BERKSHIRE HATHAWAY INC-CL B (BRK.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRK.B - US0846707026 - Common Stock
503.71 USD
+2.66 (+0.53%)
503.42 USD
-0.29 (-0.06%)
Overall BRK.B gets a fundamental rating of 4 out of 10. We evaluated BRK.B against 98 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.
In the past year BRK.B had a positive cash flow from operations.
Of the past 5 years BRK.B 4 years were profitable.
BRK.B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BRK.B's Return On Assets of 5.50% is fine compared to the rest of the industry. BRK.B outperforms 76.53% of its industry peers.
BRK.B has a Return On Equity of 9.66%. This is comparable to the rest of the industry: BRK.B outperforms 56.12% 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 63.27% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for BRK.B is below the industry average of 8.44%.
The 3 year average ROIC (4.13%) for BRK.B 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
With a decent Profit Margin value of 18.13%, BRK.B is doing good in the industry, outperforming 69.39% of the companies in the same industry.
In the last couple of years the Profit Margin of BRK.B has declined.
The Operating Margin of BRK.B (16.72%) is better than 60.20% of its industry peers.
In the last couple of years the Operating Margin of BRK.B has grown nicely.
BRK.B has a Gross Margin of 17.71%. This is in the lower half of the industry: BRK.B underperforms 62.24% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
The debt/assets ratio for BRK.B has been reduced compared to a year ago.
2.2 Solvency
BRK.B has an Altman-Z score of 2.60. 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.
With an excellent Altman-Z score value of 2.60, BRK.B belongs to the best of the industry, outperforming 82.65% 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.
The Debt to FCF ratio of BRK.B (6.58) is comparable to the rest of the industry.
BRK.B has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
BRK.B has a Debt to Equity ratio of 0.18. This is in the better half of the industry: BRK.B outperforms 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 2.6 |
ROIC/WACC0.55
WACC8.18%
2.3 Liquidity
A Current Ratio of 1.33 indicates that BRK.B should not have too much problems paying its short term obligations.
BRK.B has a Current ratio of 1.33. This is in the better half 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 53.06% 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.
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
The Earnings Per Share is expected to grow by 2.26% on average over the next years.
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-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
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 22.26, the valuation of BRK.B can be described as rather expensive.
BRK.B's Price/Earnings ratio is in line with the industry average.
BRK.B's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.77.
Based on the Price/Forward Earnings ratio of 22.76, the valuation of BRK.B can be described as rather expensive.
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 64.29% of the companies listed in the same industry.
BRK.B is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.26 | ||
| Fwd PE | 22.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BRK.B is on the same level as its industry peers.
BRK.B's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. BRK.B is more expensive than 62.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.3 | ||
| EV/EBITDA | 15.06 |
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 2Y0.3%
EPS Next 3Y1.64%
5. Dividend
5.1 Amount
No dividends for BRK.B!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
503.71
+2.66 (+0.53%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners27.78%
Inst Owner Change-3.26%
Ins Owners37.74%
Ins Owner ChangeN/A
Market Cap1.09T
Revenue(TTM)372.13B
Net Income(TTM)67.46B
Analysts44
Price Target520.65 (3.36%)
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)-0.45%
PT rev (3m)-2.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.78%
EPS NY rev (1m)2.63%
EPS NY rev (3m)3.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.26 | ||
| Fwd PE | 22.76 | ||
| P/S | 2.92 | ||
| P/FCF | 56.3 | ||
| P/OCF | 27.62 | ||
| P/B | 1.56 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 15.06 |
EPS(TTM)22.63
EY4.49%
EPS(NY)22.13
Fwd EY4.39%
FCF(TTM)8.95
FCFY1.78%
OCF(TTM)18.24
OCFY3.62%
SpS172.28
BVpS323.22
TBVpS267.83
PEG (NY)N/A
PEG (5Y)1.25
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 | 2.6 |
F-Score4
WACC8.18%
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 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 22.26 and the Price/Book (PB) ratio is 1.56.
How financially healthy is BERKSHIRE HATHAWAY INC-CL B?
The financial health rating of BERKSHIRE HATHAWAY INC-CL B (BRK.B) is 5 / 10.