Is BHP Group (BHP) Halal?

LSE Basic Materials Australia $134.8B
✓ HALAL
Confidence: 95/100
BHP Group (BHP) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 17.6% against the AAOIFI threshold of 30%, BHP Group comfortably passes the key financial ratio tests. The company operates in the Basic Materials sector (Other Industrial Metals & Mining), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from June 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 17.6%
/ 30%
8.7%
/ 30%
3.4%
/ 30%
1.18%
/ 5%
✓ HALAL
DJIM 17.6%
/ 33%
8.7%
/ 33%
3.4%
/ 33%
1.18%
/ 5%
✓ HALAL
MSCI 22.5%
/ 33%
11.1%
/ 33%
4.3%
/ 33%
1.18%
/ 5%
✓ HALAL
S&P 17.6%
/ 33%
8.7%
/ 33%
3.4%
/ 33%
1.18%
/ 5%
✓ HALAL
FTSE 22.5%
/ 33%
11.1%
/ 33%
4.3%
/ 50%
1.18%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
17.4
Forward: 14.8
EPS
$1.51
Dividend Yield
378.0%
Payout: 54.2%
P/B Ratio
351.8
EV/EBITDA
5.9
EV: $154.4B
Revenue
$51.3B
Growth: 10.8%
Beta
0.7
Low volatility
Current Ratio
1.6

Profitability

Gross Margin 83.1%
Operating Margin 40.7%
Net Margin 19.0%
Return on Equity (ROE) 24.7%
Return on Assets (ROA) 12.2%

Cash Flow & Balance Sheet

Operating Cash Flow$18.7B
Free Cash Flow$9.3B
Total Debt$24.5B
Debt-to-Equity52.6
Current Ratio1.6
Total Assets$108.8B

Price & Trading

Last CloseGBp 2,579.00
50-Day MAGBp 2,665.14
200-Day MAGBp 2,212.20
Avg Volume1.2M
Beta0.7
52-Week Range
GBp 1,559.50
GBp 3,088.00

About BHP Group (BHP)

CEO
Mr. Mike P. Henry B.Sc., BSc (Chem)
Employees
39,369
Sector
Basic Materials
Industry
Other Industrial Metals & Mining
Country
Australia
Exchange
LSE
Market Cap
$134.8B
Currency
GBp

BHP Group Limited operates as a resources company in Australia, Europe, China, Japan, India, South Korea, rest of Asia, North America, South America, and internationally. The company operates through Copper, Iron Ore, and Coal segments. It also engages in the mining of copper, uranium, gold, zinc, lead, molybdenum, silver, iron ore, cobalt, and metallurgical and energy coal. In addition, the company is involved in the mining, smelting, and refining of nickel, as well as potash development activities. Further, it provides towing, freight, marketing and trading, marketing support, finance, administrative, and other services. BHP Group Limited was founded in 1851 and is headquartered in Melbourne, Australia.

Purification Calculator

As a halal stock with 1.18% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is BHP Group (BHP) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), BHP Group is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is BHP Group's debt ratio?

BHP Group's debt ratio is 17.6% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 22.5%.

Does BHP Group require dividend purification?

Yes, BHP Group has an impermissible income ratio of 1.18%, which means 1.18% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are BHP Group's key financial metrics?

BHP Group has a market capitalization of $134.8B, trailing P/E ratio of 17.4, and revenue of $51.3B. The company maintains a gross margin of 83.1% and a net margin of 19.0%. Return on equity stands at 24.7%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.