BERKSHIRE HATHAWAY INC-CL B (BRK.B) Stock Fundamental Analysis
USA - NYSE:BRK.B - US0846707026 - Common Stock
508.94 USD
-4.17 (-0.81%)
508.6 USD
-0.34 (-0.07%)
We assign a fundamental rating of 5 out of 10 to BRK.B. BRK.B was compared to 99 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. BRK.B is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BRK.B had positive earnings in the past year.
In the past year BRK.B had a positive cash flow from operations.
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
BRK.B has a better Return On Assets (5.50%) than 77.32% of its industry peers.
With a Return On Equity value of 9.66%, BRK.B perfoms like the industry average, outperforming 55.67% of the companies in the same industry.
BRK.B has a better Return On Invested Capital (4.53%) than 61.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BRK.B is below the industry average of 8.10%.
The last Return On Invested Capital (4.53%) for BRK.B 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
With a decent Profit Margin value of 18.13%, BRK.B is doing good in the industry, outperforming 71.13% of the companies in the same industry.
In the last couple of years the Profit Margin of BRK.B has declined.
Looking at the Operating Margin, with a value of 16.72%, BRK.B is in line with its industry, outperforming 59.79% of the companies in the same industry.
In the last couple of years the Operating Margin of BRK.B has grown nicely.
Looking at the Gross Margin, with a value of 17.71%, BRK.B is doing worse than 60.82% of the companies in the same industry.
In the last couple of years the Gross Margin of BRK.B 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
BRK.B has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BRK.B has less shares outstanding than it did 1 year ago.
BRK.B has less shares outstanding than it did 5 years ago.
BRK.B has a better debt/assets ratio than last year.
2.2 Solvency
BRK.B has an Altman-Z score of 2.61. This is not the best score and indicates that BRK.B is in the grey zone with still only limited risk for bankruptcy at the moment.
BRK.B has a better Altman-Z score (2.61) than 81.44% of its industry peers.
The Debt to FCF ratio of BRK.B is 6.58, which is on the high side as it means it would take BRK.B, 6.58 years of fcf income to pay off all of its debts.
BRK.B has a better Debt to FCF ratio (6.58) than 62.89% of its industry peers.
BRK.B has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of BRK.B (0.18) is better than 70.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 2.61 |
ROIC/WACC0.55
WACC8.2%
2.3 Liquidity
BRK.B has a Current Ratio of 1.33. This is a normal value and indicates that BRK.B is financially healthy and should not expect problems in meeting its short term obligations.
BRK.B's Current ratio of 1.33 is fine compared to the rest of the industry. BRK.B outperforms 63.92% of its industry peers.
BRK.B has a Quick Ratio of 1.11. This is a normal value and indicates that BRK.B is financially healthy and should not expect problems in meeting its short term obligations.
BRK.B 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
BRK.B shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.97%, which is quite good.
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.
BRK.B 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.B 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.B will show a small growth in Revenue. The Revenue will grow by 4.89% on average per year.
EPS Next Y-3%
EPS Next 2Y-0.22%
EPS Next 3Y1.51%
EPS Next 5Y2.26%
Revenue Next Year0.74%
Revenue Next 2Y0.33%
Revenue Next 3Y1.35%
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
Based on the Price/Earnings ratio of 22.49, the valuation of BRK.B can be described as rather expensive.
The rest of the industry has a similar Price/Earnings ratio as BRK.B.
Compared to an average S&P500 Price/Earnings ratio of 25.89, BRK.B is valued at the same level.
Based on the Price/Forward Earnings ratio of 23.24, the valuation of BRK.B can be described as rather expensive.
Based on the Price/Forward Earnings ratio, BRK.B is valued a bit more expensive than the industry average as 65.98% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, BRK.B is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.49 | ||
| Fwd PE | 23.24 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BRK.B.
BRK.B's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.88 | ||
| EV/EBITDA | 15.21 |
4.3 Compensation for Growth
BRK.B has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.26
EPS Next 2Y-0.22%
EPS Next 3Y1.51%
5. Dividend
5.1 Amount
No dividends for BRK.B!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
508.94
-4.17 (-0.81%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners34.67%
Inst Owner Change-5.25%
Ins Owners38.36%
Ins Owner ChangeN/A
Market Cap1.10T
Revenue(TTM)372.13B
Net Income(TTM)67.46B
Analysts44
Price Target523.34 (2.83%)
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)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)-1.93%
PT rev (3m)-1.7%
EPS NQ rev (1m)1.03%
EPS NQ rev (3m)-0.28%
EPS NY rev (1m)0.49%
EPS NY rev (3m)3.22%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)3.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.49 | ||
| Fwd PE | 23.24 | ||
| P/S | 2.95 | ||
| P/FCF | 56.88 | ||
| P/OCF | 27.9 | ||
| P/B | 1.57 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 15.21 |
EPS(TTM)22.63
EY4.45%
EPS(NY)21.9
Fwd EY4.3%
FCF(TTM)8.95
FCFY1.76%
OCF(TTM)18.24
OCFY3.58%
SpS172.28
BVpS323.22
TBVpS267.83
PEG (NY)N/A
PEG (5Y)1.26
Graham Number405.68
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 | 2.61 |
F-Score4
WACC8.2%
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-3%
EPS Next 2Y-0.22%
EPS Next 3Y1.51%
EPS Next 5Y2.26%
Revenue 1Y (TTM)0.6%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%2.13%
Revenue Next Year0.74%
Revenue Next 2Y0.33%
Revenue Next 3Y1.35%
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 B / BRK.B FAQ
What is the ChartMill fundamental rating of BERKSHIRE HATHAWAY INC-CL B (BRK.B) stock?
ChartMill assigns a fundamental rating of 5 / 10 to BRK.B.
What is the valuation status of BERKSHIRE HATHAWAY INC-CL B (BRK.B) stock?
ChartMill assigns a valuation rating of 2 / 10 to BERKSHIRE HATHAWAY INC-CL B (BRK.B). This can be considered as Overvalued.
What is the profitability of BRK.B stock?
BERKSHIRE HATHAWAY INC-CL B (BRK.B) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for BRK.B stock?
The Price/Earnings (PE) ratio for BERKSHIRE HATHAWAY INC-CL B (BRK.B) is 22.49 and the Price/Book (PB) ratio is 1.57.
How financially healthy is BERKSHIRE HATHAWAY INC-CL B?
The financial health rating of BERKSHIRE HATHAWAY INC-CL B (BRK.B) is 6 / 10.