BERKSHIRE HATHAWAY INC-CL B (BRK.B) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:BRK.B - US0846707026 - Common Stock
506.65 USD
-1.9 (-0.37%)
507.32 USD
+0.67 (+0.13%)
Taking everything into account, BRK.B scores 4 out of 10 in our fundamental rating. BRK.B was compared to 98 industry peers in the Financial Services industry. BRK.B has only an average score on both its financial health and profitability. BRK.B is quite expensive at the moment. 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.
BRK.B had positive earnings in 4 of the past 5 years.
Each year in the past 5 years BRK.B had a positive operating cash flow.
1.2 Ratios
BRK.B has a Return On Assets of 5.50%. This is in the better half of the industry: BRK.B outperforms 77.55% of its industry peers.
With a Return On Equity value of 9.66%, BRK.B perfoms like the industry average, outperforming 56.12% of the companies in the same industry.
The Return On Invested Capital of BRK.B (4.53%) is better than 61.22% 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 8.20%.
The last Return On Invested Capital (4.53%) for BRK.B is above the 3 year average (4.13%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 9.66% | ||
| ROIC | 4.53% |
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 (18.13%) is better than 71.43% 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 16.72%, BRK.B is in line with its industry, outperforming 59.18% of the companies in the same industry.
BRK.B's Operating Margin has improved in the last couple of years.
BRK.B has a worse Gross Margin (17.71%) than 60.20% of its industry peers.
In the last couple of years the Gross Margin of BRK.B has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.72% | ||
| PM (TTM) | 18.13% | ||
| GM | 17.71% |
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.
The number of shares outstanding for BRK.B has been reduced compared to 1 year ago.
BRK.B has less shares outstanding than it did 5 years ago.
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 2.60. 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 2.60. This is amongst the best in the industry. BRK.B outperforms 80.61% of its industry peers.
The Debt to FCF ratio of BRK.B is 6.58, which is on the high side as it means it would take BRK.B, 6.58 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BRK.B (6.58) is comparable to the rest of the industry.
BRK.B has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.18, BRK.B is in the better half of the industry, outperforming 66.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 6.58 | ||
| Altman-Z | 2.6 |
ROIC/WACC0.56
WACC8.15%
2.3 Liquidity
BRK.B has a Current Ratio of 1.33. This is a normal value and indicates that BRK.B is financially healthy and should not expect problems in meeting its short term obligations.
BRK.B has a better Current ratio (1.33) than 62.24% of its industry peers.
BRK.B has a Quick Ratio of 1.11. 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 Quick ratio of BRK.B (1.11) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.97% 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 0.60% 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)17.97%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%33.51%
Revenue 1Y (TTM)0.6%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%2.13%
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 2.26% on average per year.
Based on estimates for the next years, BRK.B will show a small growth in Revenue. The Revenue will grow by 4.89% on average per year.
EPS Next Y-3%
EPS Next 2Y-0.22%
EPS Next 3Y1.51%
EPS Next 5Y2.26%
Revenue Next Year0.74%
Revenue Next 2Y0.33%
Revenue Next 3Y1.35%
Revenue Next 5Y4.89%
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.
4. Valuation
4.1 Price/Earnings Ratio
BRK.B is valuated rather expensively with a Price/Earnings ratio of 22.39.
The rest of the industry has a similar Price/Earnings ratio as BRK.B.
Compared to an average S&P500 Price/Earnings ratio of 26.15, BRK.B is valued at the same level.
The Price/Forward Earnings ratio is 23.14, which indicates a rather expensive current 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 64.29% of the companies in the same industry.
BRK.B's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 36.22.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.39 | ||
| Fwd PE | 23.14 |
4.2 Price Multiples
BRK.B's Enterprise Value to EBITDA is on the same level as the industry average.
60.20% of the companies in the same industry are cheaper than BRK.B, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 56.63 | ||
| EV/EBITDA | 15.14 |
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)1.26
EPS Next 2Y-0.22%
EPS Next 3Y1.51%
5. Dividend
5.1 Amount
BRK.B does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
506.65
-1.9 (-0.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryFinancial Services
Earnings (Last)
Earnings (Next)
Inst Owners34.67%
Inst Owner Change-3.28%
Ins Owners38.36%
Ins Owner ChangeN/A
Market Cap1.09T
Revenue(TTM)372.13B
Net Income(TTM)67.46B
Analysts44
Price Target523.01 (3.23%)
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)2
Avg EPS beat(2)2.5%
Min EPS beat(2)0.19%
Max EPS beat(2)4.81%
EPS beat(4)3
Avg EPS beat(4)9.5%
Min EPS beat(4)-9.78%
Max EPS beat(4)42.8%
EPS beat(8)6
Avg EPS beat(8)8.01%
EPS beat(12)8
Avg EPS beat(12)5.87%
EPS beat(16)12
Avg EPS beat(16)8.15%
Revenue beat(2)1
Avg Revenue beat(2)-0.81%
Min Revenue beat(2)-2.33%
Max Revenue beat(2)0.72%
Revenue beat(4)1
Avg Revenue beat(4)-1.43%
Min Revenue beat(4)-4.09%
Max Revenue beat(4)0.72%
Revenue beat(8)3
Avg Revenue beat(8)-1.35%
Revenue beat(12)5
Avg Revenue beat(12)-0.47%
Revenue beat(16)6
Avg Revenue beat(16)-0.84%
PT rev (1m)-1.99%
PT rev (3m)-1.98%
EPS NQ rev (1m)8.5%
EPS NQ rev (3m)2.78%
EPS NY rev (1m)0.03%
EPS NY rev (3m)0.49%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.39 | ||
| Fwd PE | 23.14 | ||
| P/S | 2.94 | ||
| P/FCF | 56.63 | ||
| P/OCF | 27.78 | ||
| P/B | 1.57 | ||
| P/tB | 1.89 | ||
| EV/EBITDA | 15.14 |
EPS(TTM)22.63
EY4.47%
EPS(NY)21.9
Fwd EY4.32%
FCF(TTM)8.95
FCFY1.77%
OCF(TTM)18.24
OCFY3.6%
SpS172.28
BVpS323.22
TBVpS267.83
PEG (NY)N/A
PEG (5Y)1.26
Graham Number405.68
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.5% | ||
| ROE | 9.66% | ||
| ROCE | 5.61% | ||
| ROIC | 4.53% | ||
| ROICexc | 4.87% | ||
| ROICexgc | 5.82% | ||
| OM | 16.72% | ||
| PM (TTM) | 18.13% | ||
| GM | 17.71% | ||
| FCFM | 5.19% |
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%
ROICexgc growth 3Y9.15%
ROICexgc 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 Turnover0.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.18 | ||
| Debt/FCF | 6.58 | ||
| Debt/EBITDA | 1.69 | ||
| Cap/Depr | 151.95% | ||
| Cap/Sales | 5.39% | ||
| Interest Coverage | 12.22 | ||
| Cash Conversion | 52.22% | ||
| Profit Quality | 28.65% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 2.6 |
F-Score4
WACC8.15%
ROIC/WACC0.56
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)17.97%
EPS 3Y21.97%
EPS 5Y17.78%
EPS Q2Q%33.51%
EPS Next Y-3%
EPS Next 2Y-0.22%
EPS Next 3Y1.51%
EPS Next 5Y2.26%
Revenue 1Y (TTM)0.6%
Revenue growth 3Y10.38%
Revenue growth 5Y7.84%
Sales Q2Q%2.13%
Revenue Next Year0.74%
Revenue Next 2Y0.33%
Revenue Next 3Y1.35%
Revenue Next 5Y4.89%
EBIT growth 1Y15.71%
EBIT growth 3Y18.52%
EBIT growth 5Y13.14%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-28.02%
FCF growth 3Y-23.7%
FCF growth 5Y-12.55%
OCF growth 1Y-12.66%
OCF growth 3Y-8.11%
OCF growth 5Y-4.59%
BERKSHIRE HATHAWAY INC-CL B / BRK.B FAQ
What is the ChartMill fundamental rating of BERKSHIRE HATHAWAY INC-CL B (BRK.B) stock?
ChartMill assigns a fundamental rating of 4 / 10 to BRK.B.
What is the valuation status of BERKSHIRE HATHAWAY INC-CL B (BRK.B) stock?
ChartMill assigns a valuation rating of 2 / 10 to BERKSHIRE HATHAWAY INC-CL B (BRK.B). This can be considered as Overvalued.
What is the profitability of BRK.B stock?
BERKSHIRE HATHAWAY INC-CL B (BRK.B) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for BRK.B stock?
The Price/Earnings (PE) ratio for BERKSHIRE HATHAWAY INC-CL B (BRK.B) is 22.39 and the Price/Book (PB) ratio is 1.57.
How financially healthy is BERKSHIRE HATHAWAY INC-CL B?
The financial health rating of BERKSHIRE HATHAWAY INC-CL B (BRK.B) is 5 / 10.