Berkshire Hathaway A (BRK.A) AI Stock Analysis

• Market Cap: $1.02T
• Dividend Yield: N/A
• Average Volume (3M): 369.00
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.51
• Revenue Growth: 0.01%
• EPS Growth: -7.20%
• Country: US
• Employees: 392,400
• Sector: Financial
• Sector Strength: 67
• Industry: Insurance - Diversified
• EPS (TTM): 7749.81
• Shares Outstanding: 542,999
• 10 Day Avg. Volume: 386
• 30 Day Avg. Volume: 369
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.92
• Enterprise Value/Revenue: 2.51
• Enterprise Value/Gross Profit: 8.06
• Enterprise Value/Ebitda: 12.52
• 1Y Price Target: $817,623.50
• Price Target Upside: 12.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 64 Neutral
• Price Target: $763,664 ▲(5.01% Upside)

Berkshire Hathaway's strong financial performance is a significant strength, underpinned by solid profitability, a healthy balance sheet, and stable cash flow generation. However, recent corporate events highlight challenges and significant investment losses, negatively impacting the stock's outlook. The technical analysis indicates bearish market momentum, while the absence of clear valuation metrics suggests caution. Together, these factors result in a moderate overall stock score.

Berkshire Hathaway A Business Overview & Revenue Model

Company Description

Berkshire Hathaway Inc. (BRK.A) is a multinational conglomerate holding company based in Omaha, Nebraska, led by renowned investor Warren Buffett. The company operates through a diverse range of sectors, including insurance, utilities, manufacturing, retail, and services. Its core businesses include GEICO (auto insurance), BNSF Railway (transportation), Berkshire Hathaway Energy (energy and utilities), and a wide array of subsidiary companies that operate in various industries, such as clothing, furniture, and food production.

How the Company Makes Money

Berkshire Hathaway generates revenue primarily through its insurance and reinsurance operations, which provide a significant portion of its earnings. The company collects premiums from policyholders and invests those premiums in a diverse portfolio of stocks and bonds, generating investment income. Additionally, Berkshire's non-insurance businesses contribute substantially to revenue through the sale of goods and services. The conglomerate benefits from owning a variety of well-known companies, which provide steady cash flow and profits. Key revenue streams include insurance premiums, investment income, and operating income from subsidiaries. The company's investment strategy, characterized by long-term holdings in high-quality businesses, further enhances its earnings potential. Partnerships with companies across different sectors also allow Berkshire to diversify its revenue sources and mitigate risks.

Berkshire Hathaway A Financial Statement Overview

Summary

Berkshire Hathaway demonstrates strong financial health across all verticals. The income statement reflects robust profitability and operational efficiency, albeit with slight revenue stagnation. The balance sheet is solid, characterized by low leverage and strong equity. Cash flow metrics are stable, with minor declines in free cash flow growth, but overall cash generation remains strong.

Income Statement

Berkshire Hathaway's TTM (Trailing-Twelve-Months) gross profit margin is approximately 50.2%, indicating strong operational efficiency. The net profit margin for TTM is 21.8%, showing robust profitability, although slightly lower than the previous year's 23.9%. Revenue growth is stable, with a slight decrease of 0.04% from the previous year, suggesting steady business operations. EBIT margin stands at 11.3% and EBITDA margin at 31.8%, both reflecting healthy earnings performance.

Balance Sheet

The company maintains a solid equity base with an equity ratio of 56.4%. The debt-to-equity ratio is low at 21.4%, indicating prudent financial leverage. Return on Equity (ROE) is strong at 12.3%, showcasing effective utilization of equity to generate profits. The balance sheet exhibits financial stability with a substantial cash position and manageable debt levels.

Cash Flow

Free Cash Flow (FCF) decreased by 3.9% in the TTM compared to the previous year, reflecting a slight dip in cash generation efficiency. However, the operating cash flow to net income ratio is favorable at 0.38, indicating efficient conversion of earnings to cash. The FCF to net income ratio is also healthy at 0.15, supporting the company's ability to generate cash from its operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	375.89B	376.78B	372.17B	299.10B	278.27B	221.52B
Gross Profit	116.98B	153.09B	141.67B	111.90B	108.35B	70.67B
EBITDA	75.35B	128.43B	137.66B	-15.25B	126.75B	70.37B
Net Income	62.92B	89.00B	96.22B	-22.76B	89.94B	42.52B
Balance Sheet
Total Assets	1.16T	1.15T	1.07T	948.47B	958.78B	873.73B
Cash, Cash Equivalents and Short-Term Investments	0.00	334.20B	167.64B	128.59B	146.72B	138.29B
Total Debt	0.00	130.76B	133.57B	127.68B	119.25B	122.36B
Total Liabilities	493.69B	502.23B	499.21B	466.78B	443.85B	422.39B
Stockholders Equity	670.28B	649.37B	561.27B	473.42B	506.20B	443.16B
Cash Flow
Free Cash Flow	8.22B	11.62B	29.79B	21.76B	26.14B	26.76B
Operating Cash Flow	27.41B	30.59B	49.20B	37.22B	39.42B	39.77B
Investing Cash Flow	33.32B	-10.29B	-32.66B	-87.60B	29.39B	-37.76B
Financing Cash Flow	-2.52B	-10.36B	-14.40B	-1.66B	-28.51B	-18.34B

Berkshire Hathaway A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 727200.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRK.A, the sentiment is Positive. The current price of 727200 is above the 20-day moving average (MA) of 712238.39, above the 50-day MA of 719266.64, and below the 200-day MA of 729180.83, indicating a neutral trend. The MACD of -687.36 indicates Negative momentum. The RSI at 60.00 is Neutral, neither overbought nor oversold. The STOCH value of 85.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRK.A.

Berkshire Hathaway A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACGL	80 Outperform	$33.72B	9.49	17.09%	―	23.79%	-32.09%
HIG	79 Outperform	$36.48B	11.76	19.55%	1.54%	7.67%	15.99%
PFG	75 Outperform	$17.30B	15.63	10.16%	3.77%	-3.34%	-3.32%
BRK.B	71 Outperform	$1.03T	16.63	9.91%	―	0.01%	-7.20%
AIG	70 Outperform	$44.53B	14.90	7.61%	2.03%	-33.87%	-5.72%
Sector *	68 Neutral	$17.52B	11.63	10.46%	3.85%	9.71%	1.93%
BRK.A	64 Neutral	$1.02T	12.63	9.91%	―	0.01%	-7.20%

Berkshire Hathaway A Corporate Events

Berkshire Hathaway Appoints Greg Abel as Future CEO

On May 3, 2025, Warren Buffett, Chairman and CEO of Berkshire Hathaway, announced his recommendation for Greg Abel, Vice Chairman of Non-Insurance Operations, to be appointed as the new CEO, effective January 1, 2026. The Board of Directors unanimously approved this decision on May 4, 2025, with Buffett remaining as Chairman. Abel, who has been with Berkshire since 2018 and previously led Berkshire Hathaway Energy Company, brings extensive experience to his new role, ensuring continuity in leadership and strategic direction.

Berkshire Hathaway Reports Significant Q1 Earnings Decline

On May 3, 2025, Berkshire Hathaway Inc. held its annual shareholder meeting, addressing eight agenda items, including the election of directors and several shareholder proposals focused on environmental, social, and governance issues. Notably, all shareholder proposals were voted against by a significant margin. Additionally, Berkshire Hathaway reported its first-quarter 2025 earnings, revealing a significant decline in net earnings attributable to shareholders, from $12,702 million in 2024 to $4,603 million in 2025, largely due to substantial investment losses. The company’s operating earnings also decreased, highlighting challenges in its insurance-underwriting segment.