BHPCAUTIOUS

BHP Return on Equity (ROE) Analysis

24.7%

Higher than 90% of Basic Materials sector peers

Updated 395h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) shows how much profit a company generates for each dollar of shareholder equity, and BHP's current 24.7% means it earns about 24.7 cents per dollar of equity.

Sector Performance

90th percentile

BHP

24.7%

Sector Median

12.5%

Sector Avg

13.3%

Prior Period

18.9%(May 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) shows how much profit a company generates for each dollar of shareholder equity, and BHP's current 24.7% means it earns about 24.7 cents per dollar of equity.

This sits well above the Basic Materials sector median of 12.5%, placing BHP in the 92nd percentile among its peers. Trend data for ROE is not available: the year-over-year change is N/A and the quarter-over-quarter change is N/A, so there is no observable direction over the last eight quarters. The combination of a very high current ROE with no trend information indicates strong current profitability, but the lack of historical movement leaves uncertainty about whether this level is stable or fading. That uncertainty introduces risk, while the high level itself represents an opportunity if performance persists. This metric does not contradict the overall CAUTIOUS verdict, but it also does not override it—the caution likely stems from factors other than ROE.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about BHP?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does BHP's Return on Equity (ROE) compare to its sector?

BHP's Return on Equity (ROE) of 24.7% compares to a Basic Materials sector median of 12.5%, placing it in the 90th percentile.

Who are BHP's closest peers by Return on Equity (ROE)?

The closest Basic Materials peers by Return on Equity (ROE) include: MAG (12.5%), CDE (12.1%), RGLD (12.0%), AEM (18.0%), AG (6.1%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.