Berkshire Hathaway B (BRK.B) AI Stock Analysis

• Market Cap: $1.09T
• Dividend Yield: N/A
• Average Volume (3M): 4.55M
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.43
• Revenue Growth: 0.60%
• EPS Growth: -36.83%
• Country: US
• Employees: 392,400
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 4.73
• Shares Outstanding: 1,372,820,200
• 10 Day Avg. Volume: 3,613,113
• 30 Day Avg. Volume: 4,545,215
• PEG Ratio: -0.65
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 2.92
• P/FCF Ratio: 43.30
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 3.17
• Enterprise Value/Gross Profit: 10.07
• Enterprise Value/Ebitda: 13.48
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 21.66
• Revenue Forecast (FY): $388.79B

• Rating: 78 Outperform
• Price Target: $576.00 ▲(15.64% Upside)
• Action: Upgraded Date: 03/01/26
• Date: Action: Upgraded 03/01/26

The score is driven primarily by strong underlying financial quality (notably low leverage and robust cash generation) and a supportive technical setup with price above major moving averages and positive MACD. Valuation is reasonable on P/E, but limited top-line growth and recent margin compression temper the upside.

Positive Factors

Strong balance sheet and low leverage

Berkshire's low debt-to-equity (~0.21) and large, growing equity base provide durable financial flexibility to absorb underwriting losses, fund large acquisitions and support subsidiaries through cycles. This structural strength underpins long-term capital allocation and lowers default risk.

Healthy and sizeable cash generation

Sustained operating cash flow (~$46B TTM) and meaningful free cash flow (~$25B) give Berkshire persistent internal funding for reinvestment, acquisitions, share purchases or to increase insurance float investments. Strong FCF growth supports durable strategic optionality.

Diversified conglomerate and investment platform

Broad sector diversification across insurance, utilities, rail, manufacturing and large equity stakes creates multiple durable cash-flow streams and lowers single-industry risk. Insurance float and investment stakes provide structural capital advantages for long-term dealmaking and income generation.

Negative Factors

Flat to slightly negative revenue growth

Stagnant top-line (TTM revenue ~ -1.9%) indicates limited organic growth in underlying businesses. Over the medium term, lack of revenue momentum increases reliance on acquisitions or investment returns to drive aggregate growth and constrains operating leverage benefits.

Margin compression and earnings volatility

Compression of margins and episodic losses highlight exposure to underwriting cycles and market-sensitive investment returns. Persistent volatility weakens predictability of earnings, complicates long-term ROE stability and makes capital allocation and forward planning harder.

Inconsistent cash conversion versus earnings

When free cash flow is materially lower or variable relative to reported earnings, it reduces the reliability of reported profits to fund buybacks, acquisitions or dividends. This variability impairs forecasting and raises the premium needed for prudent liquidity buffers.

Berkshire Hathaway B Business Overview & Revenue Model

Company Description

Berkshire Hathaway Inc., through its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses worldwide. The company provides property, casualty, life, accident, and health insurance and reinsurance; and operates railroad systems in North America. It 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 and footwear products, jewelry, and custom picture framing products, as well as alkaline batteries; castings, forgings, fasteners/fastener systems, aerostructures, and precision components; and cobalt, nickel, and titanium alloys. 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 clothing and equipment. The company was incorporated in 1998 and is headquartered in Omaha, Nebraska.

How the Company Makes Money

Berkshire Hathaway generates revenue primarily through its insurance operations, which include premiums collected from policyholders and investment income from its large portfolio of investments. The insurance segment, particularly through subsidiaries like GEICO, contributes a significant portion of its earnings. Additionally, the company earns money through its diverse subsidiaries in manufacturing, service, and retail sectors, providing steady cash flows. Investments in publicly traded and privately held companies also play a crucial role in Berkshire's revenue, with dividend income and capital gains being significant contributors. Furthermore, Berkshire's acquisition strategy allows it to grow its portfolio and revenue streams, while its strong balance sheet enables it to capitalize on investment opportunities and market fluctuations.

Berkshire Hathaway B Financial Statement Overview

Summary

Financial strength is solid overall, led by an excellent balance sheet (low leverage, large and growing equity, positive ROE) and strong cash generation (robust operating and free cash flow with strong TTM FCF growth). Offsetting factors include flat-to-slightly down TTM revenue growth, margin compression versus prior periods, and variability in reported earnings/cash conversion tied to underwriting and investment-related swings.

Income Statement

TTM (Trailing-Twelve-Months) results show solid profitability (about 18% net margin) with healthy operating earnings, but revenue is essentially flat to slightly down (TTM revenue growth around -1.9%). Profitability has been strong across most of the last several years, though results can be volatile (including a loss in 2022). Margins also compressed from 2023/2024 levels into TTM, suggesting a less favorable earnings mix or normalization versus unusually strong prior periods.

Balance Sheet

The balance sheet is a clear strength: leverage is modest for a large financial/insurance conglomerate (debt-to-equity around 0.21 in TTM), equity is very large and has grown versus prior years, and returns on equity are positive in TTM (~10%) after a stronger 2023–2024. The main watch-out is that returns can swing meaningfully year to year (including negative in 2022), reflecting exposure to market-sensitive items and underwriting/investment variability.

Cash Flow

Cash generation is generally healthy, with TTM operating cash flow of ~$46B and free cash flow of ~$25B, and TTM free cash flow growth is strong (~30%). However, cash flow conversion is not consistently high versus reported earnings (TTM free cash flow is about half of net income), and recent periods show meaningful variability in the relationship between operating cash flow and earnings, which can reduce predictability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	371.44B	371.43B	439.34B	234.12B	354.73B
Gross Profit	87.78B	86.58B	208.84B	46.91B	184.80B
EBITDA	73.02B	128.43B	137.66B	-15.25B	126.75B
Net Income	66.97B	89.00B	96.22B	-22.76B	89.94B
Balance Sheet
Total Assets	1.22T	1.15T	1.07T	948.47B	958.78B
Cash, Cash Equivalents and Short-Term Investments	373.31B	334.20B	167.64B	128.59B	146.72B
Total Debt	138.95B	143.53B	133.57B	127.68B	119.25B
Total Liabilities	502.47B	502.23B	499.21B	466.78B	443.85B
Stockholders Equity	717.42B	649.37B	561.27B	473.42B	506.20B
Cash Flow
Free Cash Flow	25.04B	11.62B	29.79B	21.76B	26.14B
Operating Cash Flow	45.97B	30.59B	49.20B	37.22B	39.42B
Investing Cash Flow	-44.49B	-10.29B	-32.66B	-87.60B	29.39B
Financing Cash Flow	2.23B	-10.36B	-14.40B	-1.66B	-28.51B

Berkshire Hathaway B Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 498.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRK.B, the sentiment is Positive. The current price of 498.08 is above the 20-day moving average (MA) of 498.06, above the 50-day MA of 495.48, and above the 200-day MA of 492.46, indicating a bullish trend. The MACD of 1.81 indicates Negative momentum. The RSI at 59.39 is Neutral, neither overbought nor oversold. The STOCH value of 67.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRK.B.

Berkshire Hathaway B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ACGL	84 Outperform	$35.63B	8.62	19.54%	―	16.68%	-28.54%
BRK.B	78 Outperform	$1.09T	16.27	10.17%	―	0.60%	-36.83%
MKL	74 Outperform	$26.06B	12.25	12.20%	―	-6.96%	-26.28%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AIG	67 Neutral	$43.19B	14.83	7.40%	2.02%	-23.02%	52.43%
L	59 Neutral	$22.67B	13.80	9.33%	0.23%	6.06%	-8.53%
EQH	46 Neutral	$11.28B	-8.33	-182.66%	2.15%	7.70%	-155.12%