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. Both the profitability and the financial health of BRK.A get a neutral evaluation. Nothing too spectacular is happening here. BRK.A is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BRK.A had positive earnings in the past year.
In the past year BRK.A had a positive cash flow from operations.
Of the past 5 years BRK.A 4 years were profitable.
In the past 5 years BRK.A always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.50%, BRK.A is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
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 3 year average ROIC (4.13%) for BRK.A is below the current ROIC(4.53%), indicating increased profibility in the last year.
| 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
BRK.A has a better Profit Margin (18.13%) than 70.71% of its industry peers.
BRK.A's Profit Margin has declined in the last couple of years.
BRK.A has a better Operating Margin (16.72%) than 61.62% of its industry peers.
BRK.A's Operating Margin has improved in the last couple of years.
BRK.A's Gross Margin of 17.71% is on the low side compared to the rest of the industry. BRK.A is outperformed by 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
Compared to 1 year ago, BRK.A has an improved debt to assets ratio.
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.
BRK.A has a better Altman-Z score (2.59) 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.
BRK.A has a Debt to FCF ratio of 6.58. This is comparable to the rest of the industry: BRK.A outperforms 56.57% of its industry peers.
BRK.A has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.18, BRK.A is in the better half of 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
WACC8.23%
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 of 1.11. This is comparable to the rest of the industry: BRK.A outperforms 54.55% of its industry peers.
| 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.
BRK.A 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 0.60% in the past year.
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.
Based on estimates for the next years, BRK.A will show a small growth in Revenue. The Revenue will grow by 4.89% on average per year.
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
With a Price/Earnings ratio of 22.13, BRK.A is valued on the expensive side.
BRK.A's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.59, BRK.A is valued at the same level.
BRK.A is valuated rather expensively with a Price/Forward Earnings ratio of 22.63.
BRK.A's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BRK.A is more expensive than 62.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.03, BRK.A is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.13 | ||
| Fwd PE | 22.63 |
4.2 Price Multiples
BRK.A's Enterprise Value to EBITDA ratio is in line with the industry average.
BRK.A's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.98 | ||
| EV/EBITDA | 14.97 |
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
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
WACC8.23%
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.