BERKSHIRE HATHAWAY INC-CL B (BRK.B)
US0846707026 - Common Stock
Taking everything into account, BRK.B scores 5 out of 10 in our fundamental rating. BRK.B was compared to 100 industry peers in the Financial Services industry. While BRK.B has a great profitability rating, there are some minor concerns on its financial health. 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.
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 has a better Return On Assets (9.32%) than 89.00% of its industry peers.
With a decent Return On Equity value of 16.99%, BRK.B is doing good in the industry, outperforming 80.00% of the companies in the same industry.
BRK.B has a Return On Invested Capital of 4.17%. This is in the better half of the industry: BRK.B outperforms 62.00% 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 7.54%.
The 3 year average ROIC (3.67%) for BRK.B is below the current ROIC(4.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 16.99% | ||
| ROIC | 4.17% |
ROA(3y)5.32%
ROA(5y)6.16%
ROE(3y)10.03%
ROE(5y)11.77%
ROIC(3y)3.67%
ROIC(5y)3.49%
1.3 Margins
Looking at the Profit Margin, with a value of 28.89%, BRK.B belongs to the top of the industry, outperforming 83.00% of the companies in the same industry.
In the last couple of years the Profit Margin of BRK.B has grown nicely.
BRK.B has a Operating Margin of 14.54%. This is comparable to the rest of the industry: BRK.B outperforms 50.00% of its industry peers.
BRK.B's Operating Margin has been stable in the last couple of years.
BRK.B has a Gross Margin (22.21%) which is in line with its industry peers.
In the last couple of years the Gross Margin of BRK.B has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.54% | ||
| PM (TTM) | 28.89% | ||
| GM | 22.21% |
OM growth 3Y3.89%
OM growth 5Y0.24%
PM growth 3Y15.1%
PM growth 5Y74.7%
GM growth 3Y-1.99%
GM growth 5Y-1.37%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BRK.B 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 2.48. 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's Altman-Z score of 2.48 is amongst the best of the industry. BRK.B outperforms 82.00% of its industry peers.
BRK.B has a debt to FCF ratio of 5.92. This is a neutral value as BRK.B would need 5.92 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.92, BRK.B is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
BRK.B has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.20, BRK.B is doing good in the industry, outperforming 72.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 5.92 | ||
| Altman-Z | 2.48 |
ROIC/WACC0.5
WACC8.41%
2.3 Liquidity
A Current Ratio of 1.06 indicates that BRK.B should not have too much problems paying its short term obligations.
BRK.B has a Current ratio (1.06) which is comparable to the rest of the industry.
BRK.B has a Quick Ratio of 1.06. 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.
The Quick ratio of BRK.B (0.84) is worse than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.84 |
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 17.49%, 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 11.33% yearly.
BRK.B shows a small growth in Revenue. In the last year, the Revenue has grown by 5.93%.
Measured over the past years, BRK.B shows a quite strong growth in Revenue. The Revenue has been growing by 8.02% on average per year.
EPS 1Y (TTM)17.49%
EPS 3Y23.42%
EPS 5Y11.33%
EPS Q2Q%-5.57%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y14.07%
Revenue growth 5Y8.02%
Sales Q2Q%-0.23%
3.2 Future
Based on estimates for the next years, BRK.B will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.92% on average per year.
The Revenue is expected to decrease by -1.77% on average over the next years.
EPS Next Y18.97%
EPS Next 2Y8.73%
EPS Next 3Y7.59%
EPS Next 5Y10.92%
Revenue Next Year-7.92%
Revenue Next 2Y-3.52%
Revenue Next 3Y-1.77%
Revenue Next 5YN/A
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 stable.
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
With a Price/Earnings ratio of 24.61, BRK.B is valued on the expensive side.
BRK.B's Price/Earnings is on the same level as the industry average.
BRK.B is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.96, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.23 indicates a rather expensive valuation of BRK.B.
Based on the Price/Forward Earnings ratio, BRK.B is valued a bit more expensive than the industry average as 66.00% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of BRK.B to the average of the S&P500 Index (23.82), we can say BRK.B is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.61 | ||
| Fwd PE | 23.23 |
4.2 Price Multiples
BRK.B's Enterprise Value to EBITDA is on the same level as the industry average.
BRK.B's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.48 | ||
| EV/EBITDA | 16.51 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of BRK.B may justify a higher PE ratio.
PEG (NY)1.3
PEG (5Y)2.17
EPS Next 2Y8.73%
EPS Next 3Y7.59%
5. Dividend
5.1 Amount
BRK.B does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BERKSHIRE HATHAWAY INC-CL B
NYSE:BRK.B (11/21/2024, 8:15:59 PM)
After market: 472.06 0 (0%)472.06
+3.23 (+0.69%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1019.65B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.61 | ||
| Fwd PE | 23.23 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.3
PEG (5Y)2.17
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.32% | ||
| ROE | 16.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.54% | ||
| PM (TTM) | 28.89% | ||
| GM | 22.21% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)17.49%
EPS 3Y23.42%
EPS 5Y
EPS Q2Q%
EPS Next Y18.97%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.93%
Revenue growth 3Y14.07%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y