BERKSHIRE HATHAWAY INC-CL B (BRK.B) Stock Fundamental Analysis
NYSE:BRK.B - New York Stock Exchange, Inc. - US0846707026 - Common Stock - Currency: USD
BRK.B gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 100 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
In the past year BRK.B was profitable.
BRK.B had a positive operating cash flow in the past year.
Of the past 5 years BRK.B 4 years were profitable.
Each year in the past 5 years BRK.B had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 6.95%, BRK.B belongs to the best of the industry, outperforming 83.00% of the companies in the same industry.
The Return On Equity of BRK.B (12.36%) is better than 64.00% of its industry peers.
BRK.B has a Return On Invested Capital of 4.50%. This is comparable to the rest of the industry: BRK.B outperforms 55.00% of its industry peers.
BRK.B had an Average Return On Invested Capital over the past 3 years of 4.13%. This is significantly below the industry average of 11.84%.
The 3 year average ROIC (4.13%) for BRK.B is below the current ROIC(4.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.95% | ||
| ROE | 12.36% | ||
| ROIC | 4.5% |
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 21.79%, BRK.B is doing good in the industry, outperforming 77.00% of the companies in the same industry.
In the last couple of years the Profit Margin of BRK.B has declined.
BRK.B has a Operating Margin (15.89%) which is in line with its industry peers.
In the last couple of years the Operating Margin of BRK.B has grown nicely.
The Gross Margin of BRK.B (16.43%) is worse than 63.00% of its industry peers.
In the last couple of years the Gross Margin of BRK.B has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.89% | ||
| PM (TTM) | 21.79% | ||
| GM | 16.43% |
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
BRK.B has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BRK.B has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.56 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 (2.56) than 81.00% of its industry peers.
BRK.B has a debt to FCF ratio of 10.44. This is a negative value and a sign of low solvency as BRK.B would need 10.44 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.44, BRK.B is in line with its industry, outperforming 52.00% of the companies in the same industry.
BRK.B has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of BRK.B (0.19) is better than 68.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 2.56 |
ROIC/WACC0.54
WACC8.4%
2.3 Liquidity
BRK.B has a Current Ratio of 1.14. 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 Current ratio (1.14) which is in line with its industry peers.
BRK.B has a Quick Ratio of 1.14. This is a bad value and indicates that BRK.B is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.91, BRK.B is in line with its industry, outperforming 45.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.77% over the past year.
Measured over the past years, BRK.B shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.78% on average per year.
BRK.B shows a small growth in Revenue. In the last year, the Revenue has grown by 0.63%.
The Revenue has been growing slightly by 7.84% on average over the past years.
EPS 1Y (TTM)13.77%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%-14.02%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%-0.16%
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-6.33%
EPS Next 2Y-0.17%
EPS Next 3Y1.54%
EPS Next 5Y2.26%
Revenue Next Year-2.46%
Revenue Next 2Y1.29%
Revenue Next 3Y-0.36%
Revenue Next 5Y4.89%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
The Price/Earnings ratio is 22.45, which indicates a rather expensive current valuation of BRK.B.
Based on the Price/Earnings ratio, BRK.B is valued a bit more expensive than the industry average as 62.00% of the companies are valued more cheaply.
BRK.B's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 21.78, 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 65.00% of the companies listed in the same industry.
BRK.B's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 21.78 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as BRK.B.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 85.48 | ||
| EV/EBITDA | 15.47 |
4.3 Compensation for Growth
The decent profitability rating of BRK.B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.26
EPS Next 2Y-0.17%
EPS Next 3Y1.54%
5. Dividend
5.1 Amount
BRK.B does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
477.47
-0.56 (-0.12%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners33.78%
Inst Owner Change-0.08%
Ins Owners38.2%
Ins Owner ChangeN/A
Market Cap1031.34B
Analysts80
Price Target532.1 (11.44%)
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)16.51%
Min EPS beat(2)-9.78%
Max EPS beat(2)42.8%
EPS beat(4)2
Avg EPS beat(4)10.96%
Min EPS beat(4)-10.41%
Max EPS beat(4)42.8%
EPS beat(8)6
Avg EPS beat(8)11.15%
EPS beat(12)8
Avg EPS beat(12)9.18%
EPS beat(16)11
Avg EPS beat(16)8.21%
Revenue beat(2)0
Avg Revenue beat(2)-2.05%
Min Revenue beat(2)-4.09%
Max Revenue beat(2)-0.01%
Revenue beat(4)0
Avg Revenue beat(4)-2.99%
Min Revenue beat(4)-7.69%
Max Revenue beat(4)-0.01%
Revenue beat(8)4
Avg Revenue beat(8)0.2%
Revenue beat(12)5
Avg Revenue beat(12)-0.61%
Revenue beat(16)6
Avg Revenue beat(16)-0.89%
PT rev (1m)-0.61%
PT rev (3m)0.52%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)-2.27%
EPS NY rev (1m)-0.67%
EPS NY rev (3m)-3.44%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)-0.98%
Revenue NY rev (1m)-4.03%
Revenue NY rev (3m)-2.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 21.78 | ||
| P/S | 2.78 | ||
| P/FCF | 85.48 | ||
| P/OCF | 33.35 | ||
| P/B | 1.58 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 15.47 |
EPS(TTM)21.27
EY4.45%
EPS(NY)21.92
Fwd EY4.59%
FCF(TTM)5.59
FCFY1.17%
OCF(TTM)14.32
OCFY3%
SpS171.89
BVpS303
TBVpS247.7
PEG (NY)N/A
PEG (5Y)1.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.95% | ||
| ROE | 12.36% | ||
| ROCE | 5.56% | ||
| ROIC | 4.5% | ||
| ROICexc | 4.68% | ||
| ROICexgc | 5.61% | ||
| OM | 15.89% | ||
| PM (TTM) | 21.79% | ||
| GM | 16.43% | ||
| FCFM | 3.25% |
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 | 10.44 | ||
| Debt/EBITDA | 1.75 | ||
| Cap/Depr | 145.65% | ||
| Cap/Sales | 5.08% | ||
| Interest Coverage | 11.99 | ||
| Cash Conversion | 42.99% | ||
| Profit Quality | 14.91% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 2.56 |
F-Score4
WACC8.4%
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)13.77%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%-14.02%
EPS Next Y-6.33%
EPS Next 2Y-0.17%
EPS Next 3Y1.54%
EPS Next 5Y2.26%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%-0.16%
Revenue Next Year-2.46%
Revenue Next 2Y1.29%
Revenue Next 3Y-0.36%
Revenue Next 5Y4.89%
EBIT growth 1Y12.44%
EBIT growth 3Y18.52%
EBIT growth 5Y13.14%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-47.83%
FCF growth 3Y-23.7%
FCF growth 5Y-12.55%
OCF growth 1Y-21.13%
OCF growth 3Y-8.11%
OCF growth 5Y-4.59%