BHP

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ASX BHP

ROE & Earnings

Very uneven earnings 

Follows the commodity cycles

But it does have a very good stability for a mining company because its so large and diversified.

Probably the worlds best miner.

If you must own this make sure you buy it when its PE is in the range of 10 to 12

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ASX:BHP's performance over the last 5 years has been highly profitable but cyclical, driven by fluctuating commodity prices. While the company maintained a rock-solid balance sheet with manageable debt, its Return on Equity (ROE) spiked to record highs in 2022 before cooling off as market conditions normalized. [1, 2, 3, 4, 5]

Financial Snapshot (Based on FY21 to FY25 Full-Year Data)

• Profitability: BHP generated immense profits. The company posted an underlying attributable profit of US$10.2 billion for FY2025 (following a peak of over US$19.4 billion in 2023). For the trailing 12 months, the net income sits around US$10.24 billion. [1, 2, 3, 4, 5]

• Debt: Net debt has remained tightly controlled. While net debt recently moved up to US$12.9 billion, it remains well within the company’s target range of US$10 billion to US$20 billion. [1]
• Return on Equity (ROE): BHP's ROE has been heavily cyclical, averaging over 26% over the last five years. It hit a massive 5-year peak of 42.1% in FY2022 due to surging commodity prices, but moderated to approximately 19.5% by FY2025. [1]

• Shareholder Returns: Over the past five years, BHP has distributed over US$50 billion to shareholders in cash dividends, aided by a dividend policy payout ratio of at least 50% of underlying attributable profit

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