BERKSHIRE HATHAWAY INC-CL B (1BRK.MI) Stock Fundamental Analysis
BIT:1BRK - Euronext Milan - US0846707026 - Common Stock - Currency: EUR
1BRK gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 51 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.
Of the past 5 years 1BRK 4 years were profitable.
1BRK had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1BRK (7.71%) is better than 74.51% of its industry peers.
1BRK has a better Return On Equity (13.70%) than 68.63% of its industry peers.
1BRK's Return On Invested Capital of 4.68% is fine compared to the rest of the industry. 1BRK outperforms 64.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1BRK is significantly below the industry average of 10.89%.
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 74.51% of its industry peers.
1BRK's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 16.41%, 1BRK is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
1BRK's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 16.21%, 1BRK is in line with its industry, outperforming 43.14% of the companies in the same industry.
In the last couple of years the Gross Margin of 1BRK has grown nicely.
| 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.
1BRK has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1BRK has less shares outstanding
The debt/assets ratio for 1BRK has been reduced compared to a year ago.
2.2 Solvency
1BRK has an Altman-Z score of 1.36. This is a bad value and indicates that 1BRK is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.36, 1BRK perfoms like the industry average, outperforming 47.06% of the companies in the same industry.
The Debt to FCF ratio of 1BRK is 10.74, which is on the high side as it means it would take 1BRK, 10.74 years of fcf income to pay off all of its debts.
1BRK has a Debt to FCF ratio (10.74) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.19 indicates that 1BRK is not too dependend on debt financing.
1BRK has a Debt to Equity ratio of 0.19. This is in the better half of the industry: 1BRK outperforms 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 10.74 | ||
| Altman-Z | 1.36 |
ROIC/WACC1.45
WACC3.23%
2.3 Liquidity
1BRK has a Current Ratio of 1.18. This is a normal value and indicates that 1BRK is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of 1BRK (1.18) is better than 60.78% of its industry peers.
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.
With a Quick ratio value of 0.94, 1BRK perfoms like the industry average, outperforming 41.18% of the companies in the same industry.
| 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.
Measured over the past years, 1BRK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.78% on average per year.
1BRK shows a small growth in Revenue. In the last year, the Revenue has grown by 1.91%.
The Revenue has been growing slightly by 7.84% on average over the past years.
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
Based on estimates for the next years, 1BRK will show a small growth in Earnings Per Share. The EPS will grow by 2.27% on average per year.
1BRK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.94% yearly.
EPS Next Y-3.52%
EPS Next 2Y0.48%
EPS Next 3Y1.32%
EPS Next 5Y2.27%
Revenue Next Year0.01%
Revenue Next 2Y2.23%
Revenue Next 3Y0.14%
Revenue Next 5Y6.94%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 0.02, which indicates a rather cheap valuation of 1BRK.
Based on the Price/Earnings ratio, 1BRK is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.79, 1BRK is valued rather cheaply.
With a Price/Forward Earnings ratio of 0.02, the valuation of 1BRK can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1BRK indicates a rather cheap valuation: 1BRK is cheaper than 100.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.38. 1BRK is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.02 | ||
| Fwd PE | 0.02 |
4.2 Price Multiples
1BRK's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. 1BRK is cheaper than 98.04% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1BRK is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.07 | ||
| EV/EBITDA | 1.02 |
4.3 Compensation for Growth
1BRK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0
EPS Next 2Y0.48%
EPS Next 3Y1.32%
5. Dividend
5.1 Amount
1BRK does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1BRK (4/25/2025, 7:00:00 PM)
465.1
+14.9 (+3.31%)
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 Cap669.74M
Analysts80
Price Target487.23 (4.76%)
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)-3.14%
PT rev (3m)-2%
EPS NQ rev (1m)-2.98%
EPS NQ rev (3m)-6.01%
EPS NY rev (1m)3.38%
EPS NY rev (3m)3.1%
Revenue NQ rev (1m)-0.4%
Revenue NQ rev (3m)-1.03%
Revenue NY rev (1m)-0.59%
Revenue NY rev (3m)-1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.02 | ||
| Fwd PE | 0.02 | ||
| P/S | 0 | ||
| P/FCF | 0.07 | ||
| P/OCF | 0.02 | ||
| P/B | 0 | ||
| P/tB | 0 | ||
| EV/EBITDA | 1.02 |
EPS(TTM)29002.91
EY6235.84%
EPS(NY)27980.79
Fwd EY6016.08%
FCF(TTM)7090.95
FCFY1524.61%
OCF(TTM)18674.8
OCFY4015.22%
SpS226740.14
BVpS396404.71
TBVpS323362
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
WACC3.23%
ROIC/WACC1.45
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-3.52%
EPS Next 2Y0.48%
EPS Next 3Y1.32%
EPS Next 5Y2.27%
Revenue 1Y (TTM)1.91%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%1.65%
Revenue Next Year0.01%
Revenue Next 2Y2.23%
Revenue Next 3Y0.14%
Revenue Next 5Y6.94%
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%