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BERKSHIRE HATHAWAY INC-CL B (BRK.B) Stock Fundamental Analysis

NYSE:BRK.B - New York Stock Exchange, Inc. - US0846707026 - Common Stock

468.57  +0.62 (+0.13%)

After market: 467.666 -0.9 (-0.19%)

Fundamental Rating

5

Taking everything into account, BRK.B scores 5 out of 10 in our fundamental rating. BRK.B was compared to 101 industry peers in the Financial Services industry. While BRK.B belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, BRK.B is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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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.
In the past 5 years BRK.B always reported a positive cash flow from operatings.
BRK.B Yearly Net Income VS EBIT VS OCF VS FCFBRK.B Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20B -20B 40B 60B 80B

1.2 Ratios

With an excellent Return On Assets value of 9.32%, BRK.B belongs to the best of the industry, outperforming 88.12% of the companies in the same industry.
BRK.B's Return On Equity of 16.99% is fine compared to the rest of the industry. BRK.B outperforms 78.22% of its industry peers.
With a decent Return On Invested Capital value of 4.17%, BRK.B is doing good in the industry, outperforming 62.38% 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 7.84%.
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 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%
BRK.B Yearly ROA, ROE, ROICBRK.B Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 5 10 15

1.3 Margins

BRK.B's Profit Margin of 28.89% is amongst the best of the industry. BRK.B outperforms 82.18% of its industry peers.
BRK.B's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 14.54%, BRK.B is in line with its industry, outperforming 53.47% 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 (22.21%) which is comparable to the rest of the industry.
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%
BRK.B Yearly Profit, Operating, Gross MarginsBRK.B Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10 20 30

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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.
BRK.B has less shares outstanding than it did 1 year ago.
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.
BRK.B Yearly Shares OutstandingBRK.B Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B
BRK.B Yearly Total Debt VS Total AssetsBRK.B Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 200B 400B 600B 800B 1T

2.2 Solvency

An Altman-Z score of 2.48 indicates that BRK.B is not a great score, but indicates only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.48, BRK.B belongs to the best of the industry, outperforming 80.20% of the companies in the same industry.
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.
BRK.B has a Debt to FCF ratio of 5.92. This is in the better half of the industry: BRK.B outperforms 61.39% of its industry peers.
BRK.B has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.20, BRK.B is in the better half of the industry, outperforming 67.33% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.2
Debt/FCF 5.92
Altman-Z 2.48
ROIC/WACC0.49
WACC8.58%
BRK.B Yearly LT Debt VS Equity VS FCFBRK.B Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 100B 200B 300B 400B 500B

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 of 1.06. This is comparable to the rest of the industry: BRK.B outperforms 51.49% of its industry peers.
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 of 0.84. This is comparable to the rest of the industry: BRK.B outperforms 43.56% of its industry peers.
Industry RankSector Rank
Current Ratio 1.06
Quick Ratio 0.84
BRK.B Yearly Current Assets VS Current LiabilitesBRK.B Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 50B 100B

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 17.49% 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 11.33% on average per year.
Looking at the last year, BRK.B shows a small growth in Revenue. The Revenue has grown by 5.93% in the last year.
The Revenue has been growing by 8.02% on average over the past years. This is quite good.
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

The Earnings Per Share is expected to grow by 7.19% on average over the next years.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
BRK.B Yearly Revenue VS EstimatesBRK.B Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 100B 200B 300B 400B
BRK.B Yearly EPS VS EstimatesBRK.B Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5 10 15 20

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 24.43, which indicates a rather expensive current valuation of BRK.B.
BRK.B's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.29, BRK.B is valued at the same level.
With a Price/Forward Earnings ratio of 22.77, BRK.B is valued on the expensive side.
Based on the Price/Forward Earnings ratio, BRK.B is valued a bit more expensive than the industry average as 67.33% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 24.44. BRK.B is around the same levels.
Industry RankSector Rank
PE 24.43
Fwd PE 22.77
BRK.B Price Earnings VS Forward Price EarningsBRK.B Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 is on the same level as the industry average.
Industry RankSector Rank
P/FCF 48.12
EV/EBITDA 16.49
BRK.B Per share dataBRK.B EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150 200 250

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.
The decent profitability rating of BRK.B may justify a higher PE ratio.
PEG (NY)1.32
PEG (5Y)2.16
EPS Next 2Y9.43%
EPS Next 3Y8.24%

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0

5. Dividend

5.1 Amount

BRK.B does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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BERKSHIRE HATHAWAY INC-CL B

NYSE:BRK.B (1/21/2025, 8:04:01 PM)

After market: 467.666 -0.9 (-0.19%)

468.57

+0.62 (+0.13%)

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 Change-0.82%
Ins Owners37.89%
Ins Owner ChangeN/A
Market Cap1012.11B
Analysts80
Price Target516.34 (10.19%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)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)-0.46%
PT rev (3m)6.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.36%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.07%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1%
Valuation
Industry RankSector Rank
PE 24.43
Fwd PE 22.77
P/S 2.74
P/FCF 48.12
P/OCF 25.07
P/B 1.61
P/tB 1.99
EV/EBITDA 16.49
EPS(TTM)19.18
EY4.09%
EPS(NY)20.58
Fwd EY4.39%
FCF(TTM)9.74
FCFY2.08%
OCF(TTM)18.69
OCFY3.99%
SpS171.25
BVpS291.24
TBVpS235.29
PEG (NY)1.32
PEG (5Y)2.16
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 2.48
F-Score6
WACC8.58%
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%