BHP GroupCHIX:BHPL +2.28%82 5-Year ROIIC % is 41.65 as of Jun. 2025. GuruFocus rates CHIX:BHPL with a GF Score™ of 82/100 and a GF Value™ of £23.07 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,936 Metals & Mining companies, BHP Group ranks better than 87.04% on this metric.
5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
BHP Group's 5-Year ROIIC % for the quarter that ended in Jun. 2025 was 41.65%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for BHP Group's 5-Year ROIIC % or its related term are showing as below:
CHIX:BHPl's 5-Year ROIIC % is ranked better than 87.04% of 1936
companies
in the Metals & Mining industry
Industry Median: -3.37
vs CHIX:BHPl: 41.65
BHP Group (CHIX:BHPl) 5-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
BHP Group 5-Year ROIIC % Related Terms
BHP Group 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for BHP Group's 5-Year ROIIC % 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.
For the Other Industrial Metals & Mining subindustry, BHP Group's 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, BHP Group's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where BHP Group's 5-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
BHP Group (CHIX:BHPL) has a 5-Year ROIIC % of 41.65 as of Jun. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on BHP Group and its competitors. According to the industry distribution chart, BHP Group ranks #251 out of 1936 companies in the Metals & Mining industry, placing it in the top 13%.
Is BHP Group's 5-Year ROIIC % too high?
BHP Group's current 5-Year ROIIC % is 41.65. Based on the distribution chart, BHP Group ranks #251 out of 1936 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 5-Year ROIIC % compare to competitors?
According to the Metals & Mining industry distribution chart, BHP Group ranks #251 out of 1936 companies for 5-Year ROIIC %. This places BHP Group in the top 13% 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 5-Year ROIIC % for a Metals & Mining company?
A good 5-Year ROIIC % depends on the Metals & Mining industry context. However, 5-Year ROIIC % 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on BHP Group and its competitors. BHP Group's current 5-Year ROIIC % is 41.65. 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 £23.07, compared to a current price of £30.50 — trading 32.2% above its estimated fair value. The current 5-Year ROIIC % is 41.65. 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 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For BHP Group (CHIX:BHPL), the current 5-Year ROIIC % is 41.65 as of Jun. 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 £30.50 is trading 32.2% above its estimated GF Value™ of £23.07.
GuruFocus considers BHP Group to be Significantly Overvalued.
Key valuation signals for CHIX:BHPL:
5-Year ROIIC %: 41.65
GF Value™: £23.07 vs. price of £30.50 (32.2% 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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