BERKSHIRE HATHAWAY INC-CL B (BRK.B) Stock Fundamental Analysis
USA - NYSE:BRK.B - US0846707026 - Common Stock
475.68 USD
-1.86 (-0.39%)
475.5 USD
-0.18 (-0.04%)
BRK.B gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 98 industry peers in the Financial Services industry. Both the profitability and the financial health of BRK.B get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, BRK.B is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
BRK.B had positive earnings in the past year.
In the past year BRK.B had a positive cash flow from operations.
BRK.B had positive earnings in 4 of the past 5 years.
In the past 5 years BRK.B always reported a positive cash flow from operatings.
1.2 Ratios
BRK.B's Return On Assets of 5.41% is fine compared to the rest of the industry. BRK.B outperforms 76.53% of its industry peers.
BRK.B has a Return On Equity (9.42%) which is comparable to the rest of the industry.
BRK.B has a Return On Invested Capital of 4.37%. This is in the better half of the industry: BRK.B outperforms 61.22% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BRK.B is below the industry average of 7.79%.
The last Return On Invested Capital (4.37%) for BRK.B 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.B is doing good in the industry, outperforming 70.41% of the companies in the same industry.
In the last couple of years the Profit Margin of BRK.B has declined.
Looking at the Operating Margin, with a value of 15.70%, BRK.B is in line with its industry, outperforming 58.16% of the companies in the same industry.
BRK.B's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 16.97%, BRK.B is doing worse than 61.22% of the companies in the same industry.
BRK.B's Gross Margin has improved in the last couple of years.
| 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.B is destroying value.
The number of shares outstanding for BRK.B has been reduced compared to 1 year ago.
Compared to 5 years ago, BRK.B has less shares outstanding
Compared to 1 year ago, BRK.B has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.68 indicates that BRK.B is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.68, BRK.B belongs to the top of the industry, outperforming 80.61% of the companies in the same industry.
The Debt to FCF ratio of BRK.B is 15.44, which is on the high side as it means it would take BRK.B, 15.44 years of fcf income to pay off all of its debts.
BRK.B has a Debt to FCF ratio of 15.44. This is comparable to the rest of the industry: BRK.B outperforms 50.00% of its industry peers.
BRK.B has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
BRK.B's Debt to Equity ratio of 0.19 is fine compared to the rest of the industry. BRK.B outperforms 65.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.44 | ||
| Altman-Z | 2.68 |
ROIC/WACC0.54
WACC8.14%
2.3 Liquidity
BRK.B has a Current Ratio of 1.95. This is a normal value and indicates that BRK.B is financially healthy and should not expect problems in meeting its short term obligations.
BRK.B's Current ratio of 1.95 is fine compared to the rest of the industry. BRK.B outperforms 71.43% of its industry peers.
A Quick Ratio of 1.68 indicates that BRK.B should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.68, BRK.B is in the better half of the industry, outperforming 70.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.24% over the past year.
Measured over the past years, BRK.B shows a quite strong growth in Earnings Per Share. The EPS has been growing by 17.78% on average per year.
BRK.B shows a small growth in Revenue. In the last year, the Revenue has grown by 0.01%.
BRK.B shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.84% yearly.
EPS 1Y (TTM)8.24%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%-3.87%
Revenue 1Y (TTM)0.01%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%-1.22%
3.2 Future
The Earnings Per Share is expected to grow by 2.26% on average over the next years.
BRK.B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.89% yearly.
EPS Next Y-3.02%
EPS Next 2Y0.13%
EPS Next 3Y2.06%
EPS Next 5Y2.26%
Revenue Next Year0.77%
Revenue Next 2Y0.44%
Revenue Next 3Y1.54%
Revenue Next 5Y4.89%
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.
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
Based on the Price/Earnings ratio of 22.59, the valuation of BRK.B can be described as rather expensive.
60.20% of the companies in the same industry are cheaper than BRK.B, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of BRK.B to the average of the S&P500 Index (26.51), we can say BRK.B is valued inline with the index average.
The Price/Forward Earnings ratio is 21.57, which indicates a rather expensive current valuation of BRK.B.
Based on the Price/Forward Earnings ratio, BRK.B is valued a bit more expensive than the industry average as 66.33% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.53. BRK.B is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.59 | ||
| Fwd PE | 21.57 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BRK.B is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as BRK.B.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 124.92 | ||
| EV/EBITDA | 14.82 |
4.3 Compensation for Growth
The decent profitability rating of BRK.B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.27
EPS Next 2Y0.13%
EPS Next 3Y2.06%
5. Dividend
5.1 Amount
No dividends for BRK.B!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
475.68
-1.86 (-0.39%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners34.67%
Inst Owner Change-5.26%
Ins Owners38.36%
Ins Owner ChangeN/A
Market Cap1027.47B
Revenue(TTM)370.15B
Net Income(TTM)62.92B
Analysts80
Price Target522.91 (9.93%)
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)-4.8%
Min EPS beat(2)-9.78%
Max EPS beat(2)0.19%
EPS beat(4)2
Avg EPS beat(4)5.7%
Min EPS beat(4)-10.41%
Max EPS beat(4)42.8%
EPS beat(8)6
Avg EPS beat(8)8.53%
EPS beat(12)8
Avg EPS beat(12)6.49%
EPS beat(16)11
Avg EPS beat(16)7.41%
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)-2.02%
PT rev (3m)-1.82%
EPS NQ rev (1m)1.61%
EPS NQ rev (3m)2.85%
EPS NY rev (1m)0.46%
EPS NY rev (3m)3.19%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)-1.14%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.59 | ||
| Fwd PE | 21.57 | ||
| P/S | 2.78 | ||
| P/FCF | 124.92 | ||
| P/OCF | 37.48 | ||
| P/B | 1.54 | ||
| P/tB | 1.87 | ||
| EV/EBITDA | 14.82 |
EPS(TTM)21.06
EY4.43%
EPS(NY)22.05
Fwd EY4.64%
FCF(TTM)3.81
FCFY0.8%
OCF(TTM)12.69
OCFY2.67%
SpS171.37
BVpS309.25
TBVpS253.97
PEG (NY)N/A
PEG (5Y)1.27
Graham Number382.81
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%
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 Turnover0.32
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 | 2.68 |
F-Score4
WACC8.14%
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)8.24%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%-3.87%
EPS Next Y-3.02%
EPS Next 2Y0.13%
EPS Next 3Y2.06%
EPS Next 5Y2.26%
Revenue 1Y (TTM)0.01%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%-1.22%
Revenue Next Year0.77%
Revenue Next 2Y0.44%
Revenue Next 3Y1.54%
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%
BERKSHIRE HATHAWAY INC-CL B / BRK.B FAQ
What is the ChartMill fundamental rating of BERKSHIRE HATHAWAY INC-CL B (BRK.B) stock?
ChartMill assigns a fundamental rating of 5 / 10 to BRK.B.
What is the valuation status of BERKSHIRE HATHAWAY INC-CL B (BRK.B) stock?
ChartMill assigns a valuation rating of 2 / 10 to BERKSHIRE HATHAWAY INC-CL B (BRK.B). This can be considered as Overvalued.
What is the profitability of BRK.B stock?
BERKSHIRE HATHAWAY INC-CL B (BRK.B) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for BRK.B stock?
The Price/Earnings (PE) ratio for BERKSHIRE HATHAWAY INC-CL B (BRK.B) is 22.59 and the Price/Book (PB) ratio is 1.54.
How financially healthy is BERKSHIRE HATHAWAY INC-CL B?
The financial health rating of BERKSHIRE HATHAWAY INC-CL B (BRK.B) is 6 / 10.