BERKSHIRE HATHAWAY INC-CL B (BRK.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRK.B - US0846707026 - Common Stock
508.57 USD
+0.76 (+0.15%)
508.99 USD
+0.42 (+0.08%)
Overall BRK.B gets a fundamental rating of 4 out of 10. We evaluated BRK.B against 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 quite expensive at the moment. 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.
BRK.B had positive earnings in 4 of the past 5 years.
BRK.B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BRK.B has a Return On Assets of 5.50%. This is in the better half of the industry: BRK.B outperforms 77.55% of its industry peers.
BRK.B has a Return On Equity (9.66%) which is comparable to the rest of the industry.
The Return On Invested Capital of BRK.B (4.53%) is better than 61.22% of its industry peers.
BRK.B had an Average Return On Invested Capital over the past 3 years of 4.13%. This is below the industry average of 8.20%.
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 71.43% of its industry peers.
BRK.B's Profit Margin has declined in the last couple of years.
The Operating Margin of BRK.B (16.72%) is comparable to the rest of the industry.
BRK.B's Operating Margin has improved in the last couple of years.
BRK.B's Gross Margin of 17.71% is on the low side compared to the rest of the industry. BRK.B is outperformed by 60.20% of its industry peers.
BRK.B's Gross Margin has improved in the last couple of years.
| 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
BRK.B has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BRK.B has less shares outstanding
The number of shares outstanding for BRK.B has been reduced compared to 5 years ago.
BRK.B has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.61 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 (2.61) than 80.61% of its industry peers.
The Debt to FCF ratio of BRK.B is 6.58, which is on the high side as it means it would take BRK.B, 6.58 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.58, BRK.B is in line with its industry, outperforming 59.18% of the companies in the same industry.
BRK.B has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
BRK.B's Debt to Equity ratio of 0.18 is fine compared to the rest of the industry. BRK.B outperforms 66.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 2.61 |
ROIC/WACC0.56
WACC8.11%
2.3 Liquidity
BRK.B has a Current Ratio of 1.33. 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's Current ratio of 1.33 is fine compared to the rest of the industry. BRK.B outperforms 62.24% 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.
The Quick ratio of BRK.B (1.11) 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-3%
EPS Next 2Y-0.22%
EPS Next 3Y1.51%
EPS Next 5Y2.26%
Revenue Next Year0.74%
Revenue Next 2Y0.33%
Revenue Next 3Y1.35%
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.
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
With a Price/Earnings ratio of 22.47, 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's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
Based on the Price/Forward Earnings ratio of 23.22, the valuation of BRK.B can be described as rather expensive.
Based on the Price/Forward Earnings ratio, BRK.B is valued a bit more expensive than the industry average as 64.29% of the companies are valued more cheaply.
BRK.B's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 23.22 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BRK.B.
Based on the Price/Free Cash Flow ratio, BRK.B is valued a bit more expensive than the industry average as 60.20% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.84 | ||
| EV/EBITDA | 15.17 |
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-0.22%
EPS Next 3Y1.51%
5. Dividend
5.1 Amount
No dividends for BRK.B!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
508.57
+0.76 (+0.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners34.67%
Inst Owner Change-3.28%
Ins Owners38.36%
Ins Owner ChangeN/A
Market Cap1.10T
Revenue(TTM)372.13B
Net Income(TTM)67.46B
Analysts44
Price Target523.01 (2.84%)
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)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)-1.99%
PT rev (3m)-1.98%
EPS NQ rev (1m)8.09%
EPS NQ rev (3m)5.34%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.47 | ||
| Fwd PE | 23.22 | ||
| P/S | 2.95 | ||
| P/FCF | 56.84 | ||
| P/OCF | 27.88 | ||
| P/B | 1.57 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 15.17 |
EPS(TTM)22.63
EY4.45%
EPS(NY)21.9
Fwd EY4.31%
FCF(TTM)8.95
FCFY1.76%
OCF(TTM)18.24
OCFY3.59%
SpS172.28
BVpS323.22
TBVpS267.83
PEG (NY)N/A
PEG (5Y)1.26
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 | 2.61 |
F-Score4
WACC8.11%
ROIC/WACC0.56
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-3%
EPS Next 2Y-0.22%
EPS Next 3Y1.51%
EPS Next 5Y2.26%
Revenue 1Y (TTM)0.6%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%2.13%
Revenue Next Year0.74%
Revenue Next 2Y0.33%
Revenue Next 3Y1.35%
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 of BERKSHIRE HATHAWAY INC-CL B (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 22.47 and the Price/Book (PB) ratio is 1.57.
How financially healthy is BERKSHIRE HATHAWAY INC-CL B?
The financial health rating of BERKSHIRE HATHAWAY INC-CL B (BRK.B) is 5 / 10.