BHP Group ADR up 2.4% in 2 days 14 May 2020

GLOBAL ROUND UP

ADRS AND DEPOSITORY RECEIPTS

BHP Group Limited (N:BHP), the International Depository Receipt (IDR) market's largest Mining company by market cap, extended its gains on Thursday, rising an additional 73.0c (1.8%) to close at USD40.36. The ADRs have lifted 95.0c (2.4%) over the past two trading days, compared with the Bank of New York Mellon Composite ADR Index which fell 1.4 points (1.2%) in the two days for a relative price increase of 3.6%. The cumulative volume in the 2 days was at about its average 2-day volume of 2.4 million ADRs. There were 2,636,877 ADRs worth USD106.4 million traded today.

Dividend History

Trailing 12 months dividend for the 12 months ended May 14 was unchanged at USD1.56.

Bullish Turning Point

Price/Earnings of 25.2 close to historical low

The P/E of 25.2 is 0.4 times the highest average P/E of 70 in the last five years. This is a value criterion, according to Benjamin Graham who described as a value criterion "A P/E ratio down to less than four-tenth of the highest average P/E ratio the stock attained in the most recent five years".

ADR Summary

Home ExchangeAustralia% of shares outstanding4.2%
Code and ISINBHP and US0886061086Ratio1 ADR equals 2 ordinary shares
CUSIP088606108May 14 closeUSD40.36
No. Held by Institutions61,495,943Ave Daily Volume2,449,236 ADRs
Number of shares equivalent122,991,88652-Week Range29.78 - 57.19

Click here to export Financials table in xls

Click here to export Top 357 Institutional shareholdings in xls

HIGHLIGHTS IN TODAY'S REPORT:

SECTION 1 TODAY'S AGGREGATE VOLUMES AND PRICES

SECTION 2 PRICE VOLUME DYNAMICS

SECTION 3 TODAY'S BEARISH SIGNALS

SECTION 4 TODAY'S BULLISH SIGNALS

SECTION 5 RELATED NEWS

RECAP FROM PREVIOUS REPORT (UPDATED AT THE LAST PRICE OF USD40.36):

SECTION 6 News In The Past Quarter

SECTION 7 THE PAST WEEK

SECTION 8 ONGOING BULLISH PARAMETERS

SECTION 9 ONGOING BEARISH PARAMETERS

SECTION 10 REPORTED BUYING AND SELLING

SECTION 11 RANKING

SECTION 12 SNAPSHOT OF AUSTRALIAN ADRs

RECAP FROM PRIMARY EXCHANGE IN THE AUSTRALIA MARKET (UPDATED AT THE LAST PRICE OF $A30.61):

SECTION 13 BULLISH SIGNALS

SECTION 14 BEARISH SIGNALS

SECTION 15 ONGOING BULLISH PARAMETERS

SECTION 16 ONGOING BEARISH PARAMETERS

SECTION 17 PEER GROUP ANALYSIS & RANKING

SECTION 18 STOCK NEWS

SECTION 19 BHP Board of Directors

SECTION 20 CORPORATE PROFILE

SECTION 1 TODAY'S AGGREGATE VOLUMES AND PRICES

[Volume Index or VI in brackets; 1 is average]

+ US Market: BHP.N 2,636,877 ADRs equivalent to 5,273,754 shares [VI of 1.08]; volume 52.9% of aggregate. Price: USD40.36.

+ ASX: BHP.AU 4,695,179 [VI of 0.64]; volume 47.1% of aggregate. Price: $A30.61. Using the current exchange rate of AUD1 equals 0.64 USD, the shares are at a 2.4% discount to the close price in the US Market.

+ Aggregate volume: there were 9,968,933 shares equivalent worth USD198,872,166 traded. The aggregate volume was 0.8 times average trading of 12,228,843 shares.

SECTION 2 BHP GROUP PRICE VOLUME DYNAMICS

2.1 Turnover Rate & Turnover Period:

+ The turnover rate in the 12 months to date was 45.4% (or a turnover period of 2 years 2 months).

2.2 Primary Exchange Summary

CountryAustralia
Last$A30.61
Volume Index (1 is avg)0.64
Market Cap$A155.2 billion (USD99.8 billion)
52-Week Range (AUD)24.05 - 40.27
Shares Outstanding5,070,000,000
Relative Strength (3 mo)55.6

2.3 Trailing 3 months

TurnoverUSD9.3 billion
Volume243,706,623
Volume Index (1 is avg)1.6

2.4 Trailing Price Change %

3-Year price change of 35.2% for BHP outperformed the change of -17.9% in the The Bank of New York Mellon Composite ADR index (16899W10) for a relative price change of 53.1%.

Price Change %QuarterYear3 Years
BHP-21.9-18.735.2
16899W10-21.9-15.4-17.9

2.5 Shareholder Returns

- The present value of USD1,000 (PV1000) invested five years ago in BHP Group is USD1,209, including a capital loss of USD81 and dividend reinvested of USD290.

- 5 years Multiplier in USD = 1.209x

- Compound Annual Growth Rate (CAGR) in USD = 3.9%

- The average annual compound return on the share price in the last 5 years was 3.9%, exceeding the average annual compound return on the Bank of New York Mellon Composite ADR Index of -5.2%.

Trailing quarter: The value of USD1,000 invested 3 months ago is USD781 [vs USD789 for the Bank of New York Mellon Composite ADR Index] for a capital loss of USD219.

Trailing 12 months: The value of USD1,000 invested a year ago is USD839 [vs 840 for the Bank of New York Mellon Composite ADR Index], including a capital loss of USD187 and dividend reinvested of USD26.

PVUSD1,000Trailing MonthTrailing QtrTrailing Yr
BHPUSD1,000USD781USD839
Mining sectorUSD787USD760USD787
16899W10USD840USD789USD840

SECTION 3 BHP GROUP BEARISH SIGNALS

3.1 Downtrend:

Price/Moving Average Price:

+ The price to 200-day MAP ratio is 0.86, a bearish indicator. In the past 200 days this ratio has been under 0.86, 47 times suggesting further downside. The 50-day MAP of USD37.72 is lower than the 200-day MAP of USD46.92, a bearish indicator. The 200-day MAP has decreased to USD46.92. A decrease is another bearish indicator.

Past Week:

+ In the past week, volume was 0.8 times average and the ADRs were down 0.2%.

SECTION 4 BHP GROUP BULLISH SIGNALS

4.1 Uptrend:

Today's Volatility:

+ BHP Group ADR rises 1.8% on high volatility: Today its volatility (highest price minus lowest price/lowest price) of 4.5% was 2.6 times the average daily volatility of 1.7%, up from 2.3% on Wednesday and 3.4% on Tuesday. A rise in the price on high volatility is a bullish signal.

Price/Moving Average Price and MACD:

+ The Price/MAP of 0.86 for BHP is higher than the Price/MAP for the Bank of New York Mellon Composite ADR Index of 0.83.

+ The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 39.85 minus the 26-day EMA of 39.5 is positive suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.

Past Month:

+ Rises to Falls: in the past month the number of rises outnumbered falls 16:7 or 2.3:1.

Relative Strength (6 months):

+ In the International Depository Receipts market of 964 units traded today, the ADR has a 6-month relative strength of 79 indicating it has outperformed 79% of the market.

4.2 High Price Performance Indicators and rank of BHP Group in the International Depository Receipts market:

DescriptionBHP ValueRank In Market
Today's Trading TurnoverUSD106.4 millionIn Top 4%
MCapUSD59.3 billionIn Top 6%
Price/MAP501.07In Top 17%

SECTION 5 BHP GROUP RELATED NEWS

Analyst Recommendation:

DateBrokerageActionCurrent Rating
May 14, 2020Deutsche BankReiterated byBuy

RECAP FROM PREVIOUS REPORT (UPDATED AT THE LAST PRICE OF USD40.36):

SECTION 6 News In The Past Quarter

6.1 Financial News

Quarterly Report (Q2/2019):

February 18, 2020

Interim Report (Half Year) Analysis H2 2019: BHP Group half year profits hit by 41.4% fall

BHP Group (ASX:BHP), announced net profit of $US4.9b for the half year-ended 31 December 2019, down 41.4% from the previous corresponding period.

Compared with the previous corresponding period [PCP; H/31 Dec 2018], year-over-year [y.o.y.] Revenue was down 49.7% and Net Profit was down 41.4%.

6.2 Institutional News

6.2.1 Today's Institutional shareholder snippets from Q1 2020 Reports

Top 3 increases by value:

11th largest institutional shareholder Citigroup Inc. increases its position in BHP Group

Athos Capital Ltd increases its position in BHP Group

24th largest institutional shareholder JP Morgan Chase & Co increases its position in BHP Group

Top 1 decreases by value:

Mirae Asset Global Investments Co., Ltd. decreases its position in BHP Group

6.2.2 Top 20 Institutions increasing their holdings in BHP Group ADRs [Q1/2020]

*Number of ADRs

Institution Name (CIK)Rank by * as on Dec 31, 2019* as on Dec 31, 2019* as on Mar 31, 2020Increase %Today's Market Value USD million
Fisher Asset Management (0000850529)17,315,4057,337,1190.3289.2
UBS Group (0001610520)43,423,5326,075,31577.5239.4
Citigroup (0000831001)111,553,3255,607,856261.0221
SG Americas Securities (0001313360)2504,4911,071,31723,754.842.2
JP Morgan Chase & Co (0000019617)24540,237623,15115.324.6
Athos Capital (0001681662)12923,598476,5921,919.618.8
Scout Investments (0001161927)33333,992355,5376.514
Pacific Heights Asset Management (0001323414)52200,000255,00027.510
Carillon Tower Advisers (0001715163)50213,505226,5366.18.9
Ferguson Wellman Capital Management (0000869353)59150,595156,7804.16.2
Violich Capital Management (0001326766)64120,068120,4680.334.7
Thomas White International (0001092351)67111,054116,6395.04.6
SPX Equities Gestao de Recursosa (0001589176)9752,91694,53378.63.7
Crossmark Global Holdings (0001539204)7787,28792,0555.53.6
Envestnet Asset Management (0001407543)8082,50887,7846.43.5
CSat Investment Advisory (0001483801)1929,25779,647760.43.1
Toroso Investments (0001600064)1929,25779,647760.43.1
Bank of New York Mellon (0001390777)8371,45178,66610.13.1
Raymond James Financial Services Advisors (0001462284)10842,35843,7093.21.7
Wetherby Asset Management (0001279627)11434,01137,3839.91.5

6.2.3 Top 20 Institutions decreasing their holdings in BHP Group ADRs [Q1/2020]

*Number of ADRs

Institution Name (CIK)Rank by * as on Dec 31, 2019* as on Dec 31, 2019* as on Mar 31, 2020Decrease %Today's Market Value USD
Aperio Group (0001364615)141,104,476981,52011.138.7 million
Jennison Associates (0000053417)32357,906339,5355.113.4 million
South Street Advisors (0001399706)44243,710240,0901.59.5 million
Vicus Capital (0001544806)53184,696182,2671.37.2 million
Raymond James (0001084208)38279,862176,72436.97 million
Callahan Advisors (0001395055)61131,118127,8352.55 million
Ngam Advisors (0001018331)60147,955113,94123.04.5 million
Hourglass Capital (0001442573)70105,860104,3331.44.1 million
Blackrock (0001364742)55167,62781,64451.33.2 million
Comerica Bank (0000901541)8177,11175,4882.13 million
Manning & Napier Group (0001725248)40253,21874,01270.82.9 million
Freestone Capital Holdings (0001470876)8761,77859,5743.62.3 million
Meritage Portfolio Management (0000881432)9455,04651,2356.92 million
PNC Financial Services Group (0000713676)9951,82743,03317.01.7 million
Brinker Capital (0001502976)10248,05742,77811.01.7 million
Point View Wealth Management (0001408103)12326,91026,7220.71.1 million
Creative Planning (0001540235)12724,99624,4452.2963,377
Regions Financial (0001281761)13122,87322,6920.79894,292
Greenleaf Trust (0001162170)13023,52722,1725.8873,799
Steward Partners Investment Advisory (0001723397)13422,22221,9591.2865,404

6.3 Press Releases

February 18: BHP Group: Half Yearly Report and Accounts

This statement includes the consolidated results of BHP for the half year ended 3 1 December 2019 compared with the half year ended 3 1 December 2018.

This page and the following 64 pages comprise the half year end information given to the ASX under Listing Rule 4. 2 A and released to the market under UK Disclosure and Transparency Rule 4.2.2R and should be read in conjunction with the 2019 BHP Group annual financial report.

Source: Australian Securities Exchange

6.4 ADR Buzz

News DateHeadlinePublisher
May 05, 2020Brinker Capital Inc. Decreases Stake in BHP Group Ltd (NYSE:BHP)theenterpriseleader.com

6.5 Analyst Recommendations: Past Month

DateBrokerageCurrent RatingPrev TargetPrice Target
May 13, 2020UBS GroupBuy18001700
May 12, 2020UBS GroupBuy18001700
Apr 30, 2020JPMorgan Chase & Co.Overweight18201830
Apr 29, 2020JPMorgan Chase & Co.Overweight18201830
Apr 23, 2020Societe GeneraleBuy16801580

SECTION 7 THE PAST WEEK

7.1 Analyst Recommendations:Past Week

DateBrokerageActionCurrent RatingPrev TargetPrice Target
May 13, 2020Deutsche BankReiterated byBuy--
May 13, 2020UBS GroupUpgraded byBuy18001700
May 12, 2020UBS GroupUpgraded byBuy18001700

7.2 Volatility:

+ BHP Group is at a discount of 29.4% to its 12-month high of USD57.19 on July 02, 2019. It is also at a premium of 35.5% to the 12-month low of USD29.78 on March 12, 2020.

SECTION 8 ONGOING BULLISH PARAMETERS

8.1 High Growth and Performance Indicators and rank of BHP Group in the International Depository Receipts market:

DescriptionValueRank In Market
EPS Growth %130.3In Top 5%
Return on Assets [ROA] %9.4In Top 17%
EBITDA Margin %37.4In Top 18%
Return on Equity [ROE] %18.4In Top 19%

8.2 Moving Annual Return of -15.6% in the past year:

Moving Annual Return was -15.6% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 10.7%

BHPClose (USD)Dividends (USD)Capital Gain / (Loss) %% YieldAnnual Return %
May 1440.361.56(18.7)3.1(15.6)
1 Yr ago49.664.411.29.921.1
2 Yrs ago44.651.9649.66.656.2
3 Yrs ago29.851.0832.34.837.1
4 Yrs ago22.551.56(48.7)3.6(45.1)

Close 5 years ago USD43.94

8.3 Increased VWAP, up 82% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 81.9% to USD45.90. Based on a dynamic start date of five years ago, there has been no decline in VWAP over the last 5 years.

Past five years, 12 months ended May 14 (USD)

YearHigh PriceVWAPLow Price
202057.1945.929.78
201955.4845.1939.32
201845.6436.9628.34
201735.4328.9521.88
201643.7925.2415.65

8.4 Increased ADR turnover, up 10% in 5 years

In the past five years, average daily ADR turnover has increased 10.2% to USD107.7 million. This suggests increased liquidity.

Past five years, 12 months ended May 14 (USD million)

YearAverage Daily Turnover
2020107.7
2019108.1
201894.6
201792.5
201697.7

8.5 Increase in Institutional Ownership up from 4.0% to 4.2%

As at December 31, 2019 Institutions held 4.2% of total ADRs on issue; an increase from 4.0% as at September 30, 2019.

Quarter-endSeptember 30, 2019December 31, 2019
Holdings (%)4.04.2

SECTION 9 ONGOING BEARISH PARAMETERS

9.1 Momentum Down 0.2% Past Week

It outperformed the The Bank of New York Mellon Composite ADR index in 3 out of 5 days. The price ranged between a low of 39.41 on Tuesday, May 12 and a high of 41.42 on Friday, May 08.

DayBHP GroupClose price [USD]Price change %Relative change %Comment
WednesdayADR increases against the trend39.630.61.6Price/MAP50 above 1
TuesdayADR loses USD1 billion in MCap, steepest heavyweight fall in Mining sector39.41-2.2-1.0Week-low of 39.41
MondayADR drops 2.7% on slipping relative strength40.3-2.7-2.1Steepest Fall
FridayADR keeps rising, up 7.8% in 5 days41.422.40.5Week-high of 41.42
ThursdayADR keeps rising, up 5.2% in 4 days40.442.72.0Top Rise

9.2 Declining Volume, down 36% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has decreased 36.5% to 2.4 million ADRs.

Avg. Daily Volume Traded 12 months ended May 14, million ADRs

YearADVT
20202.4
20192.4
20182.6
20173.4
20163.9

SECTION 10 BHP GROUP REPORTED BUYING AND SELLING

10.1 Institutional Buying and Selling Quarter Ended December 31

Total reported Institutional buying = 5,135,281 ADRs

Total reported Institutional selling = 3,209,517 ADRs

Net reported institutional buying = 1,925,764 ADRs

10.2 Reported Holdings of Institutions as at Dec 31, 2019

Total = 61,495,943 ADRs

Market Value = USD3.4 billion

Institutions hold 4.2% of Issued Shares.

SECTION 11 RANKING

Rank of BHP Group in the Bank of New York Mellon Composite ADR Index [out of 217 ADRs], in the Total International Depository Receipts [IDR] Market [out of 1356 IDRs] and in the Mining sector [out of 23 IDRs]

DescriptionValueIn BKADR*In Total IDR MarketIn Mining sector
MCap (USD)59.3B24491
Total Assets (USD)100.9B471452
Revenue (USD)44.3B35992
Net Profit (USD)8.3B11301
Return on Equity %18.4282534
Net Profit Margin %21.5302547
Price to Book1.25850712
Price/Earnings25.2716699
Yield %3.97561311
PV1000 (1Year) USD8397551014

*The Bank of New York Mellon Composite ADR Index

SECTION 12 SNAPSHOT OF AUSTRALIAN ADRs

CompanyCodeClose (USD)MCap (US$ M)1-Day Change (%)P/EYield (%)PV1000 (1Yr)Ratio
Alterity TherapeuticsATHE0.68-8.1 --1:60
AluminaAWCMY3.72,2454.5-8.76411:4
AnsellANSLY79.12,541-1.695.82.41,1661:4
ASXASXFY53.610,3711.242.14.5-1:1
Australia & New Zealand BankingANZBY9.827,747-1.47.29.75601:1
Bank of QueenslandBKQNY5.71,295-4.212.07.44961:2
Beach EnergyBCHEY17.21,960-19.1-1.6-1:20
Benitec BiopharmaBNTC8.49-2.2--4371:200
BHP GroupBHP40.459,3291.825.23.98391:2
BoralBOALY6.52,001-8.543.89.45221:4
Carsales.comCSXXY17.92,202-3.679.73.59441:2
Clinuvel PharmaceuticalsCLVLY14.0692-2.257.90.17451:1
Coca-Cola AmatilCCLAY5.64,0331.416.86.29951:1
CochlearCHEOY60.67,7730.0519.61.99272:1
Commonwealth Bank of AustraliaCMWAY38.267,667-1.412.57.68451:1
ComputershareCMSQY7.64,1160.115.46.06811:1
DanakaliDNKLY0.266-3.8 -4311:1
Domino's Pizza EnterprisesDMZPY17.32,9721.219.92.31,2822:1
Fortescue MetalsFSUGY15.624,0091.015.113.92,0121:2
Genetic TechnologiesGENE2.42012.3 -5641:600
ImmuronIMRN1.99-0.8 -3681:40
ImmutepIMMP1.038-4.0 -4871:100
Incitec PivotINCZY1.21,932-2.119.62.75571:1
Insurance AustraliaIAUGY17.17,912-3.357.56.06811:5
James Hardie IndustriesJHX13.86,1313.026.62.61,1631:1
Kazia TherapeuticsKZIA2.7222.6 -8731:10
Lend Lease CorporationLLESY7.14,0330.841.15.68101:1
Liquefied Natural GasLNGLY0.190 --1:4
LynasLYSDY1.1797-0.714.8-8751:1
Macquarie GroupMQBKY67.323,843-0.411.86.38521:1
MesoblastMESO12.31,3211.2 -2,3211:5
National Australia BankNABZY4.929,4320.23.713.76392:1
Newcrest MiningNCMGY19.114,7236.226.21.11,0791:1
Oil SearchOISHY9.03,0941.245.25.33641:5
Orica LimitedOCLDY10.24,1504.024.71.87711:1
Qantas AirwaysQABSY10.83,225-4.030.68.26661:5
QBE InsuranceQBIEY4.86,9933.911.47.35971:1
Ramsay HealthRMYHY10.58,4793.26.22.5-4:1
Sims Metal ManagementSMSMY4.0820-2.48.44.26501:1
South32SOUHY5.95,7671.476.84.25311:5
St Barbara MinesSTBMY8.81,2242.250.43.18851:5
StarpharmaSPHRY6.4238-2.4 -7201:10
Suncorp GroupSNMCY5.67,018-1.362.18.66421:1
Tabcorp HoldingsTACBY4.04,0290.334.17.57061:2
Telstra CorporationTLSYY10.124,0381.287.25.39241:5
Treasury Wine EstatesTSRYY6.24,4980.216.64.36251:1
WesfarmersWFAFY12.227,6942.13.94.21,0432:1
Westpac BankingWBK9.735,0530.87.712.55881:1
Woodside PetroleumWOPEY13.713,037-1.337.26.75981:1
WorleyParsonsWYGPY5.02,597-0.821.35.35681:1

RECAP FROM PRIMARY EXCHANGE IN THE AUSTRALIA MARKET (UPDATED AT THE LAST PRICE OF $A30.61):

Stock Review: BHP (BHP:$A30.61) loses $A2 billion in MCap, steepest heavyweight fall in Materials sector

BHP Group Limited (ASX:BHP), Australia's largest Materials company by market cap, has decreased 40.0c (1.3%) from its previous trading session to close at $A30.61. Compared with the All Ordinaries Index which fell 95.7 points (1.7%) in the day, the relative price increase was 0.5%. The volume was 0.6 times the average daily trading volume of 7.3 million shares. It posted the steepest fall in MCap ($A2 billion) with the most influence on the Materials sector. There were 4,695,179 shares worth $A143.7 million traded today.

SECTION 13 BULLISH SIGNALS

13.1 Uptrend

Positive MACD:

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 30.82 minus the 26-day EMA of 30.75 is positive, suggesting a bullish signal.

13.2 High Price Performance Indicators and rank of BHP in the Australian market:

DescriptionBHP ValueRank In Market
MCap$A155.2 billionIn Top 1%
Today's Trading Turnover$A143.7 millionIn Top 1%
Volatility %1.8In Top 18%

Earnings Yield of 8.1% > Australian ave of 6.1% > Bond Yield of 1.0%:

- Earnings yield of 8.1% is greater than the Australian average earning yield of 6.1%.

- The earnings yield of 8.1% is 8.5 times the 10-year bond yield of 1.0%.

(All figures in %)

Earnings Yield8.1
Australian avg6.1
Dividend Yield6.9
Bond Yield1.0

ChartPath:/home/jboss/jboss-3.2.7/server/default/deploy/BuySellSignals.war/report/Australia/Stock/PDF/Daily/chart/new/322_Earningyield.svg

Dividend Yield > Bond Yield:

The dividend yield of 6.93% is 7.22 times the triple-A bond yield of 0.96%. The times factor of 7.22 is above the benchmark factor of 0.67 times set by Benjamin Graham.

(All figures in %)

Dividend Yield6.93
Bond Yield0.96
Spread5.97

ChartPath:/home/jboss/jboss-3.2.7/server/default/deploy/BuySellSignals.war/report/Australia/Stock/PDF/Daily/chart/new/322_DividendBondyield.svg

Dividend Yield of 6.9% > Index avg of 5.2%:

- The relative yield of the stock, defined by its yield of 6.9%, divided by average yield of dividend yielding stocks in the All Ordinaries Index of 5.2% is 133.3%. This suggests the stock is undervalued in dividend yield terms.

MCap/Total Assets:

- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 1. Compared with the rest of the market the stock is undervalued.

- Return on Equity of 18.4% versus sector average of 12.4% and market average of 9.5%.

- Total Liabilities/EBITDA of 3 is less than 5, this compares favourably with the Joseph Piotroski benchmark of 5.

- Return on Assets of 9.4% versus sector average of 6.7% and market average of 1.9%.

- Return on Capital Employed of 18.7% versus sector average of 13.2% and market average of 5.7%.

- Interest cover defined by EBIT/I is 11 times. This indicates it is less leveraged.

- Net profit margin has averaged 19.3% in the last 3 years. This is considered superior and suggests a high margin of safety.

- Economic Value Added defined by Net Operating Profit After Tax of USD7.4 billion less Cost of Capital of USD1.4 billion was $A5.9 billion. The multiple EVA/Cost of Capital was exemplary at 4.2 times.

- As per the Du Pont analysis, Return on Equity of 18.4% is better than sector average of 12.4%. This is computed as net profit margin of 21.5% times asset turnover [sales/assets] of 0.44 times leverage factor [total assets/shareholders' equity] of 1.9.

SECTION 14 BEARISH SIGNALS

14.1 Downtrend

Beta < 1 combined with price fall. The Beta of the stock is 0.8.

Price/Moving Average Price of 0.88:

- The Price/MAP 200 of 0.88 for BHP is lower than the Price/MAP 200 for the All Ordinaries Index of 0.93.

- The price to 200-day MAP ratio is 0.88, a bearish indicator. In the past 200 days this ratio has been under 0.88, 31 times suggesting further downside. The 50-day MAP of $A30.02 is lower than the 200-day MAP of $A34.68, a bearish indicator. The 200-day MAP has decreased to $A34.68. A decrease is another bearish indicator.

Past Quarter:

- In the last three months the stock has hit a new 52-week low five times, pointing to a downtrend.

SECTION 15 ONGOING BULLISH PARAMETERS

15.1 Rank in the top 1% by Size in the Australian market

DescriptionValueRank
MCapUSD99.8 billionIn Top 1%
Annual RevenueUSD44.3 billionIn Top 1%
Ave daily Turnover$A143.7 millionIn Top 1%

15.2 Rank in the top 9% by Growth in the Australian market

DescriptionValueRank
EPS Growth %130.3In Top 9%

15.3 Rank in the top 21% by Productivity in the Australian market

DescriptionValueRank
Return on Capital Employed [ROCE] %18.7In Top 19%
Return on Equity [ROE] %18.4In Top 21%

15.4 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Periods with TSR > 7%

TSR %3 yrs5 yrs10 yrs20 yrs30 yrs
BHP.ASX24.3117.114.211.7

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15.5 Present Value of $A1000 Invested in the Past 3 Years; The Best Period with PV$A1000 > 1,934

PV$A1,0003 yrs ago
BHP.ASX$A1,935
Materials sector$A1,007
All Ordinaries Index$A923

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15.6 Past 3 years: price rise of 56.7%

3-Year price change of 56.7% for BHP outperformed the change of -7.7% in the All Ordinaries index for a relative price change of 64.4%.

Price Change %3 Years
BHP56.7
Materials sector0.7
All Ordinaries index-7.7

15.7 Buybacks and 5-Years Decrease of 2.6% in Total Shares on Issue

In the past 5 years total shares on issue have decreased by 141 million (2.6%) from 5.3 billion to 5.2 billion. Buybacks have averaged 23.8 million shares [0.4%] per financial year. Based on a dynamic start date of 5 years ago, there have been declines in issued capital in 2 out of 5 years. A reduction in total shares on issue is a favourable indicator in Joseph Piotroski's 9 indicators.

Year End (Jun 30)Total Shares on IssueFYBuybacksBuyback %
20195,180,000,0002019143,000,0002.7%
20185,323,000,0002018--
20175,323,000,0002017--
20165,322,000,0002016--
20155,318,000,0002015--
20145,321,000,0002014--
Total143,000,000
Average per FY23,833,333

15.8 Created Market Value [CMV] past 14 yrs of $A4 billion

- Market Capitalization has increased by $A48.7 billion from $A106.5 billion to $A155.2 billion in the last 14 years. This increase comprises cumulative retained earnings (RETE) of $A44.7 billion and Created Market Value of $A4 billion. The Created Market Value multiple, defined by the change in MCap for every $A1 of retained earnings is $A1.09.

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15.9 Safe Interest Cover and Improving

Interest cover of 11.0 is above a safe benchmark figure of 3. Moreover, it has improved from 10.4 a year ago.

YearsInterest cover
201910.97
201810.41

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15.10 Low Debt to Equity (%)

The debt to equity ratio of 48.2% is under a safe benchmark figure of 50%. However, it has deteriorated from 44.4% a year ago.

YearsDebt to Equity (%)
Jun 201948.15
Jun 201844.41
Jun 201747.23
Jun 20168.59
Jun 201548.13

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15.11 Increased VWAP, up 111% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 111.0% to $A34.08. Based on a dynamic start date of five years ago, there has been no decline in VWAP over the last 5 years.

Past five years, 12 months ended May 14 (AUD)

YearHigh PriceVWAPLow Price
202040.2734.0824.05
201937.7430.4326.76
201829.0622.8518.14
201722.5118.2113.8
201624.6716.1511.08

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15.12 Increased share turnover, up 46% in 5 years

In the past five years, average daily share turnover has increased 45.6% to $A240.3 million. This suggests increased liquidity.

Past five years, 12 months ended May 14 (AUD million)

YearAverage Daily Turnover
2020240.3
2019223.9
2018170.9
2017159.5
2016165.0

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15.13 Increase in Institutional Ownership up from 4.0% to 4.2% (ADRs)

As at December 31, 2019 Institutions held 4.2% of total ADRs on issue; an increase from 4.0% as at September 30, 2019.

Quarter-endSeptember 30, 2019December 31, 2019
Holdings (%)4.04.2

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15.14 Satisfies four criteria of Benjamin Graham

- "An earnings-to-price yield of at least twice the triple-A bond"; the stock's earning yield of 8.1% is 8.5 times the triple-A bond yield of 1%.

- The P/E of 12.3 is 0.2 times the highest average P/E of 56.9 in the last five years. This is a value criterion, according to Benjamin Graham who described as a value criterion "A P/E ratio down to less than four-tenth of the highest average P/E ratio the stock attained in the most recent five years".

- "A dividend yield of at least two-thirds the triple-A bond yield"; the stock's dividend yield is 7.2 times the triple-A bond yield of 1%.

-"Total debt less than tangible book value"; total debt of USD25 billion is less than tangible book value of USD51.1 billion.-"Earnings growth over the most recent ten years of 7% compounded - that is a doubling of earnings in a five-year period"; the earnings per share have more than doubled in the last 5 years.

SECTION 16 ONGOING BEARISH PARAMETERS

16.1 Annualised Period-based Total Shareholder Returns [TSR %]: The Worst Period with TSR < -5.1%

TSR %1 yr
BHP.ASX-5.2

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16.2 Present Value of $A1000 Invested in the Past [3 Mo, 1 Yr]; The Worst Periods with PV$A1000 < 949

PV$A1,0003 mo ago1 yr ago
BHP.ASX$A840$A948
Materials sector$A846$A923
All Ordinaries Index$A762$A856

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16.3 Moving Annual Return of -4.7% in the past year:

Moving Annual Return was -4.7% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 16.3%

BHPClose (AUD)Dividends (AUD)Capital Gain / (Loss) %% YieldAnnual Return %
May 1430.612.12(10.9)6.2(4.7)
1 Yr ago34.343.0520.510.731.2
2 Yrs ago28.51.2545.96.452.3
3 Yrs ago19.530.734.44.839.3
4 Yrs ago14.531.08(41.1)4.4(36.7)

Close 5 years ago $A24.65

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16.4 Declining Volume, down 27% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has decreased 27.4% to 7.3 million shares.

Avg. Daily Volume Traded 12 months ended May 14, million shares

YearADVT
20207.3
20197.3
20187.4
20178.7
201610.1

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16.5 Satisfies 2 out of 9 criteria of Joseph Piotroski [pass mark 5]:

- Return on Assets improvement [from 6.9% to 9.4%].

- Reduction in total shares on issue.

SECTION 17 BHP GROUP PEER GROUP ANALYSIS & RANKING

17.1 Global Peer Group (all figures in USD): Key Financials

In its Global Peer Group of 9 companies BHP is ranked first by MCap, Revenue, Net Profit, Total Assets, seventh by PV $1000 (1 yr) and eighth by Relative Str. (6 mo).

Name (Code)Relative Str. (6 mo)MCapPV $1000 (1 yr)RevenueNet ProfitTotal Assets
Rank of BHP817111
BHP (BHP)4999.8B878.144.3B8.3B100.9B
Rio Tinto (RIO)6374.2B963.943.2B8B87.8B
Newmont (NGT)9752.8B9.7B2.8B40B
Newmont (NEM)9651.3B2,126.29.7B2.8B40B
Barrick Gold (ABX)9646B2,169.39.7B4B44.4B
GMK Norilsk Nickel (GMKN)8444.7B1,753.411.7B3.1B15.3B
China Shenhua Energy - A Share (601088)5944.6B900.634.1B6.1B78.8B
BHP Group (BHP)4634.9B44.3B8.3B100.9B
China Steel Preference (2002A)8428.2B1,267.011.3B680.9M21B

Global Peer Group: Relative Value Indicators

BHP is ranked fourth by P/S, P/Book and fifth by P/E, Turnover Rate.

Name (Code)Country CodeLast PriceP/EP/SP/BookTurnover Rate (%)% Disc to 52-w Hi
Rank of BHP5445
BHP (BHP)AUAUDA30.6112.52.32.038.923.0
Rio Tinto (RIO)GBGBX3,730.509.31.71.857.119.2
Newmont (NGT)CACAD90.1716.85.42.7
Newmont (NEM)USUSD63.8913.74.92.6165.63.3
Barrick Gold (ABX)CACAD36.8511.64.71.943.88.2
GMK Norilsk Nickel (GMKN)RURUB20,768.014.53.813.524.712.2
China Shenhua Energy - A Share (601088)CNCNY15.907.31.31.027.320.4
BHP Group (BHP)GBGBX1,344.2010.30.852.530.6
China Steel Preference (2002A)TWTWD53.400.13.8

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17.2 BuySellSignals Fundamentals Valuation Ranking: BHP vs Australian Market

Out of 1,397 stocks and 23 units in the Australian Market, BHP is ranked first by Market Cap $A, first by Revenue, second by Net Profit and Twenty-second by Free Cash Flow.

Australian AvgBHPRankRank 1Rank 2Rank 3Lowest Rank
Market Cap $A1.4 B155.2 B1155.2 B BHP136.9 B CSL104.3 B CBA87,720 MAN
Revenue $A572.3 M68.9 B168.9 B BHP67.1 B RIO60 B WOW
Net Profit56.3 million8.3 B28.4 B CBA8.3 B BHP8 B RIO(1.5 B) NWS
Free Cash Flow(165 M)206.8 M2210.6 B CBA2.4 B STO1.9 B WPL
EBITDA Margin12.837.47889.8 RND89.1 EGF88.6 DUI(88.6) NZM
ROE (%)9.518.4147 187.97 LVE102.9 SIO-
Yield (%)4.96.915818.1 WHC18.1 AIZ17.3 URW0.1 CUV
ROA (%)1.99.4181168.2 TLM69.3 FUN55.7 RND0.04 AMP
P/Earnings16.3x12.3x2171.7x OBM1.7x RTE1.7x SGH-
Premium to 52-Wk Low (%)27.527.33240.6 ORE1.7 KSC2 BOQ2741.3 ZNO
Price/Net Tangible Assets1.996x1.96x6030.1x ATS0.1x CTO0.1x EWC-
Total Debt/Equity (the lower the better)0.6x0.5x663KINTNEFWD8.9x SIV
Discount to 52-Wk High (%)24.923.99134697.9 GLV96 UUV96 GID1.2 PPH

Negative values are shown in brackets.

17.3 Market Share

BHP vs Materials sector [Materials sector Total in Brackets]

Revenue of USD68.9 billion[26.4% of aggregate sector revenue of $A269.4 billion; down from 27.7% in the previous year.]

Net Profit of USD12.9 billion [36.0% of aggregate sector net profit of $A36 billion; up from 15.4% in the previous year.]

EBIT of USD25.7 billion [42.7% of aggregate sector EBIT of $A60.8 billion; up from 37.6% in the previous year.]

17.4 Share in Index

BHP is a constituent of the following indices. Its market capitalisation accounts for 47.9% of the combined MCap of the S&P/ASX 300 Metals and Mining (Industry).

Index NameMCap of Index (USD B)MCap as % of Index
S&P/ASX 300 Metals and Mining (Industry)208 47.9
S&P/ASX 200 Materials Index238 42.0
S&P/ASX 200 Resources245 40.8
S&P/ASX 20 Index587 17.0
S&P/ASX All Australian 50768 13.0
S&P/ASX 50 Index774 12.9
S&P/ASX 100 Index949 10.5
S&P/ASX All Australian 200998 10.0
S&P/ASX 200 Index1,067 9.4
S&P/ASX 300 Index1,105 9.0
All Ordinaries Index1,147 8.7

17.5 Global Rank [out of 47,356 stocks] and Rank of BHP in the Asia Pacific Region [out of 2,001 stocks]

DescriptionValueGlobal RankIn APAC Region
MCap (US$)99.8B941
Total Assets (US$)100.9B5447
Revenue (US$)44.3B2751
Net Profit (US$)8.3B1031
Return on Equity %18.44,508149
Net Profit Margin %21.55,491230
Price to Book2.024,498909
Price/Earnings12.511,184324
Yield %6.84,437189
PV1000 (1Year) USD*87818,983679
US$* Change (1Year) %-16.820,450734

* 1 year ago AUD 1 = USD 0.7

May 14, 2020: AUD 1 equals USD 0.64

17.6 Rank of BHP in the All Ordinaries Index [out of 461 stocks], in the Total Australian Market [out of 1768 stocks] and in the Materials sector [out of 543 stocks]

DescriptionValueIn All Ordinaries IndexIn Total Australian MarketIn Materials sector
MCap (AUD)155.2B111
Total Assets (AUD)156.8B771
Revenue (AUD)68.9B111
Net Profit (AUD)12.9B111
Return on Equity %18.48213925
Net Profit Margin %21.58920530
Price to Book2.0201863325
Price/Earnings12.315528949
Yield %6.911817314
PV1000 (1Year) AUD948157603218

17.7 Long-Term Fundamental Ranking: 5 out of 5 [5 is best]

BHP is ranked number 1 out of 617 listed materials companies in the Australia with a market capitalization of $A155.2 billion.

It has a strong relative ROE of 18.4% and ROA of 9.4%. The company paid a dividend of 97.13c in the last twelve months. The dividend yield is high at 6.9%. Finally, its earnings growth in the past 12 months has been a comparatively high 130.3%.

Stocks are scored on a set of parameters reflecting fundamental analytical tools involving valuation, size and financial performance. They are ranked according to the average values of those parameters. The highest ranking is 5 and the lowest ranking is 1.

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SECTION 18 STOCK NEWS

18.1 Financial News

Quarterly Report (Q2/2019):

February 18, 2020

Interim Report (Half Year) Analysis H2 2019: BHP Group half year profits hit by 41.4% fall

BHP Group (ASX:BHP), announced net profit of $US4.9b for the half year-ended 31 December 2019, down 41.4% from the previous corresponding period.

Compared with the previous corresponding period [PCP; H/31 Dec 2018], year-over-year [y.o.y.] Revenue was down 49.7% and Net Profit was down 41.4%.

18.2 Changes in Board (TTM)

May 07: BHP Group will appoint Independent Non-Executive Director

BHP Group will appoint Dion Weisler as Independent Non-Executive Director. The effective date is Monday, June 01.

May 07: BHP Group will appoint Independent Non-Executive Director

BHP Group will appoint Xiaqun Clever as Independent Non-Executive Director. The effective date is Thursday, October 01.

18.3 Dividends

February 20: BHP Group announces dividend

BHP Group today announced an interim dividend of 97.13c per share, franked to 100%. The ex-dividend date is Thursday, March 05, 2020 and the record date is Friday, March 06, 2020 and it is payable on Tuesday, March 24.

18.4 Press Releases

February 18: BHP Group: Half Yearly Report and Accounts

This statement includes the consolidated results of BHP for the half year ended 3 1 December 2019 compared with the half year ended 3 1 December 2018.

This page and the following 64 pages comprise the half year end information given to the ASX under Listing Rule 4. 2 A and released to the market under UK Disclosure and Transparency Rule 4.2.2R and should be read in conjunction with the 2019 BHP Group annual financial report.

Source: Australian Securities Exchange

18.5 People's News

Thu May 07, 2020

BHP Group will appoint Dion Weisler as Independent Non-Executive Director. The appointment takes effect from Jun 01, 2020.

Thu May 07, 2020

BHP Group will appoint Xiaqun Clever as Independent Non-Executive Director. The appointment takes effect from Oct 01, 2020.

SECTION 19 BHP Board of Directors

19.1 Board and Management

NameDesignationSince Appointment
Mike HenryChief Executive Officer4 Mos
Ken MacKenzieChairman, Independent Non-Executive Director3 Yrs, 7 Mos
Peter BeavenChief Financial Officer5 Yrs, 7 Mos
John MogfordDirector-
Terry BowenDirector2 Yrs, 7 Mos
Gary GoldbergDirector3 Mos
Lindsay MaxstedDirector9 Yrs, 2 Mos
Malcolm BroomheadDirector10 Yrs, 2 Mos
Shriti VaderaIndependent Director9 Yrs, 4 Mos
Anita FrewIndependent Director-
Susan KilsbyIndependent Non-Executive Director1 Yr, 1 Mo
Ian CockerillIndependent Non-Executive Director1 Yr, 1 Mo

19.2 Resignations in the past 3 years

NameDesignationDate of Resignation
Andrew MackenzieChief Executive Officer31 March 2020
Margaret TaylorCompany Secretary01 March 2019
Megan PepperCompany Secretary12 September 2018
Jacques NasserChairman, Non-Executive Director01 September 2017
John SchubertDirector17 November 2016

19.3 Profiles

Mike Henry

CEO

Mike was appointed as a Director of BHP Group Limited and BHP Group Plc in January 2020. He was appointed Chief Executive Officer on 1 January 2020.

Skills and experience:

Mike has over 30 years' experience in the global mining and petroleum industry, spanning operational, commercial, safety, technology and marketing roles. He joined BHP in 2003, initially in business development and then in marketing and trading of a range of mineral and petroleum commodities based in The Hague, where he was also accountable for BHP's ocean freight operations. He went on to hold various positions in the Company, including President Coal, President HSE, Marketing and Technology, and Chief Marketing Officer. Mike was appointed Chief Executive Officer on 1 January 2020 and has been a member of the Executive Leadership Team since 2011. Prior to joining BHP, Mike worked in the resources industry in Canada, Japan and Australia.

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Ken MacKenzie

Chairman & Independent Non-Executive Director

Ken has been a Director of BHP Billiton Limited and BHP Billiton Plc since September 2016. He was appointed Chairman with effect from 1 September 2017.

Skills and experience:

Ken has extensive global and executive experience, and a deeply strategic approach. From 2005 until 2015, he served as the Managing Director and Chief Executive Officer of Amcor Limited, a global packaging company with operations in over 40 countries. During his 23 year career with Amcor, Ken gained extensive experience across all of Amcor's major business segments in developed and emerging markets in the Americas, Australia, Asia and Europe.

Other directorships and offices (current and recent):

Former Managing Director and Chief Executive Officer of Amcor Limited (from July 2005 to April 2015).

Advisory Board member of American Securities Capital Partners LLC (since January 2016).

Advisory Board member of Adamantem Capital (since September 2016).

Former Senior Adviser to McKinsey & Company (from January 2016 to June 2017).

Board Committee memberships:

Chairman of the Nomination and Governance Committee.

Member of the Sustainability Committee.

Shareholder Value:

Creation of shareholder value in BHP:

Since appointment as Independent Non-Executive Director: The present value of AUD1,000 invested on the appointment date of September 22, 2016 at close price of $A17.14 is $A2,263, including a capital gain of $A786 and dividend reinvested of $A477.

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Peter Beaven

CFO

Experience:

Peter was appointed Chief Financial Officer in October 2014. Previously he was the President of Copper and prior to that appointment in May 2013, President of Base Metals, President of Manganese, and Vice President and Chief Development Officer for Carbon Steel Materials. He has wide experience across a range of regions and businesses in BHP Billiton, UBS Warburg, Kleinwort Benson and PricewaterhouseCoopers. Peter holds a Bachelor of Accountancy from University of Natal, Pietermaritzburg, South Africa and is a Chartered Accountant.

Shareholder Value:

Creation of shareholder value in BHP:

Since appointment as CFO: The present value of AUD1,000 invested on the appointment date of October 01, 2014 at close price of $A25.19 is $A1,710, including a capital gain of $A215 and dividend reinvested of $A494.

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John Mogford

Director

John has been a Director of BHP Group Limited and BHP Group Plc since October 2017.

Skills and experience:

John has extensive oil and gas knowledge and transformational strategy leadership experience, having worked in the oil and gas industry for over forty years. John spent the majority of his career in various leadership, technical and operational roles at BP Plc where he gained significant knowledge of upstream oil and gas assets and activities. More recently, John was the Managing Director and an Operating Partner of First Reserve, a large global energy focused private equity firm, from 2009 until 2015, during which he served on the boards of First Reserve's investee companies, including as Chairman of Amromco Energy LLC and White Rose Energy Ventures LLP. John is currently on the board of ERM Worldwide Group Limited, having retired from the boards of Weir Group Plc and one of First Reserve's portfolio companies, DOF Subsea AS, in 2018.

Other directorships and offices (current and recent):

Non-executive Director of ERM Worldwide Group Limited (since 2015).

Former Non-executive Director of Network Rail Limited (from 2016 to 2017).

Former Managing Director (from 2012 to 2015) and Operating Partner (from 2009 to 2012) of First Reserve Corporation.

Former Non-executive Director of Midstates Petroleum Company Inc. (from 2011 to 2016).

Former Non-executive Director of CHC Group Limited (from 2014 to 2015) and CHC Helicopters SA (from 2012 to 2015).

Former Non-executive Director of DOF Subsea AS (from 2009 to 2018).

Former Non-executive Director of Weir Group Plc (from 2008 to 2018).

Board Committee membership:

Chairman of the Sustainability Committee.

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Gary Goldberg

Director

Gary has been a Director of BHP Group Limited and BHP Group Plc since February 2020.

Skills and experience:

Mr Goldberg has more than 35 years' of global experience in the mining industry, including in executive, operational and strategic roles.

In his most recent role, Gary Goldberg served as Chief Executive Officer of Newmont Goldcorp Corporation, which is one of the world's largest gold producers. Prior to joining Newmont in 2011, Mr Goldberg spent 30 years at Rio Tinto where he held senior executive roles, most recently as President and Chief Executive Officer of Rio Tinto Minerals Inc., and in leadership roles in Rio Tinto's coal, gold, copper and industrial minerals businesses.

Other directorships and offices (current and recent):

Advisor, Newmont Goldcorp Corporation (from October 2019 to March 2020).

Former President and Chief Executive Officer of Newmont Mining Corporation (from 2013 to 2019), and Chief Executive of the merged Newmont Goldcorp Corporation (April 2019 - September 2019).

Former Director (from 2013 to 2019) and Treasurer (from 2017 to 2019) of the International Council on Mining and Metals.

Former Vice Chair of the World Gold Council (from 2017 to 2019).

Former Co-Chair of the World Economic Forum for Mining and Metals Governors (from 2016 to 2017).

Former President and Chief Executive Officer of Rio Tinto Minerals Inc. (from 2006 to 2011).

Former Chairman of the US National Mining Association (from 2008 to 2010).

Former President and Chief Executive Officer of U.S. Borax Inc. (from 2004 to 2006).

Former Managing Director of Coal & Allied Industries Ltd. (from 2001 to 2004).

Former President and Chief Executive Officer of Kennecott Energy Corp. (from 1999 to 2001).

Board Committee membership:

Member of the Remuneration Committee

Member of the Sustainability Committee

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Malcolm Broomhead

Director

Malcolm has been a Director of BHP Billiton Limited and BHP Billiton Plc since March 2010.

Skills and experience:

Malcolm has extensive experience in running industrial and mining companies with a global footprint and broad global experience in project development in many of the countries in which BHP Billiton operates. He was Managing Director and Chief Executive Officer of Orica Limited from 2001 until September 2005. Prior to joining Orica, Malcolm held a number of senior positions at North Limited, including Managing Director and Chief Executive Officer and, prior to that, held senior management positions with Halcrow (UK), MIM Holdings, Peko Wallsend and Industrial Equity.

Other directorships and offices (current and recent):

Chairman of Orica Limited (since January 2016).

Chairman of Asciano Limited (since October 2009).

Former Director of Coates Group Holdings Pty Ltd (from January 2008 to July 2013).

Director of the Walter and Eliza Hall Institute of Medical Research (since July 2014).

Board Committee membership:

Member of the Sustainability Committee. Member of the Risk and Audit Committee.

Shareholder Value:

Creation of shareholder value in BHP:

Month of appointment: March 2010

In the last 10 years the average annualized return to shareholders was 7.1%. The present value of AUD1,000 (PV1000) invested 10 years ago is now $A1,987, a gain of $A163 and dividend reinvested of $A824.

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Terry Bowen

Director

Terry has been a Director of BHP Group Limited and BHP Group Plc since October 2017. Skills and experience:

Terry has significant experience across a range of diversified industries, with a very strong background in finance leadership roles. He served as an Executive Director and Finance Director of Wesfarmers Limited from 2009 to 2017, which included chairing a number of Wesfarmers' operating divisions over this time. Prior to this, Terry held various senior executive roles within Wesfarmers, including as Finance Director of Coles, Managing Director of Industrial and Safety and Finance Director of Wesfarmers Landmark. He also served as the inaugural Chief Financial Officer of Jetstar Airways Limited from 2003 to 2005 and before this, held senior finance roles over an 11 year career with Tubemakers of Australia Limited. Mr Bowen is a former Director of Gresham Partners, past President of the National Executive of the Group of 100 Inc. and former Director of the Harry Perkins Institute of Medical Research Incorporated. He is also the Head of the Operations Group at BGH Capital and a Director of Navitas Pty Limited and Transurban Group.

Other directorships and offices (current and recent):

Director of Transurban Group (since 2020).

Director of Navitas Pty Limited (since 2019).

Head of the Operations Group at BGH Capital (since 2018).

Director of West Coast Eagles Football Club (since 2017).

Former Executive Director and Finance Director of Wesfarmers Limited (from 2009 to 2017).

Former Chairman of West Australian Opera Company Incorporated (from 2014 to 2017).

Former Director of Gresham Partners Holdings Limited and Gresham Partners Group Limited (from 2009 to 2017).

Former Director of the Harry Perkins Institute of Medical Research Incorporated (from 2010 to 2013). Former Chief Financial Officer of Jetstar Airways Limited (from 2003 to 2005).

Board Committee memberships:

Member of the Risk and Audit Committee.

Shareholder Value:

Creation of shareholder value in BHP:

Month of appointment: October 2017

In the last 3 years the average annualized return to shareholders was 24.3%. The present value of AUD1,000 (PV1000) invested 3 years ago is now $A1,935, a gain of $A567 and dividend reinvested of $A368.

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Lindsay Maxsted

Director

Lindsay has been a Director of BHP Billiton Limited and BHP Billiton Plc since March 2011.

Skills and experience:

Lindsay is a corporate recovery specialist who has managed a number of Australia's largest corporate insolvency and restructuring engagements and, until 2011, continued to undertake consultancy work in the restructuring advisory field. He was the Chief Executive Officer of KPMG Australia between 2001 and 2007. Lindsay is the Board's nominated 'audit committee financial expert' for the purposes of the US Securities and Exchange Commission Rules, and the Board is satisfied that he has recent and relevant financial experience for the purposes of the UK Financial Conduct Authority's Disclosure and Transparency Rules and the UK Corporate Governance Code.

Other directorships and offices (current and recent):

Chairman of Westpac Banking Corporation (since December 2011) and a Director (since March 2008).

Chairman of Transurban Group (since August 2010) and a Director (since March 2008).

Director and Honorary Treasurer of Baker IDI Heart and Diabetes Institute (since June 2005).

Board Committee membership:

Chairman of the Risk and Audit Committee.

Shareholder Value:

Creation of shareholder value in BHP:

Month of appointment: March 2011

In the last 5 years the average annualized return to shareholders was 11.0%. The present value of AUD1,000 (PV1000) invested 5 years ago is now $A1,688, a gain of $A242 and dividend reinvested of $A446.

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Shriti Vadera

Independent Director

Shriti has been a Director of BHP Group Limited and BHP Group Plc since January 2011 and the Senior Independent Director of BHP Group Plc since 14 August 2015.

Skills and experience:

Shriti brings wide-ranging experience in finance, economics and public policy as well as extensive experience of emerging markets and international institutions. Shriti is Chairman of Santander UK and was a Director of AstraZeneca from 2011 to 2018. She was an investment banker with S G Warburg / UBS from 1984 to 1999, on the Council of Economic Advisers, HM Treasury 1999 to 2007, Minister in the UK Department of International Development in 2007, Minister in the Cabinet Office and Business Department 2008 to 2009 with responsibility for dealing with the financial crisis, G20 Adviser 2009 to 2010, and advised Governments, banks and investors on the Eurozone crisis, banking sector, debt restructuring and markets from 2010 to 2014.

Other directorships and offices (current and recent):

Chairman of Santander UK (since March 2015).

Former Director of AstraZeneca Plc (from January 2011 to December 2018).

Former Trustee of Oxfam (from 2000 until 2005).

Board Committee memberships:

Member of the Nomination and Governance Committee.

Member of the Remuneration Committee.

Shareholder Value:

Creation of shareholder value in BHP:

Month of appointment: January 2011

In the last 5 years the average annualized return to shareholders was 11.0%. The present value of AUD1,000 (PV1000) invested 5 years ago is now $A1,688, a gain of $A242 and dividend reinvested of $A446.

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Anita Frew

Independent Director

Anita has been a Director of BHP Group Limited and BHP Group Plc since September 2015.

Skills and experience:

Anita Frew has extensive board, strategy, marketing, governance and risk management experience in the chemicals, engineering, water and finance industries. She is the Chairman of Croda International Plc and Deputy Chairman of Lloyds Banking Group. She was until recently the Chairman of Victrex Plc, Senior Independent Director of Aberdeen Asset Management Plc and IMI Plc, and a Non-executive Director of Northumbrian Water.

Other directorships and offices (current and recent):

Director (since March 2015) and Chairman of Croda International Plc (since September 2015).

Director (since 2010), Deputy Chairman (since December 2014) and Senior Independent Director (since May 2017) of Lloyds Banking Group Plc.

Former Senior Independent Director of Aberdeen Asset Management Plc (from October 2004 to September 2014).

Former Senior Independent Director of IMI Plc (from March 2006 to May 2015).

Former Chairman of Victrex Plc (from 2008 to October 2014). Board Committee membership:

Member of the Remuneration Committee.

Member of the Risk and Audit Committee.

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Ian Cockerill

Independent Non-Executive Director

Ian has been a Director of BHP Group Limited and BHP Group Plc since 1 April 2019.

Skills and experience:

Ian has extensive global mining operational, project and executive experience having initially trained as a geologist. He was formerly the Chief Executive Officer of Anglo American Coal and Chief Executive Officer and President of Gold Fields Limited, and a senior executive with AngloGold Ashanti and Anglo American Group. Ian is the Chairman of Polymetal International plc.

Ian is the former Chairman of BlackRock World Mining Trust plc and the former Lead Independent Director of Ivanhoe Mines Ltd and former Director of Orica Limited and Endeavour Mining Corporation. Ian is also the former Chairman of the Leadership for Conservation in Africa, a not-for-profit organisation, and is the Chairman of Conservation 360, a Botswanan conservation NGO dealing with anti-poaching initiatives. He is a former Director of Business Leadership South Africa, the South African Business Trust and the World Gold Council.

Other directorships and offices (current and recent):

Chairman of Polymetal International plc (since 2019).

Former Director of Orica Limited (from 2010 to 2019).

Former Director (from 2013 to 2019) and Chairman (from 2016 to 2019) of BlackRock World Mining Trust plc.

Former Director (from 2011 to 2019) and Lead Independent Director (from 2012 to 2019) of Ivanhoe Mines Ltd.

Former Director of Endeavour Mining Corporation (from 2013 to 2019).

Former Executive Director and executive Chairman (from 2010 to 2013) and Non-executive Chairman (from 2013 to 2017) of Petmin Limited.

Former Chairman of Hummingbird Resources plc (from 2009 to 2014). Board Committee memberships:

Member of the Risk and Audit Committee.

Member of the Sustainability Committee.

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Susan Kilsby

Independent Non-Executive Director

Susan has been a Director of BHP Group Limited and BHP Group Plc since 1 April 2019.

Skills and experience:

Susan has extensive experience in mergers and acquisitions, and finance and strategy, having held several roles in global investment banking. From 1996 to 2014, she held senior executive roles at Credit Suisse, including as a Senior Advisor, and chairman of EMEA Mergers and Acquisitions. Susan also has non-executive experience across multiple industries. Until recently, Susan was the Chairman of Shire plc and the Senior Independent Director at BBA Aviation plc. She is currently the Senior Independent Director of Diageo plc, and a Non-executive Director of Fortune Brands Home & Security Inc. and Unilever N.V. and Unilever plc.

Other directorships and offices (current and recent):

Director (since 2018) and Senior Independent Director (since October 2019) of Diageo Plc.

Director of Fortune Brands Home & Security Inc. (since 2015).

Director of Unilever N.V and Unilever plc (since August 2019).

Member of the UK Takeover Panel.

Former Director (from 2011 to 2019) and Chairman (from 2014 to 2019) of Shire plc.

Former Director (from 2012 to 2019) and Senior Independent Director (from 2016 to 2019) of BBA Aviation plc.

Former Director of Goldman Sachs International (from 2016 to 2018).

Former Director of Keurig Green Mountain (from 2013 to 2016).

Former Director of Coca-Cola HBC (from 2013 to 2015).

Former Director of L'Occitane International (from 2010 to 2012).

Board Committee memberships:

Chairman of the Remuneration Committee.

Member of the Nomination and Governance Committee.

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SECTION 20 CORPORATE PROFILE

20.1 Activities

BHP Group Limited (BHP, formerly BHP Billiton Limited) is a diversified natural resources company producing commodities along with substantial interests in oil and gas. BHP's principal business lines are mineral exploration and production as well as petroleum exploration, production and refining. BHP's assets, operations and interests are separated into Petroleum and Potash, Copper, Iron ore, Coal and Nickel.

In FY 2019, the top earner of Revenue was Oil and gas 1 [100%]. In FY 2019, the top regional earner of Revenue was Australia [50.9%] followed by the US [40%] at Rank 2 and Other [9.1%] at Rank 3. In FY 2019, revenue growth was highest in Other [44.9%] followed by Australia [5.4%] at Rank 2.

20.2 Segment Information

$US$US
Description2019-06-30% of Total2018-06-30% of TotalGrowth(%)
Oil and gas 16.7 B1007.4 B100-9.6
Total6.7 B1007.4 B100-9.6

1 Includes sales to affiliated companies of USD75 million (2018: USD75 million; 2017: USD83 million).

Top Segments by Revenue and rank

In FY 2019, the top earner of Revenue was Oil and gas 1 [100%].

Regional Information

$US$US
Description2019-06-30% of Total2018-06-30% of TotalGrowth(%)
Australia3.4 B50.93.2 B43.75.4
US2.7 B403.7 B50.7-28.6
Other610 M9.1421 M5.744.9
Total6.7 B1007.4 B100-9.6

Top Revenue Segments by Region and rank

In FY 2019, the top regional earner of Revenue was Australia [50.9%] followed by the US [40%] at Rank 2 and Other [9.1%] at Rank 3.

Top Regional Segments by Revenue growth and rank

In FY 2019, revenue growth was highest in Other [44.9%] followed by Australia [5.4%] at Rank 2.

20.3 Contact Details

Websitehttp://www.bhpbilliton.com/
Physical AddressLevel 18, 171 Collins Street, MELBOURNE, VIC, AUSTRALIA, 3000
Phone(61) 1300 55 47 57
Fax(61 3) 9609 3015
EmailJames. Agar@bhpbilliton.com

20.4 Industry & Sector

Classification LevelName of Sector
Business SectorMineral Resources
Industry GroupMetals & Mining
IndustrySpecialty Mining & Metals
Economic SectorBasic Materials

20.5 Independent Ratings

+ Top 100 Polluters:

According to environmental non-profit Carbon Disclosure Project (CDP) just 100 companies have been the source of more than 70% of the world's greenhouse gas emissions from 1988 to 2015. The CDP ranked BHP Group Limited 20 [rank 1 is worst] in the top 100 polluters. BHP Group Limited contributed.91% of global industrial greenhouse gas emissions in that period.

+ Fortune 500:

It was ranked 350 by total revenues in the Fortune 500 annual list for 2017; a deterioration over a year from rank 168 in 2016.

+ Newsweek 500:

It was ranked 226 by Newsweek and Corporate Knights Capital in the World's 500 Greenest Companies 2016. It had outstanding scores of 7.5% in Waste productivity, 7.3% in Water productivity and 5.2% in Carbon productivity.

+ Industryweek 1000:

It is a new entrant in the Industry Week list of the world's largest 1000 manufacturers by Revenues in 2016, ranked 77.

+ Top 40 Miners:

It is the largest by MCap among the PwC Top 40 Miners.

+ PwC 100:

It was ranked 54 by MCap as at March 31, 2015 by PwC in the Top 100 Global companies; a deterioration over 6 years from rank 19 as at March 31, 2009.

+ FT 500:

It is the 76th largest by revenue in the FT Global 500.

+ Forbes 2000:

It is the 130th largest by revenue in the Forbes Global 2000.

+ IHS Energy 50:

It was ranked 44 in IHS Energy's list of Top 50 Energy Companies 2013; a deterioration over a year from rank 23 in 2012.

ADVT: Average Daily Volume of shares Traded

Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Capital Gain/Loss from n Years Ago to n-1 Years Ago: Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Current Ratio: Current Assets/Current Liabiliites (times)

Debt/Equity: Net Debt/Net Assets %

Dividend Yield: Dividend Per Share/Share Price (%)

EBIT Margin : Earnings Before Interest and Tax/Revenue (%)

Earnings Yield: Earnings Per Share/Share Price (%)

Income during the n years (3/2/1): Dividends received during the Period

Interest Cover: Earnings Before Interest and Tax/Interest (times)

Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods

PCP: Previous Corresponding Period

PV1000: Present value of 1000 invested 1 year/'n' years ago

Price Close/Moving Avg Price: Latest Price/Moving Average Price

Price/Earnings: Share Price/Earnings Per Share (times)

Price/NTA: Closing Share Price/Net Tangible Assets Per Share (times)

Price/Sales: Share Price/Sales Per Share (times)

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

Return on Assets: Net Profit/Total Assets (%)

Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)

TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend

TTM: Trailing 12 Months

Total Liabilities/Total Assets: Total Liabilities/Total Assets

Turnover Rate: value of annual trading volume as a percentage of market capitalisation

Volatility: Highest Price minus Lowest Price/Lowest Price (%)

Volume Index (VI): Number of shares traded in the period/Average number of shares traded for the period

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

ADR IDENTIFIERS

Contact: 61-1300-554757

Physical Address: 180 Lonsdale Street Melbourne, VIC 3000 Australia

State/Province/Country: Australia, united States

Country of Incorporation: Australia

Business Sector: Mineral Resources

Industry Group: Metals & Mining

Economic Sector: Basic Materials

ISIN: US0886061086

BHP.N

RIC: BHP.N

Source: www.BuySellSignals.com