GURUFOCUS.COM » STOCK LIST » Basic Materials » Metals & Mining » BHP Group Ltd (NYSE:BHP) » Definitions » Piotroski F-Score

BHP Group (BHP Group) Piotroski F-Score

: 3 (As of Today)
View and export this data going back to 1987. Start your Free Trial

Warning Sign:

Piotroski F-Score of 3 is low, which usually implies poor business operation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

BHP Group has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

The historical rank and industry rank for BHP Group's Piotroski F-Score or its related term are showing as below:

BHP' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 7   Max: 9
Current: 3

During the past 13 years, the highest Piotroski F-Score of BHP Group was 9. The lowest was 3. And the median was 7.


BHP Group Piotroski F-Score Historical Data

The historical data trend for BHP Group's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

BHP Group Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 9.00 7.00 3.00

BHP Group Semi-Annual Data
Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - 7.00 - 3.00 -

Competitive Comparison

For the Other Industrial Metals & Mining subindustry, BHP Group's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


BHP Group Piotroski F-Score Distribution

For the Metals & Mining industry and Basic Materials sector, BHP Group's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where BHP Group's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Jun23) TTM:Last Year (Jun22) TTM:
Net Income was $12,921 Mil.
Cash Flow from Operations was $18,701 Mil.
Revenue was $53,817 Mil.
Gross Profit was $37,904 Mil.
Average Total Assets from the begining of this year (Jun22)
to the end of this year (Jun23) was (95166 + 101296) / 2 = $98231 Mil.
Total Assets at the begining of this year (Jun22) was $95,166 Mil.
Long-Term Debt & Capital Lease Obligation was $15,172 Mil.
Total Current Assets was $23,351 Mil.
Total Current Liabilities was $19,043 Mil.
Net Income was $30,900 Mil.

Revenue was $65,098 Mil.
Gross Profit was $50,184 Mil.
Average Total Assets from the begining of last year (Jun21)
to the end of last year (Jun22) was (108927 + 95166) / 2 = $102046.5 Mil.
Total Assets at the begining of last year (Jun21) was $108,927 Mil.
Long-Term Debt & Capital Lease Obligation was $13,806 Mil.
Total Current Assets was $28,664 Mil.
Total Current Liabilities was $16,919 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

BHP Group's current Net Income (TTM) was 12,921. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

BHP Group's current Cash Flow from Operations (TTM) was 18,701. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun22)
=12921/95166
=0.13577328

ROA (Last Year)=Net Income/Total Assets (Jun21)
=30900/108927
=0.28367622

BHP Group's return on assets of this year was 0.13577328. BHP Group's return on assets of last year was 0.28367622. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

BHP Group's current Net Income (TTM) was 12,921. BHP Group's current Cash Flow from Operations (TTM) was 18,701. ==> 18,701 > 12,921 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun22 to Jun23
=15172/98231
=0.15445226

Gearing (Last Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=13806/102046.5
=0.13529126

BHP Group's gearing of this year was 0.15445226. BHP Group's gearing of last year was 0.13529126. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jun23)=Total Current Assets/Total Current Liabilities
=23351/19043
=1.22622486

Current Ratio (Last Year: Jun22)=Total Current Assets/Total Current Liabilities
=28664/16919
=1.69418996

BHP Group's current ratio of this year was 1.22622486. BHP Group's current ratio of last year was 1.69418996. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

BHP Group's number of shares in issue this year was 2536.5. BHP Group's number of shares in issue last year was 2535.5. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=37904/53817
=0.70431276

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=50184/65098
=0.77089926

BHP Group's gross margin of this year was 0.70431276. BHP Group's gross margin of last year was 0.77089926. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun22)
=53817/95166
=0.56550659

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun21)
=65098/108927
=0.59762961

BHP Group's asset turnover of this year was 0.56550659. BHP Group's asset turnover of last year was 0.59762961. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+0+0+0+0
=3

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

BHP Group has an F-score of 3. It is a bad or low score, which usually implies poor business operation.

BHP Group  (NYSE:BHP) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


BHP Group Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of BHP Group's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


BHP Group (BHP Group) Business Description

Address
171 Collins Street, Level 18, Melbourne, VIC, AUS, 3000
BHP is a global diversified miner mainly supplying iron ore and copper. The merger of BHP Limited and Billiton PLC created the present-day BHP Group. The dual listed structure from the 2001 BHP and Billiton merger was collapsed in 2022. Major assets include Pilbara iron ore and Escondida copper. Onshore U.S. oil and gas assets were sold in 2018 and the remaining Petroleum assets were spun off and merged with Woodside in 2022, with BHP vesting the Woodside shares it received to BHP shareholders. BHP is growing its nickel business to supply more battery grade nickel and is also entering the potash market through the development of its Jansen mine in Canada. It also purchased copper miner Oz Minerals in fiscal 2023.