BHP Group Limited

BHP Group Limited (NYSE: BHP) is a global resources company engaged in the production of copper and uranium, as well as a copper smelter, copper refinery, and precious metals. Its operating segment are Petroleum, Copper, Iron Ore and Coal.

Key Highlights

• The company reported YoY growth of 26.96% in revenues to USD 30.53 billion in H1FY22 (ended December 31, 2021) compared to USD 24.04 billion in H1FY21.
• BHP's net income increased to USD 9.44 billion during H1FY22 vs. USD 3.88 billion in H1FY21.
• As of December 31, 2021, the company had cash and cash equivalents (including short-term investments) of USD 12.63 billion and total debt of USD 18.95 billion.
• BHP's H1FY22 cash cycle of 34.4 days is significantly higher than the industry median of 52 days.
• Its ROE was 16.6% in H1FY22 vs. the industry median of 2.5%.
• Net Margin of 31.2% in H1FY22 whereas Peer’s Median stood at 13.0%.
• Stock is currently trading above its crucial short-term (50-day) and long-term (200-day) SMA support levels, a bullish indicator.
• The stock is leaning towards the mid band of its 52-week range of USD 51.88 to USD 82.07.
• BHP's stock price increased 5.80% and 23.79% in the past one and three months, respectively.

Technical Price Chart (as of February 22, 2022). Analysis by Kalkine

Conclusion: Considering the topline growth, surge in profitability, technical indicators, and associated risks, we recommend a "Watch" rating on the stock at the closing price of USD 68.74, down 0.87%, as of February 22, 2022.

*The reference data in this report has been partly sourced from REFINITIV.

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