Berkshire Hathaway A (BRK.A) AI Stock Analysis

• Market Cap: $1.06T
• Dividend Yield: N/A
• Average Volume (3M): 434.00
• Price to Earnings (P/E): 13.1
• Beta (1Y): 0.50
• Revenue Growth: 0.63%
• EPS Growth: 10.77%
• Country: US
• Employees: 392,400
• Sector: Financial
• Sector Strength: 79
• Industry: Insurance - Diversified
• EPS (TTM): 6694.59
• Shares Outstanding: 542,999
• 10 Day Avg. Volume: 425
• 30 Day Avg. Volume: 434
• PEG Ratio: 0.24
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.64
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.52
• Enterprise Value/Gross Profit: 4.16
• Enterprise Value/Ebitda: 1.56
• 1Y Price Target: $586,399.75
• Price Target Upside: -19.90% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 67 Neutral
• 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 Business Overview & Revenue Model

Company Description

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. 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 Money

Berkshire 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

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
371.29B	371.43B	364.48B	302.09B	354.64B	286.26B
	Gross Profit
186.48B	183.74B	123.20B	177.77B	193.41B	110.47B
	EBIT
42.01B	43.95B	123.20B	37.32B	111.69B	55.69B
	EBITDA
117.91B	128.43B	137.66B	-15.25B	126.58B	80.39B
	Net Income Common Stockholders
80.90B	89.00B	96.22B	-22.82B	89.94B	42.52B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
347.68B	334.20B	167.64B	128.59B	146.72B	138.29B
	Total Assets
1.16T	1.15T	1.07T	948.45B	958.78B	873.73B
	Total Debt
140.31B	124.76B	128.27B	122.74B	114.26B	116.89B
	Net Debt
98.13B	77.03B	90.25B	86.93B	26.08B	68.91B
	Total Liabilities
507.79B	502.23B	499.21B	467.83B	443.85B	422.39B
	Stockholders Equity
656.74B	649.37B	561.27B	472.36B	506.20B	443.16B
Cash Flow		Free Cash Flow
12.06B	11.62B	29.79B	21.76B	26.14B	26.76B
	Operating Cash Flow
30.93B	30.59B	49.20B	37.22B	39.42B	39.77B
	Investing Cash Flow
-23.48B	-10.29B	-32.66B	-87.60B	29.39B	-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 Price: 732120.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HIG	79 Outperform	$35.48B	12.45	18.49%	1.56%	7.55%	14.16%
PFG	73 Outperform	$17.21B	16.45	9.70%	3.96%	5.84%	-10.64%
ACGL	73 Outperform	$33.64B	9.21	18.42%	―	25.29%	-23.19%
AIG	68 Neutral	$48.60B	18.84	6.13%	1.88%	-44.30%	-33.09%
BRK.A	67 Neutral	$1.06T	13.08	13.20%	―	0.63%	10.77%
BRK.B	67 Neutral	$1.06T	13.09	13.20%	―	0.63%	10.77%
Sector *	64 Neutral	$12.83B	9.78	7.78%	16985.64%	12.26%	-7.81%

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.