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. 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.
Of the past 5 years BRK.A 4 years were profitable.
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 6.95% is amongst the best of the industry. BRK.A outperforms 84.16% of its industry peers.
BRK.A has a Return On Equity of 12.36%. This is in the better half of the industry: BRK.A outperforms 63.37% of its industry peers.
BRK.A has a Return On Invested Capital of 4.50%. This is comparable to the rest of the industry: BRK.A outperforms 58.42% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BRK.A is significantly below the industry average of 11.69%.
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
BRK.A's Profit Margin of 21.79% is fine compared to the rest of the industry. BRK.A outperforms 77.23% of its industry peers.
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 57.43% of the companies in the same industry.
In the last couple of years the Operating Margin of BRK.A has grown nicely.
BRK.A's Gross Margin of 16.43% is on the low side compared to the rest of the industry. BRK.A is outperformed by 61.39% of its industry peers.
BRK.A'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
BRK.A has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, BRK.A has less shares outstanding
The number of shares outstanding for BRK.A has been reduced compared to 5 years ago.
The debt/assets ratio for BRK.A has been reduced compared to a year ago.
2.2 Solvency
BRK.A has an Altman-Z score of 2.62. This is not the best score and indicates that BRK.A is in the grey zone with still only limited risk for bankruptcy at the moment.
The Altman-Z score of BRK.A (2.62) is better than 84.16% 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.
The Debt to FCF ratio of BRK.A (10.44) 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.
Looking at the Debt to Equity ratio, with a value of 0.19, BRK.A is in the better half of the industry, outperforming 67.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.53
WACC8.53%
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 of 1.14. This is comparable to the rest of the industry: BRK.A outperforms 57.43% of its industry peers.
A Quick Ratio of 0.91 indicates that BRK.A may have some problems paying its short term obligations.
BRK.A has a Quick ratio (0.91) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.77% over the past year.
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 0.63% in the last year.
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)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 2.27% on average per year.
The Revenue is expected to grow by 6.94% on average over the next years.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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
With a Price/Earnings ratio of 23.65, BRK.A is valued on the expensive side.
Compared to the rest of the industry, the Price/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.
BRK.A is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 22.97 indicates a rather expensive valuation of BRK.A.
Based on the Price/Forward Earnings ratio, BRK.A is valued a bit more expensive than the industry average as 66.34% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, BRK.A is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.65 | ||
| Fwd PE | 22.97 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BRK.A.
BRK.A's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 90.05 | ||
| EV/EBITDA | 16.27 |
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)1.33
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 (5/23/2025, 10:38:20 PM)
754505
-1745 (-0.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners33.43%
Inst Owner Change-17.14%
Ins Owners37.69%
Ins Owner Change-17.13%
Market Cap1086.49B
Analysts80
Price Target804854 (6.67%)
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)1.42%
PT rev (3m)3.17%
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 | 23.65 | ||
| Fwd PE | 22.97 | ||
| P/S | 2.93 | ||
| P/FCF | 90.05 | ||
| P/OCF | 35.13 | ||
| P/B | 1.66 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 16.27 |
EPS(TTM)31900.65
EY4.23%
EPS(NY)32850.98
Fwd EY4.35%
FCF(TTM)8378.47
FCFY1.11%
OCF(TTM)21478.5
OCFY2.85%
SpS257839.58
BVpS454493.75
TBVpS371544
PEG (NY)N/A
PEG (5Y)1.33
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 | 2.62 |
F-Score4
WACC8.53%
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)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%