BERKSHIRE HATHAWAY INC-CL B (BRK.B) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:BRK.B • US0846707026
480.53 USD
+3.74 (+0.78%)
At close: Jan 30, 2026
481.12 USD
+0.59 (+0.12%)
After Hours: 1/30/2026, 8:04:00 PM
BRK.B gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 97 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.
- BRK.B had a positive operating cash flow in the past year.
- 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
- BRK.B has a Return On Assets of 5.50%. This is in the better half of the industry: BRK.B outperforms 77.32% of its industry peers.
- Looking at the Return On Equity, with a value of 9.66%, BRK.B is in line with its industry, outperforming 54.64% of the companies in the same industry.
- BRK.B has a better Return On Invested Capital (4.53%) than 63.92% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for BRK.B is below the industry average of 8.46%.
- The 3 year average ROIC (4.13%) for BRK.B 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
- BRK.B has a better Profit Margin (18.13%) than 70.10% of its industry peers.
- In the last couple of years the Profit Margin of BRK.B has declined.
- BRK.B has a Operating Margin of 16.72%. This is in the better half of the industry: BRK.B outperforms 60.82% of its industry peers.
- BRK.B's Operating Margin has improved in the last couple of years.
- BRK.B has a worse Gross Margin (17.71%) than 62.89% of its industry peers.
- BRK.B's Gross Margin has improved in the last couple of years.
| 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.B is destroying value.
- Compared to 1 year ago, BRK.B has less shares outstanding
- BRK.B has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, BRK.B has an improved debt to assets ratio.
2.2 Solvency
- BRK.B has an Altman-Z score of 2.53. This is not the best score and indicates that BRK.B is in the grey zone with still only limited risk for bankruptcy at the moment.
- BRK.B's Altman-Z score of 2.53 is amongst the best of the industry. BRK.B outperforms 81.44% of its industry peers.
- BRK.B has a debt to FCF ratio of 6.58. This is a slightly negative value and a sign of low solvency as BRK.B would need 6.58 years to pay back of all of its debts.
- With a Debt to FCF ratio value of 6.58, BRK.B perfoms like the industry average, outperforming 55.67% of the companies in the same industry.
- A Debt/Equity ratio of 0.18 indicates that BRK.B is not too dependend on debt financing.
- BRK.B has a Debt to Equity ratio of 0.18. This is in the better half of the industry: BRK.B outperforms 63.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 2.53 |
ROIC/WACC0.55
WACC8.26%
2.3 Liquidity
- BRK.B has a Current Ratio of 1.33. 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 1.33 is fine compared to the rest of the industry. BRK.B outperforms 61.86% of its industry peers.
- BRK.B has a Quick Ratio of 1.11. 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 Quick ratio of BRK.B (1.11) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
- BRK.B shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.97%, which is quite good.
- The Earnings Per Share has been growing by 17.78% on average over the past years. This is quite good.
- BRK.B shows a small growth in Revenue. In the last year, the Revenue has grown by 0.60%.
- Measured over the past years, BRK.B 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.B will show a small growth in Earnings Per Share. The EPS will grow by 2.26% on average per year.
- Based on estimates for the next years, BRK.B will show a small growth in Revenue. The Revenue will grow by 4.89% on average per year.
EPS Next Y-0.33%
EPS Next 2Y0.31%
EPS Next 3Y1.09%
EPS Next 5Y2.26%
Revenue Next Year0.8%
Revenue Next 2Y0.25%
Revenue Next 3Y1.4%
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 21.23, the valuation of BRK.B can be described as rather expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of BRK.B is on the same level as its industry peers.
- Compared to an average S&P500 Price/Earnings ratio of 28.30, BRK.B is valued a bit cheaper.
- With a Price/Forward Earnings ratio of 21.71, BRK.B is valued on the expensive side.
- 61.86% of the companies in the same industry are cheaper than BRK.B, based on the Price/Forward Earnings ratio.
- BRK.B's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.57.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.23 | ||
| Fwd PE | 21.71 |
4.2 Price Multiples
- BRK.B's Enterprise Value to EBITDA is on the same level as the industry average.
- BRK.B's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. BRK.B is more expensive than 61.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.71 | ||
| EV/EBITDA | 14.29 |
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)1.19
EPS Next 2Y0.31%
EPS Next 3Y1.09%
5. Dividend
5.1 Amount
- No dividends for BRK.B!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 4 / 10 to BRK.B.
What is the valuation status for 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 21.23 and the Price/Book (PB) ratio is 1.49.