BERKSHIRE HATHAWAY INC-CL B (BRK.B) Stock Fundamental Analysis
USA - NYSE:BRK.B - US0846707026 - Common Stock
491.54 USD
-2.2 (-0.45%)
492 USD
+0.46 (+0.09%)
We assign a fundamental rating of 5 out of 10 to BRK.B. BRK.B was compared to 101 industry peers in the Financial Services industry. Both the profitability and the financial health of BRK.B get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, BRK.B is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
BRK.B had positive earnings in the past year.
BRK.B had a positive operating cash flow in the past year.
BRK.B had positive earnings in 4 of the past 5 years.
In the past 5 years BRK.B always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.41%, BRK.B is in the better half of the industry, outperforming 77.23% of the companies in the same industry.
BRK.B has a Return On Equity (9.42%) which is in line with its industry peers.
BRK.B has a Return On Invested Capital of 4.37%. This is in the better half of the industry: BRK.B outperforms 61.39% of its industry peers.
BRK.B had an Average Return On Invested Capital over the past 3 years of 4.13%. This is below the industry average of 7.64%.
The last Return On Invested Capital (4.37%) for BRK.B is above the 3 year average (4.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.41% | ||
| ROE | 9.42% | ||
| ROIC | 4.37% |
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.B has a better Profit Margin (17.00%) than 70.30% of its industry peers.
BRK.B's Profit Margin has declined in the last couple of years.
The Operating Margin of BRK.B (15.70%) is comparable to the rest of the industry.
BRK.B's Operating Margin has improved in the last couple of years.
BRK.B has a Gross Margin of 16.97%. This is in the lower half of the industry: BRK.B underperforms 63.37% of its industry peers.
BRK.B's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.7% | ||
| PM (TTM) | 17% | ||
| GM | 16.97% |
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.B is destroying value.
Compared to 1 year ago, BRK.B has less shares outstanding
Compared to 5 years ago, BRK.B has less shares outstanding
BRK.B has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.71 indicates that BRK.B is not a great score, but indicates only limited risk for bankruptcy at the moment.
BRK.B has a better Altman-Z score (2.71) than 82.18% of its industry peers.
BRK.B has a debt to FCF ratio of 15.44. This is a negative value and a sign of low solvency as BRK.B would need 15.44 years to pay back of all of its debts.
BRK.B's Debt to FCF ratio of 15.44 is in line compared to the rest of the industry. BRK.B outperforms 51.49% of its industry peers.
BRK.B has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.19, BRK.B is in the better half of the industry, outperforming 67.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.44 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.54
WACC8.11%
2.3 Liquidity
BRK.B has a Current Ratio of 1.95. This is a normal value and indicates that BRK.B is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of BRK.B (1.95) is better than 75.25% of its industry peers.
A Quick Ratio of 1.68 indicates that BRK.B should not have too much problems paying its short term obligations.
The Quick ratio of BRK.B (1.68) is better than 73.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.24% over the past year.
BRK.B shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.78% yearly.
Looking at the last year, BRK.B shows a small growth in Revenue. The Revenue has grown by 0.01% in the last year.
The Revenue has been growing slightly by 7.84% on average over the past years.
EPS 1Y (TTM)8.24%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%-3.87%
Revenue 1Y (TTM)0.01%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%-1.22%
3.2 Future
The Earnings Per Share is expected to grow by 2.26% on average over the next years.
BRK.B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.89% yearly.
EPS Next Y-3.47%
EPS Next 2Y0.07%
EPS Next 3Y2.03%
EPS Next 5Y2.26%
Revenue Next Year0.77%
Revenue Next 2Y0.48%
Revenue Next 3Y1.6%
Revenue Next 5Y4.89%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
With a Price/Earnings ratio of 23.34, BRK.B is valued on the expensive side.
60.40% of the companies in the same industry are cheaper than BRK.B, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BRK.B to the average of the S&P500 Index (27.27), we can say BRK.B is valued inline with the index average.
The Price/Forward Earnings ratio is 22.32, which indicates a rather expensive current valuation of BRK.B.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BRK.B indicates a slightly more expensive valuation: BRK.B is more expensive than 64.36% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, BRK.B is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.34 | ||
| Fwd PE | 22.32 |
4.2 Price Multiples
BRK.B's Enterprise Value to EBITDA ratio is in line with the industry average.
BRK.B's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 129.09 | ||
| EV/EBITDA | 15.24 |
4.3 Compensation for Growth
The decent profitability rating of BRK.B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.31
EPS Next 2Y0.07%
EPS Next 3Y2.03%
5. Dividend
5.1 Amount
No dividends for BRK.B!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
491.54
-2.2 (-0.45%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners33.77%
Inst Owner Change2.6%
Ins Owners36.68%
Ins Owner ChangeN/A
Market Cap1061.73B
Analysts80
Price Target533.66 (8.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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)-4.8%
Min EPS beat(2)-9.78%
Max EPS beat(2)0.19%
EPS beat(4)2
Avg EPS beat(4)5.7%
Min EPS beat(4)-10.41%
Max EPS beat(4)42.8%
EPS beat(8)6
Avg EPS beat(8)8.53%
EPS beat(12)8
Avg EPS beat(12)6.49%
EPS beat(16)11
Avg EPS beat(16)7.41%
Revenue beat(2)0
Avg Revenue beat(2)-3.21%
Min Revenue beat(2)-4.09%
Max Revenue beat(2)-2.33%
Revenue beat(4)0
Avg Revenue beat(4)-3.53%
Min Revenue beat(4)-7.69%
Max Revenue beat(4)-0.01%
Revenue beat(8)3
Avg Revenue beat(8)-1.26%
Revenue beat(12)4
Avg Revenue beat(12)-0.85%
Revenue beat(16)5
Avg Revenue beat(16)-1.25%
PT rev (1m)0.24%
PT rev (3m)-0.52%
EPS NQ rev (1m)2.89%
EPS NQ rev (3m)2.8%
EPS NY rev (1m)2.72%
EPS NY rev (3m)2.36%
Revenue NQ rev (1m)-0.61%
Revenue NQ rev (3m)-1.13%
Revenue NY rev (1m)3.38%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.34 | ||
| Fwd PE | 22.32 | ||
| P/S | 2.87 | ||
| P/FCF | 129.09 | ||
| P/OCF | 38.73 | ||
| P/B | 1.59 | ||
| P/tB | 1.94 | ||
| EV/EBITDA | 15.24 |
EPS(TTM)21.06
EY4.28%
EPS(NY)22.03
Fwd EY4.48%
FCF(TTM)3.81
FCFY0.77%
OCF(TTM)12.69
OCFY2.58%
SpS171.37
BVpS309.25
TBVpS253.97
PEG (NY)N/A
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.41% | ||
| ROE | 9.42% | ||
| ROCE | 5.42% | ||
| ROIC | 4.37% | ||
| ROICexc | 4.82% | ||
| ROICexgc | 5.84% | ||
| OM | 15.7% | ||
| PM (TTM) | 17% | ||
| GM | 16.97% | ||
| FCFM | 2.22% |
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%
ROICexcg growth 3Y9.15%
ROICexcg 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 Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.44 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 146.66% | ||
| Cap/Sales | 5.18% | ||
| Interest Coverage | 11.47 | ||
| Cash Conversion | 38.5% | ||
| Profit Quality | 13.07% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 2.71 |
F-Score4
WACC8.11%
ROIC/WACC0.54
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)8.24%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%-3.87%
EPS Next Y-3.47%
EPS Next 2Y0.07%
EPS Next 3Y2.03%
EPS Next 5Y2.26%
Revenue 1Y (TTM)0.01%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%-1.22%
Revenue Next Year0.77%
Revenue Next 2Y0.48%
Revenue Next 3Y1.6%
Revenue Next 5Y4.89%
EBIT growth 1Y6.42%
EBIT growth 3Y18.52%
EBIT growth 5Y13.14%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-68.47%
FCF growth 3Y-23.7%
FCF growth 5Y-12.55%
OCF growth 1Y-36.42%
OCF growth 3Y-8.11%
OCF growth 5Y-4.59%