Berkshire Hathaway B (BRK.B) AI Stock Analysis

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Berkshire Hathaway B

(NYSE:BRK.B)

72Outperform

Berkshire Hathaway's strong financial performance, characterized by high profitability and a solid balance sheet, is a significant strength. Technical analysis indicates potential short-term downward pressure, but oversold signals suggest a possible rebound. The valuation is fair, though the lack of a dividend yield may deter some investors. Overall, the company is well-positioned for long-term growth, but short-term market fluctuations should be monitored.

Berkshire Hathaway B (BRK.B) vs. S&P 500 (SPY)

Market Cap

$1.11T

Dividend YieldN/A

Average Volume (3M)6.20M

Price to Earnings (P/E)13.7

Beta (1Y)0.53

Revenue Growth0.63%

EPS Growth10.77%

CountryUS

Employees392,400

SectorFinancial

Sector Strength85

IndustryInsurance - Diversified

Share Statistics

EPS (TTM)4.46

Shares Outstanding1,342,836,700

10 Day Avg. Volume6,398,462

30 Day Avg. Volume6,197,237

Financial Highlights & Ratios

PEG Ratio-1.02

Price to Book (P/B)1.69

Price to Sales (P/S)0.00

P/FCF Ratio91.90

Enterprise Value/Market Cap1.08

Enterprise Value/Revenue0.70

Enterprise Value/Gross Profit2.82

Enterprise Value/Ebitda2.49

Forecast

1Y Price Target

$544.00

Price Target Upside5.77% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering3

Berkshire Hathaway B Business Overview & Revenue Model

Company DescriptionBerkshire Hathaway Inc. (BRK.B) is a multinational conglomerate holding company headquartered in Omaha, Nebraska, led by renowned investor Warren Buffett. The company owns a diverse range of businesses across various sectors, including insurance, utilities, energy, freight rail transportation, manufacturing, retailing, and services. Some of its wholly-owned subsidiaries include GEICO, Duracell, and BNSF Railway, among others. Moreover, Berkshire Hathaway holds significant minority stakes in major public companies such as Apple, Coca-Cola, and American Express.

How the Company Makes MoneyBerkshire Hathaway makes money through a combination of its wholly-owned operating businesses and investments. The company's insurance businesses, such as GEICO and Berkshire Hathaway Reinsurance Group, generate substantial premiums, which are invested in various securities, contributing to investment income. Its utility and energy segment, led by Berkshire Hathaway Energy, provides a steady revenue stream from regulated energy markets. The BNSF Railway, one of the largest freight rail networks in North America, generates revenue through the transportation of goods. Additionally, its diverse manufacturing, service, and retail subsidiaries contribute to its earnings. The company's investment portfolio, which includes significant equity stakes in publicly traded companies, also plays a crucial role in its financial performance, providing both dividend income and capital appreciation.

Berkshire Hathaway B Key Performance Indicators (KPIs)

Any

Value of Equity Investments

Value of Equity Investments
Represents the worth of the company's stock holdings, highlighting its investment strategy, financial health, and potential for capital appreciation.

Chart InsightsBerkshire Hathaway's equity investments have experienced significant volatility, peaking in early 2022 before declining steadily through 2024. This trend suggests potential shifts in investment strategy or market conditions impacting portfolio value. The recent downturn may reflect broader market corrections or strategic divestments. Investors should monitor for any strategic commentary from management in future earnings calls to understand potential adjustments in investment focus or risk management approaches.

Data provided by:

Main Street Data

Berkshire Hathaway B Financial Statement Overview

Summary

Berkshire Hathaway shows strong financial performance with a solid income statement, robust balance sheet, and stable cash flow. The company maintains high profitability and a strong equity position, though there is room for improvement in cash flow generation.

Income Statement

Positive

Berkshire Hathaway's income statement for the TTM shows solid profitability with a net profit margin of 19.46% and a gross profit margin of 1.55%. However, there is a slight decline in revenue growth compared to the previous year. The EBIT margin stands at 42.49%, reflecting strong operational efficiency.

Balance Sheet

Very Positive

The balance sheet indicates a robust financial position with a debt-to-equity ratio of 0.19, suggesting low financial leverage. The equity ratio of 56.20% highlights a strong equity base, and ROE is at 12.36%, showcasing effective use of equity to generate profits.

Cash Flow

Positive

Cash flow analysis shows a moderate performance with a slight growth in free cash flow. The operating cash flow to net income ratio is 0.38, indicating sufficient cash generation to support operations, though it could be stronger.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
415.78B	424.23B	439.34B	234.12B	354.73B	286.32B
	Gross Profit
422.21B	424.23B	439.34B	234.12B	354.73B	286.32B
	EBIT
176.71B	110.38B	120.17B	-30.50B	111.86B	55.69B
	EBITDA
114.03B	123.23B	132.65B	-19.60B	122.58B	66.29B
	Net Income Common Stockholders
80.90B	89.00B	96.22B	-22.76B	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
125.93B	143.53B	128.27B	122.74B	114.26B	116.89B
	Net Debt
83.75B	95.80B	90.25B	86.93B	26.08B	68.91B
	Total Liabilities
507.79B	502.23B	499.21B	467.83B	443.85B	422.39B
	Stockholders Equity
654.47B	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 B Technical Analysis

Technical Analysis Sentiment

Positive

Last Price514.31

Price Trends

50DMA

518.90

Negative

100DMA

494.94

Positive

200DMA

476.02

Positive

Market Momentum

MACD

-2.51

Positive

RSI

48.10

Neutral

STOCH

31.74

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 514.31 is below the 20-day moving average (MA) of 520.34, below the 50-day MA of 518.90, and above the 200-day MA of 476.02, indicating a neutral trend. The MACD of -2.51 indicates Positive momentum. The RSI at 48.10 is Neutral, neither overbought nor oversold. The STOCH value of 31.74 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 Risk Analysis

Berkshire Hathaway B disclosed 12 risk factors in its most recent earnings report. Berkshire Hathaway B 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 B Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HIG	83 Outperform	$37.25B	13.07	18.49%	1.51%	7.55%	14.16%
ACGL	79 Outperform	$35.45B	9.70	18.42%	―	25.29%	-23.19%
BRK.A	76 Outperform	$1.11T	13.69	13.20%	―	0.63%	10.77%
PFG	73 Outperform	$18.28B	17.48	9.70%	3.57%	5.84%	-10.64%
BRK.B	72 Outperform	$1.11T	13.71	13.20%	―	0.63%	10.77%
Sector *	64 Neutral	$12.82B	9.83	7.68%	17000.34%	12.38%	-5.56%
AIG	61 Neutral	$48.60B	18.84	6.13%	1.90%	-44.30%	-33.09%

* Financial Sector Average

Performance Comparison

BRK.B

Berkshire Hathaway B

514.31

101.31

24.53%

AIG

American International Group

84.33

7.19

9.32%

ACGL

Arch Capital Group

94.59

-0.66

-0.69%

BRK.A

Berkshire Hathaway A

770,660.00

147,410.00

23.65%

HIG

Hartford Financial

131.67

31.33

31.22%

PFG

Principal Financial

81.55

0.89

1.10%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.