BERKSHIRE HATHAWAY INC-CL B (BRK.B) Stock Fundamental Analysis
NYSE:BRK.B - New York Stock Exchange, Inc. - US0846707026 - Common Stock - Currency: USD
BRK.B gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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. 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.
Of the past 5 years BRK.B 4 years were profitable.
Each year in the past 5 years BRK.B had a positive operating cash flow.
1.2 Ratios
BRK.B has a better Return On Assets (6.95%) than 84.00% of its industry peers.
BRK.B has a Return On Equity of 12.36%. This is in the better half of the industry: BRK.B outperforms 63.00% of its industry peers.
BRK.B's Return On Invested Capital of 4.50% is in line compared to the rest of the industry. BRK.B outperforms 55.00% of 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 11.97%.
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
Looking at the Profit Margin, with a value of 21.79%, BRK.B is in the better half of the industry, outperforming 77.00% of the companies in the same industry.
BRK.B's Profit Margin has declined in the last couple of years.
The Operating Margin of BRK.B (15.89%) is comparable to the rest of the industry.
BRK.B's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 16.43%, BRK.B is not doing good in the industry: 62.00% of the companies in the same industry are doing better.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BRK.B is destroying value.
BRK.B has less shares outstanding than it did 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
BRK.B has an Altman-Z score of 2.64. 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.
Looking at the Altman-Z score, with a value of 2.64, BRK.B belongs to the top of the industry, outperforming 83.00% of the companies in the same industry.
The Debt to FCF ratio of BRK.B is 10.44, which is on the high side as it means it would take BRK.B, 10.44 years of fcf income to pay off all of its debts.
BRK.B has a Debt to FCF ratio (10.44) which 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.
BRK.B has a better Debt to Equity ratio (0.19) than 67.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 2.64 |
ROIC/WACC0.53
WACC8.53%
2.3 Liquidity
A Current Ratio of 1.14 indicates that BRK.B should not have too much problems paying its short term obligations.
BRK.B has a Current ratio of 1.14. This is comparable to the rest of the industry: BRK.B outperforms 56.00% of its industry peers.
BRK.B has a Quick Ratio of 1.14. This is a bad value and indicates that BRK.B is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of BRK.B (0.91) 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
BRK.B shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.77%, which is quite good.
The Earnings Per Share has been growing by 17.78% on average over the past years. This is quite good.
Looking at the last year, BRK.B shows a small growth in Revenue. The Revenue has grown by 0.63% 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)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
Based on estimates for the next years, BRK.B will show a small growth in Earnings Per Share. The EPS will grow by 2.27% on average per year.
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
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 stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.72, which indicates a rather expensive current valuation of BRK.B.
Based on the Price/Earnings ratio, BRK.B is valued a bit more expensive than the industry average as 66.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 26.35, BRK.B is valued at the same level.
A Price/Forward Earnings ratio of 23.03 indicates a rather expensive valuation of BRK.B.
BRK.B's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. BRK.B is more expensive than 68.00% of the companies in the same industry.
BRK.B is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.20, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.72 | ||
| Fwd PE | 23.03 |
4.2 Price Multiples
BRK.B's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as BRK.B.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 90.31 | ||
| EV/EBITDA | 16.42 |
4.3 Compensation for Growth
The decent profitability rating of BRK.B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.33
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 (5/28/2025, 3:02:54 PM)
504.42
-4.74 (-0.93%)
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 Cap1089.55B
Analysts80
Price Target535.36 (6.13%)
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 | 23.72 | ||
| Fwd PE | 23.03 | ||
| P/S | 2.93 | ||
| P/FCF | 90.31 | ||
| P/OCF | 35.23 | ||
| P/B | 1.66 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 16.42 |
EPS(TTM)21.27
EY4.22%
EPS(NY)21.9
Fwd EY4.34%
FCF(TTM)5.59
FCFY1.11%
OCF(TTM)14.32
OCFY2.84%
SpS171.89
BVpS303
TBVpS247.7
PEG (NY)N/A
PEG (5Y)1.33
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 | 2.64 |
F-Score4
WACC8.53%
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%