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 99 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. BRK.A is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
BRK.A had positive earnings in the past year.
In the past year BRK.A had a positive cash flow from operations.
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
With an excellent Return On Assets value of 6.95%, BRK.A belongs to the best of the industry, outperforming 83.84% of the companies in the same industry.
The Return On Equity of BRK.A (12.36%) is better than 63.64% of its industry peers.
BRK.A has a Return On Invested Capital (4.50%) which is comparable to the rest of the industry.
BRK.A had an Average Return On Invested Capital over the past 3 years of 4.13%. This is significantly below the industry average of 11.83%.
The 3 year average ROIC (4.13%) for BRK.A 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
With a decent Profit Margin value of 21.79%, BRK.A is doing good in the industry, outperforming 76.77% of the companies in the same industry.
In the last couple of years the Profit Margin of BRK.A has declined.
With a Operating Margin value of 15.89%, BRK.A perfoms like the industry average, outperforming 54.55% of the companies in the same industry.
In the last couple of years the Operating Margin of BRK.A has grown nicely.
BRK.A has a worse Gross Margin (16.43%) than 62.63% of its industry peers.
In the last couple of years the Gross Margin of BRK.A has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
The debt/assets ratio for BRK.A has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.58 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 (2.58) is better than 81.82% of its industry peers.
BRK.A has a debt to FCF ratio of 10.44. This is a negative value and a sign of low solvency as BRK.A would need 10.44 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 10.44, BRK.A is in line with its industry, outperforming 51.52% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that BRK.A is not too dependend on debt financing.
BRK.A has a better Debt to Equity ratio (0.19) than 68.69% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.54
WACC8.4%
2.3 Liquidity
BRK.A has a Current Ratio of 1.14. 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 has a Current ratio (1.14) which is in line with its industry peers.
BRK.A has a Quick Ratio of 1.14. This is a bad value and indicates that BRK.A is not financially healthy enough and could expect problems in meeting its short term obligations.
BRK.A has a Quick ratio (0.91) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.91 |
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 13.77%, which is quite good.
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.
Looking at the last year, BRK.A 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, BRK.A will show a small growth in Earnings Per Share. The EPS will grow by 2.26% on average per year.
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-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
A Price/Earnings ratio of 22.83 indicates a rather expensive valuation of BRK.A.
65.66% of the companies in the same industry are cheaper than BRK.A, based on the Price/Earnings ratio.
BRK.A is valuated at similar levels of the S&P average 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 22.17, BRK.A is valued on the expensive side.
Based on the Price/Forward Earnings ratio, BRK.A is valued a bit more expensive than 67.68% of the companies in the same industry.
BRK.A is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 22.17 |
4.2 Price Multiples
BRK.A's Enterprise Value to EBITDA is on the same level as the industry average.
BRK.A's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.91 | ||
| EV/EBITDA | 15.71 |
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)1.28
EPS Next 2Y-0.22%
EPS Next 3Y1.32%
5. Dividend
5.1 Amount
No dividends for BRK.A!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:BRK.A (6/18/2025, 10:18:03 PM)
728200
+2800 (+0.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners33.78%
Inst Owner Change-17.18%
Ins Owners38.2%
Ins Owner Change-10.88%
Market Cap1048.61B
Analysts80
Price Target806214 (10.71%)
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)0.17%
PT rev (3m)0.81%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)-2.68%
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 | 22.83 | ||
| Fwd PE | 22.17 | ||
| P/S | 2.82 | ||
| P/FCF | 86.91 | ||
| P/OCF | 33.9 | ||
| P/B | 1.6 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 15.71 |
EPS(TTM)31900.65
EY4.38%
EPS(NY)32850.98
Fwd EY4.51%
FCF(TTM)8378.47
FCFY1.15%
OCF(TTM)21478.5
OCFY2.95%
SpS257839.58
BVpS454493.75
TBVpS371544
PEG (NY)N/A
PEG (5Y)1.28
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 | 2.58 |
F-Score4
WACC8.4%
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)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%