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BHP vs FSM

BHP
BHP Group Limited
NEUTRAL
Price
$67.52
Market Cap
$173.45B
Sector
Basic Materials
AI Confidence
72%
FSM
Fortuna Mining Corp.
BULLISH
Price
$10.27
Market Cap
$3.13B
Sector
Basic Materials
AI Confidence
75%

Valuation

P/E Ratio
BHP
19.07
FSM
12.08
Forward P/E
BHP
15.45
FSM
5.75
P/B Ratio
BHP
7.19
FSM
1.87
P/S Ratio
BHP
3.38
FSM
3.3
EV/EBITDA
BHP
15.39
FSM
5.19

Profitability

Gross Margin
BHP
82.21%
FSM
49.3%
Operating Margin
BHP
37.7%
FSM
43.43%
Profit Margin
BHP
17.59%
FSM
30.35%
ROE
BHP
21.99%
FSM
18.04%
ROA
BHP
11.02%
FSM
11.58%

Growth

Revenue Growth
BHP
-8.2%
FSM
38.4%
Earnings Growth
BHP
-34.0%
FSM
987.1%

Financial Health

Debt/Equity
BHP
0.49
FSM
0.12
Current Ratio
BHP
1.46
FSM
2.98
Quick Ratio
BHP
1.06
FSM
2.44

Dividends

Dividend Yield
BHP
3.26%
FSM
--
Payout Ratio
BHP
69.9%
FSM
0.0%

AI Verdict

BHP NEUTRAL

BHP's Piotroski F-Score of 6/9 indicates stable financial health, but the absence of an Altman Z-Score limits distress risk assessment. The stock trades significantly above its Graham Number of $27.35 and intrinsic value of $24.78, reflecting a substantial premium. Despite strong profitability metrics like 37.7% operating margin and 21.99% ROE, earnings and revenue growth are sharply negative year-over-year. Analysts consensus is a hold with a $57.00 target, below current price, suggesting limited upside.

Strengths
High operating margin of 37.70% indicates strong cost control and pricing power
ROE of 21.99% exceeds sector average significantly, signaling efficient equity use
Debt/Equity of 0.49 is below sector average of 0.63, indicating conservative leverage
Risks
Revenue growth down 8.20% YoY and earnings down 34.00%, indicating deteriorating fundamentals
P/E of 19.07 is high relative to earnings contraction, increasing valuation risk
Price/Book of 7.19 is extremely elevated, suggesting overvaluation relative to book value
FSM BULLISH

Fortuna Mining Corp. presents a compelling value opportunity, trading almost exactly at its Graham Number ($10.24) and significantly below its intrinsic value of $25.07. While the Piotroski F-Score of 4/9 indicates stable but not strong financial health, this is offset by an exceptionally clean balance sheet with a Debt/Equity ratio of 0.12 and a strong Current Ratio of 2.98. Despite a bearish technical trend and a poor track record of meeting earnings estimates, the company's massive YoY earnings growth and low forward P/E (5.75) suggest significant upside potential.

Strengths
Extremely low leverage with a Debt/Equity ratio of 0.12
Strong liquidity position evidenced by a Current Ratio of 2.98
High profitability margins (Operating Margin: 43.43%, Profit Margin: 30.35%)
Risks
Severe bearish technical trend (0/100 score)
Poor earnings reliability with only 1 of the last 4 quarters beating estimates
Negative Q/Q revenue growth (-10.57%) indicating a potential short-term slowdown

Compare Another Pair

BHP vs FSM: Head-to-Head Comparison

This page compares BHP Group Limited (BHP) and Fortuna Mining Corp. (FSM) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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