Berkshire Hathaway B (BRK.B) AI Stock Analysis

• Market Cap: $1.07T
• Dividend Yield: N/A
• Average Volume (3M): 4.70M
• Price to Earnings (P/E): 16.9
• Beta (1Y): 0.51
• Revenue Growth: 0.01%
• EPS Growth: -7.20%
• Country: US
• Employees: 392,400
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Diversified
• EPS (TTM): 5.17
• Shares Outstanding: 1,342,836,700
• 10 Day Avg. Volume: 4,111,946
• 30 Day Avg. Volume: 4,700,297
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.78
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 9.32
• Enterprise Value/Ebitda: 8.80
• 1Y Price Target: $538.00
• Price Target Upside: 9.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: $527.00 ▲(7.21% Upside)

Berkshire Hathaway's overall stock score is primarily driven by its strong financial performance, despite challenges in revenue and cash flow growth. The technical analysis suggests a neutral to slightly overbought condition, while the valuation is reasonable. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Business Model Strength

Berkshire's diversified business model, with a focus on insurance and reinsurance, provides stable cash flow and investment income, supporting long-term growth and resilience across economic cycles.

Balance Sheet Health

A low debt-to-equity ratio indicates prudent financial leverage, ensuring financial stability and flexibility to capitalize on investment opportunities.

Profitability

Strong profitability and robust net profit margins reflect efficient operations, enhancing the company's ability to reinvest in growth and weather economic downturns.

Negative Factors

Revenue Growth Challenges

A significant decline in revenue growth suggests potential challenges in market expansion and competitive positioning, which may impact long-term growth prospects.

Free Cash Flow Decline

Declining free cash flow growth can limit the company's ability to invest in new opportunities and return capital to shareholders, affecting long-term financial health.

EPS Growth Decline

A decline in EPS growth indicates potential challenges in profit expansion, which could affect investor confidence and the company's valuation over time.

Berkshire Hathaway B Business Overview & Revenue Model

Company Description

Berkshire Hathaway Inc. (BRK.B) is a multinational conglomerate holding company led by CEO Warren Buffett. It operates through a diverse range of sectors including insurance, utilities, manufacturing, retail, and transportation. The company is known for its ownership of well-established subsidiaries such as GEICO, BNSF Railway, and Berkshire Hathaway Energy, as well as significant investments in publicly traded companies like Apple and Coca-Cola. Berkshire Hathaway's business model emphasizes long-term value creation through a combination of wholly-owned businesses and equity investments.

How the Company Makes Money

Berkshire Hathaway generates revenue primarily through its insurance and reinsurance operations, which provide a significant portion of its cash flow. The company collects premiums from policyholders and invests these funds until claims are paid, allowing for substantial investment income. Additionally, Berkshire's diversified subsidiaries contribute revenue through their respective operations, including manufacturing, retail, and services. Key revenue streams include underwriting profits from insurance, investment income from equities and fixed-income securities, and operating income from its various businesses. The company's strategy of acquiring and holding high-quality businesses and investments, along with its disciplined approach to capital allocation, enhances its overall earnings potential.

Berkshire Hathaway B Financial Statement Overview

Summary

Berkshire Hathaway B shows strong financial health with consistent revenue growth, robust profitability, and a solid balance sheet with low leverage. However, there is room for improvement in free cash flow conversion.

Income Statement

Berkshire Hathaway B's income statement shows strong performance with a gross profit margin of 39% and a net profit margin of 21% for TTM (Trailing-Twelve-Months). Revenue growth is consistent, with a 3.3% increase from the previous year. Despite a slight decline in EBIT and EBITDA margins, the company maintains robust profitability, reflecting efficient cost management and strong revenue generation.

Balance Sheet

The balance sheet of Berkshire Hathaway B is solid, with a debt-to-equity ratio of 0.19, indicating low leverage and financial stability. The equity ratio stands at 56%, showcasing a strong equity base. Return on equity is impressive at 12.4%, demonstrating effective use of shareholder funds to generate profits.

Cash Flow

Cash flow analysis reveals a healthy operating cash flow to net income ratio of 0.38, indicating efficient cash generation relative to net income. Free cash flow growth is positive, although slightly lower than previous years, reflecting stable cash management practices. The free cash flow to net income ratio is 0.15, suggesting room for improvement in converting profits to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	370.15B	371.43B	364.48B	302.02B	276.09B	245.51B
Gross Profit	89.41B	86.58B	70.95B	59.39B	55.16B	48.78B
EBITDA	94.68B	128.43B	137.66B	-15.25B	126.58B	70.37B
Net Income	62.92B	89.00B	96.22B	-22.76B	89.94B	42.52B
Balance Sheet
Total Assets	1.16T	1.15T	1.07T	948.47B	958.78B	873.73B
Cash, Cash Equivalents and Short-Term Investments	344.09B	334.20B	167.64B	128.59B	146.72B	138.29B
Total Debt	127.02B	143.53B	133.57B	127.68B	119.25B	122.36B
Total Liabilities	493.69B	502.23B	499.21B	466.78B	443.85B	422.39B
Stockholders Equity	667.99B	649.37B	561.27B	473.42B	506.20B	443.16B
Cash Flow
Free Cash Flow	8.22B	11.62B	29.79B	21.76B	26.14B	26.76B
Operating Cash Flow	27.41B	30.59B	49.20B	37.22B	39.42B	39.77B
Investing Cash Flow	33.32B	-10.29B	-32.66B	-87.60B	29.39B	-37.76B
Financing Cash Flow	-2.52B	-10.36B	-14.40B	-1.66B	-28.51B	-18.34B

Berkshire Hathaway B Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 491.54
• 50DMA: Positive
• 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.B, the sentiment is Neutral. The current price of 491.54 is below the 20-day moving average (MA) of 493.76, above the 50-day MA of 481.91, and above the 200-day MA of 488.92, indicating a neutral trend. The MACD of 3.68 indicates Positive momentum. The RSI at 51.41 is Neutral, neither overbought nor oversold. The STOCH value of 36.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	78 Outperform	$34.43B	9.53	17.09%	―	23.79%	-32.09%
BRK.B	71 Outperform	$1.07T	16.92	9.91%	―	0.01%	-7.20%
AIG	70 Outperform	$43.73B	14.63	7.61%	2.09%	-33.87%	-5.72%
MKL	68 Neutral	$24.72B	11.72	13.23%	―	1.66%	8.51%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
L	66 Neutral	$20.26B	15.53	7.96%	0.26%	8.27%	-7.92%
EQH	61 Neutral	$16.19B	43.60	34.30%	1.91%	5.05%	-47.26%