BERKSHIRE HATHAWAY INC-CL A (BRK.A) Stock Fundamental Analysis
NYSE:BRK.A - New York Stock Exchange, Inc. - US0846701086 - Common Stock - Currency: USD
Taking everything into account, BRK.A scores 4 out of 10 in our fundamental rating. BRK.A was compared to 101 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. While showing a medium growth rate, BRK.A is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year BRK.A was profitable.
BRK.A had a positive operating cash flow in the past year.
BRK.A had positive earnings in 4 of the past 5 years.
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 (5.41%) is better than 77.23% of its industry peers.
BRK.A has a Return On Equity (9.42%) which is comparable to the rest of the industry.
BRK.A has a Return On Invested Capital (4.37%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BRK.A is below the industry average of 7.68%.
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
With a decent Profit Margin value of 17.00%, BRK.A is doing good in the industry, outperforming 75.25% of the companies in the same industry.
BRK.A's Profit Margin has declined in the last couple of years.
BRK.A has a Operating Margin (15.70%) which is in line with its industry peers.
BRK.A's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 16.97%, BRK.A is doing worse than 62.38% of the companies in the same industry.
In the last couple of years the Gross Margin of BRK.A has grown nicely.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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 2.65 indicates that BRK.A is not a great score, but indicates only limited risk for bankruptcy at the moment.
BRK.A has a better Altman-Z score (2.65) than 80.20% of its industry peers.
The Debt to FCF ratio of BRK.A is 15.44, which is on the high side as it means it would take BRK.A, 15.44 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 15.44, BRK.A perfoms like the industry average, outperforming 51.49% of the companies in the same industry.
BRK.A has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.19, BRK.A is in the better half of the industry, outperforming 69.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.44 | ||
| Altman-Z | 2.65 |
ROIC/WACC0.53
WACC8.27%
2.3 Liquidity
A Current Ratio of 1.95 indicates that BRK.A should not have too much problems paying its short term obligations.
With a decent Current ratio value of 1.95, BRK.A is doing good in the industry, outperforming 75.25% of the companies in the same industry.
A Quick Ratio of 1.68 indicates that BRK.A should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.68, BRK.A is in the better half of the industry, outperforming 71.29% 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 27.98%, which is quite impressive.
BRK.A shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.78% yearly.
BRK.A shows a small growth in Revenue. In the last year, the Revenue has grown by 0.01%.
Measured over the past years, BRK.A shows a small growth in Revenue. The Revenue has been growing by 7.84% on average per year.
EPS 1Y (TTM)27.98%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%-59.27%
Revenue 1Y (TTM)0.01%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%-1.22%
3.2 Future
BRK.A is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.26% yearly.
BRK.A is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.89% yearly.
EPS Next Y-6.03%
EPS Next 2Y-0.06%
EPS Next 3Y1.58%
EPS Next 5Y2.26%
Revenue Next Year-2.52%
Revenue Next 2Y1.27%
Revenue Next 3Y-0.41%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BRK.A is valuated rather expensively with a Price/Earnings ratio of 21.17.
BRK.A's Price/Earnings ratio is in line with the industry average.
BRK.A's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.41.
Based on the Price/Forward Earnings ratio of 21.19, the valuation of BRK.A can be described as rather expensive.
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 64.36% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 33.87. BRK.A is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.17 | ||
| Fwd PE | 21.19 |
4.2 Price Multiples
BRK.A's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as BRK.A.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 122.28 | ||
| EV/EBITDA | 14.45 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)1.19
EPS Next 2Y-0.06%
EPS Next 3Y1.58%
5. Dividend
5.1 Amount
BRK.A does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
698440
+400 (+0.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners33.77%
Inst Owner Change-5.03%
Ins Owners36.68%
Ins Owner Change-7.33%
Market Cap1005.75B
Analysts80
Price Target803164 (14.99%)
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)0.56%
PT rev (3m)-0.21%
EPS NQ rev (1m)-0.17%
EPS NQ rev (3m)11.68%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.59%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-1.26%
Revenue NY rev (1m)-0.11%
Revenue NY rev (3m)-2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.17 | ||
| Fwd PE | 21.19 | ||
| P/S | 2.72 | ||
| P/FCF | 122.28 | ||
| P/OCF | 36.69 | ||
| P/B | 1.51 | ||
| P/tB | 1.83 | ||
| EV/EBITDA | 14.45 |
EPS(TTM)32993.71
EY4.72%
EPS(NY)32953.6
Fwd EY4.72%
FCF(TTM)5711.81
FCFY0.82%
OCF(TTM)19036.1
OCFY2.73%
SpS257049.31
BVpS463881.25
TBVpS380950
PEG (NY)N/A
PEG (5Y)1.19
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%
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 | 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 | 2.65 |
F-Score4
WACC8.27%
ROIC/WACC0.53
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)27.98%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%-59.27%
EPS Next Y-6.03%
EPS Next 2Y-0.06%
EPS Next 3Y1.58%
EPS Next 5Y2.26%
Revenue 1Y (TTM)0.01%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%-1.22%
Revenue Next Year-2.52%
Revenue Next 2Y1.27%
Revenue Next 3Y-0.41%
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%