BERKSHIRE HATHAWAY INC-CL A (BRK.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRK.A - US0846701086 - Common Stock
754800 USD
-600 (-0.08%)
754800 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to BRK.A. BRK.A was compared to 98 industry peers in the Financial Services industry. BRK.A has only an average score on both its financial health and profitability. BRK.A is quite expensive at the moment. 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 5.50%, BRK.A is in the better half of the industry, outperforming 76.53% of the companies in the same industry.
The Return On Equity of BRK.A (9.66%) is comparable to the rest of the industry.
The Return On Invested Capital of BRK.A (4.53%) is better than 63.27% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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's Profit Margin of 18.13% is fine compared to the rest of the industry. BRK.A outperforms 69.39% of its industry peers.
BRK.A's Profit Margin has declined in the last couple of years.
BRK.A has a Operating Margin of 16.72%. This is in the better half of the industry: BRK.A outperforms 60.20% of its industry peers.
In the last couple of years the Operating Margin of BRK.A has grown nicely.
With a Gross Margin value of 17.71%, BRK.A is not doing good in the industry: 61.22% of the companies in the same industry are doing better.
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.
The number of shares outstanding for BRK.A has been reduced compared to 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 2.59 indicates that BRK.A is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.59, BRK.A belongs to the top of the industry, outperforming 82.65% of the companies in the same industry.
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 56.12% of its industry peers.
A Debt/Equity ratio of 0.18 indicates that BRK.A is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.18, BRK.A is doing good in the industry, outperforming 64.29% 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
WACC8.19%
2.3 Liquidity
A Current Ratio of 1.33 indicates that BRK.A should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.33, BRK.A is doing good in the industry, outperforming 62.24% of the companies in the same industry.
BRK.A has a Quick Ratio of 1.11. This is a normal value and indicates that BRK.A is financially healthy and should not expect problems in meeting 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 54.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.11 |
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 17.97%, which is quite good.
The Earnings Per Share has been growing by 17.78% on average over the past years. This is quite good.
BRK.A shows a small growth in Revenue. In the last year, the Revenue has grown by 0.60%.
The Revenue has been growing slightly by 7.84% on average over the past years.
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
Based on estimates for the next years, BRK.A will show a small growth in Earnings Per Share. The EPS will grow by 2.26% on average per year.
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.
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
Based on the Price/Earnings ratio of 22.24, the valuation of BRK.A can be described as rather expensive.
BRK.A's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.51, BRK.A is valued at the same level.
Based on the Price/Forward Earnings ratio of 22.74, the valuation of BRK.A can be described as rather expensive.
BRK.A's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BRK.A is more expensive than 64.29% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.13. BRK.A is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.24 | ||
| Fwd PE | 22.74 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BRK.A.
62.24% of the companies in the same industry are cheaper than BRK.A, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.24 | ||
| EV/EBITDA | 15.04 |
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)1.25
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% |
754800
-600 (-0.08%)
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 Change-97148.8%
Market Cap1.09T
Revenue(TTM)372.13B
Net Income(TTM)67.46B
Analysts44
Price Target784978 (4%)
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%
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 | 22.24 | ||
| Fwd PE | 22.74 | ||
| P/S | 2.92 | ||
| P/FCF | 56.24 | ||
| P/OCF | 27.59 | ||
| P/B | 1.56 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 15.04 |
EPS(TTM)33941.21
EY4.5%
EPS(NY)33194.17
Fwd EY4.4%
FCF(TTM)13420.8
FCFY1.78%
OCF(TTM)27359.7
OCFY3.62%
SpS258422.22
BVpS484829.86
TBVpS401744
PEG (NY)N/A
PEG (5Y)1.25
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
WACC8.19%
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.
What is the valuation status of BERKSHIRE HATHAWAY INC-CL A (BRK.A) stock?
ChartMill assigns a valuation rating of 2 / 10 to BERKSHIRE HATHAWAY INC-CL A (BRK.A). This can be considered as Overvalued.
How profitable is BERKSHIRE HATHAWAY INC-CL A (BRK.A) stock?
BERKSHIRE HATHAWAY INC-CL A (BRK.A) has a profitability rating of 6 / 10.
What is the valuation of BERKSHIRE HATHAWAY INC-CL A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BERKSHIRE HATHAWAY INC-CL A (BRK.A) is 22.24 and the Price/Book (PB) ratio is 1.56.
What is the earnings growth outlook for BERKSHIRE HATHAWAY INC-CL A?
The Earnings per Share (EPS) of BERKSHIRE HATHAWAY INC-CL A (BRK.A) is expected to decline by -0.45% in the next year.