BHP Group Limited (BHP): What Does Valuation Ratios Tell Us?


BHP Group Limited (NYSE:BHP) saw an upside of 0.55% to close Tuesday at $69.76 after adding $0.38 on the day. The 5-day average trading volume is 3,280,960 shares of the company’s common stock. It has gained $70.00 in the past week and touched a new high 2 times within the past 5 days. An average of 2,655,190 shares of the company has been traded in the last 20 days, and the 50-day average volume stands at 2,902,890.

BHP’s 1-month performance is 11.33% or $7.71 on its low of $61.05 reached on 01/03/23. The company’s shares have touched a 52-week low of $46.92 and high of $71.04, with the stock’s rally to the 52-week high happening on 01/24/23. YTD, BHP has achieved 12.43% or $7.71 and has reached a new high 11 times. However, the current price is down -1.80% from the 52-week high price.

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Valuation Metrics

BHP stock has a beta of 0.96. Moving on to other valuation ratios, the trailing price-to-sales (P/S) ratio is 2.68 while the price-to-book (PB) in the most recent quarter is 3.93, with the price to cash flow ratio at 12.41.

BHP Group Limited’s quick ratio for the recent period was 1.40, with the current ratio over the same period at 1.70. The trailing 12-month EBITDA margin is 65.21%. The firm’s gross profit as reported stood at $54.6 billion against revenue of $65.1 billion.

Earnings Surprise

BHP Group Limited’s cash and short-term investments amounted to $296.0 million against total debt of $18.25 billion. Net income grew 63.42% to $30.9 billion, while revenue of $0.0 was 100.0% off the previous quarter. BHP stock balance sheet for the recent quarter shows that total liabilities totaled 46.4 billion, with total debt at $18.25 billion.

Let’s look briefly at BHP Group Limited (BHP) price momentum from a technical analysis perspective. The 9-day relative strength index as at close on 24 January was 74.08% to suggest the stock is trending Overbought, with historical volatility in this time period at 18.19%.

The stock’s 5-day moving average is $69.11, reflecting a +2.95% or $2.00 change from its current price. BHP is currently trading +13.60% above its 20-day SMA, +25.92% above its 100-day SMA. However, the stock’s current price level is away from the SMA50 by +33.90% and SMA200 by-9.78%.

Stochastic %K and %D was 94.75% and 90.98% and the average true range (ATR) pointed at 1.44. The RSI (14) points at 71.07%, while the 14-day stochastic is at 97.12% with the period’s ATR at 1.43. The stock’s 9-day MACD Oscillator is pointing at 0.77 and 2.15 on the 14-day charts.

Analyst Ratings

In the most recent analyst report for BHP Group Limited (NYSE: BHP), Berenberg upgraded it to a Buy rating. They previously had a Hold rating on the stock. Analysts offering their rating for BHP stock have a consensus rating for the stock as Hold. Currently, 2 brokerage advisors rate BHP as a “sell,”, while 14 advise that investors “Hold.” 3 analysts have rated the stock as underweight. 1 rates the stock as overweight while 8 have offered a “buy” rating.

What is BHP’s price target for the next 12 months?

Analysts have a consensus price target ranging from a low of $52.34 and a high of $81.63, with their median price target at $61.80. Looking at these predictions, the average price target given by analysts is for BHP Group Limited (BHP) stock is $63.96.


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