Based on the BHP Group stock forecasts from 10 analysts, the average analyst target price for BHP Group is USD 54.07 over the next 12 months. BHP Group’s average analyst rating is Hold. Stock Target Advisor’s own stock analysis of BHP Group is Bullish, which is based on 10 positive signals and 4 negative signals. At the last closing, BHP Group’s stock price was USD 68.69. BHP Group’s stock price has changed by +4.87% over the past week, +2.79% over the past month and -5.20% over the last year.
Just yesterday, Barclays Capital lowered the target on the stock to $2400 from $2700, and maintained the Equal Weight rating.
BHP Group Limited is a resource corporation with operations in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America, and the rest of the world. Petroleum, Copper, Iron Ore, and Coal are the segments in which it operates. The company’s headquarters are in Melbourne, Australia, where it was founded in 1851. 171 Collins Street, Melbourne, Victoria, 3000, Australia.
What we like:
High market capitalization
This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.
Superior risk-adjusted returns
This stock has performed well, on a risk-adjusted basis, compared to its sector peers(for a hold period of at least 12 months) and is in the top quartile.
Superior return on equity
The company management has delivered a better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.
Superior capital utilization
The company management has delivered a better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.
Superior return on assets
The company management has delivered a better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.
Positive cash flow
The company had positive total cash flow in the most recent four quarters.
Positive free cash flow
The company had positive total free cash flow in the most recent four quarters.
Superior Earnings Growth
This stock has shown top quartile earnings growth in the previous 5 years compared to its sector.
Superior Revenue Growth
This stock has shown top quartile revenue growth in the previous 5 years compared to its sector.
High Gross Profit to Asset Ratio
This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.
What we don’t like:
Overpriced compared to earnings
The stock is trading high compared to its peers on a price to earning basis and is above the sector median.
Overpriced compared to book value
The stock is trading high compared to its peers’ median on a price to book value basis.
Overpriced on a cash flow basis
The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.
The company is in the bottom half compared to its sector peers on debt to equity and is highly leveraged. However, do check the news and look at its sector and management statements. Sometimes this is high because the company is trying to grow aggressively.