BERKSHIRE HATHAWAY INC-CL B (BRK.B) Stock Fundamental Analysis
USA - NYSE:BRK.B - US0846707026 - Common Stock
498.75 USD
+2.83 (+0.57%)
500.07 USD
+1.32 (+0.26%)
We assign a fundamental rating of 5 out of 10 to BRK.B. BRK.B was compared to 99 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. BRK.B is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Of the past 5 years BRK.B 4 years were profitable.
In the past 5 years BRK.B always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of BRK.B (5.41%) is better than 78.00% of its industry peers.
BRK.B's Return On Equity of 9.42% is in line compared to the rest of the industry. BRK.B outperforms 50.00% of its industry peers.
BRK.B has a better Return On Invested Capital (4.37%) than 62.00% of its industry peers.
BRK.B had an Average Return On Invested Capital over the past 3 years of 4.13%. This is below the industry average of 7.66%.
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
BRK.B's Profit Margin of 17.00% is fine compared to the rest of the industry. BRK.B outperforms 71.00% of its industry peers.
In the last couple of years the Profit Margin of BRK.B has declined.
With a Operating Margin value of 15.70%, BRK.B perfoms like the industry average, outperforming 57.00% of the companies in the same industry.
In the last couple of years the Operating Margin of BRK.B has grown nicely.
BRK.B has a worse Gross Margin (16.97%) than 62.00% of its industry peers.
In the last couple of years the Gross Margin of BRK.B has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BRK.B is destroying value.
The number of shares outstanding for BRK.B has been reduced compared to 1 year ago.
The number of shares outstanding for BRK.B has been reduced compared to 5 years ago.
BRK.B has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.73 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 2.73, BRK.B belongs to the top of the industry, outperforming 81.00% of the companies in the same industry.
BRK.B has a debt to FCF ratio of 15.44. This is a negative value and a sign of low solvency as BRK.B would need 15.44 years to pay back of all of its debts.
BRK.B has a Debt to FCF ratio (15.44) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.19 indicates that BRK.B is not too dependend on debt financing.
BRK.B's Debt to Equity ratio of 0.19 is fine compared to the rest of the industry. BRK.B outperforms 67.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.44 | ||
| Altman-Z | 2.73 |
ROIC/WACC0.53
WACC8.18%
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.
The Current ratio of BRK.B (1.95) is better than 74.00% of its industry peers.
BRK.B has a Quick Ratio of 1.68. 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 has a Quick ratio of 1.68. This is in the better half of the industry: BRK.B outperforms 73.00% of its industry peers.
| 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.
Looking at the last year, BRK.B shows a small growth in Revenue. The Revenue has grown by 0.01% in the last year.
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
BRK.B is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.26% yearly.
The Revenue is expected to grow by 4.89% on average over the next years.
EPS Next Y-3.47%
EPS Next 2Y0.07%
EPS Next 3Y2.03%
EPS Next 5Y2.26%
Revenue Next Year0.77%
Revenue Next 2Y0.48%
Revenue Next 3Y1.6%
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
BRK.B is valuated rather expensively with a Price/Earnings ratio of 23.68.
Compared to the rest of the industry, the Price/Earnings ratio of BRK.B indicates a slightly more expensive valuation: BRK.B is more expensive than 61.00% of the companies listed in the same industry.
BRK.B's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.86.
A Price/Forward Earnings ratio of 22.64 indicates a rather expensive valuation of BRK.B.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BRK.B indicates a slightly more expensive valuation: BRK.B is more expensive than 67.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.32. BRK.B is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.68 | ||
| Fwd PE | 22.64 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as BRK.B.
The rest of the industry has a similar Price/Free Cash Flow ratio as BRK.B.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 130.98 | ||
| EV/EBITDA | 15.46 |
4.3 Compensation for Growth
BRK.B has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.33
EPS Next 2Y0.07%
EPS Next 3Y2.03%
5. Dividend
5.1 Amount
No dividends for BRK.B!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
498.75
+2.83 (+0.57%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners34.67%
Inst Owner Change0%
Ins Owners38.36%
Ins Owner ChangeN/A
Market Cap1077.30B
Analysts80
Price Target533.65 (7%)
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)0.02%
PT rev (3m)0.29%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.41%
EPS NY rev (1m)0%
EPS NY rev (3m)3.05%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.19%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.68 | ||
| Fwd PE | 22.64 | ||
| P/S | 2.91 | ||
| P/FCF | 130.98 | ||
| P/OCF | 39.3 | ||
| P/B | 1.61 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 15.46 |
EPS(TTM)21.06
EY4.22%
EPS(NY)22.03
Fwd EY4.42%
FCF(TTM)3.81
FCFY0.76%
OCF(TTM)12.69
OCFY2.54%
SpS171.37
BVpS309.25
TBVpS253.97
PEG (NY)N/A
PEG (5Y)1.33
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%
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 | 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 | 2.73 |
F-Score4
WACC8.18%
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)8.24%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%-3.87%
EPS Next Y-3.47%
EPS Next 2Y0.07%
EPS Next 3Y2.03%
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 2Y0.48%
Revenue Next 3Y1.6%
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%