BERKSHIRE HATHAWAY INC-CL B (BRK.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRK.B - US0846707026 - Common Stock
493.29 USD
+0.67 (+0.14%)
493.767 USD
+0.48 (+0.1%)
Taking everything into account, BRK.B scores 4 out of 10 in our fundamental rating. BRK.B was compared to 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. 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.
- 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
- With a decent Return On Assets value of 5.50%, BRK.B is doing good in the industry, outperforming 76.53% of the companies in the same industry.
- The Return On Equity of BRK.B (9.66%) is comparable to the rest of the industry.
- BRK.B has a Return On Invested Capital of 4.53%. This is in the better half of the industry: BRK.B outperforms 63.27% 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 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
- BRK.B has a Profit Margin of 18.13%. This is in the better half of the industry: BRK.B outperforms 69.39% of its industry peers.
- In the last couple of years the Profit Margin of BRK.B has declined.
- Looking at the Operating Margin, with a value of 16.72%, BRK.B is in the better half of the industry, outperforming 60.20% of the companies in the same industry.
- In the last couple of years the Operating Margin of BRK.B has grown nicely.
- The Gross Margin of BRK.B (17.71%) is worse than 62.24% of its industry peers.
- 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BRK.B is destroying value.
- BRK.B has less shares outstanding than it did 1 year ago.
- 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 2.57. 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 2.57 is amongst the best of the industry. BRK.B outperforms 81.63% of its industry peers.
- 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's Debt to FCF ratio of 6.58 is in line compared to the rest of the industry. BRK.B outperforms 55.10% of its industry peers.
- 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 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.55
WACC8.27%
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'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 has a Quick ratio (1.11) which 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
- The Earnings Per Share has grown by an nice 17.97% over the past year.
- 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%.
- 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.
- 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-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.
- 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 21.80, the valuation of BRK.B can be described as rather expensive.
- The rest of the industry has a similar Price/Earnings ratio as BRK.B.
- Compared to an average S&P500 Price/Earnings ratio of 27.47, BRK.B is valued a bit cheaper.
- Based on the Price/Forward Earnings ratio of 22.29, the valuation of BRK.B can be described as rather expensive.
- 64.29% of the companies in the same industry are cheaper than BRK.B, based on the Price/Forward Earnings ratio.
- When comparing the Price/Forward Earnings ratio of BRK.B to the average of the S&P500 Index (24.26), we can say BRK.B is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.8 | ||
| Fwd PE | 22.29 |
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.
- Based on the Price/Free Cash Flow ratio, BRK.B is valued a bit more expensive than the industry average as 62.24% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.13 | ||
| EV/EBITDA | 14.74 |
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)1.23
EPS Next 2Y0.3%
EPS Next 3Y1.64%
5. Dividend
5.1 Amount
- BRK.B does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
493.29
+0.67 (+0.14%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-01 2025-11-01/bmo
Earnings (Next)02-20 2026-02-20/bmo
Inst Owners26.93%
Inst Owner Change-0.04%
Ins Owners37.74%
Ins Owner ChangeN/A
Market Cap1.07T
Revenue(TTM)372.13B
Net Income(TTM)67.46B
Analysts44
Price Target523.42 (6.11%)
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)-0.52%
PT rev (3m)-2.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.78%
EPS NY rev (1m)0%
EPS NY rev (3m)3.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.8 | ||
| Fwd PE | 22.29 | ||
| P/S | 2.86 | ||
| P/FCF | 55.13 | ||
| P/OCF | 27.04 | ||
| P/B | 1.53 | ||
| P/tB | 1.84 | ||
| EV/EBITDA | 14.74 |
EPS(TTM)22.63
EY4.59%
EPS(NY)22.13
Fwd EY4.49%
FCF(TTM)8.95
FCFY1.81%
OCF(TTM)18.24
OCFY3.7%
SpS172.28
BVpS323.22
TBVpS267.83
PEG (NY)N/A
PEG (5Y)1.23
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 | 2.57 |
F-Score4
WACC8.27%
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 for 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 21.8 and the Price/Book (PB) ratio is 1.53.