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 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.
BRK.B had a positive operating cash flow in the past year.
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 better Return On Assets (6.95%) than 84.00% of its industry peers.
The Return On Equity of BRK.B (12.36%) is better than 63.00% of its industry peers.
With a Return On Invested Capital value of 4.50%, BRK.B perfoms like the industry average, outperforming 55.00% of the companies in the same industry.
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
The Profit Margin of BRK.B (21.79%) is better than 77.00% of its industry peers.
BRK.B's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 15.89%, BRK.B is in line with its industry, outperforming 57.00% of the companies in the same industry.
BRK.B's Operating Margin has improved in the last couple of years.
The Gross Margin of BRK.B (16.43%) is worse than 62.00% of its industry peers.
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
BRK.B has less shares outstanding than it did 5 years ago.
The debt/assets ratio for BRK.B has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.63 indicates that BRK.B is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of BRK.B (2.63) is better than 83.00% of its industry peers.
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.
With a Debt to FCF ratio value of 10.44, BRK.B perfoms like the industry average, outperforming 54.00% 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.
The Debt to Equity ratio of BRK.B (0.19) is better than 67.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.19 | ||
| Debt/FCF | 10.44 | ||
| Altman-Z | 2.63 |
ROIC/WACC0.53
WACC8.44%
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.
Looking at the Quick ratio, with a value of 0.91, BRK.B is in line with its industry, outperforming 45.00% of the companies in the same 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.
The Earnings Per Share has been growing by 17.78% on average over the past years. This is quite good.
BRK.B shows a small growth in Revenue. In the last year, the Revenue has grown by 0.63%.
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
BRK.B is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.27% yearly.
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
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.
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
Based on the Price/Earnings ratio of 23.69, the valuation of BRK.B can be described as rather expensive.
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 26.25, BRK.B is valued at the same level.
Based on the Price/Forward Earnings ratio of 23.01, 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 68.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, BRK.B is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.69 | ||
| Fwd PE | 23.01 |
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 | 90.22 | ||
| EV/EBITDA | 16.33 |
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
BRK.B does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
503.96
-2.22 (-0.44%)
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 Cap1088.55B
Analysts80
Price Target535.36 (6.23%)
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)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 | 23.69 | ||
| Fwd PE | 23.01 | ||
| P/S | 2.93 | ||
| P/FCF | 90.22 | ||
| P/OCF | 35.2 | ||
| P/B | 1.66 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 16.33 |
EPS(TTM)21.27
EY4.22%
EPS(NY)21.9
Fwd EY4.35%
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 | 2.63 |
F-Score4
WACC8.44%
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%