BERKSHIRE HATHAWAY INC-CL A (BRK.A) Stock Fundamental Analysis
NYSE:BRK.A - New York Stock Exchange, Inc. - US0846701086 - Common Stock - Currency: USD
Taking everything into account, BRK.A scores 5 out of 10 in our fundamental rating. BRK.A was compared to 101 industry peers in the Financial Services industry. While BRK.A belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, BRK.A is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
BRK.A had positive earnings in the past year.
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 Return On Assets of 9.32%. This is amongst the best in the industry. BRK.A outperforms 86.14% of its industry peers.
With a decent Return On Equity value of 16.99%, BRK.A is doing good in the industry, outperforming 75.25% of the companies in the same industry.
BRK.A has a Return On Invested Capital of 4.17%. This is in the better half of the industry: BRK.A outperforms 60.40% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BRK.A is below the industry average of 7.75%.
The 3 year average ROIC (3.67%) for BRK.A is below the current ROIC(4.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 16.99% | ||
| ROIC | 4.17% |
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.A's Profit Margin of 28.89% is amongst the best of the industry. BRK.A outperforms 81.19% of its industry peers.
BRK.A's Profit Margin has improved in the last couple of years.
BRK.A has a Operating Margin of 14.54%. This is comparable to the rest of the industry: BRK.A outperforms 50.49% of its industry peers.
In the last couple of years the Operating Margin of BRK.A has remained more or less at the same level.
Looking at the Gross Margin, with a value of 22.21%, BRK.A is in line with its industry, outperforming 42.57% of the companies in the same industry.
In the last couple of years the Gross Margin of BRK.A has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.54% | ||
| PM (TTM) | 28.89% | ||
| GM | 22.21% |
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.A is destroying value.
BRK.A has less shares outstanding than it did 1 year ago.
BRK.A has less shares outstanding than it did 5 years ago.
BRK.A has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.51 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 (2.51) is better than 81.19% of its industry peers.
BRK.A has a debt to FCF ratio of 5.92. This is a neutral value as BRK.A would need 5.92 years to pay back of all of its debts.
BRK.A's Debt to FCF ratio of 5.92 is in line compared to the rest of the industry. BRK.A outperforms 58.42% of its industry peers.
BRK.A has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
BRK.A has a Debt to Equity ratio of 0.20. This is in the better half of the industry: BRK.A outperforms 67.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 5.92 | ||
| Altman-Z | 2.51 |
ROIC/WACC0.28
WACC14.64%
2.3 Liquidity
A Current Ratio of 1.06 indicates that BRK.A should not have too much problems paying its short term obligations.
BRK.A has a Current ratio (1.06) which is in line with its industry peers.
A Quick Ratio of 0.84 indicates that BRK.A may have some problems paying its short term obligations.
BRK.A has a Quick ratio (0.84) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.49% over the past year.
BRK.A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.33% yearly.
BRK.A shows a small growth in Revenue. In the last year, the Revenue has grown by 5.93%.
BRK.A shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.02% yearly.
EPS 1Y (TTM)17.49%
EPS 3Y23.42%
EPS 5Y11.33%
EPS Q2Q%-5.57%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y14.07%
Revenue growth 5Y8.02%
Sales Q2Q%-0.23%
3.2 Future
The Earnings Per Share is expected to grow by 7.19% on average over the next years.
Based on estimates for the next years, BRK.A will show a decrease in Revenue. The Revenue will decrease by -1.07% on average per year.
EPS Next Y18.44%
EPS Next 2Y9.28%
EPS Next 3Y8.39%
EPS Next 5Y7.19%
Revenue Next Year-8.23%
Revenue Next 2Y-3.76%
Revenue Next 3Y-1.07%
Revenue Next 5YN/A
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 24.98, BRK.A is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of BRK.A is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 29.63, BRK.A is valued at the same level.
With a Price/Forward Earnings ratio of 23.34, BRK.A is valued on the expensive side.
63.37% of the companies in the same industry are cheaper than BRK.A, based on the Price/Forward Earnings ratio.
BRK.A's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | 23.34 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BRK.A.
The rest of the industry has a similar Price/Free Cash Flow ratio as BRK.A.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.21 | ||
| EV/EBITDA | 16.94 |
4.3 Compensation for Growth
BRK.A's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BRK.A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.35
PEG (5Y)2.21
EPS Next 2Y9.28%
EPS Next 3Y8.39%
5. Dividend
5.1 Amount
No dividends for BRK.A!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
718750
-4230 (-0.59%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners33.43%
Inst Owner Change-53.36%
Ins Owners37.69%
Ins Owner Change15.82%
Market Cap1035.00B
Analysts80
Price Target780111 (8.54%)
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)5.42%
Min EPS beat(2)-10.41%
Max EPS beat(2)21.24%
EPS beat(4)3
Avg EPS beat(4)6.52%
Min EPS beat(4)-10.41%
Max EPS beat(4)21.24%
EPS beat(8)5
Avg EPS beat(8)4.06%
EPS beat(12)9
Avg EPS beat(12)7.7%
EPS beat(16)11
Avg EPS beat(16)6.76%
Revenue beat(2)0
Avg Revenue beat(2)-3.94%
Min Revenue beat(2)-7.69%
Max Revenue beat(2)-0.18%
Revenue beat(4)2
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-7.69%
Max Revenue beat(4)2.53%
Revenue beat(8)4
Avg Revenue beat(8)0.01%
Revenue beat(12)5
Avg Revenue beat(12)-0.64%
Revenue beat(16)6
Avg Revenue beat(16)-0.92%
PT rev (1m)0.32%
PT rev (3m)2.66%
EPS NQ rev (1m)2.77%
EPS NQ rev (3m)-3.81%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.45%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)1.86%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.98 | ||
| Fwd PE | 23.34 | ||
| P/S | 2.8 | ||
| P/FCF | 49.21 | ||
| P/OCF | 25.64 | ||
| P/B | 1.65 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 16.94 |
EPS(TTM)28769.85
EY4%
EPS(NY)30790.98
Fwd EY4.28%
FCF(TTM)14606.9
FCFY2.03%
OCF(TTM)28035.4
OCFY3.9%
SpS256870.14
BVpS436853.47
TBVpS352928
PEG (NY)1.35
PEG (5Y)2.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 16.99% | ||
| ROCE | 5.17% | ||
| ROIC | 4.17% | ||
| ROICexc | 4.32% | ||
| ROICexgc | 5.2% | ||
| OM | 14.54% | ||
| PM (TTM) | 28.89% | ||
| GM | 22.21% | ||
| FCFM | 5.69% |
ROA(3y)5.32%
ROA(5y)6.16%
ROE(3y)10.03%
ROE(5y)11.77%
ROIC(3y)3.67%
ROIC(5y)3.49%
ROICexc(3y)3.9%
ROICexc(5y)3.72%
ROICexgc(3y)4.73%
ROICexgc(5y)4.56%
ROCE(3y)4.55%
ROCE(5y)4.33%
ROICexcg growth 3Y9.51%
ROICexcg growth 5Y-1.51%
ROICexc growth 3Y10.16%
ROICexc growth 5Y-0.44%
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%
F-Score6
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 5.92 | ||
| Debt/EBITDA | 1.87 | ||
| Cap/Depr | 152.25% | ||
| Cap/Sales | 5.23% | ||
| Interest Coverage | 10.63 | ||
| Cash Conversion | 60.72% | ||
| Profit Quality | 19.68% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 2.51 |
F-Score6
WACC14.64%
ROIC/WACC0.28
Cap/Depr(3y)140.4%
Cap/Depr(5y)140.55%
Cap/Sales(3y)5.08%
Cap/Sales(5y)5.37%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.49%
EPS 3Y23.42%
EPS 5Y11.33%
EPS Q2Q%-5.57%
EPS Next Y18.44%
EPS Next 2Y9.28%
EPS Next 3Y8.39%
EPS Next 5Y7.19%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y14.07%
Revenue growth 5Y8.02%
Sales Q2Q%-0.23%
Revenue Next Year-8.23%
Revenue Next 2Y-3.76%
Revenue Next 3Y-1.07%
Revenue Next 5YN/A
EBIT growth 1Y18.64%
EBIT growth 3Y18.51%
EBIT growth 5Y8.28%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5.69%
FCF growth 3Y3.64%
FCF growth 5Y5.43%
OCF growth 1Y15.88%
OCF growth 3Y7.34%
OCF growth 5Y5.64%