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Berkshire Hathaway A (BRK.A)
NYSE: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
▲(11.82%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 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. In addition, the company manufactures boxed chocolates and other confectionery products; specialty chemicals, metal cutting tools, and components for aerospace and power generation applications; flooring products; insulation, roofing, and engineered products; building and engineered components; paints and coatings; and bricks and masonry products, as well as offers manufactured and site-built home construction, and related lending and financial services. Further, it provides recreational vehicles, apparel products, jewelry, and custom picture framing products, as well as alkaline batteries; castings, forgings, fasteners/fastener systems, and aerostructures; and seamless pipes, fittings, downhole casing and tubing, and mill forms. Additionally, the company distributes 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 shared 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 apparel and equipment. The company was incorporated in 1998 and is headquartered in Omaha, Nebraska.
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
347.68B334.20B167.64B128.59B146.72B138.29B
Total Assets
1.16T1.15T1.07T948.45B958.78B873.73B
Total Debt
140.31B124.76B128.27B122.74B114.26B116.89B
Net Debt
98.13B77.03B90.25B86.93B26.08B68.91B
Total Liabilities
507.79B502.23B499.21B467.83B443.85B422.39B
Stockholders Equity
656.74B649.37B561.27B472.36B506.20B443.16B
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 Price732120.00
Price Trends
50DMA
769068.43
Negative
100DMA
754367.71
Negative
200DMA
722288.04
Positive
Market Momentum
MACD
-10020.28
Positive
RSI
34.75
Neutral
STOCH
21.72
Neutral
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 732120 is below the 20-day moving average (MA) of 751784.03, below the 50-day MA of 769068.43, and above the 200-day MA of 722288.04, indicating a neutral trend. The MACD of -10020.28 indicates Positive momentum. The RSI at 34.75 is Neutral, neither overbought nor oversold. The STOCH value of 21.72 is Neutral, 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
79
Outperform
$35.48B12.4518.49%1.56%7.55%14.16%
PFPFG
73
Outperform
$17.21B16.459.70%3.96%5.84%-10.64%
73
Outperform
$33.64B9.2118.42%25.29%-23.19%
AIAIG
68
Neutral
$48.60B18.846.13%1.88%-44.30%-33.09%
67
Neutral
$1.06T13.0813.20%0.63%10.77%
67
Neutral
$1.06T13.0913.20%0.63%10.77%
64
Neutral
$12.83B9.787.78%16985.64%12.26%-7.81%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BRK.A
Berkshire Hathaway A
732,120.00
116,528.20
18.93%
AIG
American International Group
84.40
11.29
15.44%
ACGL
Arch Capital Group
89.39
-4.90
-5.20%
HIG
Hartford Financial
124.37
26.62
27.23%
PFG
Principal Financial
76.49
1.01
1.34%
BRK.B
Berkshire Hathaway B
488.14
79.37
19.42%

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
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.