BERKSHIRE HATHAWAY INC-CL B (BRK.B)
US0846707026 - Common Stock
We assign a fundamental rating of 5 out of 10 to BRK.B. BRK.B was compared to 102 industry peers in the Financial Services industry. BRK.B scores excellent on profitability, but there are some minor concerns on its financial health. BRK.B is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BRK.B had positive earnings in the past year.
BRK.B had a positive operating cash flow in the past year.
Of the past 5 years BRK.B 4 years were profitable.
Each year in the past 5 years BRK.B had a positive operating cash flow.
1.2 Ratios
BRK.B has a Return On Assets of 8.99%. This is amongst the best in the industry. BRK.B outperforms 89.22% of its industry peers.
The Return On Equity of BRK.B (17.14%) is better than 79.41% of its industry peers.
With a decent Return On Invested Capital value of 3.97%, BRK.B is doing good in the industry, outperforming 65.69% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BRK.B is below the industry average of 8.07%.
The last Return On Invested Capital (3.97%) for BRK.B is above the 3 year average (3.67%), which is a sign of increasing profitability.
| 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
BRK.B has a Profit Margin of 26.40%. This is amongst the best in the industry. BRK.B outperforms 80.39% of its industry peers.
In the last couple of years the Profit Margin of BRK.B has grown nicely.
BRK.B has a Operating Margin (13.26%) which is comparable to the rest of the industry.
BRK.B's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 20.57%, BRK.B perfoms like the industry average, outperforming 42.16% of the companies in the same industry.
In the last couple of years the Gross Margin of BRK.B has remained more or less at the same level.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BRK.B is destroying value.
BRK.B has less shares outstanding than it did 1 year ago.
BRK.B has less shares outstanding than it did 5 years ago.
BRK.B has a better debt/assets ratio than last year.
2.2 Solvency
BRK.B has an Altman-Z score of 2.34. This is not the best score and indicates that BRK.B is in the grey zone with still only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.34, BRK.B belongs to the best of the industry, outperforming 80.39% of the companies in the same industry.
The Debt to FCF ratio of BRK.B is 4.31, which is a neutral value as it means it would take BRK.B, 4.31 years of fcf income to pay off all of its debts.
BRK.B has a better Debt to FCF ratio (4.31) than 64.71% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that BRK.B is not too dependend on debt financing.
BRK.B has a better Debt to Equity ratio (0.23) than 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 4.31 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.47
WACC8.39%
2.3 Liquidity
BRK.B has a Current Ratio of 1.25. This is a normal value and indicates that BRK.B is financially healthy and should not expect problems in meeting its short term obligations.
BRK.B has a Current ratio (1.25) which is comparable to the rest of the industry.
BRK.B has a Quick Ratio of 1.25. This is a bad value and indicates that BRK.B is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BRK.B (0.98) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.99% over the past year.
Measured over the past years, BRK.B shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.33% on average per year.
BRK.B shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.68%.
The Revenue has been growing by 8.02% on average over the past years. This is quite good.
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
Based on estimates for the next years, BRK.B will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.92% on average per year.
BRK.B is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.28% yearly.
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
A Price/Earnings ratio of 23.61 indicates a rather expensive valuation of BRK.B.
BRK.B's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of BRK.B to the average of the S&P500 Index (28.11), we can say BRK.B is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.90, BRK.B is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BRK.B is on the same level as its industry peers.
BRK.B is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.39, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.61 | ||
| Fwd PE | 21.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BRK.B is on the same level as its industry peers.
BRK.B's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.43 | ||
| EV/EBITDA | 15.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BRK.B does not grow enough to justify the current Price/Earnings ratio.
BRK.B has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.02
PEG (5Y)2.08
EPS Next 2Y7.12%
EPS Next 3Y7.8%
5. Dividend
5.1 Amount
BRK.B does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BERKSHIRE HATHAWAY INC-CL B
NYSE:BRK.B (5/8/2024, 12:15:09 PM)
405.795
-0.34 (-0.08%)
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 Cap876.52B
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)
Max EPS beat(4)
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)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
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 | 23.61 | ||
| Fwd PE | 21.9 | ||
| 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)3.02
PEG (5Y)2.08
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