NYSE:BRK.A

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet with moderate growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.3%

BRK.A

5.4%

US Diversified Financial

2.5%

US Market


1 Year Return

-6.7%

BRK.A

-7.0%

US Diversified Financial

8.4%

US Market

Return vs Industry: BRK.A exceeded the US Diversified Financial industry which returned -7.8% over the past year.

Return vs Market: BRK.A underperformed the US Market which returned 7.1% over the past year.


Shareholder returns

BRK.AIndustryMarket
7 Day5.3%5.4%2.5%
30 Day-2.7%-2.3%5.1%
90 Day-10.4%-10.6%2.0%
1 Year-6.7%-6.7%-6.8%-7.0%10.9%8.4%
3 Year11.0%11.0%9.9%9.5%30.5%21.9%
5 Year30.9%30.9%28.1%27.5%56.9%39.2%

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

Valuation

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

45.1x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRK.A ($277035) is trading above our estimate of fair value ($256968.91)

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 (45.1x) compared to the Diversified Financial industry average (6.2x).

PE vs Market: BRK.A is poor value based on its PE Ratio (45.1x) compared to the US market (15.6x).


Price to Earnings Growth Ratio

PEG Ratio: BRK.A is good value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: BRK.A is overvalued based on its PB Ratio (1.2x) compared to the US Diversified Financial industry average (0.6x).


Next Steps

Future Growth

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

47.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRK.A's forecast earnings growth (47.1% per year) is above the savings rate (2.2%).

Earnings vs Market: BRK.A's earnings (47.1% per year) are forecast to grow faster than the US market (21.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BRK.A's revenue (7.1% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: BRK.A's revenue (7.1% 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 (6.4%).


Next Steps

Past Performance

How has Berkshire Hathaway performed over the past 5 years?

12.8%

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 (3.9%) are lower than last year (10.7%).


Past Earnings Growth Analysis

Earnings Trend: BRK.A's earnings have grown by 12.8% 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 (-62.7%) over the past year, making it difficult to compare to the Diversified Financial industry average (45.6%).


Return on Equity

High ROE: BRK.A's Return on Equity (2.8%) is considered low.


Next Steps

Financial Health

How is Berkshire Hathaway's financial position?


Financial Position Analysis

Short Term Liabilities: BRK.A's short term assets ($196.0B) exceed its short term liabilities ($98.1B).

Long Term Liabilities: BRK.A's short term assets ($196.0B) do not cover its long term liabilities ($287.1B).


Debt to Equity History and Analysis

Debt Level: BRK.A's debt to equity ratio (26.2%) is considered satisfactory.

Reducing Debt: BRK.A's debt to equity ratio has reduced from 34.2% to 26.2% over the past 5 years.

Debt Coverage: BRK.A's debt is well covered by operating cash flow (38.5%).

Interest Coverage: BRK.A's interest payments on its debt are well covered by EBIT (3.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Berkshire Hathaway's 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?

2.3yrs

Average management tenure


CEO

Warren Buffett (89yo)

50.33yrs

Tenure

US$374,773

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 ($USD374.77K) is below average for companies of similar size in the US market ($USD11.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Warren Buffett
Chairman50.33yrsUS$374.77k16.01% $71.9b
Charles Munger
Executive Vice Chairman42.17yrsUS$100.00k0.28% $1.3b
Marc Hamburg
Senior VPno dataUS$3.08mno data
Ajit Jain
Vice Chairman of Insurance Operations & Director2.33yrsUS$19.01m0.020% $87.9m
Gregory Abel
Vice Chairman of Non Insurance Business Operations & Director2.33yrsUS$19.01m0.00037% $1.7m
Daniel Jaksich
VP, Controller & Principal Accounting Officerno datano datano data
Michael Pille
Head of Healthcare Underwriting in Germany0.083yrno datano data
Mary Rhinehart
Chairmanno datano datano data
Kerby Ham
Treasurerno datano datano data
Peter Eastwood
CEO & President of Specialty Insuranceno datano datano data

2.3yrs

Average Tenure

68yo

Average Age

Experienced Management: BRK.A's management team is considered experienced (2.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Warren Buffett
Chairman50.33yrsUS$374.77k16.01% $71.9b
Charles Munger
Executive Vice Chairman42.17yrsUS$100.00k0.28% $1.3b
Ajit Jain
Vice Chairman of Insurance Operations & Director2.33yrsUS$19.01m0.020% $87.9m
Gregory Abel
Vice Chairman of Non Insurance Business Operations & Director2.33yrsUS$19.01m0.00037% $1.7m
Mary Rhinehart
Chairmanno datano datano data
Walter Scott
Independent Director32.33yrsUS$2.70k0.0065% $29.1m
Matthew Rose
Executive Chairman of Burlington Northern Santa Feno datano datano data
Howard Buffett
Director27.33yrsUS$2.70k0.054% $241.3m
Thomas Murphy
Independent Director17.33yrsUS$6.70k0.043% $192.7m
Olza Nicely
Chairman of GEICOno datano datano data

27.3yrs

Average Tenure

71yo

Average Age

Experienced Board: BRK.A's board of directors are seasoned and experienced ( 27.3 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$449.373b
  • Shares outstanding: 1.62m
  • Website: https://www.berkshirehathaway.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRK.ANYSE (New York Stock Exchange)YesClass A Common SharesUSUSDOct 1976
BRHXTRA (XETRA Trading Platform)YesClass A Common SharesDEEUROct 1976
BRHDB (Deutsche Boerse AG)YesClass A Common SharesDEEUROct 1976
BRKAWBAG (Wiener Boerse AG)YesClass A Common SharesATEUROct 1976
0HN0LSE (London Stock Exchange)YesClass A Common SharesGBUSDOct 1976
BRK.BNYSE (New York Stock Exchange)Class B Common SharesUSUSDMay 1996
BRYNDB (Deutsche Boerse AG)Class B Common SharesDEEURMay 1996
BRKB *BMV (Bolsa Mexicana de Valores)Class B Common SharesMXMXNMay 1996
BRYNXTRA (XETRA Trading Platform)Class B Common SharesDEEURMay 1996
BRK/BSWX (SIX Swiss Exchange)Class B Common SharesCHCHFMay 1996
0R37LSE (London Stock Exchange)Class B Common SharesGBUSDMay 1996
BRYNETLX (Eurotlx)Class B Common SharesITEURMay 1996
BRKBWBAG (Wiener Boerse AG)Class B Common SharesATEURMay 1996
BERK34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 CLASS 'B' COM STKBRBRLOct 2013

Biography

Berkshire Hathaway Inc., through its subsidiaries, engages in insurance, freight rail transportation, and utility businesses. 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, hydro, nuclear, and geothermal sources; operates natural gas distribution and storage facilities, interstate pipelines, and compressor and meter stations; and holds interest in coal mining assets. In addition, it offers real estate brokerage services; and leases transportation equipment and furniture. Further, the company manufactures boxed chocolates and other confectionery products; specialty chemicals, metal cutting tools, and components for aerospace and power generation applications; flooring, insulation, roofing and engineered, building and engineered components, paints and coatings, and bricks and masonry products, as well as offers homebuilding and manufactured housing finance; and recreational vehicles, apparel products, jewelry, and custom picture framing products, and alkaline batteries. Additionally, it manufactures castings, forgings, fasteners/fastener systems, and aerostructures; and seamless pipes, fittings, downhole casing and tubing, and various mill forms. The company distributes newspapers, televisions, and information; franchises and services quick service restaurants; distributes electronic components; and offers logistics services, grocery and foodservice distribution services, and professional aviation training and fractional aircraft ownership programs. It also retails automobiles; furniture, bedding, and accessories; household appliances, electronics, and computers; jewelry, watches, crystal, china, stemware, flatware, gifts, and collectibles; kitchenware; and motorcycle accessories. The company was incorporated in 1998 and is headquartered in Omaha, Nebraska. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/29 01:51
End of Day Share Price2020/05/28 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.