BERKSHIRE HATHAWAY INC-CL A (BRK.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRK.A - US0846701086 - Common Stock
750560 USD
+554 (+0.07%)
750560 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to BRK.A. BRK.A was compared to 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.
Of the past 5 years BRK.A 4 years were profitable.
BRK.A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BRK.A has a Return On Assets of 5.50%. This is in the better half of the industry: BRK.A outperforms 77.78% of its industry peers.
Looking at the Return On Equity, with a value of 9.66%, BRK.A is in line with its industry, outperforming 57.58% of the companies in the same industry.
The Return On Invested Capital of BRK.A (4.53%) is better than 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
The Profit Margin of BRK.A (18.13%) is better than 70.71% of its industry peers.
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.
BRK.A's Gross Margin has improved in the last couple of years.
| 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.
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.
BRK.A has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.59 indicates that BRK.A is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of BRK.A (2.59) is better than 80.81% of its industry peers.
BRK.A has a debt to FCF ratio of 6.58. This is a slightly negative value and a sign of low solvency as BRK.A would need 6.58 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.58, BRK.A is in line with its industry, outperforming 56.57% of the companies in the same industry.
BRK.A has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
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
WACC8.22%
2.3 Liquidity
A Current Ratio of 1.33 indicates that BRK.A should not have too much problems paying its short term obligations.
BRK.A has a Current ratio of 1.33. This is in the better half of the industry: BRK.A outperforms 62.63% of its industry peers.
A Quick Ratio of 1.11 indicates that BRK.A should not have too much problems paying its short term obligations.
BRK.A has a Quick ratio (1.11) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.11 |
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 17.97%, which is quite good.
Measured over the past years, BRK.A shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.78% on average per year.
BRK.A shows a small growth in Revenue. In the last year, the Revenue has grown by 0.60%.
Measured over the past years, BRK.A shows a small growth in Revenue. The Revenue has been growing by 7.84% on average per year.
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
The Earnings Per Share is expected to grow by 2.26% on average over the next years.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.11, BRK.A is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as BRK.A.
When comparing the Price/Earnings ratio of BRK.A to the average of the S&P500 Index (26.50), we can say BRK.A is valued inline with the index average.
A Price/Forward Earnings ratio of 22.61 indicates a rather expensive valuation of BRK.A.
62.63% of the companies in the same industry are cheaper than BRK.A, based on the Price/Forward Earnings ratio.
BRK.A is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.93, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.11 | ||
| Fwd PE | 22.61 |
4.2 Price Multiples
BRK.A's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as BRK.A.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.93 | ||
| EV/EBITDA | 14.96 |
4.3 Compensation for Growth
BRK.A has a very decent profitability rating, which 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
BRK.A does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
750560
+554 (+0.07%)
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 (4.59%)
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 | 22.11 | ||
| Fwd PE | 22.61 | ||
| P/S | 2.9 | ||
| P/FCF | 55.93 | ||
| P/OCF | 27.43 | ||
| P/B | 1.55 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 14.96 |
EPS(TTM)33941.21
EY4.52%
EPS(NY)33194.17
Fwd EY4.42%
FCF(TTM)13420.8
FCFY1.79%
OCF(TTM)27359.7
OCFY3.65%
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
WACC8.22%
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 22.11 and the Price/Book (PB) ratio is 1.55.