BERKSHIRE HATHAWAY INC-CL B (1BRK.MI) Stock Fundamental Analysis
BIT:1BRK - Euronext Milan - US0846707026 - Common Stock - Currency: EUR
Taking everything into account, 1BRK scores 4 out of 10 in our fundamental rating. 1BRK was compared to 47 industry peers in the Financial Services industry. Both the profitability and the financial health of 1BRK get a neutral evaluation. Nothing too spectacular is happening here. 1BRK is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
1BRK had positive earnings in the past year.
In the past year 1BRK had a positive cash flow from operations.
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's Return On Assets of 6.95% is fine compared to the rest of the industry. 1BRK outperforms 74.47% of its industry peers.
Looking at the Return On Equity, with a value of 12.36%, 1BRK is in line with its industry, outperforming 59.57% of the companies in the same industry.
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 11.50%.
The 3 year average ROIC (4.13%) for 1BRK is below the current ROIC(4.50%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 21.79%, 1BRK is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
1BRK's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 15.89%, 1BRK is in line with its industry, outperforming 57.45% of the companies in the same industry.
In the last couple of years the Operating Margin of 1BRK has grown nicely.
With a Gross Margin value of 16.43%, 1BRK is not doing good in the industry: 61.70% of the companies in the same industry are doing better.
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
1BRK has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
1BRK has less shares outstanding than it did 1 year ago.
The number of shares outstanding for 1BRK has been reduced compared to 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.
Looking at the Altman-Z score, with a value of 1.34, 1BRK is in line with its industry, outperforming 42.55% of the companies in the same industry.
1BRK has a debt to FCF ratio of 10.44. This is a negative value and a sign of low solvency as 1BRK would need 10.44 years to pay back of all of its debts.
The Debt to FCF ratio of 1BRK (10.44) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.19 indicates that 1BRK is not too dependend on debt financing.
1BRK has a better Debt to Equity ratio (0.19) than 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 1.34 |
ROIC/WACC1.4
WACC3.22%
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 55.32% of the companies in the same industry.
A Quick Ratio of 0.91 indicates that 1BRK may have some problems paying its short term obligations.
1BRK has a worse Quick ratio (0.91) than 61.70% 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.
The Earnings Per Share has been growing by 17.78% on average over the past years. This is quite good.
The Revenue has been growing slightly by 0.63% in the past 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
The Earnings Per Share is expected to grow by 2.26% on average over the next years.
The Revenue is expected to grow by 4.89% on average over the next years.
EPS Next Y-5.7%
EPS Next 2Y-0.22%
EPS Next 3Y1.32%
EPS Next 5Y2.26%
Revenue Next Year1.64%
Revenue Next 2Y3.35%
Revenue Next 3Y0.25%
Revenue Next 5Y4.89%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
The Price/Earnings ratio is 0.02, which indicates a rather cheap valuation of 1BRK.
Based on the Price/Earnings ratio, 1BRK is valued cheaply inside the industry as 97.87% of the companies are valued more expensively.
1BRK is valuated cheaply when we compare the Price/Earnings ratio to 26.34, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 0.01, the valuation of 1BRK can be described as very cheap.
1BRK's Price/Forward Earnings ratio is rather cheap when compared to the industry. 1BRK is cheaper than 97.87% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, 1BRK is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.02 | ||
| Fwd PE | 0.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1BRK is valued cheaper than 95.74% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 1BRK is valued cheaply inside the industry as 97.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 0.06 | ||
| EV/EBITDA | 1.15 |
4.3 Compensation for Growth
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 (6/17/2025, 7:00:00 PM)
421.8
-1.95 (-0.46%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners33.78%
Inst Owner ChangeN/A
Ins Owners38.2%
Ins Owner ChangeN/A
Market Cap607.39M
Analysts80
Price Target471.55 (11.79%)
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)-1.17%
PT rev (3m)-6.25%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)5.16%
EPS NY rev (1m)0%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)-5.72%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)-2.8%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 0.02 | ||
| Fwd PE | 0.01 | ||
| P/S | 0 | ||
| P/FCF | 0.06 | ||
| P/OCF | 0.02 | ||
| P/B | 0 | ||
| P/tB | 0 | ||
| EV/EBITDA | 1.15 |
EPS(TTM)27720.41
EY6571.93%
EPS(NY)28546.21
Fwd EY6767.71%
FCF(TTM)7280.56
FCFY1726.07%
OCF(TTM)18663.9
OCFY4424.82%
SpS224052.47
BVpS394937.22
TBVpS322857
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
WACC3.22%
ROIC/WACC1.4
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 5Y2.26%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%-0.16%
Revenue Next Year1.64%
Revenue Next 2Y3.35%
Revenue Next 3Y0.25%
Revenue Next 5Y4.89%
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%