BERKSHIRE HATHAWAY INC-CL A (BRK.A) Stock Fundamental Analysis
USA - NYSE:BRK.A - US0846701086 - Common Stock
715740 USD
-2182 (-0.3%)
732000 USD
+16260 (+2.27%)
We assign a fundamental rating of 4 out of 10 to BRK.A. BRK.A was compared to 98 industry peers in the Financial Services industry. BRK.A has only an average score on both its financial health and profitability. BRK.A is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BRK.A had positive earnings in the past year.
BRK.A had a positive operating cash flow in the past year.
BRK.A had positive earnings in 4 of the past 5 years.
BRK.A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BRK.A's Return On Assets of 5.41% is fine compared to the rest of the industry. BRK.A outperforms 77.55% of its industry peers.
With a Return On Equity value of 9.42%, BRK.A perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
With a decent Return On Invested Capital value of 4.37%, BRK.A is doing good in the industry, outperforming 62.24% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for BRK.A is below the industry average of 7.79%.
The last Return On Invested Capital (4.37%) for BRK.A is above the 3 year average (4.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.41% | ||
| ROE | 9.42% | ||
| ROIC | 4.37% |
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 17.00%, BRK.A is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
In the last couple of years the Profit Margin of BRK.A has declined.
The Operating Margin of BRK.A (15.70%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of BRK.A has grown nicely.
BRK.A has a worse Gross Margin (16.97%) than 60.20% of its industry peers.
BRK.A's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.7% | ||
| PM (TTM) | 17% | ||
| GM | 16.97% |
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.A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
BRK.A has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, BRK.A has less shares outstanding
The debt/assets ratio for BRK.A has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.68 indicates that BRK.A is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of BRK.A (2.68) is better than 79.59% of its industry peers.
BRK.A has a debt to FCF ratio of 15.44. This is a negative value and a sign of low solvency as BRK.A would need 15.44 years to pay back of all of its debts.
The Debt to FCF ratio of BRK.A (15.44) is comparable to the rest of the industry.
BRK.A has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
BRK.A has a better Debt to Equity ratio (0.19) than 66.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.44 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.54
WACC8.14%
2.3 Liquidity
BRK.A has a Current Ratio of 1.95. 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's Current ratio of 1.95 is fine compared to the rest of the industry. BRK.A outperforms 72.45% of its industry peers.
BRK.A has a Quick Ratio of 1.68. This is a normal value and indicates that BRK.A is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.68, BRK.A is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
BRK.A shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.24%, which is quite good.
The Earnings Per Share has been growing by 17.78% on average over the past years. This is quite good.
Looking at the last year, BRK.A shows a small growth in Revenue. The Revenue has grown by 0.01% in the last year.
The Revenue has been growing slightly by 7.84% on average over the past years.
EPS 1Y (TTM)8.24%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%-3.87%
Revenue 1Y (TTM)0.01%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%-1.22%
3.2 Future
The Earnings Per Share is expected to grow by 2.26% on average over the next years.
Based on estimates for the next years, BRK.A will show a small growth in Revenue. The Revenue will grow by 4.89% on average per year.
EPS Next Y-3.02%
EPS Next 2Y0.13%
EPS Next 3Y2.06%
EPS Next 5Y2.26%
Revenue Next Year0.77%
Revenue Next 2Y0.44%
Revenue Next 3Y1.54%
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
Based on the Price/Earnings ratio of 22.66, the valuation of BRK.A can be described as rather expensive.
BRK.A's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of BRK.A to the average of the S&P500 Index (26.11), we can say BRK.A is valued inline with the index average.
The Price/Forward Earnings ratio is 21.64, which indicates a rather expensive current valuation of BRK.A.
65.31% of the companies in the same industry are cheaper than BRK.A, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, BRK.A is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.66 | ||
| Fwd PE | 21.64 |
4.2 Price Multiples
BRK.A's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 125.31 | ||
| EV/EBITDA | 14.81 |
4.3 Compensation for Growth
BRK.A has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.27
EPS Next 2Y0.13%
EPS Next 3Y2.06%
5. Dividend
5.1 Amount
BRK.A does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
715740
-2182 (-0.3%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners34.67%
Inst Owner Change-0.03%
Ins Owners38.36%
Ins Owner Change2.23%
Market Cap1030.67B
Revenue(TTM)370.15B
Net Income(TTM)62.92B
Analysts80
Price Target784721 (9.64%)
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)-4.8%
Min EPS beat(2)-9.78%
Max EPS beat(2)0.19%
EPS beat(4)2
Avg EPS beat(4)5.7%
Min EPS beat(4)-10.41%
Max EPS beat(4)42.8%
EPS beat(8)6
Avg EPS beat(8)8.53%
EPS beat(12)8
Avg EPS beat(12)6.49%
EPS beat(16)11
Avg EPS beat(16)7.41%
Revenue beat(2)0
Avg Revenue beat(2)-3.21%
Min Revenue beat(2)-4.09%
Max Revenue beat(2)-2.33%
Revenue beat(4)0
Avg Revenue beat(4)-3.53%
Min Revenue beat(4)-7.69%
Max Revenue beat(4)-0.01%
Revenue beat(8)3
Avg Revenue beat(8)-1.26%
Revenue beat(12)4
Avg Revenue beat(12)-0.85%
Revenue beat(16)5
Avg Revenue beat(16)-1.25%
PT rev (1m)-1.92%
PT rev (3m)-1.75%
EPS NQ rev (1m)1.61%
EPS NQ rev (3m)2.85%
EPS NY rev (1m)0.46%
EPS NY rev (3m)3.19%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.66 | ||
| Fwd PE | 21.64 | ||
| P/S | 2.78 | ||
| P/FCF | 125.31 | ||
| P/OCF | 37.6 | ||
| P/B | 1.54 | ||
| P/tB | 1.88 | ||
| EV/EBITDA | 14.81 |
EPS(TTM)31588.07
EY4.41%
EPS(NY)33082.1
Fwd EY4.62%
FCF(TTM)5711.81
FCFY0.8%
OCF(TTM)19036.1
OCFY2.66%
SpS257049.31
BVpS463881.25
TBVpS380950
PEG (NY)N/A
PEG (5Y)1.27
Graham Number574191
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.41% | ||
| ROE | 9.42% | ||
| ROCE | 5.42% | ||
| ROIC | 4.37% | ||
| ROICexc | 4.82% | ||
| ROICexgc | 5.84% | ||
| OM | 15.7% | ||
| PM (TTM) | 17% | ||
| GM | 16.97% | ||
| FCFM | 2.22% |
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 Turnover0.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.44 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 146.66% | ||
| Cap/Sales | 5.18% | ||
| Interest Coverage | 11.47 | ||
| Cash Conversion | 38.5% | ||
| Profit Quality | 13.07% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 2.68 |
F-Score4
WACC8.14%
ROIC/WACC0.54
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)8.24%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%-3.87%
EPS Next Y-3.02%
EPS Next 2Y0.13%
EPS Next 3Y2.06%
EPS Next 5Y2.26%
Revenue 1Y (TTM)0.01%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%-1.22%
Revenue Next Year0.77%
Revenue Next 2Y0.44%
Revenue Next 3Y1.54%
Revenue Next 5Y4.89%
EBIT growth 1Y6.42%
EBIT growth 3Y18.52%
EBIT growth 5Y13.14%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-68.47%
FCF growth 3Y-23.7%
FCF growth 5Y-12.55%
OCF growth 1Y-36.42%
OCF growth 3Y-8.11%
OCF growth 5Y-4.59%
BERKSHIRE HATHAWAY INC-CL A / BRK.A FAQ
What is the ChartMill fundamental rating of BERKSHIRE HATHAWAY INC-CL A (BRK.A) stock?
ChartMill assigns a fundamental rating of 4 / 10 to BRK.A.
Can you provide the valuation status for BERKSHIRE HATHAWAY INC-CL A?
ChartMill assigns a valuation rating of 2 / 10 to BERKSHIRE HATHAWAY INC-CL A (BRK.A). This can be considered as Overvalued.
Can you provide the profitability details for BERKSHIRE HATHAWAY INC-CL A?
BERKSHIRE HATHAWAY INC-CL A (BRK.A) has a profitability rating of 6 / 10.
What are the PE and PB ratios of BERKSHIRE HATHAWAY INC-CL A (BRK.A) stock?
The Price/Earnings (PE) ratio for BERKSHIRE HATHAWAY INC-CL A (BRK.A) is 22.66 and the Price/Book (PB) ratio is 1.54.