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Berkshire Hathaway A (BRK.A)
:BRK.A

Berkshire Hathaway A (BRK.A) AI Stock Analysis

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Berkshire Hathaway A

(NYSE:BRK.A)

Rating:67Neutral
Price Target:
$818,638
▲(11.69%Upside)
Berkshire Hathaway's strong financial performance is a key strength, supported by robust profitability and a solid balance sheet. However, technical indicators suggest short-term bearish momentum, and recent corporate events reveal significant earnings declines, impacting the overall score negatively. The stock's reasonable valuation offers some support, but the lack of a dividend yield and recent challenges in earnings weigh on the overall assessment.

Berkshire Hathaway A (BRK.A) vs. SPDR S&P 500 ETF (SPY)

Berkshire Hathaway A Business Overview & Revenue Model

Company DescriptionBerkshire Hathaway A (BRK.A) is a multinational conglomerate holding company based in the United States, renowned for its diverse portfolio of businesses across various sectors. Founded by Warren Buffett, the company operates in industries such as insurance, utilities, energy, freight rail transportation, manufacturing, retail, and services. Its core businesses include GEICO, Berkshire Hathaway Energy, BNSF Railway, and a wide range of manufacturing and retail companies. Berkshire Hathaway is also known for its significant equity investments in publicly traded companies such as Apple, Coca-Cola, and American Express.
How the Company Makes MoneyBerkshire Hathaway generates revenue through a combination of wholly-owned subsidiaries and minority equity investments. The company earns money from its insurance operations, which include GEICO and other property and casualty insurers, by collecting premiums and investing the float - the difference between premiums collected and claims paid. The utility and energy businesses, primarily under Berkshire Hathaway Energy, generate income through the sale and distribution of electricity and natural gas. BNSF Railway, one of the largest freight rail networks in North America, contributes by transporting goods across the continent. Additionally, Berkshire's diverse manufacturing, service, and retail subsidiaries provide consistent revenue streams. The company also benefits from its substantial investment portfolio, receiving dividends and realizing capital gains from its significant holdings in companies like Apple and Coca-Cola. Berkshire Hathaway's earnings are further augmented by strategic acquisitions and the reinvestment of profits into existing businesses to drive growth.

Berkshire Hathaway A Financial Statement Overview

Summary
Berkshire Hathaway demonstrates strong financial health across all verticals. The income statement reflects robust profitability with a net profit margin of 21.8% 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
85
Very Positive
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
88
Very Positive
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
80
Positive
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
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
371.29B371.43B364.48B302.09B354.64B286.26B
Gross Profit
186.48B183.74B123.20B177.77B193.41B110.47B
EBIT
42.01B43.95B123.20B37.32B111.69B55.69B
EBITDA
117.91B128.43B137.66B-15.25B126.58B80.39B
Net Income Common Stockholders
80.90B89.00B96.22B-22.82B89.94B42.52B
Balance SheetCash, Cash Equivalents and Short-Term Investments
167.64B334.20B167.64B128.59B146.72B138.29B
Total Assets
1.07T1.15T1.07T948.45B958.78B873.73B
Total Debt
128.27B124.76B128.27B122.74B114.26B116.89B
Net Debt
90.25B77.03B90.25B86.93B26.08B68.91B
Total Liabilities
499.21B502.23B499.21B467.83B443.85B422.39B
Stockholders Equity
561.27B649.37B561.27B472.36B506.20B443.16B
Cash FlowFree Cash Flow
12.06B11.62B29.79B21.76B26.14B26.76B
Operating Cash Flow
30.93B30.59B49.20B37.22B39.42B39.77B
Investing Cash Flow
-23.48B-10.29B-32.66B-87.60B29.39B-37.76B
Financing Cash Flow
-505.00M-10.36B-14.40B-1.66B-28.51B-18.34B

Berkshire Hathaway A Technical Analysis

Technical Analysis Sentiment
Negative
Last Price732953.20
Price Trends
50DMA
773891.70
Negative
100DMA
752117.74
Negative
200DMA
720990.03
Positive
Market Momentum
MACD
-8957.94
Positive
RSI
33.04
Neutral
STOCH
13.43
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRK.A, the sentiment is Negative. The current price of 732953.2 is below the 20-day moving average (MA) of 758316.95, below the 50-day MA of 773891.70, and above the 200-day MA of 720990.03, indicating a neutral trend. The MACD of -8957.94 indicates Positive momentum. The RSI at 33.04 is Neutral, neither overbought nor oversold. The STOCH value of 13.43 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRK.A.

Berkshire Hathaway A Risk Analysis

Berkshire Hathaway A disclosed 12 risk factors in its most recent earnings report. Berkshire Hathaway A reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Berkshire Hathaway A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
HIHIG
83
Outperform
$36.93B12.9618.49%1.55%7.55%14.16%
80
Outperform
$35.91B9.7218.42%25.29%-23.19%
PFPFG
73
Outperform
$17.34B16.589.70%3.81%5.84%-10.64%
67
Neutral
$1.06T13.0213.20%0.63%10.77%
67
Neutral
$1.07T13.0813.20%0.63%10.77%
AIAIG
65
Neutral
$49.31B19.116.13%1.88%-44.30%-33.09%
64
Neutral
$12.77B9.777.59%16985.66%12.31%-7.69%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BRK.A
Berkshire Hathaway A
732,953.20
110,662.20
17.78%
AIG
American International Group
85.42
11.00
14.78%
ACGL
Arch Capital Group
94.57
-1.06
-1.11%
HIG
Hartford Financial
128.04
28.86
29.10%
PFG
Principal Financial
75.94
-0.51
-0.67%
BRK.B
Berkshire Hathaway B
488.74
75.02
18.13%

Berkshire Hathaway A Corporate Events

Executive/Board Changes
Berkshire Hathaway Appoints Greg Abel as Future CEO
Neutral
May 8, 2025

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.

Shareholder MeetingsFinancial Disclosures
Berkshire Hathaway Reports Significant Q1 Earnings Decline
Negative
May 6, 2025

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.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.