Berkshire Hathaway B (BRK.B) AI Stock Analysis

• Market Cap: $1.06T
• Dividend Yield: N/A
• Average Volume (3M): 4.20M
• Price to Earnings (P/E): 15.8
• Beta (1Y): 0.45
• Revenue Growth: 0.60%
• EPS Growth: -36.83%
• Country: US
• Employees: 392,400
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 6.26
• Shares Outstanding: 1,372,820,200
• 10 Day Avg. Volume: 4,124,741
• 30 Day Avg. Volume: 4,203,124
• PEG Ratio: -1.62
• Price to Book (P/B): 1.51
• Price to Sales (P/S): 2.63
• P/FCF Ratio: 84.15
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 2.26
• Enterprise Value/Gross Profit: 7.88
• Enterprise Value/Ebitda: 8.66
• 1Y Price Target: $538.00
• Price Target Upside: 9.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 21.74
• Revenue Forecast (FY): $389.01B

• Rating: 66 Neutral
• Price Target: $514.00 ▲(4.34% Upside)

Berkshire Hathaway B's overall stock score is driven primarily by its strong financial performance, which is the most significant factor. The technical analysis indicates bearish momentum, which negatively impacts the score. The valuation is reasonable, but the lack of a dividend yield is a downside for income investors. The absence of earnings call and corporate events data means these factors did not influence the score.

Positive Factors

Revenue Growth

The significant revenue growth indicates robust business expansion, reflecting the company's ability to capture market opportunities and enhance its market position.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, allowing for strategic investments and acquisitions, supporting long-term growth and stability.

Balance Sheet Health

A low debt-to-equity ratio indicates prudent financial leverage, providing the company with resilience against economic downturns and capacity for future investments.

Negative Factors

Profitability Decline

A decline in ROE suggests reduced profitability, which could impact the company's ability to generate returns for shareholders and affect long-term growth prospects.

Margin Pressure

Slight declines in profit margins indicate potential cost pressures or competitive pricing, which could affect the company's profitability and operational efficiency over time.

EPS Growth Decline

A negative EPS growth rate indicates challenges in earnings expansion, which may affect investor confidence and the company's ability to reinvest in its business.

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

Berkshire Hathaway B demonstrates strong financial health with impressive revenue growth and solid profitability. The balance sheet is well-managed with low leverage, and cash flow generation is robust. While there are slight declines in some profitability metrics, the company's financial position remains strong, supporting its growth trajectory.

Income Statement

Berkshire Hathaway B shows strong revenue growth with a TTM increase of 53.4%, indicating robust business expansion. The gross profit margin of 24.51% and net profit margin of 18.13% reflect solid profitability, though slightly lower than previous years. The EBIT and EBITDA margins remain healthy at 23.02% and 26.57%, respectively, showcasing efficient operations.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.21, indicating prudent financial leverage. The return on equity (ROE) of 10.10% is decent, though it has decreased from previous levels, suggesting a slight dip in profitability. The equity ratio of 57.15% indicates a solid equity base relative to total assets.

Cash Flow

Berkshire Hathaway B's cash flow is robust, with a significant free cash flow growth rate of 134.97% in the TTM, highlighting improved cash generation. The operating cash flow to net income ratio of 2.73 indicates strong cash conversion, while the free cash flow to net income ratio of 0.30 suggests efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	378.61B	371.43B	439.34B	234.12B	354.73B	286.32B
Gross Profit	108.64B	86.58B	208.84B	46.91B	184.80B	135.47B
EBITDA	98.86B	128.43B	137.66B	-15.25B	126.75B	70.37B
Net Income	67.46B	89.00B	96.22B	-22.76B	89.94B	42.52B
Balance Sheet
Total Assets	1.23T	1.15T	1.07T	948.47B	958.78B	873.73B
Cash, Cash Equivalents and Short-Term Investments	381.67B	334.20B	167.64B	128.59B	146.72B	138.29B
Total Debt	150.48B	143.53B	133.57B	127.68B	119.25B	122.36B
Total Liabilities	525.52B	502.23B	499.21B	466.78B	443.85B	422.39B
Stockholders Equity	700.44B	649.37B	561.27B	473.42B	506.20B	443.16B
Cash Flow
Free Cash Flow	19.33B	11.62B	29.79B	21.76B	26.14B	26.76B
Operating Cash Flow	39.40B	30.59B	49.20B	37.22B	39.42B	39.77B
Investing Cash Flow	-1.83B	-10.29B	-32.66B	-87.60B	29.39B	-37.76B
Financing Cash Flow	1.38B	-10.36B	-14.40B	-1.66B	-28.51B	-18.34B

Berkshire Hathaway B Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 492.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRK.B, the sentiment is Negative. The current price of 492.62 is below the 20-day moving average (MA) of 498.39, below the 50-day MA of 500.68, and below the 200-day MA of 496.29, indicating a bearish trend. The MACD of -1.64 indicates Positive momentum. The RSI at 42.59 is Neutral, neither overbought nor oversold. The STOCH value of 14.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BRK.B.

Berkshire Hathaway B Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MKL	82 Outperform	$26.28B	12.89	11.86%	―	-6.96%	-26.28%
ACGL	79 Outperform	$32.98B	8.48	17.81%	―	16.68%	-28.54%
L	76 Outperform	$21.32B	14.97	8.15%	0.23%	6.06%	-8.53%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BRK.B	66 Neutral	$1.06T	15.77	10.17%	―	0.60%	-36.83%
AIG	64 Neutral	$39.94B	13.27	7.68%	2.02%	-23.02%	52.43%
EQH	40 Underperform	$13.56B	-16.88	-41.33%	2.15%	7.70%	-155.12%