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BRK.

Berkshire Hathaway NYSE:BRK.A Stock Report

Last Price

US$478.67k

Market Cap

US$704.1b

7D

4.9%

1Y

9.8%

Updated

28 May, 2022

Data

Company Financials +
BRK.A fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance2/6
Financial Health5/6
Dividends0/6

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

Summary of all time highs, changes and price drops for Berkshire Hathaway
Historical stock prices
Current Share PriceUS$478,669.51
52 Week HighUS$544,389.26
52 Week LowUS$407,773.23
Beta0.87
1 Month Change-4.07%
3 Month Change-0.14%
1 Year Change9.79%
3 Year Change61.14%
5 Year Change91.73%
Change since IPO5,449.79%

Recent News & Updates

May 27

Berkshire Hathaway: Lower Returns Ahead

A detailed estimate of Berkshire's future growth and true earnings power points to lower returns ahead for BRK.B. With a strong balance sheet, slowing growth, and long-duration cash flows, an investment in BRK.B is a question of your investor profile. From these price levels, we believe BRK.B will return an underwhelming 6% per annum to long-term shareholders.

May 18

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.

May 01
Why Q1 Results are more Important than the Risky Merger Arbitrage from Berkshire Hathaway (NYSE:BRK.A)

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.

Apr 29

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.

Apr 08

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.

Mar 30

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.

Shareholder Returns

BRK.AUS Diversified FinancialUS Market
7D4.9%5.3%6.2%
1Y9.8%9.0%-11.4%

Return vs Industry: BRK.A matched the US Diversified Financial industry which returned 9% over the past year.

Return vs Market: BRK.A exceeded the US Market which returned -10.2% over the past year.

Price Volatility

Is BRK.A's price volatile compared to industry and market?
BRK.A volatility
BRK.A Average Weekly Movement3.0%
Diversified Financial Industry Average Movement6.7%
Market Average Movement7.8%
10% most volatile stocks in US Market17.0%
10% least volatile stocks in US Market2.8%

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

FoundedEmployeesCEOWebsite
1998372,000Warren Buffetthttps://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

How do Berkshire Hathaway's earnings and revenue compare to its market cap?
BRK.A fundamental statistics
Market CapUS$704.06b
Earnings (TTM)US$83.54b
Revenue (TTM)US$282.31b

8.4x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BRK.A income statement (TTM)
RevenueUS$282.31b
Cost of RevenueUS$34.53b
Gross ProfitUS$107.01b
Other ExpensesUS$23.46b
EarningsUS$83.54b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)56.78k
Gross Margin37.90%
Net Profit Margin29.59%
Debt/Equity Ratio23.2%

How did BRK.A perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


20.8%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BRK.A ($478669.51) is trading below our estimate of fair value ($604595.57)

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 Price-To-Earnings Ratio (8.4x) compared to the US Diversified Financial industry average (7.6x).

PE vs Market: BRK.A is good value based on its Price-To-Earnings Ratio (8.4x) compared to the US market (15.6x).


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 Price-To-Book Ratio (1.4x) compared to the US Diversified Financial industry average (0.8x).


Future Growth

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

Future Growth Score

0/6

Future 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 (8.1% 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 (5.8%).


Past Performance

How has Berkshire Hathaway performed over the past 5 years?

Past Performance Score

2/6

Past 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

5/6

Financial 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

0/6

Dividend 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 ($USD373.20K) is below average for companies of similar size in the US market ($USD13.06M).

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$704.059b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/28 00:00
End of Day Share Price2022/05/27 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.