BERKSHIRE HATHAWAY INC-CL B (BRK.B)

US0846707026 - Common Stock

420.52  +3.59 (+0.86%)

After market: 420.52 0 (0%)

Fundamental Rating

5

BRK.B gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 102 industry peers in the Financial Services industry. BRK.B has an excellent profitability rating, but there are some minor concerns on its financial health. While showing a medium growth rate, BRK.B is valued expensive at the moment.



7

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

With an excellent Return On Assets value of 8.99%, BRK.B belongs to the best of the industry, outperforming 89.22% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.14%, BRK.B belongs to the top of the industry, outperforming 84.31% of the companies in the same industry.
The Return On Invested Capital of BRK.B (3.97%) is better than 65.69% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BRK.B is below the industry average of 7.81%.
The 3 year average ROIC (3.66%) for BRK.B is below the current ROIC(3.97%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 8.99%
ROE 17.14%
ROIC 3.97%
ROA(3y)5.32%
ROA(5y)6.16%
ROE(3y)10.02%
ROE(5y)11.76%
ROIC(3y)3.66%
ROIC(5y)3.48%

1.3 Margins

BRK.B has a Profit Margin of 26.40%. This is in the better half of the industry: BRK.B outperforms 79.41% of its industry peers.
BRK.B's Profit Margin has improved in the last couple of years.
BRK.B has a Operating Margin of 13.26%. This is comparable to the rest of the industry: BRK.B outperforms 52.94% of its industry peers.
BRK.B's Operating Margin has been stable in the last couple of years.
BRK.B has a Gross Margin (20.57%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of BRK.B has remained more or less at the same level.
Industry RankSector Rank
OM 13.26%
PM (TTM) 26.4%
GM 20.57%
OM growth 3Y3.89%
OM growth 5Y0.24%
PM growth 3Y15.1%
PM growth 5Y74.7%
GM growth 3Y-1.99%
GM growth 5Y-1.37%

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BRK.B is destroying value.
BRK.B has less shares outstanding than it did 1 year ago.
The number of shares outstanding for BRK.B has been reduced compared to 5 years ago.
The debt/assets ratio for BRK.B has been reduced compared to a year ago.

2.2 Solvency

BRK.B has an Altman-Z score of 2.37. 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.
The Altman-Z score of BRK.B (2.37) is better than 80.39% of its industry peers.
The Debt to FCF ratio of BRK.B is 4.31, which is a neutral value as it means it would take BRK.B, 4.31 years of fcf income to pay off all of its debts.
BRK.B's Debt to FCF ratio of 4.31 is fine compared to the rest of the industry. BRK.B outperforms 65.69% of its industry peers.
A Debt/Equity ratio of 0.23 indicates that BRK.B is not too dependend on debt financing.
BRK.B has a better Debt to Equity ratio (0.23) than 62.75% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF 4.31
Altman-Z 2.37
ROIC/WACC0.49
WACC8.16%

2.3 Liquidity

BRK.B has a Current Ratio of 1.25. 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 1.25, BRK.B is in line with its industry, outperforming 54.90% of the companies in the same industry.
BRK.B has a Quick Ratio of 1.25. 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.
BRK.B has a Quick ratio (0.98) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.25
Quick Ratio 0.98

5

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 22.99% over the past year.
The Earnings Per Share has been growing by 11.33% on average over the past years. This is quite good.
The Revenue has grown by 20.64% in the past year. This is a very strong growth!
BRK.B shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.02% yearly.
EPS 1Y (TTM)22.99%
EPS 3Y23.42%
EPS 5Y11.33%
EPS growth Q2Q28.22%
Revenue 1Y (TTM)20.64%
Revenue growth 3Y14.07%
Revenue growth 5Y8.02%
Revenue growth Q2Q19.46%

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 7.80% yearly.
The Revenue is expected to decrease by -3.28% on average over the next years.
EPS Next Y7.82%
EPS Next 2Y7.12%
EPS Next 3Y7.8%
EPS Next 5YN/A
Revenue Next Year-10.91%
Revenue Next 2Y-3.13%
Revenue Next 3Y-3.28%
Revenue Next 5YN/A

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 decreasing: in the next years the growth will be less than in the last years.

2

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 24.46, BRK.B is valued on the expensive side.
Compared to the rest of the industry, the Price/Earnings ratio of BRK.B is on the same level as its industry peers.
BRK.B's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.48.
A Price/Forward Earnings ratio of 22.69 indicates a rather expensive valuation of BRK.B.
60.78% of the companies in the same industry are cheaper than BRK.B, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of BRK.B to the average of the S&P500 Index (22.79), we can say BRK.B is valued inline with the index average.
Industry RankSector Rank
PE 24.46
Fwd PE 22.69

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BRK.B indicates a somewhat cheap valuation: BRK.B is cheaper than 63.73% of the companies listed in the same industry.
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 RankSector Rank
P/FCF 30.49
EV/EBITDA 16.2

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates BRK.B does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of BRK.B may justify a higher PE ratio.
PEG (NY)3.13
PEG (5Y)2.16
EPS Next 2Y7.12%
EPS Next 3Y7.8%

0

5. Dividend

5.1 Amount

No dividends for BRK.B!.
Industry RankSector Rank
Dividend Yield N/A

BERKSHIRE HATHAWAY INC-CL B

NYSE:BRK.B (3/28/2024, 8:04:01 PM)

After market: 420.52 0 (0%)

420.52

+3.59 (+0.86%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap908.32B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 24.46
Fwd PE 22.69
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.13
PEG (5Y)2.16
Profitability
Industry RankSector Rank
ROA 8.99%
ROE 17.14%
ROCE
ROIC
ROICexc
ROICexgc
OM 13.26%
PM (TTM) 26.4%
GM 20.57%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.34
Health
Industry RankSector Rank
Debt/Equity 0.23
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 1.25
Quick Ratio 0.98
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)22.99%
EPS 3Y23.42%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.82%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)20.64%
Revenue growth 3Y14.07%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y