BHP Net Income vs. Total Debt
| BHPN Stock | MXN 1,139 0.00 0.00% |
For BHP profitability analysis, we use financial ratios and fundamental drivers that measure the ability of BHP to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well BHP Group utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between BHP's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of BHP Group over time as well as its relative position and ranking within its peers.
BHP |
BHP Group Total Debt vs. Net Income Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining BHP's current stock value. Our valuation model uses many indicators to compare BHP value to that of its competitors to determine the firm's financial worth. BHP Group is rated fourth in net income category among its peers. It is rated fifth in total debt category among its peers making up about 0.45 of Total Debt per Net Income. The ratio of Net Income to Total Debt for BHP Group is roughly 2.24 . Comparative valuation analysis is a catch-all model that can be used if you cannot value BHP by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for BHP's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.BHP Total Debt vs. Net Income
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.
BHP |
| = | 30.9 B |
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
BHP |
| = | 13.81 B |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
BHP Total Debt vs Competition
BHP Group is rated fifth in total debt category among its peers. Total debt of Industrial Metals & Minerals industry is currently estimated at about 98.13 Billion. BHP retains roughly 13.81 Billion in total debt claiming about 14% of equities under Industrial Metals & Minerals industry.
BHP Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in BHP, profitability is also one of the essential criteria for including it into their portfolios because, without profit, BHP will eventually generate negative long term returns. The profitability progress is the general direction of BHP's change in net profit over the period of time. It can combine multiple indicators of BHP, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
BHP Group discovers, acquires, develops, and markets natural resources worldwide. BHP Group was incorporated in 1885 and is headquartered in Melbourne, Australia. BHP GROUP operates under Industrial Metals Minerals classification in Mexico and is traded on Mexico Stock Exchange. It employs 27161 people.
BHP Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on BHP. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of BHP position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the BHP's important profitability drivers and their relationship over time.
Use BHP in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if BHP position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BHP will appreciate offsetting losses from the drop in the long position's value.BHP Pair Trading
BHP Group Pair Trading Analysis
The ability to find closely correlated positions to BHP could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace BHP when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back BHP - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling BHP Group to buy it.
The correlation of BHP is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as BHP moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if BHP Group moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for BHP can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your BHP position
In addition to having BHP in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Additional Tools for BHP Stock Analysis
When running BHP's price analysis, check to measure BHP's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy BHP is operating at the current time. Most of BHP's value examination focuses on studying past and present price action to predict the probability of BHP's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move BHP's price. Additionally, you may evaluate how the addition of BHP to your portfolios can decrease your overall portfolio volatility.