BERKSHIRE HATHAWAY INC-CL A (BRK.A) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRK.A - US0846701086 - Common Stock
743438 USD
+1138 (+0.15%)
742600 USD
-838 (-0.11%)
BRK.A gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 98 industry peers in the Financial Services industry. BRK.A has an average financial health and profitability rating. While showing a medium growth rate, BRK.A is valued expensive at the moment.
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.
- Each year in the past 5 years BRK.A had a positive operating cash flow.
1.2 Ratios
- BRK.A has a better Return On Assets (5.50%) than 77.55% of its industry peers.
- BRK.A's Return On Equity of 9.66% is in line compared to the rest of the industry. BRK.A outperforms 56.12% of its industry peers.
- BRK.A has a better Return On Invested Capital (4.53%) than 64.29% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for BRK.A is below the industry average of 8.44%.
- The 3 year average ROIC (4.13%) for BRK.A is below the current ROIC(4.53%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 9.66% | ||
| ROIC | 4.53% |
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 18.13%, BRK.A is doing good in the industry, outperforming 70.41% of the companies in the same industry.
- BRK.A's Profit Margin has declined in the last couple of years.
- BRK.A's Operating Margin of 16.72% is fine compared to the rest of the industry. BRK.A outperforms 61.22% of its industry peers.
- BRK.A's Operating Margin has improved in the last couple of years.
- BRK.A has a worse Gross Margin (17.71%) than 61.22% of its industry peers.
- In the last couple of years the Gross Margin of BRK.A has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.72% | ||
| PM (TTM) | 18.13% | ||
| GM | 17.71% |
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.
- 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.
- Compared to 1 year ago, BRK.A has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.57 indicates that BRK.A is not a great score, but indicates only limited risk for bankruptcy at the moment.
- With an excellent Altman-Z score value of 2.57, BRK.A belongs to the best of the industry, outperforming 80.61% of the companies in the same industry.
- The Debt to FCF ratio of BRK.A is 6.58, which is on the high side as it means it would take BRK.A, 6.58 years of fcf income to pay off all of its debts.
- With a Debt to FCF ratio value of 6.58, BRK.A perfoms like the industry average, outperforming 56.12% of the companies in the same industry.
- BRK.A has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
- BRK.A has a better Debt to Equity ratio (0.18) than 64.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.55
WACC8.22%
2.3 Liquidity
- A Current Ratio of 1.33 indicates that BRK.A should not have too much problems paying its short term obligations.
- BRK.A has a better Current ratio (1.33) than 62.24% of its industry peers.
- A Quick Ratio of 1.11 indicates that BRK.A should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.11, BRK.A is in line with its industry, outperforming 54.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 17.97% over the past year.
- Measured over the past years, BRK.A shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.78% on average per year.
- BRK.A shows a small growth in Revenue. In the last year, the Revenue has grown by 0.60%.
- 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)17.97%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%33.51%
Revenue 1Y (TTM)0.6%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%2.13%
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.
- The Revenue is expected to grow by 4.89% on average over the next years.
EPS Next Y-0.45%
EPS Next 2Y0.3%
EPS Next 3Y1.64%
EPS Next 5Y2.26%
Revenue Next Year0.8%
Revenue Next 2Y0.25%
Revenue Next 3Y1.4%
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 21.90 indicates a rather expensive valuation of BRK.A.
- BRK.A's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.33. BRK.A is around the same levels.
- The Price/Forward Earnings ratio is 22.40, which indicates a rather expensive current valuation of BRK.A.
- Based on the Price/Forward Earnings ratio, BRK.A is valued a bit more expensive than 63.27% of the companies in the same industry.
- BRK.A's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.12.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.9 | ||
| Fwd PE | 22.4 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as BRK.A.
- 61.22% of the companies in the same industry are cheaper than BRK.A, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.39 | ||
| EV/EBITDA | 14.8 |
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)1.23
EPS Next 2Y0.3%
EPS Next 3Y1.64%
5. Dividend
5.1 Amount
- No dividends for BRK.A!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
743438
+1138 (+0.15%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)11-01 2025-11-01/bmo
Earnings (Next)02-20 2026-02-20/bmo
Inst Owners26.93%
Inst Owner Change0.04%
Ins Owners37.74%
Ins Owner Change7.83%
Market Cap1.07T
Revenue(TTM)372.13B
Net Income(TTM)67.46B
Analysts44
Price Target784978 (5.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2
Avg EPS beat(2)2.5%
Min EPS beat(2)0.19%
Max EPS beat(2)4.81%
EPS beat(4)3
Avg EPS beat(4)9.5%
Min EPS beat(4)-9.78%
Max EPS beat(4)42.8%
EPS beat(8)6
Avg EPS beat(8)8.01%
EPS beat(12)8
Avg EPS beat(12)5.87%
EPS beat(16)12
Avg EPS beat(16)8.15%
Revenue beat(2)1
Avg Revenue beat(2)-0.81%
Min Revenue beat(2)-2.33%
Max Revenue beat(2)0.72%
Revenue beat(4)1
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-4.09%
Max Revenue beat(4)0.72%
Revenue beat(8)3
Avg Revenue beat(8)-1.35%
Revenue beat(12)5
Avg Revenue beat(12)-0.47%
Revenue beat(16)6
Avg Revenue beat(16)-0.84%
PT rev (1m)0%
PT rev (3m)-1.89%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.78%
EPS NY rev (1m)0%
EPS NY rev (3m)3.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.9 | ||
| Fwd PE | 22.4 | ||
| P/S | 2.88 | ||
| P/FCF | 55.39 | ||
| P/OCF | 27.17 | ||
| P/B | 1.53 | ||
| P/tB | 1.85 | ||
| EV/EBITDA | 14.8 |
EPS(TTM)33941.21
EY4.57%
EPS(NY)33194.17
Fwd EY4.46%
FCF(TTM)13420.8
FCFY1.81%
OCF(TTM)27359.7
OCFY3.68%
SpS258422.22
BVpS484829.86
TBVpS401744
PEG (NY)N/A
PEG (5Y)1.23
Graham Number608485
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 9.66% | ||
| ROCE | 5.61% | ||
| ROIC | 4.53% | ||
| ROICexc | 4.87% | ||
| ROICexgc | 5.82% | ||
| OM | 16.72% | ||
| PM (TTM) | 18.13% | ||
| GM | 17.71% | ||
| FCFM | 5.19% |
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 Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 6.58 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 151.95% | ||
| Cap/Sales | 5.39% | ||
| Interest Coverage | 12.22 | ||
| Cash Conversion | 52.22% | ||
| Profit Quality | 28.65% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 2.57 |
F-Score4
WACC8.22%
ROIC/WACC0.55
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)17.97%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%33.51%
EPS Next Y-0.45%
EPS Next 2Y0.3%
EPS Next 3Y1.64%
EPS Next 5Y2.26%
Revenue 1Y (TTM)0.6%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%2.13%
Revenue Next Year0.8%
Revenue Next 2Y0.25%
Revenue Next 3Y1.4%
Revenue Next 5Y4.89%
EBIT growth 1Y15.71%
EBIT growth 3Y18.52%
EBIT growth 5Y13.14%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-28.02%
FCF growth 3Y-23.7%
FCF growth 5Y-12.55%
OCF growth 1Y-12.66%
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.
What is the valuation status of BERKSHIRE HATHAWAY INC-CL A (BRK.A) stock?
ChartMill assigns a valuation rating of 2 / 10 to BERKSHIRE HATHAWAY INC-CL A (BRK.A). This can be considered as Overvalued.
How profitable is BERKSHIRE HATHAWAY INC-CL A (BRK.A) stock?
BERKSHIRE HATHAWAY INC-CL A (BRK.A) has a profitability rating of 6 / 10.
What is the valuation of BERKSHIRE HATHAWAY INC-CL A based on its PE and PB ratios?
The Price/Earnings (PE) ratio for BERKSHIRE HATHAWAY INC-CL A (BRK.A) is 21.9 and the Price/Book (PB) ratio is 1.53.
What is the earnings growth outlook for BERKSHIRE HATHAWAY INC-CL A?
The Earnings per Share (EPS) of BERKSHIRE HATHAWAY INC-CL A (BRK.A) is expected to decline by -0.45% in the next year.