BERKSHIRE HATHAWAY INC-CL A (BRK.A)
US0846701086 - Common Stock
Overall BRK.A gets a fundamental rating of 5 out of 10. We evaluated BRK.A against 102 industry peers in the Financial Services industry. Both the profitability and the financial health of BRK.A get a neutral evaluation. Nothing too spectacular is happening here. BRK.A is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BRK.A had positive earnings in the past year.
In the past year BRK.A had a positive cash flow from operations.
Of the past 5 years BRK.A 4 years were profitable.
In the past 5 years BRK.A always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BRK.A (8.99%) is better than 88.24% of its industry peers.
BRK.A's Return On Equity of 17.14% is fine compared to the rest of the industry. BRK.A outperforms 78.43% of its industry peers.
The Return On Invested Capital of BRK.A (3.97%) is better than 64.71% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BRK.A is below the industry average of 8.07%.
The 3 year average ROIC (3.67%) for BRK.A is below the current ROIC(3.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.99% | ||
| ROE | 17.14% | ||
| ROIC | 3.97% |
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 26.40%, BRK.A is in the better half of the industry, outperforming 79.41% of the companies in the same industry.
In the last couple of years the Profit Margin of BRK.A has grown nicely.
BRK.A's Operating Margin of 13.26% is in line compared to the rest of the industry. BRK.A outperforms 51.96% of its industry peers.
BRK.A's Operating Margin has been stable in the last couple of years.
BRK.A has a Gross Margin (20.57%) which is in line with its industry peers.
BRK.A's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.26% | ||
| PM (TTM) | 26.4% | ||
| GM | 20.57% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BRK.A is destroying value.
BRK.A has less shares outstanding than it did 1 year ago.
BRK.A has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, BRK.A has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.35 indicates that BRK.A is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.35, BRK.A belongs to the top of the industry, outperforming 81.37% of the companies in the same industry.
The Debt to FCF ratio of BRK.A is 4.31, which is a neutral value as it means it would take BRK.A, 4.31 years of fcf income to pay off all of its debts.
BRK.A has a better Debt to FCF ratio (4.31) than 63.73% of its industry peers.
BRK.A has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
BRK.A's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. BRK.A outperforms 63.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 4.31 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.47
WACC8.39%
2.3 Liquidity
BRK.A has a Current Ratio of 1.25. This is a normal value and indicates that BRK.A is financially healthy and should not expect problems in meeting its short term obligations.
BRK.A has a Current ratio (1.25) which is in line with its industry peers.
A Quick Ratio of 0.98 indicates that BRK.A may have some problems paying its short term obligations.
The Quick ratio of BRK.A (0.98) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.99% over the past year.
BRK.A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 11.33% yearly.
BRK.A shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.68%.
BRK.A shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.02% yearly.
EPS 1Y (TTM)22.99%
EPS 3Y23.42%
EPS 5Y11.33%
EPS growth Q2Q28.22%
Revenue 1Y (TTM)20.68%
Revenue growth 3Y14.07%
Revenue growth 5Y8.02%
Revenue growth Q2Q19.6%
3.2 Future
Based on estimates for the next years, BRK.A 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 -3.28% on average over the next years.
EPS Next Y7.82%
EPS Next 2Y7.12%
EPS Next 3Y7.8%
EPS Next 5Y10.92%
Revenue Next Year-10.91%
Revenue Next 2Y-3.13%
Revenue Next 3Y-3.28%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same 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
BRK.A is valuated rather expensively with a Price/Earnings ratio of 23.70.
BRK.A's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.11, BRK.A is valued at the same level.
With a Price/Forward Earnings ratio of 21.98, BRK.A is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BRK.A indicates a slightly more expensive valuation: BRK.A is more expensive than 60.78% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of BRK.A to the average of the S&P500 Index (20.39), we can say BRK.A is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.7 | ||
| Fwd PE | 21.98 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BRK.A is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BRK.A is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.54 | ||
| EV/EBITDA | 15.87 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of BRK.A may justify a higher PE ratio.
PEG (NY)3.03
PEG (5Y)2.09
EPS Next 2Y7.12%
EPS Next 3Y7.8%
5. Dividend
5.1 Amount
No dividends for BRK.A!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BERKSHIRE HATHAWAY INC-CL A
NYSE:BRK.A (5/8/2024, 12:13:58 PM)
611035
-223 (-0.04%)
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 Cap879.89B
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(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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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 | 23.7 | ||
| Fwd PE | 21.98 | ||
| 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)3.03
PEG (5Y)2.09
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.99% | ||
| ROE | 17.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.26% | ||
| PM (TTM) | 26.4% | ||
| GM | 20.57% | ||
| 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 Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.98 | ||
| 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)
Growth
EPS 1Y (TTM)22.99%
EPS 3Y23.42%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.68%
Revenue growth 3Y14.07%
Revenue growth 5Y
Revenue growth 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