BHPNEUTRAL

Return on Equity (ROE)

24.7%

Higher than 87% of Basic Materials sector peers

Updated 188h ago

Sector Performance

87th percentile

BHP

24.7%

Sector Median

17.1%

Sector Avg

13.9%

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Deep Analysis

A company's Return on Equity (ROE) of 18.9% means it generated $0.189 of profit for every dollar of shareholder equity over the past year.

This is above the Basic Materials sector median of 13.3%, placing BHP in the 87th percentile among its peers. The metric shows no trend direction, with year-over-year and quarter-over-quarter changes both listed as N/A due to unavailable historical data. While the current ROE level is strong relative to the sector, the lack of trend information introduces uncertainty about whether this performance is improving or deteriorating. For an investor, the high percentile rank suggests a competitive advantage, but the absence of a directional signal limits the ability to assess momentum. This metric supports a NEUTRAL overall verdict because the positive level is countered by insufficient data to confirm a sustained edge.

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 17.1%, placing it in the 87th percentile.

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

The closest Basic Materials peers by Return on Equity (ROE) include: CDE (17.7%), RIO (16.4%), AEM (18.0%), PPG (20.7%), PAAS (20.8%).

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.