# BHP Group (BHP.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Basic Materials / Metals & Mining. Price 3391p, market value 172.4 billionp.

## Valuation
- **P/E (trailing): 23.7×** (5-yr avg 1106.4×, 3-yr avg 1347.1×). BHP Group trades at 23.7× trailing earnings, well below its own five-year average of 1106.4×: cheap by its own standards. The Basic Materials median in the September 2026 study was 19.0×. Forward P/E is 19.0×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 2.07**. A PEG of 2.07 means the P/E is high relative to expected earnings growth; the price already assumes a lot.
- **Price / sales: 4.0×**. Each dollar of revenue is priced at 4.0×.
- **Price / book: 4.6×**. The shares trade at 4.6× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 7.9×**. Enterprise value is 7.9× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 5.1%** (5-yr avg 0.1%). Free cash flow equals 5.1% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 4.2%**. The inverse of the P/E: 4.2% of the price is earned each year.

## Profitability
- **Gross margin: 75.6%**. BHP Group keeps 75.6% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 43.4%**. 43.4% of revenue is left after running the business, an exceptional level.
- **Net margin: 16.7%**. 16.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 19.9%**. 19.9% on shareholders' equity is solid.
- **Return on invested capital: 25.6%**. Return on all capital, debt included, is 25.6%: comfortably above what that capital costs.
- **Return on assets: 8.1%**. Each dollar of assets produces 8.1% of profit.

## Growth
- **Revenue growth (1 yr): 14.6%** (3-yr 3.0%/yr, 5-yr 0.6%/yr). Revenue grew 14.6% over the last year, against 0.6% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 9.2%** (3-yr -8.8%/yr, 5-yr -3.3%/yr). Earnings per share rose 9.2%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 0.9%/yr**. Free cash flow has compounded at 0.9% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.55**. Debt is 0.55 times equity, moderate leverage.
- **Net debt / EBITDA: 0.3×**. It would take 0.3 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 12.1×**. Operating profit covers interest 12.1× over, a safe margin.
- **Current ratio: 1.88** (quick 1.48). Current assets cover the next year's liabilities 1.88 times.
- **Altman Z-score: 3.47**. A Z-score of 3.47 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 3.83%** (1p per share, trailing). BHP Group yields 3.83%, an income-level yield.
- **Payout ratio: 69%** (57% of free cash flow). 69% of earnings goes out as dividends, leaving room to keep raising it.
- **Dividend growth (5 yr): -1.9%/yr** (1-yr -26.0%). The dividend has not grown over five years.

## Analyst view
- **Analyst consensus: hold** (17 analysts). 17 analysts cover BHP Group; the consensus is hold, with an average price target of 2931p (-14% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 67.3%** (YTD 48.1%, 3-mo 5.8%). The shares are up 67.3% over twelve months including dividends.
- **From 52-week high: -5.6%** (76.8% above the low). Trading 6% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 48**. An RSI of 48 is neutral.
- **Beta (1 yr): 1.25** (volatility 31%). Beta of 1.25 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=BHP.L · Page: https://foliofundamentals.com/stocks/bhp.l

Not investment advice.