BERKSHIRE HATHAWAY INC-CL A (BRK.A)
US0846701086 - Common Stock
Overall BRK.A gets a fundamental rating of 5 out of 10. We evaluated BRK.A against 102 industry peers in the Financial Services industry. BRK.A has an average financial health and profitability rating. While showing a medium growth rate, BRK.A is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year BRK.A was profitable.
In the past year BRK.A had a positive cash flow from operations.
BRK.A had positive earnings in 4 of the past 5 years.
BRK.A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BRK.A (8.99%) is better than 88.24% of its industry peers.
The Return On Equity of BRK.A (17.14%) is better than 78.43% of its industry peers.
BRK.A has a Return On Invested Capital of 3.97%. This is in the better half of the industry: BRK.A outperforms 64.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BRK.A is below the industry average of 8.07%.
The 3 year average ROIC (3.67%) for BRK.A is below the current ROIC(3.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.99% | ||
| ROE | 17.14% | ||
| ROIC | 3.97% |
ROA(3y)5.32%
ROA(5y)6.16%
ROE(3y)10.03%
ROE(5y)11.77%
ROIC(3y)3.67%
ROIC(5y)3.49%
1.3 Margins
Looking at the Profit Margin, with a value of 26.40%, BRK.A is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
In the last couple of years the Profit Margin of BRK.A has grown nicely.
BRK.A has a Operating Margin (13.26%) which is comparable to the rest of the industry.
BRK.A's Operating Margin has been stable in the last couple of years.
The Gross Margin of BRK.A (20.57%) is comparable to the rest of the industry.
BRK.A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.26% | ||
| PM (TTM) | 26.4% | ||
| GM | 20.57% |
OM growth 3Y3.89%
OM growth 5Y0.24%
PM growth 3Y15.1%
PM growth 5Y74.7%
GM growth 3Y-1.99%
GM growth 5Y-1.37%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BRK.A is destroying value.
BRK.A has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BRK.A has been reduced compared to 5 years ago.
The debt/assets ratio for BRK.A has been reduced compared to a year ago.
2.2 Solvency
BRK.A has an Altman-Z score of 2.35. This is not the best score and indicates that BRK.A is in the grey zone with still only limited risk for bankruptcy at the moment.
BRK.A has a Altman-Z score of 2.35. This is amongst the best in the industry. BRK.A outperforms 82.35% of its industry peers.
The Debt to FCF ratio of BRK.A is 4.31, which is a neutral value as it means it would take BRK.A, 4.31 years of fcf income to pay off all of its debts.
BRK.A has a Debt to FCF ratio of 4.31. This is in the better half of the industry: BRK.A outperforms 63.73% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that BRK.A is not too dependend on debt financing.
BRK.A has a better Debt to Equity ratio (0.23) than 63.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 4.31 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.47
WACC8.38%
2.3 Liquidity
BRK.A has a Current Ratio of 1.25. This is a normal value and indicates that BRK.A is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.25, BRK.A perfoms like the industry average, outperforming 55.88% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that BRK.A may have some problems paying its short term obligations.
BRK.A's Quick ratio of 0.98 is in line compared to the rest of the industry. BRK.A outperforms 43.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
BRK.A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 22.99%, which is quite impressive.
The Earnings Per Share has been growing by 11.33% on average over the past years. This is quite good.
BRK.A shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.68%.
Measured over the past years, BRK.A shows a quite strong growth in Revenue. The Revenue has been growing by 8.02% on average per year.
EPS 1Y (TTM)22.99%
EPS 3Y23.42%
EPS 5Y11.33%
EPS growth Q2Q28.22%
Revenue 1Y (TTM)20.68%
Revenue growth 3Y14.07%
Revenue growth 5Y8.02%
Revenue growth Q2Q19.6%
3.2 Future
BRK.A is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.92% yearly.
Based on estimates for the next years, BRK.A will show a decrease in Revenue. The Revenue will decrease by -3.28% on average per year.
EPS Next Y7.82%
EPS Next 2Y7.12%
EPS Next 3Y7.8%
EPS Next 5Y10.92%
Revenue Next Year-10.91%
Revenue Next 2Y-3.13%
Revenue Next 3Y-3.28%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
BRK.A is valuated rather expensively with a Price/Earnings ratio of 23.79.
Compared to the rest of the industry, the Price/Earnings ratio of BRK.A is on the same level as its industry peers.
When comparing the Price/Earnings ratio of BRK.A to the average of the S&P500 Index (28.05), we can say BRK.A is valued inline with the index average.
BRK.A is valuated rather expensively with a Price/Forward Earnings ratio of 22.06.
Based on the Price/Forward Earnings ratio, BRK.A is valued a bit more expensive than 61.76% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BRK.A to the average of the S&P500 Index (20.30), we can say BRK.A is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.79 | ||
| Fwd PE | 22.06 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BRK.A.
BRK.A's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.65 | ||
| EV/EBITDA | 15.89 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BRK.A does not grow enough to justify the current Price/Earnings ratio.
BRK.A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.04
PEG (5Y)2.1
EPS Next 2Y7.12%
EPS Next 3Y7.8%
5. Dividend
5.1 Amount
BRK.A does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BERKSHIRE HATHAWAY INC-CL A
NYSE:BRK.A (5/9/2024, 11:06:31 AM)
613337
+1237 (+0.2%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap883.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.79 | ||
| Fwd PE | 22.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.04
PEG (5Y)2.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.99% | ||
| ROE | 17.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.26% | ||
| PM (TTM) | 26.4% | ||
| GM | 20.57% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)22.99%
EPS 3Y23.42%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.68%
Revenue growth 3Y14.07%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y