| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 0/6 |
| Past Performance | 2/6 |
| Financial Health | 5/6 |
| Dividends | 0/6 |
BRK.A Stock Overview
Berkshire Hathaway Inc., through its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses worldwide.
Berkshire Hathaway Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$456,500.00 |
| 52 Week High | US$544,389.26 |
| 52 Week Low | US$407,773.23 |
| Beta | 0.87 |
| 1 Month Change | -11.50% |
| 3 Month Change | -3.34% |
| 1 Year Change | 5.56% |
| 3 Year Change | 50.66% |
| 5 Year Change | 83.67% |
| Change since IPO | 5,192.75% |
Recent News & Updates
Tracking Warren Buffett's Berkshire Hathaway Portfolio - Q1 2022 Update
Berkshire Hathaway's 13F stock portfolio value increased from ~$331B to ~$364B. Their largest three holdings are at ~62% of the entire portfolio. Berkshire Hathaway added Occidental Petroleum, HP, Citigroup, and Paramount Global while reducing Verizon Communications. They also increased Chevron while dropping AbbVie and Bristol-Myers Squibb.
Why Q1 Results are more Important than the Risky Merger Arbitrage from Berkshire Hathaway (NYSE:BRK.A)
Warren Buffett announced that Berkshire Hathaway (NYSE:BRK.A) has built up a 9.5% stake in Activision Blizzard Inc. (NASDAQ:ATVI) stock, which is under an acquisition bid from Microsoft (NASDAQ:MSFT) for US$95 per share. Investors are monitoring the situation for an opportunity to get in on the arbitrage, and we will discuss the current status and review quarterly results.
Berkshire Hathaway: Lithium Prospector
While BH is already a common market weakness holding, significant valuation may lie in a speculative segment of the company. The world needs more lithium to support EVs and energy storage, but there isn't enough production. Berkshire is now developing a novel lithium extraction technique to meet this exponentially rising demand by 2026.
Berkshire Hathaway Q1 2022 Earnings, Book Value Estimates - Safe Stock In A Rough Market
I previously stated that I believed Berkshire Hathaway could outperform the S&P 500 by 15% in 2022. As of March 31st, it has outperformed the index by 22%. Berkshire's equity book gained ~1% to $337.2 billion on strength from Occidental, Chevron, and American Express. Price/book jumped to 1.51x as Berkshire rose from $299 to $353 during the quarter. Berkshire repurchased $6.9 billion in shares in Q4 and ended the year with $147 billion in cash and short-term investments.
Is Berkshire Hathaway Stock A Buy Or Sell As It Reaches All-Time Highs?
Berkshire Hathaway has performed excellently in 2022 so far. Shares are not especially expensive today, despite recent gains. Investors should expect healthy gains over the coming years, even if book value growth slows down from what we have seen in recent years.
The Acquisition Logic: Berkshire Acquires Alleghany
Berkshire is currently trading at 19% above its normal trading range. BRK.B stock price should expect a 1.5% uplift from acquiring Alleghany with everything else being equal. Berkshire's ROIC is expected to be 10-12% from this acquisition without noticeable risks. Berkshire's huge pile of cash and Buffett's familiarity with Alleghany's CEO are two big factors in this acquisition.
Shareholder Returns
| BRK.A | US Diversified Financial | US Market | |
|---|---|---|---|
| 7D | -1.8% | -1.7% | -2.7% |
| 1Y | 5.6% | 4.2% | -12.9% |
Return vs Industry: BRK.A exceeded the US Diversified Financial industry which returned 4.2% over the past year.
Return vs Market: BRK.A exceeded the US Market which returned -12.9% over the past year.
Price Volatility
| BRK.A volatility | |
|---|---|
| BRK.A Average Weekly Movement | 3.1% |
| Diversified Financial Industry Average Movement | 7.0% |
| Market Average Movement | 7.8% |
| 10% most volatile stocks in US Market | 16.8% |
| 10% least volatile stocks in US Market | 2.9% |
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.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1998 | 372,000 | Warren Buffett | https://www.berkshirehathaway.com |
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 insurance and reinsurance; and operates railroad systems in North America. The company also generates, transmits, stores, and distributes electricity from natural gas, coal, wind, solar, hydroelectric, nuclear, and geothermal sources; operates natural gas distribution and storage facilities, interstate pipelines, liquefied natural gas facilities, and compressor and meter stations; and holds interest in coal mining assets.
Berkshire Hathaway Fundamentals Summary
| BRK.A fundamental statistics | |
|---|---|
| Market Cap | US$671.09b |
| Earnings (TTM) | US$83.54b |
| Revenue (TTM) | US$282.31b |
8.0x
P/E Ratio2.4x
P/S RatioIs BRK.A overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| BRK.A income statement (TTM) | |
|---|---|
| Revenue | US$282.31b |
| Cost of Revenue | US$34.53b |
| Gross Profit | US$107.01b |
| Other Expenses | US$23.46b |
| Earnings | US$83.54b |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 56.78k |
| Gross Margin | 37.90% |
| Net Profit Margin | 29.59% |
| Debt/Equity Ratio | 23.2% |
How did BRK.A perform over the long term?
See historical performance and comparisonValuation
Is Berkshire Hathaway undervalued compared to its fair value and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
24.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: BRK.A ($456500) is trading below our estimate of fair value ($606113.68)
Significantly Below Fair Value: BRK.A is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: BRK.A is poor value based on its PE Ratio (8x) compared to the US Diversified Financial industry average (7.5x).
PE vs Market: BRK.A is good value based on its PE Ratio (8x) compared to the US market (15.3x).
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 (1.3x) 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 1 analyst?
Future Growth Score
0/6Future Growth Score 0/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
-43.9%
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 (-43.9% per year).
Earnings vs Market: BRK.A's earnings are forecast to decline over the next 3 years (-43.9% 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 (7% per year) is forecast to grow slower than the US market (7.8% per year).
High Growth Revenue: BRK.A's revenue (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?
Past Performance Score
2/6Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
27.3%
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 (29.6%) are lower than last year (41.8%).
Past Earnings Growth Analysis
Earnings Trend: BRK.A's earnings have grown significantly by 27.3% 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 (-19.7%) over the past year, making it difficult to compare to the Diversified Financial industry average (-3.7%).
Return on Equity
High ROE: BRK.A's Return on Equity (16.4%) is considered low.
Financial Health
How is Berkshire Hathaway's financial position?
Financial Health Score
5/6Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: BRK.A's short term assets ($173.1B) exceed its short term liabilities ($139.3B).
Long Term Liabilities: BRK.A's short term assets ($173.1B) do not cover its long term liabilities ($313.4B).
Debt to Equity History and Analysis
Debt Level: BRK.A's net debt to equity ratio (2.6%) is considered satisfactory.
Reducing Debt: BRK.A's debt to equity ratio has reduced from 35.1% to 23.2% over the past 5 years.
Debt Coverage: BRK.A's debt is well covered by operating cash flow (30.9%).
Interest Coverage: BRK.A's interest payments on its debt are well covered by EBIT (25.7x coverage).
Balance Sheet
Dividend
What is Berkshire Hathaway current dividend yield, its reliability and sustainability?
Dividend Score
0/6Dividend Score 0/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
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.
Earnings Payout to Shareholders
Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: Unable to calculate sustainability of dividends as BRK.A has not reported any payouts.
Discover strong dividend paying companies
Management
How experienced are the management team and are they aligned to shareholders interests?
4.3yrs
Average management tenure
CEO
Warren Buffett (91 yo)
52.33yrs
Tenure
US$373,204
Compensation
Mr. Warren E. Buffett has been the Chairman, Chief Executive Officer and President of Berkshire Hathaway Inc. since 1970 and has been its Director since 1965. Mr. Buffett is the Owner of IMC Group. He serv...
CEO Compensation Analysis
Compensation vs Market: Warren's total compensation ($USD373.20K) is below average for companies of similar size in the US market ($USD13.34M).
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 (4.3 years average tenure).
Board Members
Experienced Board: BRK.A's board of directors are seasoned and experienced ( 18.8 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.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Berkshire Hathaway Inc.'s 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
- Implied Market Cap: US$671.090b
- Shares outstanding: 1.47m
- Website: https://www.berkshirehathaway.com
Number of Employees
Location
- Berkshire Hathaway Inc.
- 3555 Farnam Street
- Omaha
- Nebraska
- 68131
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/05/21 00:00 |
| End of Day Share Price | 2022/05/20 00:00 |
| Earnings | 2022/03/31 |
| Annual Earnings | 2021/12/31 |
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.