BERKSHIRE HATHAWAY INC-CL B (1BRK.MI) Stock Fundamental Analysis
BIT:1BRK - Euronext Milan - US0846707026 - Common Stock - Currency: EUR
Overall 1BRK gets a fundamental rating of 5 out of 10. We evaluated 1BRK against 50 industry peers in the Financial Services industry. 1BRK has an average financial health and profitability rating. 1BRK scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
1. Profitability
1.1 Basic Checks
1BRK had positive earnings in the past year.
1BRK had a positive operating cash flow in the past year.
Of the past 5 years 1BRK 4 years were profitable.
In the past 5 years 1BRK always reported a positive cash flow from operatings.
1.2 Ratios
1BRK has a better Return On Assets (6.95%) than 78.00% of its industry peers.
1BRK has a better Return On Equity (12.36%) than 64.00% of its industry peers.
1BRK has a Return On Invested Capital (4.50%) which is comparable to the rest of the industry.
1BRK had an Average Return On Invested Capital over the past 3 years of 4.13%. This is significantly below the industry average of 10.20%.
The last Return On Invested Capital (4.50%) for 1BRK is above the 3 year average (4.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.95% | ||
| ROE | 12.36% | ||
| ROIC | 4.5% |
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
1BRK's Profit Margin of 21.79% is fine compared to the rest of the industry. 1BRK outperforms 78.00% of its industry peers.
In the last couple of years the Profit Margin of 1BRK has declined.
1BRK's Operating Margin of 15.89% is fine compared to the rest of the industry. 1BRK outperforms 66.00% of its industry peers.
1BRK's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 16.43%, 1BRK is in line with its industry, outperforming 44.00% of the companies in the same industry.
1BRK's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.89% | ||
| PM (TTM) | 21.79% | ||
| GM | 16.43% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), 1BRK is creating some value.
1BRK has less shares outstanding than it did 1 year ago.
1BRK has less shares outstanding than it did 5 years ago.
The debt/assets ratio for 1BRK has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.34, we must say that 1BRK is in the distress zone and has some risk of bankruptcy.
1BRK's Altman-Z score of 1.34 is in line compared to the rest of the industry. 1BRK outperforms 46.00% of its industry peers.
The Debt to FCF ratio of 1BRK is 10.44, which is on the high side as it means it would take 1BRK, 10.44 years of fcf income to pay off all of its debts.
1BRK has a Debt to FCF ratio (10.44) which is in line with its industry peers.
A Debt/Equity ratio of 0.19 indicates that 1BRK is not too dependend on debt financing.
The Debt to Equity ratio of 1BRK (0.19) is better than 70.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 1.34 |
ROIC/WACC1.39
WACC3.23%
2.3 Liquidity
1BRK has a Current Ratio of 1.14. This is a normal value and indicates that 1BRK is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.14, 1BRK perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
1BRK has a Quick Ratio of 1.14. This is a bad value and indicates that 1BRK is not financially healthy enough and could expect problems in meeting its short term obligations.
1BRK's Quick ratio of 0.91 is on the low side compared to the rest of the industry. 1BRK is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
1BRK shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.77%, which is quite good.
Measured over the past years, 1BRK shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.78% on average per year.
Looking at the last year, 1BRK shows a small growth in Revenue. The Revenue has grown by 0.63% in the last year.
The Revenue has been growing slightly by 7.84% on average over the past years.
EPS 1Y (TTM)13.77%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%-14.02%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%-0.16%
3.2 Future
Based on estimates for the next years, 1BRK will show a small growth in Earnings Per Share. The EPS will grow by 2.27% on average per year.
1BRK is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 6.94% yearly.
EPS Next Y-5.7%
EPS Next 2Y-0.22%
EPS Next 3Y1.32%
EPS Next 5Y2.27%
Revenue Next Year4.56%
Revenue Next 2Y4.16%
Revenue Next 3Y0.25%
Revenue Next 5Y6.94%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 0.02 indicates a rather cheap valuation of 1BRK.
Compared to the rest of the industry, the Price/Earnings ratio of 1BRK indicates a rather cheap valuation: 1BRK is cheaper than 100.00% of the companies listed in the same industry.
1BRK's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.82.
1BRK is valuated cheaply with a Price/Forward Earnings ratio of 0.02.
1BRK's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1BRK is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of 1BRK to the average of the S&P500 Index (21.76), we can say 1BRK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.02 | ||
| Fwd PE | 0.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1BRK is valued cheaply inside the industry as 98.00% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1BRK indicates a rather cheap valuation: 1BRK is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.06 | ||
| EV/EBITDA | 1.15 |
4.3 Compensation for Growth
1BRK has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0
EPS Next 2Y-0.22%
EPS Next 3Y1.32%
5. Dividend
5.1 Amount
No dividends for 1BRK!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1BRK (5/23/2025, 7:00:00 PM)
444.05
-3.4 (-0.76%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners33.43%
Inst Owner ChangeN/A
Ins Owners37.69%
Ins Owner ChangeN/A
Market Cap639.43M
Analysts80
Price Target477.14 (7.45%)
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)1
Avg EPS beat(2)16.51%
Min EPS beat(2)-9.78%
Max EPS beat(2)42.8%
EPS beat(4)2
Avg EPS beat(4)10.96%
Min EPS beat(4)-10.41%
Max EPS beat(4)42.8%
EPS beat(8)6
Avg EPS beat(8)11.15%
EPS beat(12)8
Avg EPS beat(12)9.18%
EPS beat(16)11
Avg EPS beat(16)8.21%
Revenue beat(2)0
Avg Revenue beat(2)-2.05%
Min Revenue beat(2)-4.09%
Max Revenue beat(2)-0.01%
Revenue beat(4)0
Avg Revenue beat(4)-2.99%
Min Revenue beat(4)-7.69%
Max Revenue beat(4)-0.01%
Revenue beat(8)4
Avg Revenue beat(8)0.2%
Revenue beat(12)5
Avg Revenue beat(12)-0.61%
Revenue beat(16)6
Avg Revenue beat(16)-0.89%
PT rev (1m)-2.07%
PT rev (3m)-2.48%
EPS NQ rev (1m)-1.97%
EPS NQ rev (3m)5.69%
EPS NY rev (1m)-2.25%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)4.96%
Revenue NQ rev (3m)4.13%
Revenue NY rev (1m)4.55%
Revenue NY rev (3m)3.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.02 | ||
| Fwd PE | 0.02 | ||
| P/S | 0 | ||
| P/FCF | 0.06 | ||
| P/OCF | 0.02 | ||
| P/B | 0 | ||
| P/tB | 0 | ||
| EV/EBITDA | 1.15 |
EPS(TTM)28208.2
EY6352.48%
EPS(NY)29048.53
Fwd EY6541.72%
FCF(TTM)7408.68
FCFY1668.43%
OCF(TTM)18992.4
OCFY4277.09%
SpS227995.03
BVpS401886.77
TBVpS328538
PEG (NY)N/A
PEG (5Y)0
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.95% | ||
| ROE | 12.36% | ||
| ROCE | 5.56% | ||
| ROIC | 4.5% | ||
| ROICexc | 4.68% | ||
| ROICexgc | 5.61% | ||
| OM | 15.89% | ||
| PM (TTM) | 21.79% | ||
| GM | 16.43% | ||
| FCFM | 3.25% |
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%
ROICexcg growth 3Y9.15%
ROICexcg 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 Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 10.44 | ||
| Debt/EBITDA | 1.75 | ||
| Cap/Depr | 145.65% | ||
| Cap/Sales | 5.08% | ||
| Interest Coverage | 11.99 | ||
| Cash Conversion | 42.99% | ||
| Profit Quality | 14.91% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 1.34 |
F-Score4
WACC3.23%
ROIC/WACC1.39
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)13.77%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%-14.02%
EPS Next Y-5.7%
EPS Next 2Y-0.22%
EPS Next 3Y1.32%
EPS Next 5Y2.27%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%-0.16%
Revenue Next Year4.56%
Revenue Next 2Y4.16%
Revenue Next 3Y0.25%
Revenue Next 5Y6.94%
EBIT growth 1Y12.44%
EBIT growth 3Y18.52%
EBIT growth 5Y13.14%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-47.83%
FCF growth 3Y-23.7%
FCF growth 5Y-12.55%
OCF growth 1Y-21.13%
OCF growth 3Y-8.11%
OCF growth 5Y-4.59%