BERKSHIRE HATHAWAY INC-CL B (BRK.B)
US0846707026 - Common Stock
We assign a fundamental rating of 5 out of 10 to BRK.B. BRK.B was compared to 102 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.
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.
Of the past 5 years BRK.B 4 years were profitable.
BRK.B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.99%, BRK.B belongs to the best of the industry, outperforming 89.22% of the companies in the same industry.
BRK.B has a Return On Equity of 17.14%. This is in the better half of the industry: BRK.B outperforms 79.41% of its industry peers.
BRK.B's Return On Invested Capital of 3.97% is fine compared to the rest of the industry. BRK.B outperforms 65.69% of its industry peers.
BRK.B had an Average Return On Invested Capital over the past 3 years of 3.67%. This is below the industry average of 8.07%.
The 3 year average ROIC (3.67%) for BRK.B 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
BRK.B has a Profit Margin of 26.40%. This is amongst the best in the industry. BRK.B outperforms 80.39% of its industry peers.
In the last couple of years the Profit Margin of BRK.B has grown nicely.
BRK.B has a Operating Margin (13.26%) which is in line with its industry peers.
In the last couple of years the Operating Margin of BRK.B has remained more or less at the same level.
BRK.B has a Gross Margin (20.57%) 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 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BRK.B is destroying value.
The number of shares outstanding for BRK.B has been reduced compared to 1 year ago.
Compared to 5 years ago, BRK.B has less shares outstanding
Compared to 1 year ago, BRK.B has an improved debt to assets ratio.
2.2 Solvency
BRK.B has an Altman-Z score of 2.34. 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.
Looking at the Altman-Z score, with a value of 2.34, BRK.B belongs to the top of the industry, outperforming 80.39% of the companies in the same industry.
The Debt to FCF ratio of BRK.B is 4.31, which is a neutral value as it means it would take BRK.B, 4.31 years of fcf income to pay off all of its debts.
BRK.B's Debt to FCF ratio of 4.31 is fine compared to the rest of the industry. BRK.B outperforms 64.71% of its industry peers.
BRK.B has a Debt/Equity ratio of 0.23. This is a healthy value indicating a solid balance between debt and equity.
BRK.B's Debt to Equity ratio of 0.23 is fine compared to the rest of the industry. BRK.B outperforms 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 4.31 | ||
| Altman-Z | 2.34 |
ROIC/WACC0.47
WACC8.39%
2.3 Liquidity
BRK.B has a Current Ratio of 1.25. This is a normal value and indicates that BRK.B is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.25, BRK.B perfoms like the industry average, outperforming 56.86% of the companies in the same industry.
A Quick Ratio of 0.98 indicates that BRK.B may have some problems paying its short term obligations.
BRK.B has a Quick ratio (0.98) which is in line with its industry peers.
| 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.
The Earnings Per Share has been growing by 11.33% on average over the past years. This is quite good.
BRK.B shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.68%.
BRK.B 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
The Earnings Per Share is expected to grow by 10.92% on average over the next years. This is quite good.
Based on estimates for the next years, BRK.B will show a decrease in Revenue. The Revenue will decrease by -3.28% on average per year.
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
A Price/Earnings ratio of 23.51 indicates a rather expensive valuation of BRK.B.
The rest of the industry has a similar Price/Earnings ratio as BRK.B.
When comparing the Price/Earnings ratio of BRK.B to the average of the S&P500 Index (28.11), we can say BRK.B is valued inline with the index average.
With a Price/Forward Earnings ratio of 21.81, BRK.B is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BRK.B is on the same level as its industry peers.
BRK.B's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.51 | ||
| Fwd PE | 21.81 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BRK.B.
BRK.B's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.3 | ||
| EV/EBITDA | 15.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BRK.B does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of BRK.B may justify a higher PE ratio.
PEG (NY)3.01
PEG (5Y)2.08
EPS Next 2Y7.12%
EPS Next 3Y7.8%
5. Dividend
5.1 Amount
No dividends for BRK.B!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BERKSHIRE HATHAWAY INC-CL B
NYSE:BRK.B (5/8/2024, 9:41:07 AM)
404.12
-2.02 (-0.5%)
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 Cap872.90B
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)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
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 | 23.51 | ||
| Fwd PE | 21.81 | ||
| 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)3.01
PEG (5Y)2.08
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