BHP GroupCHIX:BHPL -4.07%82 Operating Margin % is 41.15% as of Dec. 2025, which is 11% above its 10-year median of 37.22. GuruFocus rates CHIX:BHPL with a GF Score™ of 82/100 and a GF Value™ of £22.92 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 841 Metals & Mining companies, BHP Group ranks better than 86.09% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. BHP Group's Operating Income for the
six
months ended in Dec. 2025 was £8,577 Mil. BHP Group's Revenue for the
six
months ended in Dec. 2025 was £20,843 Mil. Therefore, BHP Group's Operating Margin % for the quarter that ended in Dec. 2025 was 41.15%.
Warning Sign:
BHP Group Ltd operating margin has been in a 5-year decline. The average rate of decline per year is -1.6%.
The historical rank and industry rank for BHP Group's Operating Margin % or its related term are showing as below:
CHIX:BHPl'
s Operating Margin % Range Over the Past 10 Years
Min: 15.78 Med: 37.22 Max: 50.84
Current: 39.92
CHIX:BHPl's Operating Margin % is ranked better than 86.09% of 841
companies
in the Metals & Mining industry
Industry Median: 5.72
vs CHIX:BHPl: 39.92
BHP Group's 5-Year Average Operating Margin % Growth Rate was -1.60% per year.
BHP Group's Operating Income for the
six
months ended in Dec. 2025 was £8,577 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2025 was £16,002 Mil.
BHP Group (CHIX:BHPl) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
BHP Group Operating Margin % Related Terms
BHP Group Operating Margin % Historical Data
* Premium members only.
The historical data trend for BHP Group's Operating Margin % 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.
BHP Group Operating Margin % Competitor Comparison
For the Other Industrial Metals & Mining subindustry, BHP Group's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, BHP Group's Operating Margin % distribution charts can be found below:
* The bar in red indicates where BHP Group's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
BHP Group's Operating Margin % for the fiscal year that ended in Jun. 2025 is calculated as
* 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.
BHP Group (CHIX:BHPL) has a Operating Margin % of 41.15% as of Dec. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on BHP Group and its competitors. This is 11% above median its historical median of 37.22. Over the past decade, BHP Group's Operating Margin % has ranged from 15.78 to 50.84. According to the industry distribution chart, BHP Group ranks #117 out of 841 companies in the Metals & Mining industry, placing it in the top 13.9%.
Is BHP Group's Operating Margin % too high?
BHP Group's current Operating Margin % of 41.15% is 11% above median its 10-year median of 37.22. Over the past 10 years, this metric has ranged from a low of 15.78 to a high of 50.84. The Metals & Mining industry median Operating Margin % is 5.72. BHP Group's value of 41.15% is 619.4% above this industry median. Based on the distribution chart, BHP Group ranks #117 out of 841 companies in the Metals & Mining industry, which is in the top quartile — a strong position relative to peers. Overall, BHP Group has a GF Score™ of 82/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BHP Group's Operating Margin % compare to competitors?
According to the Metals & Mining industry distribution chart, BHP Group ranks #117 out of 841 companies for Operating Margin %. This places BHP Group in the top 14% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.72. BHP Group's value of 41.15% is 619.4% above this benchmark. Historically, BHP Group's own Operating Margin % has ranged from 15.78 to 50.84 over the past decade. While the company's 10-year median is 37.22 vs. the industry median of 5.72, BHP Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Metals & Mining company?
The median Operating Margin % among Metals & Mining companies is 5.72, based on 841 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. BHP Group's current Operating Margin % of 41.15% is 619.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on BHP Group and its competitors. For the Metals & Mining industry, the median Operating Margin % is 5.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. BHP Group's current Operating Margin % is 41.15%, which is 11% above median its own 10-year median of 37.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BHP Group stock overvalued right now?
Based on GuruFocus' analysis, BHP Group (CHIX:BHPL) is currently considered Significantly Overvalued. The stock's GF Value™ is £22.92, compared to a current price of £31.11 — trading 35.7% above its estimated fair value. The current Operating Margin % is 41.15%, which is 11% above median its 10-year median of 37.22 and 619.4% above the Metals & Mining industry median of 5.72. BHP Group's overall GF Score™ is 82/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For BHP Group (CHIX:BHPL), the current Operating Margin % is 41.15% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is BHP Group (CHIX:BHPL) Overvalued in 2026?
Based on GuruFocus' analysis, BHP Group stock appears to be overvalued.
The current stock price of £31.11 is trading 35.7% above its estimated GF Value™ of £22.92.
GuruFocus considers BHP Group to be Significantly Overvalued.
Key valuation signals for CHIX:BHPL:
Operating Margin %: 41.15% (11% above median its 10-year median of 37.22)
GF Value™: £22.92 vs. price of £31.11 (35.7% above fair value)
Industry Position: 619.4% above the Metals & Mining median (#117 of 841)
No single metric tells the full story. See the CHIX:BHPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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 US 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. It purchased copper miner Oz Minerals in fiscal 2023 and half of the Vicuna copper joint venture in fiscal 2025. It is entering the potash market through the development of its Jansen project in Canada. However, due to low prices, BHP placed its nickel business on care and maintenance in 2024.
82GF Score
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