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Market Cap

US$652.5b

Last Updated

2021/04/16 22:11 UTC

Data Sources

Company Financials +

Executive Summary

Berkshire Hathaway Inc., through its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses worldwide. More Details


Snowflake Analysis

Excellent balance sheet with questionable track record.


Similar Companies

Share Price & News

How has Berkshire Hathaway's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BRK.A is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: BRK.A's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

2.3%

BRK.A

2.3%

US Diversified Financial

1.3%

US Market


1 Year Return

43.9%

BRK.A

45.7%

US Diversified Financial

53.9%

US Market

Return vs Industry: BRK.A underperformed the US Diversified Financial industry which returned 45.3% over the past year.

Return vs Market: BRK.A underperformed the US Market which returned 57.5% over the past year.


Shareholder returns

BRK.AIndustryMarket
7 Day2.3%2.3%1.3%
30 Day7.3%6.9%3.3%
90 Day16.8%16.9%8.9%
1 Year43.9%43.9%45.8%45.7%56.6%53.9%
3 Year36.4%36.4%36.3%35.9%64.4%53.6%
5 Year86.8%86.8%86.7%86.0%120.4%95.7%

Long-Term Price Volatility Vs. Market

How volatile is Berkshire Hathaway's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Berkshire Hathaway undervalued compared to its fair value and its price relative to the market?

15.35x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRK.A ($404789) is trading above our estimate of fair value ($350770.87)

Significantly Below Fair Value: BRK.A is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BRK.A is poor value based on its PE Ratio (15.2x) compared to the US Diversified Financial industry average (9.2x).

PE vs Market: BRK.A is good value based on its PE Ratio (15.2x) compared to the US market (22.3x).


Price to Earnings Growth Ratio

PEG Ratio: BRK.A's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BRK.A is overvalued based on its PB Ratio (1.4x) compared to the US Diversified Financial industry average (0.9x).


Future Growth

How is Berkshire Hathaway forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-16.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRK.A's earnings are forecast to decline over the next 3 years (-16.8% per year).

Earnings vs Market: BRK.A's earnings are forecast to decline over the next 3 years (-16.8% per year).

High Growth Earnings: BRK.A's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BRK.A's revenue (5.7% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: BRK.A's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BRK.A's Return on Equity is forecast to be low in 3 years time (5.6%).


Past Performance

How has Berkshire Hathaway performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRK.A has high quality earnings.

Growing Profit Margin: BRK.A's current net profit margins (17.3%) are lower than last year (31.7%).


Past Earnings Growth Analysis

Earnings Trend: BRK.A's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: BRK.A's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BRK.A had negative earnings growth (-47.3%) over the past year, making it difficult to compare to the Diversified Financial industry average (-15.6%).


Return on Equity

High ROE: BRK.A's Return on Equity (9.6%) is considered low.


Financial Health

How is Berkshire Hathaway's financial position?


Financial Position Analysis

Short Term Liabilities: BRK.A's short term assets ($194.0B) exceed its short term liabilities ($55.0B).

Long Term Liabilities: BRK.A's short term assets ($194.0B) do not cover its long term liabilities ($367.4B).


Debt to Equity History and Analysis

Debt Level: BRK.A's debt to equity ratio (25.9%) is considered satisfactory.

Reducing Debt: BRK.A's debt to equity ratio has reduced from 32.7% to 25.9% over the past 5 years.

Debt Coverage: BRK.A's debt is well covered by operating cash flow (34%).

Interest Coverage: BRK.A's interest payments on its debt are well covered by EBIT (17.1x coverage).


Balance Sheet


Dividend

What is Berkshire Hathaway current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BRK.A's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BRK.A's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BRK.A's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BRK.A's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BRK.A's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Warren Buffett (90 yo)

51.25yrs

Tenure

US$380,328

Compensation

Mr. Warren E. Buffett has been the Chairman, Chief Executive Officer and President of Berkshire Hathaway Inc. since 1970 and has been its Director since 1965. Mr. Buffett is the Owner of IMC Group. He serv...


CEO Compensation Analysis

Compensation vs Market: Warren's total compensation ($USD380.33K) is below average for companies of similar size in the US market ($USD11.02M).

Compensation vs Earnings: Warren's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BRK.A's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: BRK.A's board of directors are seasoned and experienced ( 21.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Berkshire Hathaway Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Berkshire Hathaway Inc.
  • Ticker: BRK.A
  • Exchange: NYSE
  • Founded: 1998
  • Industry: Multi-Sector Holdings
  • Sector: Diversified Financials
  • Market Cap: US$652.536b
  • Shares outstanding: 1.53m
  • Website: https://www.berkshirehathaway.com

Number of Employees


Location

  • Berkshire Hathaway Inc.
  • 3555 Farnam Street
  • Omaha
  • Nebraska
  • 68131
  • United States

Listings


Biography

Berkshire Hathaway Inc., through its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses worldwide. It provides property, casualty, life, accident, and health insura...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 22:11
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.