BHP.AX - Risk

Pure Price Volatility Risk (Market Swings)

The business itself is financially solid (Financial Health 80/100, minimal insolvency risk). The high overall score (7/7) is driven primarily by extreme stock price swings (±26.3% p.a.) and steep historical drawdowns.

Volatility Risk

Transparent evaluation of price volatility (SRI), Beta, and historical drawdowns.

Volatility Risk Score

7/7 Very High

7 / 7 SRI Price Fluctuation & Beta

Very high volatility or fundamental risks. Significant loss potential; strictly for aggressive investors. Moves noticeably less than the broader market (0.8x).

Beta (Market Relation)

0.82x

Defensive

Volatility (5Y p.a.)

26.3% p.a.

5-Year Horizon

Max Drawdown (5Y)

-32.6%

5-Year Horizon

Sharpe Ratio

0.38

Return / Risk

Speculative / High Risk: Score Basis:

Multi-Horizon Risk & Performance Matrix

Historical volatility, drawdowns, and risk-adjusted return across 1, 3, 5, and 10 years.

Timeframe	Volatility (p.a.)	Max Drawdown	Sharpe Ratio	Return (p.a.)
1 Year	—	—	—	+41.4%
3 Years	24.4%	-32.6%	0.34	+11.3%
5 Years	26.3%	-32.6%	0.38	+12.6%
10 Years	27.1%	-40.1%	0.33	+11.3%

Automated Risk & Health Notes (Red Flags)

Single Stock Risk: Investing in an individual stock carries full company and insolvency risk (no fund diversification).

Exemplary balance sheet strength: Very solid ratio of equity to debt.

Strong cyclicality: The business model is sensitive to economic downturns.

Corporate Governance & ISS Scores

Shareholder rights, board structure and audit safety (Scale 1 = Low Risk, 10 = High Risk)

Overall Governance Risk

1 ISS Score: 1 / 10

Audit Risk

2 ISS Score: 2 / 10

Board Risk

1 ISS Score: 1 / 10

Short Ratio