BERKSHIRE HATHAWAY INC-CL A (BRK.A)

US0846701086 - Common Stock

682500  +9226 (+1.37%)

After market: 682500 0 (0%)

Fundamental Rating

5

Taking everything into account, BRK.A scores 5 out of 10 in our fundamental rating. BRK.A was compared to 99 industry peers in the Financial Services industry. BRK.A has an excellent profitability rating, but there are some minor concerns on its financial health. BRK.A is quite expensive at the moment. It does show a decent growth rate.



7

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.
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

BRK.A has a Return On Assets of 9.32%. This is amongst the best in the industry. BRK.A outperforms 87.88% of its industry peers.
Looking at the Return On Equity, with a value of 16.99%, BRK.A is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
The Return On Invested Capital of BRK.A (4.17%) is better than 61.62% of its industry peers.
BRK.A had an Average Return On Invested Capital over the past 3 years of 3.67%. This is below the industry average of 7.84%.
The last Return On Invested Capital (4.17%) for BRK.A is above the 3 year average (3.67%), which is a sign of increasing profitability.
Industry RankSector 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

With an excellent Profit Margin value of 28.89%, BRK.A belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
In the last couple of years the Profit Margin of BRK.A has grown nicely.
The Operating Margin of BRK.A (14.54%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of BRK.A has remained more or less at the same level.
With a Gross Margin value of 22.21%, BRK.A perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
BRK.A's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%

5

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.
Compared to 1 year ago, BRK.A has an improved debt to assets ratio.

2.2 Solvency

An Altman-Z score of 2.43 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 (2.43) is better than 80.81% of its industry peers.
The Debt to FCF ratio of BRK.A is 5.92, which is a neutral value as it means it would take BRK.A, 5.92 years of fcf income to pay off all of its debts.
BRK.A's Debt to FCF ratio of 5.92 is fine compared to the rest of the industry. BRK.A outperforms 60.61% 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.
With a decent Debt to Equity ratio value of 0.20, BRK.A is doing good in the industry, outperforming 66.67% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 5.92
Altman-Z 2.43
ROIC/WACC0.49
WACC8.53%

2.3 Liquidity

A Current Ratio of 1.06 indicates that BRK.A should not have too much problems paying its short term obligations.
The Current ratio of BRK.A (1.06) is comparable to the rest of the industry.
BRK.A has a Quick Ratio of 1.06. 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.
BRK.A has a Quick ratio (0.84) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.06
Quick Ratio 0.84

4

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 17.49%, 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 11.33% on average per year.
Looking at the last year, BRK.A shows a small growth in Revenue. The Revenue has grown by 5.93% in the last year.
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)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.
BRK.A is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -1.09% yearly.
EPS Next Y18.45%
EPS Next 2Y9.43%
EPS Next 3Y8.24%
EPS Next 5Y7.19%
Revenue Next Year-8.21%
Revenue Next 2Y-3.7%
Revenue Next 3Y-1.09%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less 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.

3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 23.72, the valuation of BRK.A can be described as rather expensive.
BRK.A's Price/Earnings ratio is in line with the industry average.
BRK.A's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.73.
With a Price/Forward Earnings ratio of 22.11, BRK.A is valued on the expensive side.
69.70% 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 22.83.
Industry RankSector Rank
PE 23.72
Fwd PE 22.11

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 is on the same level as the industry average.
Industry RankSector Rank
P/FCF 46.72
EV/EBITDA 15.87

4.3 Compensation for Growth

The 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)1.29
PEG (5Y)2.09
EPS Next 2Y9.43%
EPS Next 3Y8.24%

0

5. Dividend

5.1 Amount

BRK.A does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

BERKSHIRE HATHAWAY INC-CL A

NYSE:BRK.A (12/20/2024, 9:51:12 PM)

After market: 682500 0 (0%)

682500

+9226 (+1.37%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-04 2024-11-04/bmo
Earnings (Next)N/A N/A
Inst Owners68.83%
Inst Owner Change582.14%
Ins Owners0.89%
Ins Owner Change25.34%
Market Cap982.80B
Analysts80
Price Target777587 (13.93%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/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)2.33%
PT rev (3m)6.57%
EPS NQ rev (1m)-6.4%
EPS NQ rev (3m)-8.36%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)1.94%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)1%
Valuation
Industry RankSector Rank
PE 23.72
Fwd PE 22.11
P/S 2.66
P/FCF 46.72
P/OCF 24.34
P/B 1.56
P/tB 1.93
EV/EBITDA 15.87
EPS(TTM)28769.85
EY4.22%
EPS(NY)30874.16
Fwd EY4.52%
FCF(TTM)14606.9
FCFY2.14%
OCF(TTM)28035.4
OCFY4.11%
SpS256870.14
BVpS436853.47
TBVpS352928
PEG (NY)1.29
PEG (5Y)2.09
Profitability
Industry RankSector 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 RankSector 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 2.43
F-Score6
WACC8.53%
ROIC/WACC0.49
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 Y18.45%
EPS Next 2Y9.43%
EPS Next 3Y8.24%
EPS Next 5Y7.19%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y14.07%
Revenue growth 5Y8.02%
Sales Q2Q%-0.23%
Revenue Next Year-8.21%
Revenue Next 2Y-3.7%
Revenue Next 3Y-1.09%
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%