BERKSHIRE HATHAWAY INC-CL B (BRK.B)

US0846707026 - Common Stock

453.2  +3.86 (+0.86%)

After market: 453.2 0 (0%)

Fundamental Rating

5

BRK.B gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 99 industry peers in the Financial Services industry. While BRK.B has a great profitability rating, there are some minor concerns on its financial health. While showing a medium growth rate, BRK.B is valued expensive at the moment.



7

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.
Each year in the past 5 years BRK.B had a positive operating cash flow.

1.2 Ratios

BRK.B has a Return On Assets of 9.32%. This is amongst the best in the industry. BRK.B outperforms 87.88% of its industry peers.
The Return On Equity of BRK.B (16.99%) is better than 77.78% of its industry peers.
BRK.B has a better Return On Invested Capital (4.17%) than 61.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BRK.B is below the industry average of 7.84%.
The last Return On Invested Capital (4.17%) for BRK.B is above the 3 year average (3.67%), which is a sign of increasing profitability.
Industry RankSector 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

BRK.B has a Profit Margin of 28.89%. This is amongst the best in the industry. BRK.B outperforms 81.82% of its industry peers.
BRK.B's Profit Margin has improved in the last couple of years.
With a Operating Margin value of 14.54%, BRK.B perfoms like the industry average, outperforming 52.53% of the companies in the same industry.
BRK.B's Operating Margin has been stable in the last couple of years.
BRK.B has a Gross Margin of 22.21%. This is comparable to the rest of the industry: BRK.B outperforms 44.44% of 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 RankSector 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%

5

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
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

An Altman-Z score of 2.44 indicates that BRK.B is not a great score, but indicates only limited risk for bankruptcy at the moment.
BRK.B has a Altman-Z score of 2.44. This is amongst the best in the industry. BRK.B outperforms 80.81% of its industry peers.
The Debt to FCF ratio of BRK.B is 5.92, which is a neutral value as it means it would take BRK.B, 5.92 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 5.92, BRK.B is doing good in the industry, outperforming 60.61% 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.
BRK.B has a better Debt to Equity ratio (0.20) than 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 5.92
Altman-Z 2.44
ROIC/WACC0.49
WACC8.53%

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.
A Quick Ratio of 0.84 indicates that BRK.B may have some problems paying its short term obligations.
BRK.B has a Quick ratio (0.84) which is in line with its industry peers.
Industry RankSector Rank
Current Ratio 1.06
Quick Ratio 0.84

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 17.49% over the past year.
The Earnings Per Share has been growing by 11.33% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.93% in the past year.
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

BRK.B is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.19% yearly.
The Revenue is expected to decrease by -1.09% on average over the next years.
EPS Next Y18.45%
EPS Next 2Y9.43%
EPS Next 3Y8.24%
EPS Next 5Y7.19%
Revenue Next Year-8.21%
Revenue Next 2Y-3.7%
Revenue Next 3Y-1.09%
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 decreasing.
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.

3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 23.63, BRK.B is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of BRK.B is on the same level as its industry peers.
BRK.B is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.73, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.02, which indicates a rather expensive current valuation of BRK.B.
Based on the Price/Forward Earnings ratio, BRK.B is valued a bit more expensive than 68.69% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.83. BRK.B is around the same levels.
Industry RankSector Rank
PE 23.63
Fwd PE 22.02

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 RankSector Rank
P/FCF 46.54
EV/EBITDA 16.01

4.3 Compensation for Growth

BRK.B's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BRK.B has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.28
PEG (5Y)2.09
EPS Next 2Y9.43%
EPS Next 3Y8.24%

0

5. Dividend

5.1 Amount

No dividends for BRK.B!.
Industry RankSector Rank
Dividend Yield N/A

BERKSHIRE HATHAWAY INC-CL B

NYSE:BRK.B (12/20/2024, 8:04:01 PM)

After market: 453.2 0 (0%)

453.2

+3.86 (+0.86%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-04 2024-11-04/bmo
Earnings (Next)N/A N/A
Inst Owners19.07%
Inst Owner Change1.83%
Ins Owners37.89%
Ins Owner ChangeN/A
Market Cap978.91B
Analysts80
Price Target518.74 (14.46%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/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)5.42%
Min EPS beat(2)-10.41%
Max EPS beat(2)21.24%
EPS beat(4)3
Avg EPS beat(4)6.52%
Min EPS beat(4)-10.41%
Max EPS beat(4)21.24%
EPS beat(8)5
Avg EPS beat(8)4.06%
EPS beat(12)9
Avg EPS beat(12)7.7%
EPS beat(16)11
Avg EPS beat(16)6.76%
Revenue beat(2)0
Avg Revenue beat(2)-3.94%
Min Revenue beat(2)-7.69%
Max Revenue beat(2)-0.18%
Revenue beat(4)2
Avg Revenue beat(4)-1.28%
Min Revenue beat(4)-7.69%
Max Revenue beat(4)2.53%
Revenue beat(8)4
Avg Revenue beat(8)0.01%
Revenue beat(12)5
Avg Revenue beat(12)-0.64%
Revenue beat(16)6
Avg Revenue beat(16)-0.92%
PT rev (1m)2.59%
PT rev (3m)6.68%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.36%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)-0.32%
Revenue NY rev (3m)1%
Valuation
Industry RankSector Rank
PE 23.63
Fwd PE 22.02
P/S 2.65
P/FCF 46.54
P/OCF 24.25
P/B 1.56
P/tB 1.93
EV/EBITDA 16.01
EPS(TTM)19.18
EY4.23%
EPS(NY)20.58
Fwd EY4.54%
FCF(TTM)9.74
FCFY2.15%
OCF(TTM)18.69
OCFY4.12%
SpS171.25
BVpS291.24
TBVpS235.29
PEG (NY)1.28
PEG (5Y)2.09
Profitability
Industry RankSector Rank
ROA 9.32%
ROE 16.99%
ROCE 5.17%
ROIC 4.17%
ROICexc 4.32%
ROICexgc 5.2%
OM 14.54%
PM (TTM) 28.89%
GM 22.21%
FCFM 5.69%
ROA(3y)5.32%
ROA(5y)6.16%
ROE(3y)10.03%
ROE(5y)11.77%
ROIC(3y)3.67%
ROIC(5y)3.49%
ROICexc(3y)3.9%
ROICexc(5y)3.72%
ROICexgc(3y)4.73%
ROICexgc(5y)4.56%
ROCE(3y)4.55%
ROCE(5y)4.33%
ROICexcg growth 3Y9.51%
ROICexcg growth 5Y-1.51%
ROICexc growth 3Y10.16%
ROICexc growth 5Y-0.44%
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%
F-Score6
Asset Turnover0.32
Health
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 5.92
Debt/EBITDA 1.87
Cap/Depr 152.25%
Cap/Sales 5.23%
Interest Coverage 10.63
Cash Conversion 60.72%
Profit Quality 19.68%
Current Ratio 1.06
Quick Ratio 0.84
Altman-Z 2.44
F-Score6
WACC8.53%
ROIC/WACC0.49
Cap/Depr(3y)140.4%
Cap/Depr(5y)140.55%
Cap/Sales(3y)5.08%
Cap/Sales(5y)5.37%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.49%
EPS 3Y23.42%
EPS 5Y11.33%
EPS Q2Q%-5.57%
EPS Next Y18.45%
EPS Next 2Y9.43%
EPS Next 3Y8.24%
EPS Next 5Y7.19%
Revenue 1Y (TTM)5.93%
Revenue growth 3Y14.07%
Revenue growth 5Y8.02%
Sales Q2Q%-0.23%
Revenue Next Year-8.21%
Revenue Next 2Y-3.7%
Revenue Next 3Y-1.09%
Revenue Next 5YN/A
EBIT growth 1Y18.64%
EBIT growth 3Y18.51%
EBIT growth 5Y8.28%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y5.69%
FCF growth 3Y3.64%
FCF growth 5Y5.43%
OCF growth 1Y15.88%
OCF growth 3Y7.34%
OCF growth 5Y5.64%