BHP Billiton Limited (BHP)

Views and News

BHP Billiton - the Resources Giant - 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-year Performance & Estimates - BHP

Year-end June 1H12A FY12A 1H13A FY13A 1H14A FY14E FY15E
Sales, $m 37,284 70,872 31,50 71,125 37,940 72,035 74,129
EBITDA, $m 18,485 33,117 12,701 30,366 18,301 34,511 35,241
EBIT, $m 15,496 26,829 9,461 22,878 13,838 25,538 25,859
Report NPAT, $m 9,887 16,949 5,532 12,935 9,546
Adj. NPAT, $m 9,546 15,205 14,813
Reported EPS, ¢ 183.00 315.00 103.00 238.00 163.00
Adjusted EPS, ¢ 163.00 285.44 278.62
EPS %FY/Growth 58% 43% -24% 58% 20% -2%
Dividend, ¢ 54.16 109.9 54.89 125.07 65.94 131.00 138.46
Franking, % 100% 100% 100% 100% 100% 100% 100%
EBITDA Margin 0 47% 41% 43% 48% 47.9% 47.5%
NPAT Margin 0 24% 18% 18% 25% 21.1% 20.0%
ROE, % 0 26% 8% 17% 10%
EBIT/Interest 0.0 32.8 13.5 14.7 18.82
Net Debt / Equity 0 0.35 0.45 0.40 0.33
CashFlow/Sh, ¢ 240.0 460.0 120.0 380.0 260.0 483.0 482.5
Y/E Shares, m 5,323 5,323 5,298 5,323 5,322
Notes
Data sourced from IRESS Market Technology Limited. EPS Growth compared with the pcp is shown in most columns except the first half years which show their percentage of full year EPS. In a handful of cases, unadjusted share splits, or changes between positive and negative values, may give strange changes in ratios.



Recent News Highlights





Company Overview




                Profile

BHP Billiton

Rating:    

Category:    Potent Stock ;      Large

Action:         No Recomm.

Website:    www.bhpbilliton.com

ASX code: BHP
Closing Price, 20/06/14: $ 35.950
Market Capitalisation: $ 115,460 million
52 Week High: $ 39.79
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 15204.7 14812.5
Reported EPS, ¢ 315.00 238.00
Adjusted EPS, ¢ 12565.76 285.44 278.62
EPS Growth, % -14% 3889% -98% -2%
P/E Ratio, x 11.41 0.29 12.59 12.90
Dividend, ¢ 109.9 125.07 131.00 138.46
Franking, % 100% 100% 100% 100%
Div. Yield, % 3.06 3.48 3.64 3.85

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 23 June 2014 BHP.png

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: 07-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





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