BERKSHIRE HATHAWAY INC-CL B (BRK.B) Stock Fundamental Analysis
USA - NYSE:BRK.B - US0846707026 - Common Stock
488.77 USD
+1.11 (+0.23%)
489.41 USD
+0.64 (+0.13%)
Overall BRK.B gets a fundamental rating of 5 out of 10. We evaluated BRK.B against 98 industry peers in the Financial Services industry. BRK.B has only an average score on both its financial health and profitability. BRK.B is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year BRK.B was profitable.
BRK.B had a positive operating cash flow in the past year.
BRK.B had positive earnings in 4 of the past 5 years.
Each year in the past 5 years BRK.B had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.50%, BRK.B is in the better half of the industry, outperforming 77.55% of the companies in the same industry.
BRK.B's Return On Equity of 9.66% is in line compared to the rest of the industry. BRK.B outperforms 55.10% of its industry peers.
Looking at the Return On Invested Capital, with a value of 4.53%, BRK.B is in the better half of the industry, outperforming 61.22% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BRK.B is below the industry average of 7.85%.
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 72.45% of the companies in the same industry.
BRK.B's Profit Margin has declined in the last couple of years.
The Operating Margin of BRK.B (16.72%) is better than 62.24% of its industry peers.
BRK.B's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 17.71%, BRK.B is not doing good in the industry: 60.20% of the companies in the same industry are doing better.
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
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
The number of shares outstanding for BRK.B has been reduced compared to 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 2.56. 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.
Looking at the Altman-Z score, with a value of 2.56, BRK.B is in the better half of the industry, outperforming 79.59% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 6.58, BRK.B is doing good in the industry, outperforming 60.20% of the companies in the same industry.
A Debt/Equity ratio of 0.18 indicates that BRK.B is not too dependend on debt financing.
BRK.B has a Debt to Equity ratio of 0.18. This is in the better half of the industry: BRK.B outperforms 69.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 2.56 |
ROIC/WACC0.56
WACC8.14%
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 62.24% of its industry peers.
A Quick Ratio of 1.11 indicates that BRK.B should not have too much problems paying its short term obligations.
The Quick ratio of BRK.B (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.B shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 27.98%, which is quite impressive.
The Earnings Per Share has been growing by 17.78% on average over the past years. This is quite good.
BRK.B shows a small growth in Revenue. In the last year, the Revenue has grown by 0.60%.
BRK.B shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.84% yearly.
EPS 1Y (TTM)27.98%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%17.23%
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.
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
A Price/Earnings ratio of 22.22 indicates a rather expensive valuation of BRK.B.
The rest of the industry has a similar Price/Earnings ratio as BRK.B.
BRK.B's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.13.
The Price/Forward Earnings ratio is 22.32, which indicates a rather expensive current valuation of BRK.B.
64.29% of the companies in the same industry are cheaper than BRK.B, based on the Price/Forward Earnings ratio.
BRK.B is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.22 | ||
| Fwd PE | 22.32 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BRK.B.
The rest of the industry has a similar Price/Free Cash Flow ratio as BRK.B.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.63 | ||
| EV/EBITDA | 14.63 |
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)1.25
EPS Next 2Y-0.22%
EPS Next 3Y1.51%
5. Dividend
5.1 Amount
BRK.B does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
488.77
+1.11 (+0.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners34.67%
Inst Owner Change-5.26%
Ins Owners38.36%
Ins Owner ChangeN/A
Market Cap1055.74B
Revenue(TTM)372.13B
Net Income(TTM)67.46B
Analysts44
Price Target522.91 (6.98%)
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)-2.02%
PT rev (3m)-1.82%
EPS NQ rev (1m)1.61%
EPS NQ rev (3m)2.85%
EPS NY rev (1m)0.46%
EPS NY rev (3m)3.19%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.22 | ||
| Fwd PE | 22.32 | ||
| P/S | 2.84 | ||
| P/FCF | 54.63 | ||
| P/OCF | 26.8 | ||
| P/B | 1.51 | ||
| P/tB | 1.82 | ||
| EV/EBITDA | 14.63 |
EPS(TTM)22
EY4.5%
EPS(NY)21.9
Fwd EY4.48%
FCF(TTM)8.95
FCFY1.83%
OCF(TTM)18.24
OCFY3.73%
SpS172.28
BVpS323.22
TBVpS267.83
PEG (NY)N/A
PEG (5Y)1.25
Graham Number399.99
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 | 2.56 |
F-Score4
WACC8.14%
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)27.98%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%17.23%
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 22.22 and the Price/Book (PB) ratio is 1.51.
How financially healthy is BERKSHIRE HATHAWAY INC-CL B?
The financial health rating of BERKSHIRE HATHAWAY INC-CL B (BRK.B) is 5 / 10.