Berkshire Hathaway
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
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 16.8% per year for the next 3 years
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.A | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.3% | 2.3% | 1.3% |
| 30 Day | 7.3% | 6.9% | 3.3% |
| 90 Day | 16.8% | 16.9% | 8.9% |
| 1 Year | 43.9%43.9% | 45.8%45.7% | 56.6%53.9% |
| 3 Year | 36.4%36.4% | 36.3%35.9% | 64.4%53.6% |
| 5 Year | 86.8%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
1 year ago | Simply Wall St
What Kind Of Investor Owns Most Of Berkshire Hathaway Inc. (NYSE:BRK.A)?1 year ago | Simply Wall St
Don't Sell Berkshire Hathaway Inc. (NYSE:BRK.A) Before You Read This1 year 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?
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/16 22:11 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.