Shares of BHP Billiton Limited (NYSE:BHP) recorded -2.89% loss during trading session on October 18th, 2018. The script traded as low as $46.31 and last traded at $46.41. 3.11 million shares changed exchanged hands during trading, a drop of -42.16% from the 30-day average session volume of 2.19M shares. The firm had previously closed at $47.79. The company has $2.66B outstanding shares, a price-to-earnings ratio of 13.85, price-to-earnings-growth ratio of 2.83 and a beta of 1.14. The company has a RSI of 37.50, ATR of 0.98 and a volatility of 1.72% this week. BHP has a 52 week low price of $40.19 and a 52 week high price of $52.62.
Investors have identified the tech company BHP Billiton Limited as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around 123.52B, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
BHP Billiton Limited (BHP) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For BHP, the company has in raw cash 21.48 billion on their books with 3.7 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 151.58 billion total, with 69.46 billion as their total liabilities. This figure have given the company a good sense of viability under numerous contexts.
BHP were able to record 11.16 billion as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 4.56 billion. In cash movements, the company had a total of 14.52 billion as operating cash flow.
Potential earnings growth for BHP Billiton Limited (BHP)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, BHP Billiton Limited recorded a total of 28.36 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 0.37 coming in sequential stages and their sales for the third quarter increasing by 0.01.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 16.37 billion trying to sell their products during the last quarter, with the result yielding a gross income of 11.99 billion. This allows shareholders to hold on to 5.32 billion with the revenue now reading 0.41 cents per share.
Is the stock of BHP attractive?
Having a look at the company’s valuation, the company is expected to record 3.35 total earnings per share during the next fiscal year. Taking a look at the median price to earnings ratio, this means their stock price will be in the region of 13.86 per share. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on BHP sounds very interesting.
1 out of 4 analysts covering the stock have rated it a Buy, while 3 have maintained a Hold recommendation on BHP Billiton Limited stock. 0 analysts has assigned a Sell rating on the BHP stock. The 12-month mean consensus price target for the company’s shares has been set at $47.03.