BERKSHIRE HATHAWAY INC-CL B (BRK.B) Stock Fundamental Analysis
NYSE:BRK.B - New York Stock Exchange, Inc. - US0846707026 - Common Stock - Currency: USD
Overall BRK.B gets a fundamental rating of 4 out of 10. We evaluated BRK.B against 99 industry peers in the Financial Services industry. BRK.B has an average financial health and profitability rating. 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.
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
With an excellent Return On Assets value of 6.95%, BRK.B belongs to the best of the industry, outperforming 84.85% of the companies in the same industry.
Looking at the Return On Equity, with a value of 12.36%, BRK.B is in the better half of the industry, outperforming 64.65% of the companies in the same industry.
BRK.B has a Return On Invested Capital (4.50%) which is in line with its industry peers.
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 11.83%.
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 77.78% 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 55.56% 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 61.62% 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 | 15.89% | ||
| 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.
Compared to 1 year ago, BRK.B has less shares outstanding
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
BRK.B has an Altman-Z score of 2.58. 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 Altman-Z score of 2.58. This is amongst the best in the industry. BRK.B outperforms 80.81% 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.
The Debt to FCF ratio of BRK.B (10.44) is comparable to the rest of the industry.
BRK.B has a Debt/Equity ratio of 0.19. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.19, BRK.B is doing good in the industry, outperforming 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.54
WACC8.39%
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.
The Current ratio of BRK.B (1.14) is comparable to the rest of the industry.
A Quick Ratio of 0.91 indicates that BRK.B may have some problems paying its short term obligations.
BRK.B has a Quick ratio (0.91) which is comparable to the rest of the industry.
| 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.
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.
The Revenue has been growing slightly by 0.63% in the past year.
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)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 2.26% yearly.
The Revenue is expected to grow by 4.89% on average over the next years.
EPS Next Y-5.7%
EPS Next 2Y-0.22%
EPS Next 3Y1.32%
EPS Next 5Y2.26%
Revenue Next Year1.64%
Revenue Next 2Y3.35%
Revenue Next 3Y0.25%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
BRK.B is valuated rather expensively with a Price/Earnings ratio of 22.80.
BRK.B's Price/Earnings ratio is a bit more expensive when compared to the industry. BRK.B is more expensive than 64.65% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.35, BRK.B is valued at the same level.
Based on the Price/Forward Earnings ratio of 22.14, the valuation of BRK.B can be described as rather expensive.
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 66.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, BRK.B is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.8 | ||
| Fwd PE | 22.14 |
4.2 Price Multiples
BRK.B's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BRK.B is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 86.8 | ||
| EV/EBITDA | 15.7 |
4.3 Compensation for Growth
The decent profitability rating of BRK.B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.28
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 |
484.85
-0.29 (-0.06%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners33.78%
Inst Owner Change1.36%
Ins Owners38.2%
Ins Owner ChangeN/A
Market Cap1047.28B
Analysts80
Price Target532.1 (9.75%)
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)0.2%
PT rev (3m)1.17%
EPS NQ rev (1m)-0.5%
EPS NQ rev (3m)-2.68%
EPS NY rev (1m)0%
EPS NY rev (3m)1.05%
Revenue NQ rev (1m)-5.72%
Revenue NQ rev (3m)-1.49%
Revenue NY rev (1m)-2.8%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.8 | ||
| Fwd PE | 22.14 | ||
| P/S | 2.82 | ||
| P/FCF | 86.8 | ||
| P/OCF | 33.86 | ||
| P/B | 1.6 | ||
| P/tB | 1.96 | ||
| EV/EBITDA | 15.7 |
EPS(TTM)21.27
EY4.39%
EPS(NY)21.9
Fwd EY4.52%
FCF(TTM)5.59
FCFY1.15%
OCF(TTM)14.32
OCFY2.95%
SpS171.89
BVpS303
TBVpS247.7
PEG (NY)N/A
PEG (5Y)1.28
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 | 2.58 |
F-Score4
WACC8.39%
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)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 5Y2.26%
Revenue 1Y (TTM)0.63%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%-0.16%
Revenue Next Year1.64%
Revenue Next 2Y3.35%
Revenue Next 3Y0.25%
Revenue Next 5Y4.89%
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%