BHPNEUTRAL

Gross Margin

42.8%

Higher than 40% of Basic Materials sector peers

Updated 1077h ago

Sector Performance

40th percentile

BHP

42.8%

Sector Median

45.1%

Sector Avg

-37457.0%

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Deep Analysis

The current Gross Margin of 42.8% means that for every dollar of sales, BHP keeps about 42.8 cents after deducting the direct costs of producing its goods, such as mining and processing expenses.

This is below the sector median of 45.1%, placing BHP in the 40th percentile among its Basic Materials peers—meaning 60% of competitors have higher margins. The trend data is not available: both the year-over-year change and quarter-over-quarter change are marked N/A, and there is no history for the last eight quarters. With no trend information, the combination of a below-median margin level and an unknown trajectory offers no clear signal; it points to average profitability relative to peers but lacks direction to indicate improvement or deterioration. This metric neither supports nor contradicts the overall NEUTRAL verdict—it aligns with a holding pattern, as the margin is unremarkable within the sector and provides no catalyst for a bullish or bearish reassessment.

Frequently Asked Questions

What does the Gross Margin tell investors about BHP?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does BHP's Gross Margin compare to its sector?

BHP's Gross Margin of 42.8% compares to a Basic Materials sector median of 45.1%, placing it in the 40th percentile.

Who are BHP's closest peers by Gross Margin?

The closest Basic Materials peers by Gross Margin include: MP (44.1%), CDE (46.2%), PPG (42.1%), PAAS (52.7%), ALB (35.1%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.