BHPBHP Group Limited
Is the business good?
The checks split: nothing decisive, though earnings fully cash-backed (1.6×).
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Margins have held roughly steady, a stable cost structure.
Margin-driven, fat margins on slower asset turns. ROE 19% = margin × turnover × leverage.
Unless marked, from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is BHP?
BHP Group Limited earns 27% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 18 points above what the capital costs: growth creates value
- Operating margin
- 38%
Operating margin · Other Industrial Metals & Mining median 8.9% · fiscal year to FY2025
- Cash conversion
- 1.58×
Cash conversion · 1.97× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.12%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 35% |
| FY2021 | 45% |
| FY2022 | 52% |
| FY2023 | 43% |
| FY2024 | 32% |
| FY2025 | 38% |
Details›
- Gross marginfiscal year to FY2025
- 88%
- Operating marginfiscal year to FY2025
- 38%
- Net marginfiscal year to FY2025
- 18%
- Free cash flow margin
- 18%
- Revenue, trailing twelve months
- $51.3B
- Free cash flow, trailing twelve months
- $9.29B
- Net income, trailing twelve months
- $9.02B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 27%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Other Industrial Metals & Mining
Ranks #1 of 24 by RyuScore