BERKSHIRE HATHAWAY INC-CL B (BRK.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRK.B - US0846707026 - Common Stock
508.55 USD
-5.26 (-1.02%)
508.49 USD
-0.06 (-0.01%)
We assign a fundamental rating of 4 out of 10 to BRK.B. BRK.B was compared to 98 industry peers in the Financial Services industry. BRK.B has an average financial health and profitability rating. BRK.B is quite expensive at the moment. It does show a decent growth rate.
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
BRK.B has a better Return On Assets (5.50%) than 76.53% of its industry peers.
BRK.B has a Return On Equity (9.66%) which is in line with its industry peers.
BRK.B has a Return On Invested Capital of 4.53%. This is in the better half of the industry: BRK.B outperforms 60.20% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BRK.B is below the industry average of 8.20%.
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
Looking at the Profit Margin, with a value of 18.13%, BRK.B is in the better half of the industry, outperforming 70.41% of the companies in the same industry.
BRK.B's Profit Margin has declined in the last couple of years.
BRK.B's Operating Margin of 16.72% is in line compared to the rest of the industry. BRK.B outperforms 58.16% of its industry peers.
BRK.B's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 17.71%, BRK.B is doing worse than 61.22% of the companies in the same industry.
BRK.B'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
BRK.B has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for BRK.B has been reduced compared to 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
An Altman-Z score of 2.62 indicates that BRK.B is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.62, BRK.B belongs to the best of the industry, outperforming 81.63% of the companies in the same industry.
BRK.B has a debt to FCF ratio of 6.58. This is a slightly negative value and a sign of low solvency as BRK.B would need 6.58 years to pay back of all of its debts.
BRK.B has a Debt to FCF ratio (6.58) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.18 indicates that BRK.B is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.18, BRK.B is in the better half of the industry, outperforming 65.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.56
WACC8.09%
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 61.22% 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's Quick ratio of 1.11 is in line compared to the rest of the industry. BRK.B outperforms 55.10% of its industry peers.
| 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.
Looking at the last year, BRK.B shows a small growth in Revenue. The Revenue has grown by 0.60% in the last year.
Measured over the past years, BRK.B shows a small growth in Revenue. The Revenue has been growing by 7.84% on average per year.
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.B is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.26% yearly.
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%
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.
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 22.47, the valuation of BRK.B can be described as rather expensive.
60.20% of the companies in the same industry are cheaper than BRK.B, based on the Price/Earnings ratio.
BRK.B's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.11.
A Price/Forward Earnings ratio of 23.22 indicates a rather expensive valuation of BRK.B.
65.31% of the companies in the same industry are cheaper than BRK.B, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 36.21. BRK.B is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 23.22 |
4.2 Price Multiples
BRK.B's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BRK.B indicates a slightly more expensive valuation: BRK.B is more expensive than 61.22% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.84 | ||
| EV/EBITDA | 15.35 |
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 |
508.55
-5.26 (-1.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners34.67%
Inst Owner Change-3.28%
Ins Owners38.36%
Ins Owner ChangeN/A
Market Cap1.10T
Revenue(TTM)372.13B
Net Income(TTM)67.46B
Analysts44
Price Target523.01 (2.84%)
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)-1.99%
PT rev (3m)-1.98%
EPS NQ rev (1m)8.5%
EPS NQ rev (3m)2.78%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 23.22 | ||
| P/S | 2.95 | ||
| P/FCF | 56.84 | ||
| P/OCF | 27.88 | ||
| P/B | 1.57 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 15.35 |
EPS(TTM)22.63
EY4.45%
EPS(NY)21.9
Fwd EY4.31%
FCF(TTM)8.95
FCFY1.76%
OCF(TTM)18.24
OCFY3.59%
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 | 2.62 |
F-Score4
WACC8.09%
ROIC/WACC0.56
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 4 / 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 22.47 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 5 / 10.