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BHP

9/9 Score

BHP Group Limited

Analysis Date: February 17, 2026

BHP Group Limited operates as a resources company in Australia, Europe, China, Japan, India, South Korea, the rest of Asia, North America, South America, and internationally. The company operates through Copper, Iron Ore, and Coal segments. It engages in the mining of copper, uranium, gold, zinc, lead, molybdenum, silver, iron ore, cobalt, and metallurgical and energy coal. The company is also involved in the mining, smelting, and refining of nickel, as well as potash development activities. In addition, it provides towing, freight, marketing and trading, marketing support, finance, administrative, and other services. The company was founded in 1851 and is headquartered in Melbourne, Australia.

Buffettology Criteria

All 9 of 9 criteria passed

  • High ROE

    Return on Equity > 12%

    Value: 19.7%

  • High ROIC

    Return on Invested Capital > 9%

    Value: 12.4%

  • Cash Machine

    FCF / Assets > 5%

    Value: 8.5%

  • Fair Valuation

    Earnings Yield > 3.5%

    Value: 4.7%

  • Share Buybacks

    Share Count is Dropping

    Value: -0.1%

  • Defensible Moat

    Gross Profit Margin > 40%

    Value: 82.2%

  • Simple Business

    Not in a speculative sector (e.g., Biotech)

    Value: Basic Materials

  • Conservative Debt

    Debt to Equity < 1.5

    Value: 0.53x

  • Consistent Growth

    5-Year Growth is Positive

    Value: 14.8%

Analysis Summary

This is a company that offers a blend of impressive profitability, as evidenced by its high ROE and ROIC, and a business model that seems to generate cash, all while operating in a straightforward industry. The manageable debt levels and consistent growth are certainly encouraging signs for a long-term investor looking for a durable moat in the basic materials sector. It appears to be a solid operation.

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