BHP Billiton Limited (BHP)
Views and News
BHP Billiton - the Resources Giant - is a Market Bellwether
BHP Billiton Limited (BHP) is the world's largest diversified resources group with a global portfolio of quality assets. Major earners are iron ore and oil and gas, backed by a deep and wide range of minerals.
We list the stock here as proxy for the entire resources sector. The views, pronouncements and actions of BHP are read intensely as signs of market trends, in the iron ore and many other minerals sectors and in oil and gas and energy fields.
We do not cover BHP, nor Rio Tinto, Xstrata, Vale nor any other resource stocks in our 'Sketches', for reasons explained in our introductory pages. But we try to keep generally aware of its views and moves, both as portents for global markets and the Chinese and Australian economies, and in particular for the prospects of those smaller resources stocks that we research and for the industrial companies that provide 'shovels for miners' and engineering support for the sector. These companies are very much part of the higher gear in the Australian 'two-speed' economy. We believe they should outperform for a number of years ahead, and we like a number of them.
So we all need to keep an eye on BHP!
Half-yearly Performance & Estimates - BHP
| Year-end June | FY11A | 1H12A | FY12A | 1H13A | FY13A | FY14E | FY15E |
|---|---|---|---|---|---|---|---|
| Sales, $m | 66,802 | 37,284 | 70,872 | 31,50 | 71,125 | 74,841 | 78,817 |
| EBITDA, $m | 34,568 | 18,485 | 33,117 | 12,701 | 30,366 | 33,304 | 35,857 |
| EBIT, $m | 29,876 | 15,496 | 26,829 | 9,461 | 22,878 | 25,318 | 27,410 |
| Report NPAT, $m | 20,469 | 9,887 | 16,949 | 5,532 | 12,935 | ||
| Adj. NPAT, $m | 12,935 | 15,078 | 16,933 | ||||
| Reported EPS, ¢ | 365.00 | 183.00 | 315.00 | 103.00 | 238.00 | ||
| Adjusted EPS, ¢ | 238.00 | 284.79 | 316.44 | ||||
| EPS %FY/Growth | 58% | -14% | 43% | -24% | 20% | 11% | |
| Dividend, ¢ | 94.05 | 54.16 | 109.9 | 54.89 | 125.07 | 134.21 | 144.03 |
| Franking, % | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| EBITDA Margin | 52% | 0 | 47% | 41% | 43% | 44.5% | 45.5% |
| NPAT Margin | 30% | 0 | 24% | 18% | 18% | 20.1% | 21.5% |
| ROE, % | 38% | 0 | 26% | 8 | 17% | ||
| EBIT/Interest | 48.3 | 0.0 | 32.8 | 13.53 | 14.68 | ||
| Net Debt / Equity | 0.10 | 0 | 0.35 | 0.45 | 0.40 | ||
| CashFlow/Sh, ¢ | 560.0 | 240.0 | 460.0 | 120.0 | 380.0 | 461.9 | 508.3 |
| Y/E Shares, m | 5,323 | 5,323 | 5,323 | 5,298 | 5,323 |
| Notes |
| Data sourced from IRESS Market Technology Limited. EPS Growth compared with the pcp is shown in most columns, except 1H11A and 1H12A which show the first half % of full year EPS. In a handful of cases, unadjusted share splits may give strange changes in ratios. |
Half-year Performance & Estimates - BHP
| Year-end June | 1H11A | FY11A | 1H12A | FY12A | 1H13A | FY13E | FY14E |
|---|---|---|---|---|---|---|---|
| Sales, $m | 33,918 | 66,802 | 37,284 | 70,872 | 31,50 | 66,319 | 73,255 |
| EBITDA, $m | 16,387 | 34,568 | 18,485 | 33,117 | 12,701 | 28,479 | 33,751 |
| EBIT, $m | 13,998 | 29,876 | 15,496 | 26,829 | 9,461 | 21,933 | 26,343 |
| Report NPAT, $m | 10,515 | 20,469 | 9,887 | 16,949 | 5,532 | ||
| Adj. NPAT, $m | 5,532 | 13,221 | 16,488 | ||||
| Reported EPS, ¢ | 186.00 | 365.00 | 183.00 | 315.00 | 103.00 | ||
| Adjusted EPS, ¢ | 103.00 | 247.36 | 304.51 | ||||
| EPS %FY/Growth | 51% | 58% | -14% | -44% | -21% | 23% | |
| Dividend, ¢ | 45.26 | 94.05 | 54.16 | 109.9 | 54.89 | 113.05 | 119.81 |
| Franking, % | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| EBITDA Margin | 46% | 52% | 0 | 47% | 41% | 42.9% | 46.1% |
| NPAT Margin | 24% | 30% | 0 | 24% | 18% | 19.9% | 22.5% |
| ROE, % | 26% | 38% | 0 | 26% | 8% | ||
| EBIT/Interest | 35.6 | 48.3 | 0.0 | 32.8 | 13.53 | ||
| Net Debt / Equity | 0.07 | 0.10 | 0 | 0.35 | 0.45 | ||
| CashFlow/Sh, ¢ | 220.0 | 560.0 | 240.0 | 460.0 | 120.0 | 370.5 | 453.4 |
| Y/E Shares, m | 5,562 | 5,323 | 5,323 | 5,323 | 5,298 |
| Notes |
| EPS Growth compared with the pcp is shown in most columns, except 1H10A and 1H11A which show the first half % of full year EPS. |
Profile
BHP Billiton
Rating:
Category: Potent Stock ; Large
Action: No Recomm.
Website: www.bhpbilliton.com
| ASX code: | BHP |
| Closing Price, 30/12/2013: | $ 38.100 |
| Market Capitalisation: | $ 120,599 million |
| 52 Week High: | $ 39.34 |
| 52 Week Low: | $ 30.43 |
| Sector: | Diversified Metals & Mining |
| Index: | S&P/ASX 20 Index |
Summary of Fundamentals
| Year-end June | FY12A | FY13A | FY14E | FY15E |
|---|---|---|---|---|
| NPAT, $m | 16,949 | 12,935 | 15339.3 | 16474.0 |
| Reported EPS, ¢ | 315.00 | 238.00 | ||
| Adjusted EPS, ¢ | 242.45 | 287.01 | 305.12 | |
| EPS Growth, % | -14% | -23% | 18% | 6% |
| P/E Ratio, x | 12.10 | 15.71 | 13.27 | 12.49 |
| Dividend, ¢ | 109.9 | 125.07 | 133.90 | 143.23 |
| Franking, % | 100% | 100% | 100% | 100% |
| Div. Yield, % | 2.88 | 3.28 | 3.51 | 3.76 |
Notes
| Our Adjusted EPS is used for the last year and forward estimates and as basis for EPS Growth and P/E Ratio. We currently use Reported data for all historic NPAT, for the prior year EPS and as base for last year EPS growth. |
| Data & Chart sourced from IRESS Market Technology Ltd. |
One Year Chart
As at 30 December 2013
Other Highlights
| Sector: | Diversified Metals & Mining |
| Return on Equity, FY13 : | 17% |
| Net Debt to Equity, FY13 : | 40 % |
| EBIT / Interest Cover, FY13 : | 14.68 x |
| Gicscode: | 15104020 |
| First Listed: | 7-Jul-61 |
Business Activities
BHP Billiton Limited (BHP) is the world's largest diversified resources group with a global portfolio of quality assets. Major earners are iron ore and oil and gas, backed by a deep and wide range of minerals.
Glossary:
| ♠ | "A Core Stock" - reliable long-term yield & growth |
| ♥ | "We like it" - a seasoned performer, growth & yield |
| ♦ | "A tough scout" - creating a potential breakthrough |
| ♣ | "A steady performer" - giving reliable yield or growth |
| Best Stocks | Portfolio of selected attractive investments |
| Potential | Stocks that may have good improvement prospects |
| Speculative | More risky usually smaller stocks with spec. upside |
| Midcaps | In RR Midcap Index, $ 70m to 1,500m market cap. |
| Large Stocks | Larger Stocks upwards of $ 1,500m market cap |