9x SIV
Premium to 52-Wk Low (%)26.232.86641.03 AHF1.2 GRB1.5 TOT2750 ADD
Price/Net Tangible Assets2.8x2.8x6960.1x C6C0.1x EWC0.1x TNR-
Discount to 52-Wk High (%)0.90.9158893.9 LRS93.8 SYT93.4 UUV0.1 CIN

Negative values are shown in brackets.

9.3 Market Share
BHP Group vs Materials sector [Materials sector Total in Brackets]
Revenue of $US64.1 billion[26.9% of aggregate sector revenue of $A247.9 billion; down from 27.7% in the previous year.]
Net Profit of $US12 billion [28.1% of aggregate sector net profit of $A43.1 billion; up from 20.8% in the previous year.]
EBIT of $US24 billion [35.5% of aggregate sector EBIT of $A68.3 billion; down from 44.1% in the previous year.]

9.4 Share in Index
BHP Group is a constituent of the following indices. Its market capitalisation accounts for 52.7% 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)275 52.7
S&P/ASX 200 Materials Index320 45.3
S&P/ASX 200 Resources348 41.8
S&P/ASX 20 Index820 17.7
S&P/ASX All Australian 501,098 13.2
S&P/ASX 50 Index1,107 13.1
S&P/ASX 100 Index1,330 10.9
S&P/ASX All Australian 2001,416 10.3
S&P/ASX 200 Index1,479 9.8
S&P/ASX 300 Index1,532 9.5
All Ordinaries Index1,600 9.1


9.5 Global Rank [out of 47,034 stocks] and Rank of BHP Group in the Asia Pacific Region [out of 2,025 stocks]
DescriptionValueGlobal RankIn APAC Region
MCap (US$)145.2B681
Total Assets (US$)100.9B5346
Revenue (US$)44.3B2601
Net Profit (US$)8.3B1152
Return on Equity %18.44,659164
Net Profit Margin %21.55,421240
Price to Book2.826,5431,007
Price/Earnings17.312,313333
Yield %4.85,908222
PV1000 (1Year) USD*1,31710,755483
US$* Change (1Year) %23.011,660519


* 1 year ago AUD 1 = USD 0.72
Jan 17, 2020: AUD 1 equals USD 0.69

9.6 Rank of BHP Group in the All Ordinaries Index [out of 465 stocks], in the Total Australian Market [out of 1789 stocks] and in the Materials sector [out of 551 stocks]
DescriptionValueIn All Ordinaries IndexIn Total Australian MarketIn Materials sector
MCap (AUD)210.3B111
Total Assets (AUD)146B661
Revenue (AUD)64.1B111
Net Profit (AUD)12B222
Return on Equity %18.49215432
Net Profit Margin %21.59821534
Price to Book2.8207962384
Price/Earnings17.515730556
Yield %4.812220020
PV1000 (1Year) AUD1,374158417121


9.7 Independent Ratings
+ Top 40 Miners:
BHP Group Limited is the largest by MCap among the PwC Top 40 Miners.
+ 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.
+ 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.
+ FT 500:
It is the 76th largest by revenue in the FT Global 500.
+ 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.
+ 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.
+ 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.
+ Forbes 2000:
It is the 130th largest by revenue in the Forbes Global 2000.
+ BuySellSignals/News Bites:
It is placed 427/1339 in BuySellSignals News Bites' ranking of Australian performers in the past year, a percentile ranking of 68.
+ Vanguard Total World Stock ETF 7670:
The stock was one of 7670 global stocks selected by Vanguard Total World Stock ETF (VT) who bought 44,856 shares in the period Oct 31, 2019 to Nov 30, 2019 worth $US1,668,594 at an estimated Volume Weighted Average Price (VWAP) of $US37.20. As at Nov 30, 2019, the Vanguard Total World Stock ETF held 976,774 shares worth $US24,615,744 or 0.14% by value of the ETF's portfolio [Ranked 103 out of 7670 by value and 3 out of 246 for Australia].

9.8 Long-Term Fundamental Ranking: 5 out of 5 [5 is best]
BHP Group is ranked number 1 out of 628 listed materials companies in the Australia with a market capitalization of $A210.3 billion.
Within its sector it has a relatively low P/E/G of 0.1.

It has a strong relative ROE of 18.4% and ROA of 9.4%. The company paid a dividend of $A1.93 in the last twelve months. The dividend yield is high at 4.8%. 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 10 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.

10.1 ADR Summary
SymbolBHP
PriceUSD 56.48
% Change YTD3.2
ISINUS0886061086
CUSIP088606108
Ratio1 ADR equals 2 ordinary shares
TypeSponsored
Avg. Daily Volume1,842,798


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

SECTION 11 STOCK NEWS

11.1 BHP Group Corporate Wires

11.1.1 Changes in Board (TTM)
March 19 2019: BHP Group will appoint Independent Non-Executive Director
BHP Group will appoint Ian Cockerill as Independent Non-Executive Director. The effective date is Monday, April 01.

March 19 2019: BHP Group will appoint Independent Non-Executive Director
BHP Group will appoint Susan Kilsby as Independent Non-Executive Director. The effective date is Monday, April 01.

February 28 2019: BHP Group appoints Director
BHP Group has appointed Andrew Mackenzie as a Director. The effective date is Thursday, February 28.

January 22 2019: BHP Group Company Secretary will resign
BHP Group Margaret Taylor,Company Secretary will resign. The effective date is Friday, March 01.

11.1.2 Dividends
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.

11.1.3 Performance
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

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

January 22 2019: BHP Group: Quarterly Activities Report
Production guidance for the 2019 financial year remains unchanged for petroleum, iron o re, metallurgical coal and e nergy c oal. Total copper production guidance increased to between 1,645 and 1,740 kt and reflects the retention of Cerro Colorado.
Source: Australian Securities Exchange

11.1.4 Press Releases
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

February 13 2019: BHP Group: Conventional petroleum update
The BHP Board has today approved US$696 million (BHP share) in funding to develop the Atlantis Phase 3 p roject in the US Gulf of Mexico. This follows sanction by BP, as the O perator, of the Atlantis Phase 3 project, announced in January 2019.
Source: Australian Securities Exchange

SECTION 12 BHP GROUP FINANCIALS

12.1 Financials Summary
Year endedJun 2019Jun 2018Jun 2017
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 2018 to US$8.3 billion in 2019.
+ Earnings Per Share (EPS) was up 128.6% from 70.0c to $US1.60.
12.2 Financial Results as reported (Annual)

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 
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
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
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 %
Jun 3020192018
EBITDA Margin37.437.8
Earnings from Cont. Ops. Margin37.437.8
Net Income Margin21.518


12.3 Annual Report: Key Parameters
FY2019 Annual Report: 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 of $US8.3b, up 124.2% from $US3.7b in the previous year. Earnings per share (EPS) were up 128.6% from 70.0c in FY2018 to $US1.6 in FY2019.

Major changes compared with previous year:
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 [Year-on-year comparison: 2019 vs 2018]
Company Name : BHP Group Limited (BHP)   
June 3020192018Change
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
June 3020192018Change (%)
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
June 3020192018Change (%)
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 Total Revenue averaged $US39.9B, EBITDA averaged $US11.2B and Net Profit averaged $US3.9B. Compound Annual Growth Rate (CAGR) averaged -5.7% for Total Revenue, -9.7% for Net Profit and -11.5% for EBITDA.
DescriptionAnnual ($US B)5-year Avg ($US B)5-year CAGR %
Total Revenue44.339.9(5.7)
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


12.4 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


12.5 Dividend History
Trailing 12 months dividend has deteriorated from AUD2.98 in 2019 to AUD1.93 in 2020.
Date PaidValue (AUD)Type
05 Sep 20191.15Final
07 Mar 20190.78Interim
Tr 12 Months1.93 
10 Jan 20191.41Special
06 Sep 20180.86Final
08 Mar 20180.71Interim
2018 - 20192.98 
07 Sep 20170.54Final
09 Mar 20170.52Interim
2017 - 20181.06 
01 Sep 20160.18Final
10 Mar 20160.22Interim
2016 - 20170.4 
09 Sep 20150.86Final
11 Mar 20150.81Interim
2015 - 20161.67 


SECTION 13 BHP GROUP BOARD OF DIRECTORS

13.1 Board of Directors and years since appointment
NameDesignationSince Appointment
Mike HenryChief Executive Officer-
Andrew MackenzieChief Executive Officer, Director6 Yrs, 8 Mos
Ken MacKenzieChairman, Independent Non-Executive Director3 Yrs, 3 Mos
Peter BeavenChief Financial Officer5 Yrs, 3 Mos
Carolyn HewsonDirector9 Yrs, 10 Mos
Lindsay MaxstedDirector8 Yrs, 10 Mos
Wayne MurdyDirector10 Yrs, 7 Mos
John MogfordDirector-
Malcolm BroomheadDirector9 Yrs, 10 Mos
Terry BowenDirector-
Shriti VaderaIndependent Director-
Anita FrewIndependent Director-
Susan KilsbyIndependent Non-Executive Director9 Mos
Ian CockerillIndependent Non-Executive Director9 Mos


13.2 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


13.3 Profiles
Mike Henry
CEO
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 January 01, 2020 at close price of $A38.92 is $A1,043, for a capital gain of $A43.

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 Director: The present value of AUD1,000 invested on the appointment date of February 28, 2019 at close price of $A35.30 is $A1,213, including a capital gain of $A150 and dividend reinvested of $A63.

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 $A17.65 is $A2,817, including a capital gain of $A1,300 and dividend reinvested of $A516.

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 $A25.94 is $A2,122, including a capital gain of $A565 and dividend reinvested of $A556.

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 8.4%. The present value of AUD1,000 (PV1000) invested 10 years ago is now $A2,242, a gain of $A348 and dividend reinvested of $A893.

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 21.7%. The present value of AUD1,000 (PV1000) invested 5 years ago is now $A2,668, a gain of $A969 and dividend reinvested of $A700.

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 8.4%. The present value of AUD1,000 (PV1000) invested 10 years ago is now $A2,242, a gain of $A348 and dividend reinvested of $A893.

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 8.4%. The present value of AUD1,000 (PV1000) invested 10 years ago is now $A2,242, a gain of $A348 and dividend reinvested of $A893.

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
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 April 01, 2019 at close price of $A37.81 is $A1,109, including a capital gain of $A74 and dividend reinvested of $A35.

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.
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 April 01, 2019 at close price of $A37.81 is $A1,109, including a capital gain of $A74 and dividend reinvested of $A35.

SECTION 14 CORPORATE PROFILE

14.1 Stock Identifiers
ISIN: AU000000BHP4
PermID: 4295856983

14.2 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


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


14.4 Primary Exchange and Other Listings
ExchangeTickerLast PriceAvg. Daily VolumeVolume % of TotalVol Index*
ASXBHP$A40.605,998,01699.60.8
OTCBBBHPLF$US28.37564,9100.40
Total   100.00 

* 1-day (1 is avg)

14.5 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 15 GLOSSARY

ADVT: Average Daily Volume of shares Traded
Capital Gain/Loss from n Years Ago to n-1 Years Ago: Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)
Debt/Equity: Net Debt/Net Assets %
Dividend Yield: Dividend Per Share/Share Price (%)
Interest Cover: Earnings Before Interest and Tax/Interest (times)
PV1000: Present value of 1000 invested 1 year/'n' years ago
Price/Earnings: Share Price/Earnings 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.
Volatility: Highest Price minus Lowest Price/Lowest Price (%)
Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

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