BERKSHIRE HATHAWAY INC-CL A (BRK.A)
US0846701086 - Common Stock
Taking everything into account, BRK.A scores 5 out of 10 in our fundamental rating. BRK.A was compared to 102 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 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.
In the past year BRK.A had a positive cash flow from operations.
BRK.A had positive earnings in 4 of the past 5 years.
Each year in the past 5 years BRK.A had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 8.99%, BRK.A belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
BRK.A has a Return On Equity of 17.14%. This is in the better half of the industry: BRK.A outperforms 77.45% of its industry peers.
BRK.A has a better Return On Invested Capital (3.97%) than 64.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BRK.A is below the industry average of 7.98%.
The 3 year average ROIC (3.67%) for BRK.A is below the current ROIC(3.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.99% | ||
| ROE | 17.14% | ||
| ROIC | 3.97% |
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
Looking at the Profit Margin, with a value of 26.40%, BRK.A is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
BRK.A's Profit Margin has improved in the last couple of years.
BRK.A's Operating Margin of 13.26% is in line compared to the rest of the industry. BRK.A outperforms 51.96% of its industry peers.
BRK.A's Operating Margin has been stable in the last couple of years.
BRK.A has a Gross Margin (20.57%) which is in line with its industry peers.
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 | 13.26% | ||
| PM (TTM) | 26.4% | ||
| GM | 20.57% |
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.
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 2.36 indicates that BRK.A is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.36, BRK.A belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
The Debt to FCF ratio of BRK.A is 4.31, which is a neutral value as it means it would take BRK.A, 4.31 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.31, BRK.A is in the better half of the industry, outperforming 63.73% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that BRK.A is not too dependend on debt financing.
BRK.A's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. BRK.A outperforms 63.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 4.31 | ||
| Altman-Z | 2.36 |
ROIC/WACC0.47
WACC8.39%
2.3 Liquidity
A Current Ratio of 1.25 indicates that BRK.A should not have too much problems paying its short term obligations.
The Current ratio of BRK.A (1.25) is comparable to the rest of the industry.
BRK.A has a Quick Ratio of 1.25. This is a bad value and indicates that BRK.A is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.98, BRK.A perfoms like the industry average, outperforming 43.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.99% 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.
Looking at the last year, BRK.A shows a very strong growth in Revenue. The Revenue has grown by 20.68%.
Measured over the past years, BRK.A shows a quite strong growth in Revenue. The Revenue has been growing by 8.02% on average per year.
EPS 1Y (TTM)22.99%
EPS 3Y23.42%
EPS 5Y11.33%
EPS growth Q2Q28.22%
Revenue 1Y (TTM)20.68%
Revenue growth 3Y14.07%
Revenue growth 5Y8.02%
Revenue growth Q2Q19.6%
3.2 Future
The Earnings Per Share is expected to grow by 10.92% on average over the next years. This is quite good.
BRK.A is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.28% yearly.
EPS Next Y7.82%
EPS Next 2Y7.12%
EPS Next 3Y7.8%
EPS Next 5Y10.92%
Revenue Next Year-10.91%
Revenue Next 2Y-3.13%
Revenue Next 3Y-3.28%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
Based on the Price/Earnings ratio of 24.02, the valuation of BRK.A can be described as rather expensive.
BRK.A's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.53. BRK.A is around the same levels.
The Price/Forward Earnings ratio is 22.28, which indicates a rather expensive current valuation of BRK.A.
60.78% 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 (20.31), we can say BRK.A is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 22.28 |
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 | 29.94 | ||
| EV/EBITDA | 16.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of BRK.A may justify a higher PE ratio.
PEG (NY)3.07
PEG (5Y)2.12
EPS Next 2Y7.12%
EPS Next 3Y7.8%
5. Dividend
5.1 Amount
BRK.A does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BERKSHIRE HATHAWAY INC-CL A
NYSE:BRK.A (5/14/2024, 7:23:41 PM)
619250
-1750 (-0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap891.72B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 22.28 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.07
PEG (5Y)2.12
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.99% | ||
| ROE | 17.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.26% | ||
| PM (TTM) | 26.4% | ||
| GM | 20.57% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)22.99%
EPS 3Y23.42%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.68%
Revenue growth 3Y14.07%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y