Berkshire Hathaway
Market Cap
US$518.2b
Last Updated
2019/10/21 23:32 UTC
Data Sources
Company Financials +
Executive Summary
Berkshire Hathaway Inc., through its subsidiaries engages in insurance, freight rail transportation, and utility businesses.
Snowflake
Fundamentals
Questionable track record with worrying balance sheet.
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
Market Performance
7 Day Return
1.7%
BRK.A
1.8%
US Diversified Financial
1.0%
US Market
1 Year Return
2.6%
BRK.A
2.5%
US Diversified Financial
8.0%
US Market
Return vs Industry: BRK.A exceeded the US Diversified Financial industry which returned 2.5% over the past year.
Return vs Market: BRK.A underperformed the US Market which returned 8% over the past year.
Shareholder returns
| BRK.A | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.7% | 1.8% | 1.0% |
| 30 Day | 1.1% | 0.9% | -0.07% |
| 90 Day | 2.5% | 2.1% | -1.0% |
| 1 Year | 2.6%2.6% | 2.7%2.5% | 10.4%8.0% |
| 3 Year | 47.1%47.1% | 46.0%45.6% | 46.2%36.7% |
| 5 Year | 51.5%51.5% | 48.2%47.6% | 64.3%46.2% |
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
1 week ago | Simply Wall St
What Kind Of Investor Owns Most Of Berkshire Hathaway Inc. (NYSE:BRK.A)?3 weeks ago | Simply Wall St
Don't Sell Berkshire Hathaway Inc. (NYSE:BRK.A) Before You Read This1 month ago | Simply Wall St
Is It Too Late To Consider Buying Berkshire Hathaway Inc. (NYSE:BRK.A)?Valuation
Is Berkshire Hathaway undervalued compared to its fair value and its price relative to the market?
18x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: BRK.A ($317040) is trading above our estimate of fair value ($231322.89)
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 (18x) compared to the Diversified Financial industry average (12.9x).
PE vs Market: BRK.A is poor value based on its PE Ratio (18x) compared to the US market (17.6x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate BRK.A's PEG Ratio to determine if it is good value.
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 (0.7x).
Next Steps
Future Growth
How is Berkshire Hathaway forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
4.1%
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if BRK.A's forecast earnings growth is above the savings rate (2.7%).
Earnings vs Market: Insufficient data to determine if BRK.A's earnings are forecast to grow faster than the US market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: BRK.A's revenue (4.1% per year) is forecast to grow slower than the US market (7.2% per year).
High Growth Revenue: BRK.A's revenue (4.1% 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 (6.5%).
Next Steps
Past Performance
How has Berkshire Hathaway performed over the past 5 years?
12.0%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: BRK.A's earnings have grown by 12% 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 (-39.2%) over the past year, making it difficult to compare to the Diversified Financial industry average (93.7%).
Return on Equity
High ROE: BRK.A's Return on Equity (7.6%) is considered low.
Return on Assets
ROA vs Industry: BRK.A has a higher Return on Assets than the Diversified Financial industry average last year.
Return on Capital Employed
ROCE Improving: BRK.A's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is Berkshire Hathaway's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: BRK.A has a high level of physical assets or inventory.
Debt Coverage by Assets: BRK.A's debt is covered by short term assets (assets are 1.805800x debt).
Financial Institutions Analysis
Asset Level: BRK.A's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if BRK.A has a sufficient allowance for bad loans.
Low Risk Liabilities: BRK.A reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if BRK.A has an acceptable proportion of non-loan assets held.
Low Risk Deposits: BRK.A has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if BRK.A has an appropriate level of bad loans.
Next Steps
Dividend
What is Berkshire Hathaway's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: Unable to evaluate BRK.A's dividend yield against the bottom 25% of dividend payers, as the company has not reported any 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 payouts.
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
What is the CEO of Berkshire Hathaway's salary, the management and board of directors tenure and is there insider trading?
3.4yrs
Average management tenure
CEO
Warren Buffett (89yo)
49.8yrs
Tenure
US$388,968
Compensation
Mr. Warren E. Buffett has been the Chairman, Chief Executive Officer and President of Berkshire Hathaway Inc. since 1970. Mr. Buffett is the Owner of IMC Group. He serves as Manager and Member of the Board ...
CEO Compensation Analysis
Compensation vs. Market: Warren's total compensation ($USD388.97K) is below average for companies of similar size in the US market ($USD11.18M).
Compensation vs Earnings: Warren's compensation has been consistent with company performance over the past year.
Management Age and Tenure
3.4yrs
Average Tenure
67yo
Average Age
Experienced Management: BRK.A's management team is considered experienced (3.4 years average tenure).
Board Age and Tenure
26.8yrs
Average Tenure
71yo
Average Age
Experienced Board: BRK.A's board of directors are seasoned and experienced ( 26.8 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Vice Chairman of Insurance Operations & Director |
| Shares | 67 |
| Max Price | US$296,515.01 |
Ownership Breakdown
Management Team
Warren Buffett (89yo)
Chairman
- Tenure: 49.8yrs
- Compensation: US$388.97k
Marc Hamburg (69yo)
Senior VP & CFO
- Tenure: 0yrs
- Compensation: US$2.26m
Greg Abel (57yo)
Vice Chairman of Non Insurance Business Operations & Director
- Tenure: 1.8yrs
- Compensation: US$18.01m
Mary Rhinehart (60yo)
Chairman
- Tenure: 0yrs
Daniel Jaksich
VP, Controller & Principal Accounting Officer
- Tenure: 0yrs
Peter Eastwood
CEO & President of Specialty Insurance
- Tenure: 0yrs
Ajit Jain (67yo)
Vice Chairman of Insurance Operations & Director
- Tenure: 1.8yrs
- Compensation: US$18.01m
Kerby Ham
Treasurer
- Tenure: 0yrs
Kara Raiguel
CEO & President of General Re Unit
- Tenure: 3.4yrs
Board Members
Walter Scott (88yo)
Independent Director
- Tenure: 31.8yrs
- Compensation: US$3.30k
Warren Buffett (89yo)
Chairman
- Tenure: 49.8yrs
- Compensation: US$388.97k
Matt Rose (59yo)
Executive Chairman of Burlington Northern Santa Fe
- Tenure: 0yrs
Charlie Munger (95yo)
Vice Chairman
- Tenure: 41.6yrs
- Compensation: US$100.00k
Howard Buffett (64yo)
Director
- Tenure: 26.8yrs
- Compensation: US$3.30k
Greg Abel (57yo)
Vice Chairman of Non Insurance Business Operations & Director
- Tenure: 1.8yrs
- Compensation: US$18.01m
Tom Murphy (93yo)
Independent Director
- Tenure: 16.8yrs
- Compensation: US$7.30k
Mary Rhinehart (60yo)
Chairman
- Tenure: 0yrs
Tony Nicely (75yo)
Chairman of GEICO
- Tenure: 0yrs
Ajit Jain (67yo)
Vice Chairman of Insurance Operations & Director
- Tenure: 1.8yrs
- Compensation: US$18.01m
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: 1889
- Industry: Multi-Sector Holdings
- Sector: Diversified Financials
- Market Cap: US$518.237b
- Shares outstanding: 1.63m
- Website: https://www.berkshirehathaway.com
Number of Employees
Location
- Berkshire Hathaway Inc.
- 3555 Farnam Street
- Omaha
- Nebraska
- 68131
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| BRK.A | NYSE (New York Stock Exchange) | Yes | Class A Common Shares | US | USD | Oct 1976 |
| BRH | XTRA (XETRA Trading Platform) | Yes | Class A Common Shares | DE | EUR | Oct 1976 |
| BRH | DB (Deutsche Boerse AG) | Yes | Class A Common Shares | DE | EUR | Oct 1976 |
| BRKA | WBAG (Wiener Boerse AG) | Yes | Class A Common Shares | AT | EUR | Oct 1976 |
| BRKB | WBAG (Wiener Boerse AG) | Class B Common Shares | AT | EUR | May 1996 | |
| BRYN | DB (Deutsche Boerse AG) | Class B Common Shares | DE | EUR | May 1996 | |
| BRK.B | NYSE (New York Stock Exchange) | Class B Common Shares | US | USD | May 1996 | |
| BRKB * | BMV (Bolsa Mexicana de Valores) | Class B Common Shares | MX | MXN | May 1996 | |
| BRK/B | SWX (SIX Swiss Exchange) | Class B Common Shares | CH | CHF | May 1996 | |
| 0R37 | LSE (London Stock Exchange) | Class B Common Shares | GB | USD | May 1996 | |
| BRYN | XTRA (XETRA Trading Platform) | Class B Common Shares | DE | EUR | May 1996 | |
| BERK34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 CLASS 'B' COM STK | BR | BRL | Oct 2013 |
Biography
Berkshire Hathaway Inc., through its subsidiaries engages in insurance, freight rail transportation, and utility businesses. It provides property and casualty insurance and reinsurance, as well as life, ac ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/21 23:32 |
| End of Day Share Price | 2019/10/21 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.