BERKSHIRE HATHAWAY INC-CL B (BRK.B) Stock Fundamental Analysis
NYSE:BRK.B - New York Stock Exchange, Inc. - US0846707026 - Common Stock - Currency: USD
Taking everything into account, BRK.B scores 4 out of 10 in our fundamental rating. BRK.B was compared to 100 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
In the past year BRK.B was profitable.
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
BRK.B has a Return On Assets of 6.95%. This is amongst the best in the industry. BRK.B outperforms 85.00% of its industry peers.
With a decent Return On Equity value of 12.36%, BRK.B is doing good in the industry, outperforming 64.00% of the companies in the same industry.
BRK.B has a Return On Invested Capital (4.50%) which is comparable to the rest of the industry.
BRK.B had an Average Return On Invested Capital over the past 3 years of 4.13%. This is significantly below the industry average of 11.97%.
The 3 year average ROIC (4.13%) for BRK.B is below the current ROIC(4.50%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.95% | ||
| ROE | 12.36% | ||
| ROIC | 4.5% |
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
The Profit Margin of BRK.B (21.79%) is better than 78.00% of its industry peers.
In the last couple of years the Profit Margin of BRK.B has declined.
Looking at the Operating Margin, with a value of 15.89%, BRK.B is in line with its industry, outperforming 58.00% of the companies in the same industry.
In the last couple of years the Operating Margin of BRK.B has grown nicely.
Looking at the Gross Margin, with a value of 16.43%, BRK.B is doing worse than 61.00% of the companies in the same industry.
In the last couple of years the Gross Margin of BRK.B has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.89% | ||
| PM (TTM) | 21.79% | ||
| GM | 16.43% |
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
BRK.B has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
BRK.B has a better debt/assets ratio than last year.
2.2 Solvency
BRK.B has an Altman-Z score of 2.62. 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 has a better Altman-Z score (2.62) than 82.00% of its industry peers.
BRK.B has a debt to FCF ratio of 10.44. This is a negative value and a sign of low solvency as BRK.B would need 10.44 years to pay back of all of its debts.
BRK.B's Debt to FCF ratio of 10.44 is in line compared to the rest of the industry. BRK.B outperforms 55.00% of its industry peers.
A Debt/Equity ratio of 0.19 indicates that BRK.B is not too dependend on debt financing.
With a decent Debt to Equity ratio value of 0.19, BRK.B is doing good in the industry, outperforming 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 2.62 |
ROIC/WACC0.53
WACC8.45%
2.3 Liquidity
BRK.B has a Current Ratio of 1.14. This is a normal value and indicates that BRK.B is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.14, BRK.B is in line with its industry, outperforming 57.00% of the companies in the same industry.
A Quick Ratio of 0.91 indicates that BRK.B may have some problems paying its short term obligations.
BRK.B's Quick ratio of 0.91 is in line compared to the rest of the industry. BRK.B outperforms 46.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.77% over the past year.
BRK.B shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 17.78% yearly.
The Revenue has been growing slightly by 0.63% in the past year.
The Revenue has been growing slightly by 7.84% on average over the past years.
EPS 1Y (TTM)13.77%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%-14.02%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%-0.16%
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 2.27% yearly.
The Revenue is expected to grow by 6.94% on average over the next years.
EPS Next Y-5.7%
EPS Next 2Y-0.22%
EPS Next 3Y1.32%
EPS Next 5Y2.27%
Revenue Next Year4.56%
Revenue Next 2Y4.16%
Revenue Next 3Y0.25%
Revenue Next 5Y6.94%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 23.76 indicates a rather expensive valuation of BRK.B.
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 65.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.17, BRK.B is valued at the same level.
BRK.B is valuated rather expensively with a Price/Forward Earnings ratio of 23.07.
Based on the Price/Forward Earnings ratio, BRK.B is valued a bit more expensive than 67.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of BRK.B to the average of the S&P500 Index (22.10), we can say BRK.B is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.76 | ||
| Fwd PE | 23.07 |
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 | 90.47 | ||
| EV/EBITDA | 16.24 |
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)1.34
EPS Next 2Y-0.22%
EPS Next 3Y1.32%
5. Dividend
5.1 Amount
No dividends for BRK.B!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:BRK.B (5/29/2025, 2:46:26 PM)
505.334
+2.22 (+0.44%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners33.43%
Inst Owner Change1.36%
Ins Owners37.69%
Ins Owner ChangeN/A
Market Cap1091.52B
Analysts80
Price Target535.36 (5.94%)
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)16.51%
Min EPS beat(2)-9.78%
Max EPS beat(2)42.8%
EPS beat(4)2
Avg EPS beat(4)10.96%
Min EPS beat(4)-10.41%
Max EPS beat(4)42.8%
EPS beat(8)6
Avg EPS beat(8)11.15%
EPS beat(12)8
Avg EPS beat(12)9.18%
EPS beat(16)11
Avg EPS beat(16)8.21%
Revenue beat(2)0
Avg Revenue beat(2)-2.05%
Min Revenue beat(2)-4.09%
Max Revenue beat(2)-0.01%
Revenue beat(4)0
Avg Revenue beat(4)-2.99%
Min Revenue beat(4)-7.69%
Max Revenue beat(4)-0.01%
Revenue beat(8)4
Avg Revenue beat(8)0.2%
Revenue beat(12)5
Avg Revenue beat(12)-0.61%
Revenue beat(16)6
Avg Revenue beat(16)-0.89%
PT rev (1m)1.13%
PT rev (3m)2.93%
EPS NQ rev (1m)-1.97%
EPS NQ rev (3m)5.69%
EPS NY rev (1m)-2.25%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)4.96%
Revenue NQ rev (3m)4.13%
Revenue NY rev (1m)4.55%
Revenue NY rev (3m)3.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.76 | ||
| Fwd PE | 23.07 | ||
| P/S | 2.94 | ||
| P/FCF | 90.47 | ||
| P/OCF | 35.29 | ||
| P/B | 1.67 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 16.24 |
EPS(TTM)21.27
EY4.21%
EPS(NY)21.9
Fwd EY4.33%
FCF(TTM)5.59
FCFY1.11%
OCF(TTM)14.32
OCFY2.83%
SpS171.89
BVpS303
TBVpS247.7
PEG (NY)N/A
PEG (5Y)1.34
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.95% | ||
| ROE | 12.36% | ||
| ROCE | 5.56% | ||
| ROIC | 4.5% | ||
| ROICexc | 4.68% | ||
| ROICexgc | 5.61% | ||
| OM | 15.89% | ||
| PM (TTM) | 21.79% | ||
| GM | 16.43% | ||
| FCFM | 3.25% |
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 | 10.44 | ||
| Debt/EBITDA | 1.75 | ||
| Cap/Depr | 145.65% | ||
| Cap/Sales | 5.08% | ||
| Interest Coverage | 11.99 | ||
| Cash Conversion | 42.99% | ||
| Profit Quality | 14.91% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.91 | ||
| Altman-Z | 2.62 |
F-Score4
WACC8.45%
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)13.77%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%-14.02%
EPS Next Y-5.7%
EPS Next 2Y-0.22%
EPS Next 3Y1.32%
EPS Next 5Y2.27%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%-0.16%
Revenue Next Year4.56%
Revenue Next 2Y4.16%
Revenue Next 3Y0.25%
Revenue Next 5Y6.94%
EBIT growth 1Y12.44%
EBIT growth 3Y18.52%
EBIT growth 5Y13.14%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-47.83%
FCF growth 3Y-23.7%
FCF growth 5Y-12.55%
OCF growth 1Y-21.13%
OCF growth 3Y-8.11%
OCF growth 5Y-4.59%