BERKSHIRE HATHAWAY INC-CL A (BRK.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRK.A - US0846701086 - Common Stock
740750 USD
+2059 (+0.28%)
740750 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 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.
- 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
- Looking at the Return On Assets, with a value of 5.50%, BRK.A is in the better half of the industry, outperforming 77.55% of the companies in the same industry.
- The Return On Equity of BRK.A (9.66%) is comparable to the rest of the industry.
- Looking at the Return On Invested Capital, with a value of 4.53%, BRK.A is in the better half of the industry, outperforming 64.29% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years 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
- The Profit Margin of BRK.A (18.13%) is better than 70.41% of its industry peers.
- BRK.A's Profit Margin has declined in the last couple of years.
- The Operating Margin of BRK.A (16.72%) is better than 61.22% of its industry peers.
- BRK.A's Operating Margin has improved in the last couple of years.
- BRK.A has a Gross Margin of 17.71%. This is in the lower half of the industry: BRK.A underperforms 61.22% of its industry peers.
- BRK.A's Gross Margin has improved in the last couple of years.
| 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
- 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 2.57 indicates that BRK.A is not a great score, but indicates only limited risk for bankruptcy at the moment.
- BRK.A has a Altman-Z score of 2.57. This is amongst the best in the industry. BRK.A outperforms 80.61% of its industry peers.
- The Debt to FCF ratio of BRK.A is 6.58, which is on the high side as it means it would take BRK.A, 6.58 years of fcf income to pay off 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.
- A Debt/Equity ratio of 0.18 indicates that BRK.A is not too dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.18, BRK.A is in the better half of 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 | 2.57 |
ROIC/WACC0.55
WACC8.27%
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.
- A Quick Ratio of 1.11 indicates that BRK.A should not have too much problems paying its short term obligations.
- BRK.A has a Quick ratio (1.11) which 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
- The Earnings Per Share has grown by an nice 17.97% over the past year.
- Measured over the past years, BRK.A shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.78% on average per year.
- The Revenue has been growing slightly by 0.60% in the past 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
- BRK.A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.26% yearly.
- 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.
- 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 21.82, 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.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, BRK.A is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 22.32, the valuation of BRK.A can be described as rather expensive.
- Based on the Price/Forward Earnings ratio, BRK.A is valued a bit more expensive than 63.27% of the companies in the same industry.
- BRK.A is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.26, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.82 | ||
| Fwd PE | 22.32 |
4.2 Price Multiples
- BRK.A's Enterprise Value to EBITDA ratio is in line with the industry average.
- 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 | 55.19 | ||
| EV/EBITDA | 14.73 |
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)1.23
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% |
740750
+2059 (+0.28%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-01 2025-11-01/bmo
Earnings (Next)02-20 2026-02-20/bmo
Inst Owners26.93%
Inst Owner Change0.04%
Ins Owners37.74%
Ins Owner Change7.83%
Market Cap1.07T
Revenue(TTM)372.13B
Net Income(TTM)67.46B
Analysts44
Price Target784978 (5.97%)
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 | 21.82 | ||
| Fwd PE | 22.32 | ||
| P/S | 2.87 | ||
| P/FCF | 55.19 | ||
| P/OCF | 27.07 | ||
| P/B | 1.53 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 14.73 |
EPS(TTM)33941.21
EY4.58%
EPS(NY)33194.17
Fwd EY4.48%
FCF(TTM)13420.8
FCFY1.81%
OCF(TTM)27359.7
OCFY3.69%
SpS258422.22
BVpS484829.86
TBVpS401744
PEG (NY)N/A
PEG (5Y)1.23
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 | 2.57 |
F-Score4
WACC8.27%
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 21.82 and the Price/Book (PB) ratio is 1.53.
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.