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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
BHP Group's Interest Coverage for the quarter that ended in Jun. 2026 was 12.81.
BHP Group's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.44.
As of today, BHP Group's Altman Z-Score is 4.01.
BHP Group (OTCPK:BHPLF) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
BHP Group has the Financial Strength Rank of 7.
BHP Group Financial Strength Related Terms
BHP Group Financial Strength Competitor Comparison
For the Other Industrial Metals & Mining subindustry, BHP Group's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, BHP Group's Financial Strength distribution charts can be found below:
* The bar in red indicates where BHP Group's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
BHP Group has a Z-score of 4.01, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 4.01 is strong.
* 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 (BHPLF) has a Financial Strength of 7 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on BHP Group and its competitors. This is near median its historical median of 7.00. Over the past decade, BHP Group's Financial Strength has ranged from 4.00 to 8.00.
Is BHP Group's Financial Strength too high?
BHP Group's current Financial Strength of 7 is near median its 10-year median of 7.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 8.00. Overall, BHP Group has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BHP Group's Financial Strength compare to competitors?
BHP Group's Financial Strength of 7 can be compared against companies in the Metals & Mining industry. Historically, BHP Group's own Financial Strength has ranged from 4.00 to 8.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Metals & Mining company?
A good Financial Strength depends on the Metals & Mining industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on BHP Group and its competitors. BHP Group's current Financial Strength is 7, which is near median its own 10-year median of 7.00. 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 (BHPLF) is currently considered Significantly Overvalued. The stock's GF Value™ is $30.23, compared to a current price of $47.70 — trading 57.8% above its estimated fair value. The current Financial Strength is 7, which is near median its 10-year median of 7.00. BHP Group's overall GF Score™ is 70/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For BHP Group (BHPLF), the current Financial Strength is 7 as of Jun. 2026. 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 (BHPLF) Overvalued in 2026?
Based on GuruFocus' analysis, BHP Group stock appears to be overvalued.
The current stock price of $47.70 is trading 57.8% above its estimated GF Value™ of $30.23.
GuruFocus considers BHP Group to be Significantly Overvalued.
Key valuation signals for BHPLF:
Financial Strength: 7 (near median its 10-year median of 7.00)
GF Value™: $30.23 vs. price of $47.70 (57.8% above fair value)
No single metric tells the full story. See the BHPLF 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.
70GF Score
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