BERKSHIRE HATHAWAY INC-CL A (BRK.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRK.A - US0846701086 - Common Stock
751245 USD
+685 (+0.09%)
751245 USD
0 (0%)
BRK.A gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 99 industry peers in the Financial Services industry. BRK.A has an average financial health and profitability rating. BRK.A is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BRK.A was profitable.
BRK.A had a positive operating cash flow in the past year.
BRK.A had positive earnings in 4 of the past 5 years.
In the past 5 years BRK.A always reported a positive cash flow from operatings.
1.2 Ratios
BRK.A has a better Return On Assets (5.50%) than 77.78% of its industry peers.
BRK.A has a Return On Equity (9.66%) which is in line with its industry peers.
BRK.A's Return On Invested Capital of 4.53% is fine compared to the rest of the industry. BRK.A outperforms 64.65% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BRK.A is below the industry average of 8.44%.
The last Return On Invested Capital (4.53%) for BRK.A is above the 3 year average (4.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 9.66% | ||
| ROIC | 4.53% |
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
With a decent Profit Margin value of 18.13%, BRK.A is doing good in the industry, outperforming 70.71% of the companies in the same industry.
BRK.A's Profit Margin has declined in the last couple of years.
The Operating Margin of BRK.A (16.72%) is better than 61.62% of its industry peers.
In the last couple of years the Operating Margin of BRK.A has grown nicely.
BRK.A has a Gross Margin of 17.71%. This is in the lower half of the industry: BRK.A underperforms 60.61% of its industry peers.
In the last couple of years the Gross Margin of BRK.A has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.72% | ||
| PM (TTM) | 18.13% | ||
| GM | 17.71% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BRK.A is destroying value.
Compared to 1 year ago, BRK.A has less shares outstanding
Compared to 5 years ago, BRK.A has less shares outstanding
BRK.A has a better debt/assets ratio than last year.
2.2 Solvency
BRK.A has an Altman-Z score of 2.59. 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.
With an excellent Altman-Z score value of 2.59, BRK.A belongs to the best of the industry, outperforming 80.81% of the companies in the same industry.
The Debt to FCF ratio of BRK.A is 6.58, which is on the high side as it means it would take BRK.A, 6.58 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 6.58, BRK.A perfoms like the industry average, outperforming 56.57% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that BRK.A is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.18, BRK.A is doing good in the industry, outperforming 65.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 2.59 |
ROIC/WACC0.55
WACC8.2%
2.3 Liquidity
BRK.A has a Current Ratio of 1.33. This is a normal value and indicates that BRK.A is financially healthy and should not expect problems in meeting its short term obligations.
BRK.A has a better Current ratio (1.33) than 62.63% of its industry peers.
BRK.A has a Quick Ratio of 1.11. This is a normal value and indicates that BRK.A is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.11, BRK.A is in line with its industry, outperforming 54.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.97% over the past year.
The Earnings Per Share has been growing by 17.78% on average over the past years. This is quite good.
Looking at the last year, BRK.A shows a small growth in Revenue. The Revenue has grown by 0.60% in the last year.
BRK.A shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.84% yearly.
EPS 1Y (TTM)17.97%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%33.51%
Revenue 1Y (TTM)0.6%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%2.13%
3.2 Future
BRK.A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.26% yearly.
BRK.A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.89% yearly.
EPS Next Y-0.45%
EPS Next 2Y0.3%
EPS Next 3Y1.64%
EPS Next 5Y2.26%
Revenue Next Year0.8%
Revenue Next 2Y0.25%
Revenue Next 3Y1.4%
Revenue Next 5Y4.89%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
BRK.A is valuated rather expensively with a Price/Earnings ratio of 22.13.
BRK.A's Price/Earnings ratio is in line with the industry average.
BRK.A is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.59, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 22.63, the valuation of BRK.A can be described as rather expensive.
62.63% of the companies in the same industry are cheaper than BRK.A, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BRK.A to the average of the S&P500 Index (24.03), we can say BRK.A is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.13 | ||
| Fwd PE | 22.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BRK.A is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as BRK.A.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.98 | ||
| EV/EBITDA | 14.97 |
4.3 Compensation for Growth
The decent profitability rating of BRK.A may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.24
EPS Next 2Y0.3%
EPS Next 3Y1.64%
5. Dividend
5.1 Amount
No dividends for BRK.A!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
751245
+685 (+0.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners27.78%
Inst Owner Change-99.51%
Ins Owners37.74%
Ins Owner Change9.24%
Market Cap1.08T
Revenue(TTM)372.13B
Net Income(TTM)67.46B
Analysts44
Price Target784978 (4.49%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2
Avg EPS beat(2)2.5%
Min EPS beat(2)0.19%
Max EPS beat(2)4.81%
EPS beat(4)3
Avg EPS beat(4)9.5%
Min EPS beat(4)-9.78%
Max EPS beat(4)42.8%
EPS beat(8)6
Avg EPS beat(8)8.01%
EPS beat(12)8
Avg EPS beat(12)5.87%
EPS beat(16)12
Avg EPS beat(16)8.15%
Revenue beat(2)1
Avg Revenue beat(2)-0.81%
Min Revenue beat(2)-2.33%
Max Revenue beat(2)0.72%
Revenue beat(4)1
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-4.09%
Max Revenue beat(4)0.72%
Revenue beat(8)3
Avg Revenue beat(8)-1.35%
Revenue beat(12)5
Avg Revenue beat(12)-0.47%
Revenue beat(16)6
Avg Revenue beat(16)-0.84%
PT rev (1m)0.03%
PT rev (3m)-1.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.78%
EPS NY rev (1m)2.63%
EPS NY rev (3m)3.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.13 | ||
| Fwd PE | 22.63 | ||
| P/S | 2.91 | ||
| P/FCF | 55.98 | ||
| P/OCF | 27.46 | ||
| P/B | 1.55 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 14.97 |
EPS(TTM)33941.21
EY4.52%
EPS(NY)33194.17
Fwd EY4.42%
FCF(TTM)13420.8
FCFY1.79%
OCF(TTM)27359.7
OCFY3.64%
SpS258422.22
BVpS484829.86
TBVpS401744
PEG (NY)N/A
PEG (5Y)1.24
Graham Number608485
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 9.66% | ||
| ROCE | 5.61% | ||
| ROIC | 4.53% | ||
| ROICexc | 4.87% | ||
| ROICexgc | 5.82% | ||
| OM | 16.72% | ||
| PM (TTM) | 18.13% | ||
| GM | 17.71% | ||
| FCFM | 5.19% |
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%
ROICexgc growth 3Y9.15%
ROICexgc 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 Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 6.58 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 151.95% | ||
| Cap/Sales | 5.39% | ||
| Interest Coverage | 12.22 | ||
| Cash Conversion | 52.22% | ||
| Profit Quality | 28.65% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 2.59 |
F-Score4
WACC8.2%
ROIC/WACC0.55
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)17.97%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%33.51%
EPS Next Y-0.45%
EPS Next 2Y0.3%
EPS Next 3Y1.64%
EPS Next 5Y2.26%
Revenue 1Y (TTM)0.6%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%2.13%
Revenue Next Year0.8%
Revenue Next 2Y0.25%
Revenue Next 3Y1.4%
Revenue Next 5Y4.89%
EBIT growth 1Y15.71%
EBIT growth 3Y18.52%
EBIT growth 5Y13.14%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-28.02%
FCF growth 3Y-23.7%
FCF growth 5Y-12.55%
OCF growth 1Y-12.66%
OCF growth 3Y-8.11%
OCF growth 5Y-4.59%
BERKSHIRE HATHAWAY INC-CL A / BRK.A FAQ
What is the ChartMill fundamental rating of BERKSHIRE HATHAWAY INC-CL A (BRK.A) stock?
ChartMill assigns a fundamental rating of 4 / 10 to BRK.A.
Can you provide the valuation status for BERKSHIRE HATHAWAY INC-CL A?
ChartMill assigns a valuation rating of 2 / 10 to BERKSHIRE HATHAWAY INC-CL A (BRK.A). This can be considered as Overvalued.
Can you provide the profitability details for BERKSHIRE HATHAWAY INC-CL A?
BERKSHIRE HATHAWAY INC-CL A (BRK.A) has a profitability rating of 6 / 10.
What are the PE and PB ratios of BERKSHIRE HATHAWAY INC-CL A (BRK.A) stock?
The Price/Earnings (PE) ratio for BERKSHIRE HATHAWAY INC-CL A (BRK.A) is 22.13 and the Price/Book (PB) ratio is 1.55.