BHP Profit Margin vs. EBITDA
| 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 EBITDA vs. Profit Margin 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 third in profit margin category among its peers. It also is rated third in ebitda category among its peers totaling about 84,398,814,564 of EBITDA per Profit Margin. 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 EBITDA vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
BHP |
| = | 0.47 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
BHP |
| = | 39.87 B |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
BHP EBITDA Comparison
BHP is rated second in ebitda category among its peers.
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?
Run Commodities Funds Thematic Idea Now
Commodities Funds
Funds or Etfs investing in commodities such as oil, gold, corn, soy, and agricultural goods. The Commodities Funds theme has 44 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Commodities Funds Theme or any other thematic opportunities.
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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.