12 November, 2019 (16:00:00 EST)

BHP Group ADR falls for a third consecutive day, a three-day fall of 2.2%


BHP Group Limited (N:BHP), the International Depository Receipt (IDR) market's largest Mining company by market cap, has fallen 5.0c (0.1%) for a third consecutive day on Tuesday. This brought its three-day fall to $US1.15 (2.2%), compared with the Bank of New York Mellon Composite ADR Index which fell 0.7 points (0.5%) in the three days for a relative price change of -1.8%. Cumulative volume in the 3 days was 0.8 times the average 3-day volume of 2.1 million ADRs. The ADR last traded at $US50.32. There were 1,774,700 ADRs worth $US89.3 million traded today.

Note: One ADR is equivalent to 2 shares.

Dividend History
Trailing 12 months dividend for the 12 months ended November 12 has improved from $US2.48 in 2015 to $US4.70 in 2019; there were 1 decline in the past 5 years. Dividends were up 99.2% for the 12 months ended November 12 from $US2.36 in 2018 to $US4.70 in 2019.

ADR Summary
Today's close (USD)50.32
52-Week Range (USD)39.7-57.2
SectorMining sector
Shares Outstanding1,470,000,000
Market Cap$US74 billion

Highlights in today's Report:

SECTION 1 TODAY'S AGGREGATE VOLUMES AND PRICES

SECTION 2 PRICE VOLUME DYNAMICS

SECTION 3 TODAY'S BEARISH SIGNALS

SECTION 4 TODAY'S BULLISH SIGNALS

SECTION 5 RELATED NEWS

RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF $US50.32):

SECTION 6 THE PAST WEEK

SECTION 7 ONGOING BULLISH PARAMETERS

SECTION 8 ONGOING BEARISH PARAMETERS

SECTION 9 REPORTED BUYING AND SELLING

RECAP FROM PRIMARY EXCHANGE IN THE AUSTRALIA MARKET (UPDATED AT THE LAST PRICE OF $A37.10):

SECTION 10 BULLISH SIGNALS

SECTION 11 BEARISH SIGNALS

SECTION 12 ONGOING BULLISH PARAMETERS

SECTION 13 ONGOING BEARISH PARAMETERS

SECTION 14 PRICE VOLUME DYNAMICS (PAST QUARTER)

SECTION 15 PERIOD-BASED SHAREHOLDER RETURNS

SECTION 16 PEER GROUP ANALYSIS & RANKING

SECTION 17 FINANCIALS

SECTION 18 STOCK NEWS

SECTION 19 BOARD OF DIRECTORS

SECTION 20 CORPORATE PROFILE

SECTION 1 TODAY'S AGGREGATE VOLUMES AND PRICES

[Volume Index or VI in brackets; 1 is average]
+ ASX: BHP.AU 4,987,688 [VI of 0.71]; volume 58.4% of aggregate. Price: $A37.10. Using the current exchange rate of AUD1 equals 0.69 USD, the shares are at a 1.1% premium to the close price in the US Market.
+ US Market: BHP.N 1,774,700 ADRs equivalent to 3,549,400 shares [VI of 0.83]; volume 41.6% of aggregate. Price: $US50.32.
+ Aggregate volume: there were 8,537,088 shares equivalent worth USD216,119,132 traded. The aggregate volume was 0.8 times average trading of 11,277,608 shares.

SECTION 2 BHP GROUP PRICE VOLUME DYNAMICS

2.1 Turnover Rate & Turnover Period:
+ The turnover rate in the 12 months to date was 37.2% (or a turnover period of 2 years 8 months).
2.2 Primary Exchange Summary
CountryAustralia
Last$A37.10
Volume Index (1 is avg)0.71
Market Cap$A192.2 billion ($US131.7 billion)
52-Week Range (AUD)27.56 - 40.99
Shares Outstanding5,180,000,000
Relative Strength (3 mo)56.5

2.3 Trailing 3 months
TurnoverUS$5.9 billion
Volume119,494,238
Volume Index (1 is avg)0.9

2.4 Trailing Price Change %
3-Year price change of 58.3% for BHP outperformed the change of 16.7% in the The Bank of New York Mellon Composite ADR index (16899W10) for a relative price change of 41.6%.
Price Change %QuarterYear3 Years
BHP4.817.258.3
16899W108.24.716.7

2.5 Shareholder Returns
- The present value of USD1,000 (PV1000) invested five years ago in BHP Group is $US1,366, including a capital gain of $US6 and dividend reinvested of $US359.
- 5 years Multiplier in USD = 1.366x
- Compound Annual Growth Rate (CAGR) in USD = 6.4%
- The average annual compound return on the share price in the last 5 years was 6.4%, exceeding the average annual compound return on the Bank of New York Mellon Composite ADR Index of -0.1%.
Trailing quarter: The value of $US1,000 invested 3 months ago is $US1,082 [vs $US1,090 for the Bank of New York Mellon Composite ADR Index], including a capital gain of $US48 and dividend reinvested of $US33.
Trailing 12 months: The value of $US1,000 invested a year ago is $US1,292 [vs 1,067 for the Bank of New York Mellon Composite ADR Index], including a capital gain of $US172 and dividend reinvested of $US120.
PV$US1,000Trailing MonthTrailing QtrTrailing Yr
BHP$US1,035$US1,082$US1,292
Mining sector$US1,005$US1,052$US1,005
16899W10$US1,067$US1,090$US1,067

SECTION 3 BHP GROUP BEARISH SIGNALS

3.1 Short Selling:
+ The current short volume is 1.2 times its own historical average of 0.1%.

3.2 Downtrend:
Price/Moving Average Price:
+ The price to 200-day MAP ratio is 0.99. In the past 200 days this ratio has been under 0.99, 36 times suggesting downside. The 50-day MAP of $US49.58 is lower than the 200-day MAP of $US50.61, another bearish indicator.
Past Week:
+ BHP Group Limited is placed 673/868 in BuySellSignals' ranking of International Depository Receipts performers in the past week, a percentile ranking of 23.
+ In the past week, volume was 0.8 times average and the ADRs were down 3.0%. Tuesday's close price is at a 1.1% discount to its 5-day Volume Weighted Average Price (VWAP) of $US50.87.
Relative Strength (6 months):
+ In the International Depository Receipts market of 866 units traded today, the ADR has a 6-month relative strength of 68 which means it has outperformed 68% of the market.

3.3 Low Price Performance Indicator and rank of BHP Group in the International Depository Receipts market:
DescriptionBHP ValueRank In Market
% Prem to Vol Wtd Price1.1In Bottom Quartile

SECTION 4 BHP GROUP BULLISH SIGNALS

4.1 Uptrend:
Price/Moving Average Price and MACD:
+ The Price/MAP of 0.99 for BHP is higher than the Price/MAP for the Bank of New York Mellon Composite ADR Index of 0.93.
+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 50.34 minus the 26-day EMA of 49.83 is positive suggesting a bullish signal.
+ The price to 50-day EMAP ratio is 1.0, a bullish indicator. In the past 50 days this ratio has exceeded 1.0, 11 times suggesting further upside. The 50-day EMAP has increased to $US49.71. An increase is another bullish indicator.

4.2 High Price Performance Indicators and rank of BHP Group in the International Depository Receipts market:
DescriptionBHP ValueRank In Market
Today's Trading Turnover$US89.3 millionIn Top 3%
MCap$US74 billionIn Top 6%

SECTION 5 BHP GROUP RELATED NEWS

Analyst Recommendation:
DateBrokerageActionCurrent Rating
Nov 12, 2019Deutsche BankReiteratesHold


RECAP FROM PREVIOUS REPORTS (UPDATED AT THE LAST PRICE OF $US50.32):

SECTION 6 THE PAST WEEK

6.1 Snapshot: BHP Group ADR was down $US1.53 or 3.0% in the past week. Volume in the week was 0.8 times average trading of 10.7 million shares. It underperformed the The Bank of New York Mellon Composite ADR index in 4 out of 5 days.
DayBHP GroupClose price [USD]Price change %Relative change %Comment
MondayADR down 2.1% in 2 days50.37-0.8-0.7Falls for a second consecutive day
FridayADR decreases 1.3%50.79-1.3-1.2Steepest Fall
ThursdayADR shares post best month in four months51.470.1-0.3Price rise on beating relative strength
WednesdayADR falls 1.8% from 14-day high51.4-0.9-0.8Overbought: close to 14-day high
TuesdayADR adds $US1.4 billion in MCap, top heavyweight rise in Mining sector51.851.81.7Top Rise; VI*=1.6
[Volume Index (VI); 1 is average]

6.2 Corporate Wires: BHP Group (BHP) issued one Release in the past week.

November 07: 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.

6.3 Stock Buzz: Past Week
News DateHeadlinePublisher
Nov 11Comerica Bank Trims Position in BHP Group Ltd (NYSE:BHP)theenterpriseleader.com
Nov 07BHP s Australian shareholders vote to stay in coal lobby groupsMining

6.4 Analyst Recommendations:Past Week
DateBrokerageActionCurrent RatingPrev TargetPrice Target
Nov 11, 2019Deutsche BankReiteratesHold--
Nov 07, 2019Goldman Sachs GroupLowers TargetNeutral19001800
Nov 06, 2019Goldman Sachs GroupLowers TargetNeutral19001800
6.5 Volatility:
+ BHP Group is at a discount of 12.0% to its 12-month high of $US57.19 on July 02. It is also at a premium of 26.6% to the 12-month low of $US39.73 on November 27, 2018.

SECTION 7 ONGOING BULLISH PARAMETERS

7.1 High Growth and Performance Indicators and rank of BHP Group in the Adr market:
DescriptionValueRank In Market
EPS Growth %128.6In Top 5%
EBITDA Margin %37.4In Top Quartile
Return on Assets [ROA] %9.4In Top Quartile
Return on Equity [ROE] %18.4In Top Quartile


7.2 Moving Annual Return (Past 5 years)
Based on a dynamic start date of 5 years ago, the real rate of return has averaged 11.7%. 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 28.2%.
BHPClose (USD)Dividends (USD)Capital Gain / (Loss) %% YieldAnnual Return %
Nov 1250.324.717.21128.2
1 Yr ago42.922.3615.76.422.1
2 Yrs ago37.11.6616.75.221.9
3 Yrs ago31.80.629.62.432.1
4 Yrs ago24.532.48(50.9)5(46.0)

Close 5 years ago $US50.0

7.3 Increased VWAP
Past five years, 12 months ended Nov 12 (USD)
YearHigh PriceVWAPLow Price
201957.1948.5539.73
201846.6141.835.08
201738.2632.7728.29
201633.1723.6115.65
201549.6236.0823.61
In the past five years Volume Weighted Average Price (VWAP) has increased by 34.5% to $US48.55. Based on a dynamic start date of five years ago, there have been declines in VWAP in 2 out of 5 years.

7.4 Increased Average Daily Turnover
Past five years, 12 months ended Nov 12 (USD million)
YearAverage Daily Turnover
2019104.1
2018102.5
201790.9
201697.2
2015101.6
In the past five years, average daily ADR turnover has increased 2.5% to $US104.1 million. This suggests increased liquidity.

SECTION 8 ONGOING BEARISH PARAMETERS

8.1 Declining ADVT past five years
Avg. Daily Volume Traded 12 months ended Nov 12, million ADRs
YearADVT
20192.1
20182.4
20172.8
20164.4
20152.8
In the past five years, Average Daily Volume of Trading (ADVT) has decreased 24.1% to 2.1 million ADRs.

SECTION 9 BHP GROUP REPORTED BUYING AND SELLING

9.1 Institutional Buying and Selling Quarter Ended June 30
Total reported Institutional buying = 8,397,001 ADRs
Total reported Institutional selling = 5,444,030 ADRs
Net reported institutional buying = 2,952,971 ADRs

9.2 Reported Holdings of Institutions as at Jun 30, 2019
Total = 59,187,005 ADRs
Market Value = $US3.3 billion
Institutions hold 4.0% of Issued Shares.

RECAP FROM PRIMARY EXCHANGE IN THE AUSTRALIA MARKET (UPDATED AT THE LAST PRICE OF $A37.10):

Stock Review: BHP Group decreases

BHP Group Limited (ASX:BHP), Australia's largest Materials company by market cap, has decreased 8.0c (0.2%) from its previous trading session to close at $A37.10. Compared with the All Ordinaries Index which fell 20.0 points (0.3%) in the day, the relative price increase was 0.1%. The volume was 0.7 times the average daily trading volume of 7 million shares. There were 4,987,688 shares worth $A185 million traded today.

BHP GROUP DIVIDENDS
The company paid a dividend of $A1.15 per share; the ex-dividend date was September 05.

Stock Summary
CurrencyAustralian Dollar (AUD)
1 AUD = 0.69 USD
Last$A37.10
Shares Outstanding5,180,000,000
SectorMaterials
Market Cap$A192.2 billion ($US131.7 billion)
52-Week Range($A)27.56 - 40.99
Ave Daily Volume7 million

SECTION 10 BULLISH SIGNALS

10.1 Uptrend
Price/Moving Average Price and MACD:
- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 36.76 minus the 26-day EMA of 36.42 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 1.0, a bullish indicator. In the past 50 days this ratio has exceeded 1.0, seven times suggesting further upside. The 50-day EMAP has increased to $A36.39. An increase is another bullish indicator.
- The price to 200-day MAP ratio is 1.01, a bullish indicator. In the past 200 days this ratio has exceeded 1.01, 159 times suggesting further upside. The stock is trading above both its MAPs at $A36.76 for the 200-day MAP and $A36.39 for the 50-day MAP, a bullish indicator. The 200-day MAP has increased to $A36.76. An increase is another bullish indicator.

Past Week:
- In the past week, volume was 0.8 times average and the shares were up 0.4%.

Past Month:
- The present value of $A1,000 (PV1000) invested one month ago in BHP Group is $A1,016, for a capital gain of $A16.
PV$10001-week1-month1-year
BHP.ASX1,0041,0161,346
All Ordinaries Index1,0081,0151,138

Past Quarter:
- Rises to Falls: In the last three months the number of rises outnumbered falls 34:31 or 1.1:1.

10.2 High Price Performance Indicators and rank of BHP Group in the Australian market:
DescriptionBHP ValueRank In Market
Today's Trading Turnover$A185 millionIn Top 1%
MCap$A192.2 billionIn Top 1%
Volatility %1.2In Top Quartile

Dividend Yield
- The relative yield of the stock, defined by its yield of 9%, divided by average yield of dividend yielding stocks in the All Ordinaries Index of 4.8% is 185.8%. 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 1.3. Compared with the rest of the market the stock is undervalued.

- Return on Equity of 18.4% versus sector average of 15.6% and market average of 11.1%.
- 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 8.6% and market average of 2.1%.
- Return on Capital Employed of 18.7% versus sector average of 15.6% and market average of 6.9%.
- 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 15.6%. 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 $A121.3 billion from $A70.8 billion to $A192.2 billion in the last 14 years. This increase comprises cumulative retained earnings (RETE) of $A42 billion and Created Market Value of $A79.4 billion. The Created Market Value multiple, defined by the change in MCap for every $A1 of retained earnings is exemplary at $A2.89.

SECTION 11 BEARISH SIGNALS


11.1 Downtrend

Relative Strength (6 months):
- The stock has a 6-month relative strength of 48 in the Australian market which means it has underperformed 52% of the market.

11.2 Overbought/Bearish Signals:
- The Stochastic indicator of 88.2 has broken through the overbought line of 80; this indicates the price is close to its 14-day high and is likely to revert to a downtrend.

SECTION 12 ONGOING BULLISH PARAMETERS


12.1 P/E/G < 1
EPS Growth (%)128.57
P/E/G0.12
P/E15.89
The price earnings ratio of 15.9 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.

12.2 Earnings yield > Bond Yield
(All figures in %)
Earnings Yield6.3
Dividend Yield9.01
Bond Yield1.3

- Earnings yield of 6.3% is 4.8 times the 10-year bond yield of 1.3%.

12.3 Dividend yield > Bond yield
(All figures in %)
Dividend Yield9.01
Bond Yield1.3
Spread7.71
The dividend yield of 9.01% is 6.93 times the triple-A bond yield of 1.3%. This is above the benchmark of 0.67 set by Benjamin Graham.

12.4 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.

12.5 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.

12.6 MCap: 5-Year Increase
In the past 5 years Market Capitalization has increased by $A15 billion from $A177.2 billion to $A192.2 billion. Based on a dynamic start date of 5 years ago, there has been only 1 decline in MCap over the last 5 years.
  PriceMCap (AUD B)MCap (US$ B)
Last$A37.10192.2131.7
1 Year ago$A30.38177.9128.1
2 Years ago$A24.25149.4114.6
3 Years ago$A20.68132.8101.3
4 Years ago$A17.01111.578.3
5 Years ago$A26.09177.2152.8


12.7 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


12.8 Moving Annual Return (Past 5 years)
Based on a dynamic start date of 5 years ago, the real rate of return has averaged 16.6%. 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 33.1%.
BHPClose (AUD)Dividends (AUD)Capital Gain / (Loss) %% YieldAnnual Return %
Nov 1237.13.3422.11133.1
1 Yr ago30.381.5625.36.431.7
2 Yrs ago24.251.0617.25.122.4
3 Yrs ago20.680.4121.62.424.0
4 Yrs ago17.011.67(34.8)6.4(28.4)

Close 5 years ago $A26.09

12.9 Annualised Period-based Total Shareholder Returns [TSR %]
TSR %1 yr3 yrs5 yrs10 yrs20 yrs30 yrs
BHP.ASX34.629.6148.614.812.2
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 8.5%.

12.10 Present Value of AUD1,000 invested 30 years ago
- The present value of AUD1,000 (PV1000) invested thirty years ago in BHP Group is $A32,701, including a capital gain of $A15,721 and dividend reinvested of $A15,980.
- 30 years Multiplier in AUD = 32.701x
- Annualized Total Shareholder Returns (TSR) in AUD = 12.2%

12.11 Present Value of USD1,000 invested 30 years ago
- The present value of USD1,000 (PV1000) invested thirty years ago in BHP Group is $US27,502, including a capital gain of $US13,484 and dividend reinvested of $US13,018.
- 30 years ago AUD 1 equalled USD 0.7912
- 30 years Multiplier in USD = 27.502x
- Annualized Total Shareholder Returns (TSR) in USD = 11.6%

- The average annual compound return on the share price in the last 5 years was 14.0%, exceeding the average annual compound return on the All Ordinaries Index of 4.7%.

12.12 High Performance Indicators and rank in the Australian market:
DescriptionValueRank In Market
Turnover in Quarter$A14 billionIn Top 1%
MCap$US131.7 billionIn Top 1%
Annual Revenue$US44.3 billionIn Top 1%
Price/Earning/Growth0.1In Top 6%
Dividend Yield %9%In Top 7%
EPS Growth %128.6In Top 7%
Volatility %1.2In Top Quartile
Return on Capital Employed [ROCE] %18.7In Top Quartile
Return on Equity [ROE] %18.4In Top Quartile


12.13 Increased VWAP
Past five years, 12 months ended Nov 12 (AUD)
YearHigh PriceVWAPLow Price
201940.9934.5627.56
201832.4427.7723.26
201724.8921.3118.68
201620.7815.3711.41
201526.1921.5516.41
In the past five years Volume Weighted Average Price (VWAP) has increased by 60.4% to $US34.56. Based on a dynamic start date of five years ago, there have been declines in VWAP in 2 out of 5 years.

12.14 Increased Average Daily Turnover
Past five years, 12 months ended Nov 12 (AUD million)
YearAverage Daily Turnover
2019241.5
2018188.7
2017172.3
2016163.9
2015163.9
In the past five years, average daily share turnover has increased 47.3% to $US241.5 million. This suggests increased liquidity.

12.15 Period-based Price Change %
3-Year price change of 79.4% for BHP outperformed the change of 25.9% in the All Ordinaries index for a relative price change of 53.5%.
Price Change %QuarterYear3 Years
BHP3.522.179.4
Materials-1.3-10.810.1
All Ordinaries index2.814.125.9

12.16 Increase in Institutional Ownership (ADRs)
Quarter-endMarch 31, 2019June 30, 2019
Holdings (%)3.84.0
As at June 30, 2019 Institutions held 4.0% of total ADRs on issue; an increase from 3.8% as at March 31, 2019.

12.17 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 6.3% is 4.8 times the triple-A bond yield of 1.3%.
- The P/E of 15.9 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 6.9 times the triple-A bond yield of 1.3%.
-"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.

12.18 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.

12.19 Year-over-year (%) change in dividend:
PeriodendingFY 2018FY 2019
Dividend (AUD Cents)86.0115.0
Final dividend for FY 2019 was $US1.15. The year-on-year change was up 33.7% from 86.0c in the previous corresponding period FY 2018.

SECTION 13 ONGOING BEARISH PARAMETERS


13.1 Declining ADVT past five years
Avg. Daily Volume Traded 12 months ended Nov 12, million shares
YearADVT
20197.0
20186.7
20178.0
201610.5
20157.5
In the past five years, Average Daily Volume of Trading (ADVT) has decreased 6.7% to 7 million shares.

SECTION 14 PRICE VOLUME DYNAMICS (PAST QUARTER)


14.1 YTD Aggregate Volumes

+ASX: BHP.ASX year-to-date volume is 1,348,361,952; volume 97.11% of aggregate. Average daily volume is 6,101,185.
Year-to-date (YTD) Volume Weighted Average Price (VWAP): $A37.0.
+OTCBB: BHPLF.OTCBB year-to-date volume is 39,194,758; volume 2.82% of aggregate. Average daily volume is 268,457.
Year-to-date (YTD) VWAP: $US26.0.
Using the current exchange rate of USD1 equals 1.4591AUD, the shares are at a 2.5% premium to the year-to-date VWAP on ASX.
+Frankfurt: BHP1.FRA year-to-date volume is 976,470; volume 0.07% of aggregate. Average daily volume is 5,907.
Year-to-date (YTD) VWAP: EUR23.0.
Using the current exchange rate of EUR1 equals 1.6067AUD, the shares are at a 0.1% discount to the year-to-date VWAP on ASX.
+YTD Aggregate volume: there were 1,388,533,180 shares of BHP Group worth AUD51.7 billion traded year-to-date.

14.2 The Best 3 weeks in the past quarter
Mon-FriChange %All Ordinaries index Change %RPC %Vol Ind [1 is avg]
Nov 04-084.50.83.70.9
Sep 02-063.30.82.50.8
Oct 21-252.81.21.60.5
In the past quarter the week beginning Monday November 04 saw the highest weekly rise of 4.5% for a relative price increase of 3.7%.

14.3 The Worst 3 weeks in the past quarter
Mon-FriChange %All Ordinaries index Change %RPC %Vol Ind [1 is avg]
Sep 30-Oct 04-4.2-2.7-1.40.7
Aug 12-16-3-2.7-0.31
Oct 14-18-2.90.5-3.40.8
In the past quarter the steepest fall of 4.2% took place in the week beginning Monday September 30.

14.4 Stock Trading Volume and Turnover in the past 3 months
TurnoverUS$9.6 billion
Avg daily turnoverUS$145 million
Volume384,003,035
Avg daily volume5,818,228

14.5 Beta & Standard Deviation
The Beta of this stock is 0.7. 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 1.3% gives it a percentile rank of 9 meaning that 9% of stocks in the Australian market are less volatile than this stock.
 StockInterpretation
Beta0.7Lower risk, lower return
Standard Deviation1.3Less volatile

SECTION 15 PERIOD-BASED SHAREHOLDER RETURNS


15.1 Past Quarter
The stock rose 34 times (51.5% of the time), fell 31 times (47% of the time) and was unchanged 1 time (1.5% of the time). The aggregate volume was 0.8 times average trading of 7 million shares. The value of $A1,000 invested 3 months ago is $A1,069 [vs $A1,045 for the All Ordinaries Index], including a capital gain of $A35 and dividend reinvested of $A34.

15.2 Year-to-Date
BHP Group gains 21% in 2019
BHP Group Limited (ASX:BHP), gained $A6.48 (or 21.2%) year-to-date (YTD) in 2019 to close at $A37.10 today. Compared with the All Ordinaries Index which has risen 20.1% YTD, this is a relative price increase of 1.1%.

15.3 Past Year
BHP Group gains 22% in past year
BHP Group Limited (ASX:BHP), gained $A6.72 (or 22.1%) in the past year to close at $A37.10 today. Compared with the All Ordinaries Index which has risen 14.1% over the same period, this is a relative price increase of 8.1%.
The stock rose 126 times (49.8% of the time), fell 123 times (48.6% of the time) and was unchanged 4 times (1.6% of the time). The value of $A1,000 invested a year ago is $A1,346 [vs $A1,138 for the All Ordinaries Index], including a capital gain of $A221 and dividend reinvested of $A125.

15.4 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$A1,069$A1,346$A2,196
Materials sector$A987$A886$A1,101
All Ordinaries Index$A1,045$A1,138$A1,259

The present value of $A1,000 invested 3 mo ago, 1 Yr ago and 3 Yrs ago has consistently exceeded $A1,068.

SECTION 16 BHP GROUP PEER GROUP ANALYSIS & RANKING


16.1 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, Net Profit, Total Assets, fourth by PV$1000 and sixth by Relative Strength.
Name (Code)Relative Str.
(6 mo)
MCapPV $1000
(1 yr)
RevenueNet ProfitTotal Assets
Rank of BHP614222
BHP Group (BHP)62131.7B1,281.644.3B8.3B100.9B
Rio Tinto (RIO)5285.8B1,343.040.5B13.9B90.9B
China Shenhua Energy - A Share (601088)5350.1B924.337.7B6.3B83.9B
GMK Norilsk Nickel (GMKN)9545.1B2,035.111.7B3.1B15.3B
Glencore (GLEN)4142.1B896.0219.8B3.4B128.7B
Anglo American (AAL)7035.5B1,295.927.6B3.5B52.2B
Barrick Gold (ABX)9128.7B1,274.37.2B(1.5B)22.6B
China Steel Preference (2002A)8126.3B1,255.211.3B680.9M21B
Assa Abloy Class B (ASSA B)7424.4B1,225.68.7B283.5M11B
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 
BHPAUAUDA37.1015.93.02.633.29.3
RIOGBGBX4,139.506.72.11.958.014.3
601088CNCNY17.638.81.31.221.315.1
GMKNRURUB18,212.014.63.913.617.53.1
GLENGBGBX245.5013.10.21.188.024.3
AALGBGBX2,009.509.21.31.382.69.8
ABXCACAD21.67 4.03.662.818.6
2002ATWTWD50.70    0.2
ASSA BSESEK225.090.72.8 41.23.3

16.2 BuySellSignals Fundamentals Valuation Ranking: BHP Group vs Australian Market
Out of 1,385 stocks and 26 units in the Australian Market, BHP Group is ranked first by Market Cap $A, first by Revenue, ninth by P/Earnings Growth and Twenty-ninth by Yield.
 Australian AvgBHPRankRank 1Rank 2Rank 3Lowest Rank
Market Cap $A1.7 B192.2 B1192.2 B BHP143.1 B CBA121 B CSL51,982 MAN
Revenue $A566.1 M64.6 B164.6 B BHP60 B WOW59.1 B RIO 
P/Earnings Growth0.96x0.1x90.1x RHT0.1x KSL0.1x D2O-
Yield (%)4.59.012917.2 CD215.6 WHC13.7 TWD0.1 CUV
EBITDA Margin15.737.48789.8 RND89.1 EGF88.6 DUI(88.6) NZM
ROA (%)2.19.4195170.9 NZS168.2 TLM55.7 RND0.04 AMP
P/Earnings17.7x15.9x2261.6x EHH1.6x OBM1.97x MMJ-
Free Cash Flow(178.8 M) 40312.8 B WBC10.6 B CBA2.8 B WPL 
P/Sales1.9x2.97x4190.1x MIL0.1x AMO0.1x OVT-
Total Debt/Equity1.9x0.5x648KINTNEFWD8.9x SIV
Price/Net Tangible Assets2.7x2.6x6570.1x C6C0.1x CTO0.1x SBR-
Premium to 52-Wk Low (%)27.0334.67100.6 CSS1.1 CDD1.3 VTH2226.4 SDV
Discount to 52-Wk High (%)0.99.5127695.7 SF192.1 SIL92 LRS0.1 JHG
Negative values are shown in brackets.

16.3 Market Share
BHP Group vs Materials sector [Materials sector Total in Brackets]
Revenue of $US64.6 billion[27.4% of aggregate sector revenue of $A243.6 billion; down from 28.2% in the previous year.]
Net Profit of $US12.1 billion [28.2% of aggregate sector net profit of $A43.1 billion; up from 20.8% in the previous year.]
EBIT of $US24.2 billion [35.7% of aggregate sector EBIT of $A68 billion; down from 44.3% in the previous year.]

16.4 Share in Index
BHP Group is a constituent of the following indices. Its market capitalisation accounts for 53.3% 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)247 53.3
S&P/ASX 200 Materials Index286 46.1
S&P/ASX 200 Resources315 41.8
S&P/ASX 20 Index776 17.0
S&P/ASX All Australian 501,039 12.7
S&P/ASX 50 Index1,045 12.6
S&P/ASX 100 Index1,249 10.5
S&P/ASX All Australian 2001,339 9.8
S&P/ASX 200 Index1,391 9.5
S&P/ASX 300 Index1,441 9.1
All Ordinaries Index1,506 8.7

16.5 Global Rank [out of 47,140 stocks] and Rank of BHP Group in the Asia Pacific Region [out of 2,035 stocks]
DescriptionValueGlobal RankIn APAC Region
MCap (US$)131.7B671
Total Assets (US$)100.9B5316
Revenue (US$)44.3B2581
Net Profit (US$)8.3B1122
Return on Equity %18.44,712173
Net Profit Margin %21.55,460249
Price to Book2.626,4781,003
Price/Earnings15.911,791316
Yield %9.01,67439
PV1000 (1Year) USD*1,2827,956385
US$* Change (1Year) %16.910,643462

* 1 year ago AUD 1 = USD 0.72
Nov 12, 2019: AUD 1 equals USD 0.69

16.6 Rank of BHP Group in the All Ordinaries Index [out of 470 stocks], in the Total Australian Market [out of 1793 stocks] and in the Materials sector [out of 548 stocks]
DescriptionValueIn All Ordinaries IndexIn Total Australian MarketIn Materials sector
MCap (AUD)192.2B111
Total Assets (AUD)147.2B661
Revenue (AUD)64.6B111
Net Profit (AUD)12.1B222
Return on Equity %18.49616133
Net Profit Margin %21.510122534
Price to Book2.6207950370
Price/Earnings15.914129155
Yield %9.0203812
PV1000 (1Year) AUD1,346127350108

16.7 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 402/1321 in BuySellSignals News Bites' ranking of Australian performers in the past year, a percentile ranking of 70.
+ Vanguard Total World Stock ETF 7627:
The stock was one of 7627 global stocks selected by Vanguard Total World Stock ETF (VT) who sold 26,570 shares in the period Jul 31, 2019 to Aug 31, 2019 worth $US980,327 at an estimated Volume Weighted Average Price (VWAP) of $US36.90. As at Aug 31, 2019, the Vanguard Total World Stock ETF held 948,039 shares worth $US23,481,405 or 0.14% by value of the ETF's portfolio [Ranked 105 out of 7627 by value and 2 out of 235 for Australia].

16.8 Long-Term Fundamental Ranking: 5 out of 5 [5 is best]
BHP Group is ranked number 1 out of 632 listed materials companies in the Australia with a market capitalization of $A192.2 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 9%. 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 17 BHP GROUP FINANCIALS


17.1 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.
17.2 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

17.3 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

17.4 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

17.5 Dividend History
Trailing 12 months dividend has improved from AUD0.4 in 2016 to AUD3.34 in 2019.
Date PaidValue (AUD)Type
05 Sep 20191.15Final
07 Mar 20190.78Interim
10 Jan 20191.41Special
Tr 12 Months3.34 
06 Sep 20180.86Final
08 Mar 20180.71Interim
2017 - 20181.57 
07 Sep 20170.54Final
09 Mar 20170.52Interim
2016 - 20171.06 
01 Sep 20160.18Final
10 Mar 20160.22Interim
2015 - 20160.4 
09 Sep 20150.86Final
11 Mar 20150.81Interim
2014 - 20151.67 

SECTION 18 STOCK NEWS


18.1 BHP Group Corporate Wires

18.1.1 Changes in Board (TTM)
March 19: 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: 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: BHP Group appoints Director
BHP Group has appointed Andrew Mackenzie as a Director. The effective date is Thursday, February 28.

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

November 20 2018: Change of name to BHP Group
Following shareholder approval, BHP Billiton Limited and BHP Billiton Plc have changed their names to BHP Group Limited and BHP Group Plc, respectively, effective 19 November 2018.
BHP Group Plc's ticker on each of the LSE and JSE will change to "BHP" on 2 3 November 2018.
In connection with the name change, on 23 November 2018, BHP Group Plc's ISIN will change to GB00BH0P3Z91 and SEDOL will change to BH0P3Z9.
Source: Australian Securities Exchange

18.1.2 Dividends
August 21: 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.

18.1.3 Performance
July 17: 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: 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: 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

18.1.4 Press Releases
June 07: 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: 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

November 27 2018: BHP copper exploration program update
BHP today confirmed identification of a potential new iron oxide, copper, gold ( IOCG ) mineralised system, located 65 kilometres to the south east of BHP's operations at Olympic Dam in South Australia
Source: Australian Securities Exchange

November 21 2018: BHP Billiton: Capital Allocation Briefing
BHP will be holding an investor and analyst briefing today in Melbourne on BHP's Capital Allocation Framework.
The purpose of the briefing is to provide greater detail in relation to BHP's capital allocation processes, and greater transparency on BHP's approach to capital allocation and investment decisions.
Source: Australian Securities Exchange

SECTION 19 BHP GROUP BOARD OF DIRECTORS

19.1 Board of Directors and years since appointment
NameDesignationSince Appointment
Andrew MackenzieChief Executive Officer, Director6 Yrs, 6 Mos
Ken MacKenzieChairman, Independent Non-Executive Director3 Yrs, 1 Mo
Peter BeavenChief Financial Officer5 Yrs, 1 Mo
Carolyn HewsonDirector9 Yrs, 8 Mos
John MogfordDirector-
Malcolm BroomheadDirector9 Yrs, 8 Mos
Lindsay MaxstedDirector8 Yrs, 8 Mos
Wayne MurdyDirector10 Yrs, 5 Mos
Terry BowenDirector-
Shriti VaderaIndependent Director-
Anita FrewIndependent Director-
Susan KilsbyIndependent Non-Executive Director7 Mos
Ian CockerillIndependent Non-Executive Director7 Mos

19.2 Resignations in the past 2 years
NameDesignationDate of Resignation
Margaret TaylorCompany Secretary01 March 2019
Megan PepperCompany Secretary12 September 2018
Jacques NasserChairman, Non-Executive Director01 September 2017
John SchubertDirector17 November 2016

19.3 Profiles
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 $A1,105, including a capital gain of $A51 and dividend reinvested of $A54.

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 $A2,543, including a capital gain of $A1,102 and dividend reinvested of $A441.

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 $A1,905, including a capital gain of $A430 and dividend reinvested of $A474.

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 5 years the average annualized return to shareholders was 14.0%. The present value of AUD1,000 (PV1000) invested 5 years ago is now $A1,927, a gain of $A422 and dividend reinvested of $A505.

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 14.0%. The present value of AUD1,000 (PV1000) invested 5 years ago is now $A1,927, a gain of $A422 and dividend reinvested of $A505.

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 8.6%. The present value of AUD1,000 (PV1000) invested 10 years ago is now $A2,287, a gain of $A375 and dividend reinvested of $A911.

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 5 years the average annualized return to shareholders was 14.0%. The present value of AUD1,000 (PV1000) invested 5 years ago is now $A1,927, a gain of $A422 and dividend reinvested of $A505.

Terry Bowen
Director

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.

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.

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 $A1,011, including a capital loss of $A19 and dividend reinvested of $A30.

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 $A1,011, including a capital loss of $A19 and dividend reinvested of $A30.

SECTION 20 CORPORATE PROFILE


20.1 Stock Identifiers
ISIN: AU000000BHP4
PermID: 4295856983
CUSIP: Q1498M100

20.2 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

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

20.4 Primary Exchange and Other Listings
ExchangeTickerLast PriceAvg. Daily VolumeVolume % of TotalVol Index*
ASXBHP$A37.106,987,35081.30.7
OTCBBBHPLF$US25.17600,98918.71.9
FrankfurtBHP1EUR22.996,0850.10.6
Total   100.00 
* 1-day (1 is avg)

20.5 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.

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

ADR IDENTIFIERS
Contact: 61-1300-554757
Physical Address: 180 Lonsdale Street Melbourne, VIC 3000 Australia
State/Province/Country: Australia, united States
Country of Incorporation: Australia

Business Sector: Mineral Resources
Industry Group: Metals & Mining
Economic Sector: Basic Materials

ISIN: US0886061086
BHP.N
RIC: BHP.N

Source: www.BuySellSignals.com