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BERKSHIRE HATHAWAY INC-CL A (BRK.A) Stock Fundamental Analysis

NYSE:BRK.A - New York Stock Exchange, Inc. - US0846701086 - Common Stock

702760  +9856 (+1.42%)

After market: 702760 0 (0%)

Fundamental Rating

5

Overall BRK.A gets a fundamental rating of 5 out of 10. We evaluated BRK.A against 101 industry peers in the Financial Services industry. While BRK.A has a great profitability rating, there are some minor concerns on its financial health. BRK.A is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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7

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.
BRK.A Yearly Net Income VS EBIT VS OCF VS FCFBRK.A Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20B -20B 40B 60B 80B

1.2 Ratios

BRK.A has a Return On Assets of 9.32%. This is amongst the best in the industry. BRK.A outperforms 87.13% of its industry peers.
BRK.A has a better Return On Equity (16.99%) than 77.23% of its industry peers.
BRK.A's Return On Invested Capital of 4.17% is fine compared to the rest of the industry. BRK.A outperforms 61.39% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BRK.A is below the industry average of 7.84%.
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 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%
BRK.A Yearly ROA, ROE, ROICBRK.A Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15

1.3 Margins

Looking at the Profit Margin, with a value of 28.89%, BRK.A belongs to the top of the industry, outperforming 81.19% of the companies in the same industry.
BRK.A's Profit Margin has improved in the last couple of years.
BRK.A has a Operating Margin (14.54%) which 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.
Looking at the Gross Margin, with a value of 22.21%, BRK.A is in line with its industry, outperforming 43.56% 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 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%
BRK.A Yearly Profit, Operating, Gross MarginsBRK.A Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

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5

2. Health

2.1 Basic Checks

BRK.A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BRK.A has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BRK.A has less shares outstanding
The debt/assets ratio for BRK.A has been reduced compared to a year ago.
BRK.A Yearly Shares OutstandingBRK.A Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500K 1M 1.5M
BRK.A Yearly Total Debt VS Total AssetsBRK.A Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200B 400B 600B 800B 1T

2.2 Solvency

An Altman-Z score of 2.48 indicates that BRK.A is not a great score, but indicates only limited risk for bankruptcy at the moment.
BRK.A has a better Altman-Z score (2.48) than 81.19% 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 has a Debt to FCF ratio of 5.92. This is in the better half of the industry: BRK.A outperforms 60.40% 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's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. BRK.A outperforms 66.34% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 5.92
Altman-Z 2.48
ROIC/WACC0.49
WACC8.58%
BRK.A Yearly LT Debt VS Equity VS FCFBRK.A Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 100B 200B 300B 400B 500B

2.3 Liquidity

BRK.A has a Current Ratio of 1.06. This is a normal value and indicates that BRK.A is financially healthy and should not expect problems in meeting 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 of 0.84. This is comparable to the rest of the industry: BRK.A outperforms 42.57% of its industry peers.
Industry RankSector Rank
Current Ratio 1.06
Quick Ratio 0.84
BRK.A Yearly Current Assets VS Current LiabilitesBRK.A Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50B 100B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 17.49% over the past year.
The Earnings Per Share has been growing by 11.33% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.93% in the past year.
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

BRK.A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.19% yearly.
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.
BRK.A Yearly Revenue VS EstimatesBRK.A Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 100B 200B 300B 400B
BRK.A Yearly EPS VS EstimatesBRK.A Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 10K 20K 30K

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3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 24.43, BRK.A is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as BRK.A.
BRK.A's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.94.
BRK.A is valuated rather expensively with a Price/Forward Earnings ratio of 22.76.
Based on the Price/Forward Earnings ratio, BRK.A is valued a bit more expensive than the industry average as 68.32% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.11, BRK.A is valued at the same level.
Industry RankSector Rank
PE 24.43
Fwd PE 22.76
BRK.A Price Earnings VS Forward Price EarningsBRK.A Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

BRK.A's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BRK.A is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 48.11
EV/EBITDA 16.5
BRK.A Per share dataBRK.A EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 100K 200K 300K 400K

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)1.32
PEG (5Y)2.16
EPS Next 2Y9.43%
EPS Next 3Y8.24%

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0

5. Dividend

5.1 Amount

No dividends for BRK.A!.
Industry RankSector Rank
Dividend Yield N/A

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BERKSHIRE HATHAWAY INC-CL A

NYSE:BRK.A (1/17/2025, 9:52:22 PM)

After market: 702760 0 (0%)

702760

+9856 (+1.42%)

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 Owners19.07%
Inst Owner Change-71.6%
Ins Owners37.89%
Ins Owner Change15.82%
Market Cap1011.97B
Analysts80
Price Target777587 (10.65%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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%
PT rev (3m)6.57%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1%
Valuation
Industry RankSector Rank
PE 24.43
Fwd PE 22.76
P/S 2.74
P/FCF 48.11
P/OCF 25.07
P/B 1.61
P/tB 1.99
EV/EBITDA 16.5
EPS(TTM)28769.85
EY4.09%
EPS(NY)30874.16
Fwd EY4.39%
FCF(TTM)14606.9
FCFY2.08%
OCF(TTM)28035.4
OCFY3.99%
SpS256870.14
BVpS436853.47
TBVpS352928
PEG (NY)1.32
PEG (5Y)2.16
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 2.48
F-Score6
WACC8.58%
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%