BERKSHIRE HATHAWAY INC-CL A (BRK.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRK.A - US0846701086 - Common Stock
747860 USD
-200 (-0.03%)
747860 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. 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.
BRK.A had a positive operating cash flow in the past year.
Of the past 5 years BRK.A 4 years were profitable.
Each year in the past 5 years BRK.A had a positive operating cash flow.
1.2 Ratios
BRK.A has a Return On Assets of 5.50%. This is in the better half of the industry: BRK.A outperforms 77.55% of its industry peers.
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 64.29% of its industry peers.
BRK.A had an Average Return On Invested Capital over the past 3 years of 4.13%. This is below the industry average of 8.44%.
The last Return On Invested Capital (4.53%) for BRK.A is above the 3 year average (4.13%), which is a sign of increasing profitability.
| 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 70.41% of its industry peers.
In the last couple of years the Profit Margin of BRK.A has declined.
BRK.A has a better Operating Margin (16.72%) than 61.22% of its industry peers.
In the last couple of years the Operating Margin of BRK.A has grown nicely.
The Gross Margin of BRK.A (17.71%) is worse than 61.22% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BRK.A is destroying value.
Compared to 1 year ago, BRK.A has less shares outstanding
BRK.A has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BRK.A has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.58 indicates that BRK.A is not a great score, but indicates only limited risk for bankruptcy at the moment.
BRK.A's Altman-Z score of 2.58 is amongst the best of the industry. BRK.A outperforms 80.61% 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.
Looking at the Debt to FCF ratio, with a value of 6.58, BRK.A is in line with its industry, outperforming 56.12% of the companies in the same industry.
BRK.A has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
BRK.A has a Debt to Equity ratio of 0.18. This is in the better half of the industry: BRK.A outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.55
WACC8.22%
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 better Current ratio (1.33) than 62.24% of its industry peers.
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.
The Quick ratio of BRK.A (1.11) is comparable to the rest of the industry.
| 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.
Looking at the last year, BRK.A shows a small growth in Revenue. The Revenue has grown by 0.60% in the last year.
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
The Earnings Per Share is expected to grow by 2.26% on average over the next years.
The Revenue is expected to grow by 4.89% on average over the next years.
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
Based on the Price/Earnings ratio of 22.03, the valuation of BRK.A can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of BRK.A is on the same level as its industry peers.
BRK.A is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.53, which indicates a rather expensive current valuation of BRK.A.
63.27% 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 23.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.03 | ||
| Fwd PE | 22.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BRK.A is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, BRK.A is valued a bit more expensive than 61.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.72 | ||
| EV/EBITDA | 14.91 |
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
BRK.A does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
747860
-200 (-0.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners26.93%
Inst Owner Change0.04%
Ins Owners37.74%
Ins Owner Change7.83%
Market Cap1.08T
Revenue(TTM)372.13B
Net Income(TTM)67.46B
Analysts44
Price Target784978 (4.96%)
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)0%
EPS NY rev (3m)3.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.03 | ||
| Fwd PE | 22.53 | ||
| P/S | 2.89 | ||
| P/FCF | 55.72 | ||
| P/OCF | 27.33 | ||
| P/B | 1.54 | ||
| P/tB | 1.86 | ||
| EV/EBITDA | 14.91 |
EPS(TTM)33941.21
EY4.54%
EPS(NY)33194.17
Fwd EY4.44%
FCF(TTM)13420.8
FCFY1.79%
OCF(TTM)27359.7
OCFY3.66%
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 | 2.58 |
F-Score4
WACC8.22%
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 22.03 and the Price/Book (PB) ratio is 1.54.
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.