BERKSHIRE HATHAWAY INC-CL B (BRK.B) Stock Fundamental Analysis
NYSE:BRK.B - US0846707026 - Common Stock
489 USD
+0.41 (+0.08%)
489.75 USD
+0.75 (+0.15%)
Taking everything into account, BRK.B scores 5 out of 10 in our fundamental rating. BRK.B was compared to 100 industry peers in the Financial Services industry. BRK.B has an average financial health and profitability rating. BRK.B is quite expensive at the moment. It does show a decent growth rate.
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.
BRK.B had positive earnings in 4 of the past 5 years.
BRK.B had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of BRK.B (5.41%) is better than 77.00% of its industry peers.
BRK.B's Return On Equity of 9.42% is in line compared to the rest of the industry. BRK.B outperforms 49.00% of its industry peers.
BRK.B has a better Return On Invested Capital (4.37%) than 61.00% of its industry peers.
BRK.B had an Average Return On Invested Capital over the past 3 years of 4.13%. This is below the industry average of 7.81%.
The 3 year average ROIC (4.13%) for BRK.B is below the current ROIC(4.37%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.41% | ||
| ROE | 9.42% | ||
| ROIC | 4.37% |
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 (17.00%) than 72.00% of its industry peers.
In the last couple of years the Profit Margin of BRK.B has declined.
The Operating Margin of BRK.B (15.70%) is comparable to the rest of the industry.
BRK.B's Operating Margin has improved in the last couple of years.
BRK.B's Gross Margin of 16.97% is on the low side compared to the rest of the industry. BRK.B is outperformed by 62.00% of its industry peers.
In the last couple of years the Gross Margin of BRK.B has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.7% | ||
| PM (TTM) | 17% | ||
| GM | 16.97% |
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.
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 2.71. 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 (2.71) is better than 82.00% of its industry peers.
The Debt to FCF ratio of BRK.B is 15.44, which is on the high side as it means it would take BRK.B, 15.44 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 15.44, BRK.B is in line with its industry, outperforming 53.00% of the companies in the same industry.
A Debt/Equity ratio of 0.19 indicates that BRK.B is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.19, BRK.B is in the better half of the industry, outperforming 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 15.44 | ||
| Altman-Z | 2.71 |
ROIC/WACC0.53
WACC8.29%
2.3 Liquidity
A Current Ratio of 1.95 indicates that BRK.B should not have too much problems paying its short term obligations.
BRK.B's Current ratio of 1.95 is fine compared to the rest of the industry. BRK.B outperforms 77.00% of its industry peers.
A Quick Ratio of 1.68 indicates that BRK.B should not have too much problems paying its short term obligations.
BRK.B has a Quick ratio of 1.68. This is in the better half of the industry: BRK.B outperforms 73.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.24% over the past year.
The Earnings Per Share has been growing by 17.78% on average over the past years. This is quite good.
The Revenue has been growing slightly by 0.01% 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)8.24%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%-3.87%
Revenue 1Y (TTM)0.01%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%-1.22%
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.
BRK.B is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.89% yearly.
EPS Next Y-3.47%
EPS Next 2Y0.07%
EPS Next 3Y2.03%
EPS Next 5Y2.26%
Revenue Next Year0.77%
Revenue Next 2Y0.48%
Revenue Next 3Y1.6%
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
A Price/Earnings ratio of 23.22 indicates a rather expensive valuation of BRK.B.
The rest of the industry has a similar Price/Earnings ratio as BRK.B.
The average S&P500 Price/Earnings ratio is at 27.24. BRK.B is around the same levels.
Based on the Price/Forward Earnings ratio of 22.20, the valuation of BRK.B can be described as rather expensive.
Based on the Price/Forward Earnings ratio, BRK.B is valued a bit more expensive than the industry average as 65.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.81, BRK.B is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 22.2 |
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 | 128.42 | ||
| EV/EBITDA | 15.16 |
4.3 Compensation for Growth
The decent profitability rating of BRK.B may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.31
EPS Next 2Y0.07%
EPS Next 3Y2.03%
5. Dividend
5.1 Amount
BRK.B does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
489
+0.41 (+0.08%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners33.77%
Inst Owner Change2.6%
Ins Owners36.68%
Ins Owner ChangeN/A
Market Cap1056.24B
Analysts80
Price Target533.55 (9.11%)
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)-4.8%
Min EPS beat(2)-9.78%
Max EPS beat(2)0.19%
EPS beat(4)2
Avg EPS beat(4)5.7%
Min EPS beat(4)-10.41%
Max EPS beat(4)42.8%
EPS beat(8)6
Avg EPS beat(8)8.53%
EPS beat(12)8
Avg EPS beat(12)6.49%
EPS beat(16)11
Avg EPS beat(16)7.41%
Revenue beat(2)0
Avg Revenue beat(2)-3.21%
Min Revenue beat(2)-4.09%
Max Revenue beat(2)-2.33%
Revenue beat(4)0
Avg Revenue beat(4)-3.53%
Min Revenue beat(4)-7.69%
Max Revenue beat(4)-0.01%
Revenue beat(8)3
Avg Revenue beat(8)-1.26%
Revenue beat(12)4
Avg Revenue beat(12)-0.85%
Revenue beat(16)5
Avg Revenue beat(16)-1.25%
PT rev (1m)0.18%
PT rev (3m)-0.34%
EPS NQ rev (1m)-1.62%
EPS NQ rev (3m)9.88%
EPS NY rev (1m)2.72%
EPS NY rev (3m)2.36%
Revenue NQ rev (1m)-0.75%
Revenue NQ rev (3m)-2.01%
Revenue NY rev (1m)3.27%
Revenue NY rev (3m)-3.62%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.22 | ||
| Fwd PE | 22.2 | ||
| P/S | 2.85 | ||
| P/FCF | 128.42 | ||
| P/OCF | 38.53 | ||
| P/B | 1.58 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 15.16 |
EPS(TTM)21.06
EY4.31%
EPS(NY)22.03
Fwd EY4.5%
FCF(TTM)3.81
FCFY0.78%
OCF(TTM)12.69
OCFY2.6%
SpS171.37
BVpS309.25
TBVpS253.97
PEG (NY)N/A
PEG (5Y)1.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.41% | ||
| ROE | 9.42% | ||
| ROCE | 5.42% | ||
| ROIC | 4.37% | ||
| ROICexc | 4.82% | ||
| ROICexgc | 5.84% | ||
| OM | 15.7% | ||
| PM (TTM) | 17% | ||
| GM | 16.97% | ||
| FCFM | 2.22% |
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 | 15.44 | ||
| Debt/EBITDA | 1.78 | ||
| Cap/Depr | 146.66% | ||
| Cap/Sales | 5.18% | ||
| Interest Coverage | 11.47 | ||
| Cash Conversion | 38.5% | ||
| Profit Quality | 13.07% | ||
| Current Ratio | 1.95 | ||
| Quick Ratio | 1.68 | ||
| Altman-Z | 2.71 |
F-Score4
WACC8.29%
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)8.24%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%-3.87%
EPS Next Y-3.47%
EPS Next 2Y0.07%
EPS Next 3Y2.03%
EPS Next 5Y2.26%
Revenue 1Y (TTM)0.01%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%-1.22%
Revenue Next Year0.77%
Revenue Next 2Y0.48%
Revenue Next 3Y1.6%
Revenue Next 5Y4.89%
EBIT growth 1Y6.42%
EBIT growth 3Y18.52%
EBIT growth 5Y13.14%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-68.47%
FCF growth 3Y-23.7%
FCF growth 5Y-12.55%
OCF growth 1Y-36.42%
OCF growth 3Y-8.11%
OCF growth 5Y-4.59%