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BHP GroupCHIX:BHPL -0.61%81 Return-on-Tangible-Asset is 10.28% as of Dec. 2025, which is 28% above its 10-year median of 8.05. GuruFocus rates CHIX:BHPL with a GF Score™ of 81/100 and a GF Value™ of £22.92 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 2,670 Metals & Mining companies, BHP Group ranks better than 88.09% on this metric.
Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. BHP Group's annualizedNet Income for the quarter that ended in Dec. 2025 was £8,426 Mil. BHP Group's average total tangible assets for the quarter that ended in Dec. 2025 was £81,959 Mil. Therefore, BHP Group's annualized Return-on-Tangible-Asset for the quarter that ended in Dec. 2025 was 10.28%.
The historical rank and industry rank for BHP Group's Return-on-Tangible-Asset or its related term are showing as below:
CHIX:BHPl'
s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -5.55 Med: 8.05 Max: 32.09
Current: 9.49
During the past 13 years, BHP Group's highest Return-on-Tangible-Asset was 32.09%. The lowest was -5.55%. And the median was 8.05%.
CHIX:BHPl's Return-on-Tangible-Asset is ranked better than 88.09% of 2670
companies
in the Metals & Mining industry
Industry Median: -17.41
vs CHIX:BHPl: 9.49
BHP Group (CHIX:BHPl) Return-on-Tangible-Asset Explanation
Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.
Be Aware
Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the companys earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a companys tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.
BHP Group Return-on-Tangible-Asset Related Terms
BHP Group Return-on-Tangible-Asset Historical Data
* Premium members only.
The historical data trend for BHP Group's Return-on-Tangible-Asset 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 Return-on-Tangible-Asset Competitor Comparison
For the Other Industrial Metals & Mining subindustry, BHP Group's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, BHP Group's Return-on-Tangible-Asset distribution charts can be found below:
* The bar in red indicates where BHP Group's Return-on-Tangible-Asset falls into.
* 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.
In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is two times the semi-annual (Dec. 2025) net income data.
What does a Return-on-Tangible-Asset of 10.28% mean?
BHP Group (CHIX:BHPL) has a Return-on-Tangible-Asset of 10.28% as of Dec. 2025. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on BHP Group and its competitors. This is 28% above median its historical median of 8.05. According to the industry distribution chart, BHP Group ranks #318 out of 2670 companies in the Metals & Mining industry, placing it in the top 11.9%.
Is BHP Group's Return-on-Tangible-Asset too high?
BHP Group's current Return-on-Tangible-Asset of 10.28% is 28% above median its 10-year median of 8.05. Based on the distribution chart, BHP Group ranks #318 out of 2670 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 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BHP Group's Return-on-Tangible-Asset compare to competitors?
According to the Metals & Mining industry distribution chart, BHP Group ranks #318 out of 2670 companies for Return-on-Tangible-Asset. This places BHP Group in the top 12% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Asset for a Metals & Mining company?
A good Return-on-Tangible-Asset depends on the Metals & Mining industry context. However, Return-on-Tangible-Asset 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 Return-on-Tangible-Asset mean?
A high Return-on-Tangible-Asset can signal that a stock is expensive relative to its fundamentals. Return on tangible assets is the ratio of current-period net income to average two-period tangible assets. View historical data on BHP Group and its competitors. BHP Group's current Return-on-Tangible-Asset is 10.28%, which is 28% above median its own 10-year median of 8.05. 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 £31.56 — trading 37.7% above its estimated fair value. The current Return-on-Tangible-Asset is 10.28%, which is 28% above median its 10-year median of 8.05. BHP Group's overall GF Score™ is 81/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Asset calculated?
Return-on-Tangible-Asset is calculated from a company's financial statements. For BHP Group (CHIX:BHPL), the current Return-on-Tangible-Asset is 10.28% 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 £31.56 is trading 37.7% above its estimated GF Value™ of £22.92.
GuruFocus considers BHP Group to be Significantly Overvalued.
Key valuation signals for CHIX:BHPL:
Return-on-Tangible-Asset: 10.28% (28% above median its 10-year median of 8.05)
GF Value™: £22.92 vs. price of £31.56 (37.7% above fair value)
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.
81GF Score
Get the complete analysis for CHIX:BHPL
Return-on-Tangible-Asset is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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