BERKSHIRE HATHAWAY INC-CL A (BRK.A)
US0846701086 - Common Stock
Overall BRK.A gets a fundamental rating of 5 out of 10. We evaluated BRK.A against 102 industry peers in the Financial Services industry. While BRK.A has a great profitability rating, there are some minor concerns on its financial health. 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.
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.
BRK.A had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 8.99%, BRK.A belongs to the best of the industry, outperforming 88.24% of the companies in the same industry.
BRK.A has a Return On Equity of 17.14%. This is amongst the best in the industry. BRK.A outperforms 82.35% of its industry peers.
The Return On Invested Capital of BRK.A (3.97%) is better than 64.71% of its industry peers.
BRK.A had an Average Return On Invested Capital over the past 3 years of 3.66%. This is below the industry average of 7.93%.
The 3 year average ROIC (3.66%) for BRK.A is below the current ROIC(3.97%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.99% | ||
| ROE | 17.14% | ||
| ROIC | 3.97% |
ROA(3y)5.32%
ROA(5y)6.16%
ROE(3y)10.02%
ROE(5y)11.76%
ROIC(3y)3.66%
ROIC(5y)3.48%
1.3 Margins
With a decent Profit Margin value of 26.40%, BRK.A is doing good in the industry, outperforming 79.41% of the companies in the same industry.
BRK.A's Profit Margin has improved in the last couple of years.
The Operating Margin of BRK.A (13.26%) is comparable to the rest of the industry.
BRK.A's Operating Margin has been stable in the last couple of years.
With a Gross Margin value of 20.57%, BRK.A perfoms like the industry average, outperforming 42.16% of the companies in the same industry.
In the last couple of years the Gross Margin of BRK.A has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.26% | ||
| PM (TTM) | 26.4% | ||
| GM | 20.57% |
OM growth 3Y3.89%
OM growth 5Y0.24%
PM growth 3Y15.1%
PM growth 5Y74.7%
GM growth 3Y-1.99%
GM growth 5Y-1.37%
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
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
BRK.A has an Altman-Z score of 2.35. 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.
BRK.A has a better Altman-Z score (2.35) than 82.35% of its industry peers.
The Debt to FCF ratio of BRK.A is 4.31, which is a neutral value as it means it would take BRK.A, 4.31 years of fcf income to pay off all of its debts.
BRK.A has a Debt to FCF ratio of 4.31. This is in the better half of the industry: BRK.A outperforms 65.69% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that BRK.A is not too dependend on debt financing.
BRK.A has a better Debt to Equity ratio (0.23) than 63.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 4.31 | ||
| Altman-Z | 2.35 |
ROIC/WACC0.47
WACC8.5%
2.3 Liquidity
A Current Ratio of 1.25 indicates that BRK.A should not have too much problems paying its short term obligations.
BRK.A has a Current ratio (1.25) which is comparable to the rest of the industry.
BRK.A has a Quick Ratio of 1.25. 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 of 0.98. This is comparable to the rest of the industry: BRK.A outperforms 41.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.98 |
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 22.99%, which is quite impressive.
Measured over the past years, BRK.A shows a quite strong growth in Earnings Per Share. The EPS has been growing by 11.33% on average per year.
Looking at the last year, BRK.A shows a very strong growth in Revenue. The Revenue has grown by 20.64%.
The Revenue has been growing by 8.02% on average over the past years. This is quite good.
EPS 1Y (TTM)22.99%
EPS 3Y23.42%
EPS 5Y11.33%
EPS growth Q2Q28.22%
Revenue 1Y (TTM)20.64%
Revenue growth 3Y14.07%
Revenue growth 5Y8.02%
Revenue growth Q2Q19.46%
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 7.80% yearly.
BRK.A is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -3.28% yearly.
EPS Next Y7.82%
EPS Next 2Y7.12%
EPS Next 3Y7.8%
EPS Next 5YN/A
Revenue Next Year-10.91%
Revenue Next 2Y-3.13%
Revenue Next 3Y-3.28%
Revenue Next 5YN/A
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
With a Price/Earnings ratio of 23.79, BRK.A is valued on the expensive side.
BRK.A's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 25.25. BRK.A is around the same levels.
A Price/Forward Earnings ratio of 22.06 indicates a rather expensive valuation of BRK.A.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BRK.A is on the same level as its industry peers.
BRK.A's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.79 | ||
| Fwd PE | 22.06 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.65 | ||
| EV/EBITDA | 15.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of BRK.A may justify a higher PE ratio.
PEG (NY)3.04
PEG (5Y)2.1
EPS Next 2Y7.12%
EPS Next 3Y7.8%
5. Dividend
5.1 Amount
BRK.A does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BERKSHIRE HATHAWAY INC-CL A
NYSE:BRK.A (4/25/2024, 2:28:00 PM)
613318
-102 (-0.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap883.18B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
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Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.79 | ||
| Fwd PE | 22.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.04
PEG (5Y)2.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.99% | ||
| ROE | 17.14% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 13.26% | ||
| PM (TTM) | 26.4% | ||
| GM | 20.57% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)22.99%
EPS 3Y23.42%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.64%
Revenue growth 3Y14.07%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y