At the moment, the debt-to-equity of BHP Group Limited (NYSE:BHP) is low, standing at 48.22, a figure that is less than the 53.50 average recorded by the industry. This means that the company is currently holding a debt level at 36.28 B. BHP shares have a strong debt-to-equity ratio but their quick ratio which reads 2.20 is strong and might cause problems for them later in the future.
The 28.22% yoy growth of BHP’s revenue has gone up that of the industry average by 4.37%. For the past 12 months, BHP Group Limited revenue has gone up by 23.85%. The sustained growth in their revenue has helped boost their earnings per share.
BHP Group Limited (BHP) has seen their earnings per share increased to $0.41 during the last quarter in comparison to the same quarter last year. They have recorded a -15.03% declining earnings per share earnings. In the fiscal year 2018, BHP Group Limited overcame its bottom line by hitting earning $0.90 per share compared to the $1.46 in 2017.
The 12-month return on equity has significantly fallen to 10.56 in comparison to the same data for other companies in the same industry. This shows that there is a major weakness within the organization over the past one year. Comparing them to other companies in the industry and the overall Basic Materials sector, the industry average is 10.29 while 13.70 is of the sector.
BHP total operating cash flow had jumped to $14.52 billion compared to $9.43 billion in the same quarter last year. Also, looking at the price to cash flow of the company and the industry average, the 7.41 ratio of the stock is lower than the industry’s 10.18.
BHP Group Limited (NYSE:BHP) has a price-to-earnings ratio of 18.73 which is higher than the 16.88 industry average at the moment. This shows whether the company has what it takes to effectively turn the revenue into profit.
The company’s ROA is 5.27 when compared to 4.44 for the stocks operating in the same industry. This can be attributed to the strength recorded in the net income produced by total assets. Comparing it to other companies in the sector, BHP Group Limited ROE is above 13.70 that of both the sector average.
The operating profit margin for BHP Group Limited (BHP) is 30.70%, a figure which is considered to be strong. It has gone -1,268.70 from the 26.20 over the past 5 years. In addition to this, their operating margin is 31.7 higher than the industry average.
The net profit margin which stood at 14.92 on average in the past 5 years has jumped to 16.25 in the last 12 months. Added to that, this ratio has surpassed the industry net margin that stands at -1,886.92.
Still some above discussed indicators of the $109.37B company show strength while others show weakness. There is little evidence at the moment to justify the expectation of the BHP shares to either perform positively or negatively when compared to other stocks. The primary strengths of BHP Group Limited can be witnessed in its increased revenue, growing earnings per share, higher return on equity, increased operating cash and high net margin. Subsequently, financial analysis have also identified some weak areas that includes high debt, relatively high P/E ratio, lower return on assets and low net margin.