BHP GroupCHIX:BHPL -3.53%82 Return-on-Tangible-Equity is 24.49% as of Dec. 2025, which is 33% above its 10-year median of 18.40. GuruFocus rates CHIX:BHPL with a GF Score™ of 82/100 and a GF Value™ of £23.15 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 2,374 Metals & Mining companies, BHP Group ranks better than 89.09% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. BHP Group's annualized net income for the quarter that ended in Dec. 2025 was £8,426 Mil. BHP Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was £34,402 Mil. Therefore, BHP Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 24.49%.
The historical rank and industry rank for BHP Group's Return-on-Tangible-Equity or its related term are showing as below:
CHIX:BHPl'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -12.09 Med: 18.4 Max: 71.22
Current: 22.23
During the past 13 years, BHP Group's highest Return-on-Tangible-Equity was 71.22%. The lowest was -12.09%. And the median was 18.40%.
CHIX:BHPl's Return-on-Tangible-Equity is ranked better than 89.09% of 2374
companies
in the Metals & Mining industry
Industry Median: -16.495
vs CHIX:BHPl: 22.23
BHP Group (CHIX:BHPl) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
BHP Group Return-on-Tangible-Equity Related Terms
BHP Group Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for BHP Group's Return-on-Tangible-Equity 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-Equity Competitor Comparison
For the Other Industrial Metals & Mining subindustry, BHP Group's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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-Equity vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, BHP Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where BHP Group's Return-on-Tangible-Equity 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-Equity, the net income of the last fiscal year and the average total shareholder tangible equity 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.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 24.49% mean?
BHP Group (CHIX:BHPL) has a Return-on-Tangible-Equity of 24.49% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on BHP Group and its competitors. This is 33% above median its historical median of 18.40. According to the industry distribution chart, BHP Group ranks #259 out of 2374 companies in the Metals & Mining industry, placing it in the top 10.9%.
Is BHP Group's Return-on-Tangible-Equity too high?
BHP Group's current Return-on-Tangible-Equity of 24.49% is 33% above median its 10-year median of 18.40. Based on the distribution chart, BHP Group ranks #259 out of 2374 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 Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BHP Group's Return-on-Tangible-Equity compare to competitors?
According to the Metals & Mining industry distribution chart, BHP Group ranks #259 out of 2374 companies for Return-on-Tangible-Equity. This places BHP Group in the top 11% 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-Equity for a Metals & Mining company?
A good Return-on-Tangible-Equity depends on the Metals & Mining industry context. However, Return-on-Tangible-Equity 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-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on BHP Group and its competitors. BHP Group's current Return-on-Tangible-Equity is 24.49%, which is 33% above median its own 10-year median of 18.40. 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 Modestly Overvalued. The stock's GF Value™ is £23.15, compared to a current price of £30.05 — trading 29.8% above its estimated fair value. The current Return-on-Tangible-Equity is 24.49%, which is 33% above median its 10-year median of 18.40. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For BHP Group (CHIX:BHPL), the current Return-on-Tangible-Equity is 24.49% 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 £30.05 is trading 29.8% above its estimated GF Value™ of £23.15.
GuruFocus considers BHP Group to be Modestly Overvalued.
Key valuation signals for CHIX:BHPL:
Return-on-Tangible-Equity: 24.49% (33% above median its 10-year median of 18.40)
GF Value™: £23.15 vs. price of £30.05 (29.8% 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.
82GF Score
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