BERKSHIRE HATHAWAY INC-CL B (1BRK.MI) Stock Fundamental Analysis
BIT:1BRK - Euronext Milan - US0846707026 - Common Stock - Currency: EUR
Taking everything into account, 1BRK scores 5 out of 10 in our fundamental rating. 1BRK was compared to 50 industry peers in the Financial Services industry. Both the profitability and the financial health of 1BRK get a neutral evaluation. Nothing too spectacular is happening here. 1BRK may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
1BRK had positive earnings in the past year.
1BRK had a positive operating cash flow in the past year.
1BRK had positive earnings in 4 of the past 5 years.
In the past 5 years 1BRK always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 1BRK (7.71%) is better than 70.00% of its industry peers.
With a decent Return On Equity value of 13.70%, 1BRK is doing good in the industry, outperforming 66.00% of the companies in the same industry.
With a Return On Invested Capital value of 4.68%, 1BRK perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for 1BRK is significantly below the industry average of 11.19%.
The last Return On Invested Capital (4.68%) for 1BRK is above the 3 year average (4.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 13.7% | ||
| ROIC | 4.68% |
ROA(3y)4.77%
ROA(5y)5.71%
ROE(3y)8.68%
ROE(5y)10.68%
ROIC(3y)4.13%
ROIC(5y)3.72%
1.3 Margins
1BRK has a Profit Margin of 23.96%. This is in the better half of the industry: 1BRK outperforms 68.00% of its industry peers.
In the last couple of years the Profit Margin of 1BRK has declined.
1BRK's Operating Margin of 16.41% is fine compared to the rest of the industry. 1BRK outperforms 64.00% of its industry peers.
In the last couple of years the Operating Margin of 1BRK has grown nicely.
With a Gross Margin value of 16.21%, 1BRK is not doing good in the industry: 64.00% of the companies in the same industry are doing better.
1BRK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.41% | ||
| PM (TTM) | 23.96% | ||
| GM | 16.21% |
OM growth 3Y7.37%
OM growth 5Y4.91%
PM growth 3Y-9.72%
PM growth 5Y-5.61%
GM growth 3Y3.45%
GM growth 5Y2.09%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1BRK is creating some value.
The number of shares outstanding for 1BRK has been reduced compared to 1 year ago.
The number of shares outstanding for 1BRK has been reduced compared to 5 years ago.
Compared to 1 year ago, 1BRK has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.36, we must say that 1BRK is in the distress zone and has some risk of bankruptcy.
1BRK has a Altman-Z score (1.36) which is in line with its industry peers.
1BRK has a debt to FCF ratio of 10.74. This is a negative value and a sign of low solvency as 1BRK would need 10.74 years to pay back of all of its debts.
1BRK has a Debt to FCF ratio of 10.74. This is comparable to the rest of the industry: 1BRK outperforms 44.00% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that 1BRK is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, 1BRK is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 10.74 | ||
| Altman-Z | 1.36 |
ROIC/WACC1.42
WACC3.29%
2.3 Liquidity
A Current Ratio of 1.18 indicates that 1BRK should not have too much problems paying its short term obligations.
The Current ratio of 1BRK (1.18) is comparable to the rest of the industry.
1BRK has a Quick Ratio of 1.18. This is a bad value and indicates that 1BRK is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of 1BRK (0.94) is worse than 66.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
1BRK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.98%, which is quite impressive.
1BRK shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.78% yearly.
The Revenue has been growing slightly by 1.91% in the past year.
Measured over the past years, 1BRK shows a small growth in Revenue. The Revenue has been growing by 7.84% on average per year.
EPS 1Y (TTM)27.98%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%71.86%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%1.65%
3.2 Future
1BRK is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.54% yearly.
1BRK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.14% yearly.
EPS Next Y-6.68%
EPS Next 2Y-0.24%
EPS Next 3Y1.69%
EPS Next 5Y2.54%
Revenue Next Year0.6%
Revenue Next 2Y2.6%
Revenue Next 3Y0.14%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
With a Price/Earnings ratio of 0.01, the valuation of 1BRK can be described as very cheap.
98.00% of the companies in the same industry are more expensive than 1BRK, based on the Price/Earnings ratio.
1BRK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.35.
Based on the Price/Forward Earnings ratio of 0.02, the valuation of 1BRK can be described as very cheap.
1BRK's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1BRK is cheaper than 98.00% of the companies in the same industry.
1BRK is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.01 | ||
| Fwd PE | 0.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1BRK is valued cheaper than 96.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1BRK is valued cheaply inside the industry as 98.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.06 | ||
| EV/EBITDA | 1.02 |
4.3 Compensation for Growth
The decent profitability rating of 1BRK may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0
EPS Next 2Y-0.24%
EPS Next 3Y1.69%
5. Dividend
5.1 Amount
1BRK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1BRK (3/7/2025, 7:00:00 PM)
453.65
-6.8 (-1.48%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners33.43%
Inst Owner ChangeN/A
Ins Owners37.69%
Ins Owner ChangeN/A
Market Cap653.26M
Analysts80
Price Target503 (10.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.2%
Min EPS beat(2)-10.41%
Max EPS beat(2)42.8%
EPS beat(4)3
Avg EPS beat(4)16.14%
Min EPS beat(4)-10.41%
Max EPS beat(4)42.8%
EPS beat(8)6
Avg EPS beat(8)12.04%
EPS beat(12)9
Avg EPS beat(12)10.27%
EPS beat(16)12
Avg EPS beat(16)9.92%
Revenue beat(2)0
Avg Revenue beat(2)-3.85%
Min Revenue beat(2)-7.69%
Max Revenue beat(2)-0.01%
Revenue beat(4)1
Avg Revenue beat(4)-1.91%
Min Revenue beat(4)-7.69%
Max Revenue beat(4)0.24%
Revenue beat(8)4
Avg Revenue beat(8)0.64%
Revenue beat(12)5
Avg Revenue beat(12)-0.45%
Revenue beat(16)6
Avg Revenue beat(16)-0.71%
PT rev (1m)2.81%
PT rev (3m)2.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.35%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.27%
Revenue NQ rev (1m)-0.5%
Revenue NQ rev (3m)-0.64%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)-0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.01 | ||
| Fwd PE | 0.02 | ||
| P/S | 0 | ||
| P/FCF | 0.06 | ||
| P/OCF | 0.02 | ||
| P/B | 0 | ||
| P/tB | 0 | ||
| EV/EBITDA | 1.02 |
EPS(TTM)30389.34
EY6698.85%
EPS(NY)28360.49
Fwd EY6251.62%
FCF(TTM)7429.92
FCFY1637.81%
OCF(TTM)19567.5
OCFY4313.35%
SpS237579.06
BVpS415354.15
TBVpS338820
PEG (NY)N/A
PEG (5Y)0
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.71% | ||
| ROE | 13.7% | ||
| ROCE | 5.79% | ||
| ROIC | 4.68% | ||
| ROICexc | 4.9% | ||
| ROICexgc | 5.89% | ||
| OM | 16.41% | ||
| PM (TTM) | 23.96% | ||
| GM | 16.21% | ||
| FCFM | 3.13% |
ROA(3y)4.77%
ROA(5y)5.71%
ROE(3y)8.68%
ROE(5y)10.68%
ROIC(3y)4.13%
ROIC(5y)3.72%
ROICexc(3y)4.31%
ROICexc(5y)3.94%
ROICexgc(3y)5.19%
ROICexgc(5y)4.78%
ROCE(3y)5.11%
ROCE(5y)4.61%
ROICexcg growth 3Y9.15%
ROICexcg growth 5Y4.04%
ROICexc growth 3Y9.9%
ROICexc growth 5Y4.98%
OM growth 3Y7.37%
OM growth 5Y4.91%
PM growth 3Y-9.72%
PM growth 5Y-5.61%
GM growth 3Y3.45%
GM growth 5Y2.09%
F-Score4
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 10.74 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 147.62% | ||
| Cap/Sales | 5.11% | ||
| Interest Coverage | 12.34 | ||
| Cash Conversion | 41.46% | ||
| Profit Quality | 13.05% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 1.36 |
F-Score4
WACC3.29%
ROIC/WACC1.42
Cap/Depr(3y)148.32%
Cap/Depr(5y)138.32%
Cap/Sales(3y)5.18%
Cap/Sales(5y)5.13%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)27.98%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%71.86%
EPS Next Y-6.68%
EPS Next 2Y-0.24%
EPS Next 3Y1.69%
EPS Next 5Y2.54%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%1.65%
Revenue Next Year0.6%
Revenue Next 2Y2.6%
Revenue Next 3Y0.14%
Revenue Next 5YN/A
EBIT growth 1Y26.05%
EBIT growth 3Y18.52%
EBIT growth 5Y13.14%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-61%
FCF growth 3Y-23.7%
FCF growth 5Y-12.55%
OCF growth 1Y-37.82%
OCF growth 3Y-8.11%
OCF growth 5Y-4.59%