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Berkshire Hathaway B (BRK.B)
NYSE:BRK.B

Berkshire Hathaway B (BRK.B) AI Stock Analysis

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Berkshire Hathaway B

(NYSE:BRK.B)

Rating:67Neutral
Price Target:
$549.00
▲(13.16%Upside)
Berkshire Hathaway's strong financial performance and attractive valuation are key strengths, offset by weak technical indicators suggesting short-term challenges. The absence of a dividend yield and technical bearish signals contribute to a moderate overall score.

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

Berkshire Hathaway B Business Overview & Revenue Model

Company DescriptionBerkshire 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 MoneyBerkshire Hathaway makes money through a diverse range of revenue streams stemming from its various subsidiaries and investments. A significant portion of its revenue comes from its insurance operations, which include companies such as GEICO, General Re, and Berkshire Hathaway Reinsurance Group. These insurance businesses generate income through underwriting profits and investment of the premiums collected. Additionally, Berkshire Hathaway owns a substantial equity portfolio, including large stakes in companies like Apple, Coca-Cola, and Bank of America, which provide dividends and capital appreciation. The company's non-insurance businesses, such as BNSF Railway, Berkshire Hathaway Energy, and its manufacturing, service, and retailing operations, also contribute significantly to its earnings. These businesses generate income through the sale of goods and services, leveraging their market positions and operational efficiencies. Berkshire's success is further bolstered by its decentralized management structure, allowing subsidiaries to operate independently while benefiting from the financial strength and strategic guidance of the parent company.

Berkshire Hathaway B Key Performance Indicators (KPIs)

Any
Any
Value of Equity Investments
Value of Equity Investments
Assesses the worth of the company's stock holdings, indicating investment strategy success and potential impact on financial health and growth.
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 demonstrates a strong financial standing with high profitability, a solid balance sheet, and stable cash flow. However, there is room for improvement in cash flow efficiency and revenue growth.
Income Statement
78
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
85
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
72
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
415.78B424.23B439.34B234.12B354.73B286.32B
Gross Profit
422.21B424.23B439.34B234.12B354.73B286.32B
EBIT
176.71B110.38B120.17B-30.50B111.86B55.69B
EBITDA
114.03B123.23B132.65B-19.60B122.58B66.29B
Net Income Common Stockholders
80.90B89.00B96.22B-22.76B89.94B42.52B
Balance SheetCash, Cash Equivalents and Short-Term Investments
347.68B334.20B167.64B128.59B146.72B138.29B
Total Assets
1.16T1.15T1.07T948.47B958.78B873.73B
Total Debt
140.31B143.53B133.57B127.68B119.25B122.36B
Net Debt
98.13B95.80B95.55B91.87B31.07B74.37B
Total Liabilities
507.79B502.23B499.21B466.78B443.85B422.39B
Stockholders Equity
654.47B649.37B561.27B473.42B506.20B443.16B
Cash FlowFree Cash Flow
12.06B11.62B29.79B21.76B26.14B26.76B
Operating Cash Flow
30.93B30.59B49.20B37.22B39.42B39.77B
Investing Cash Flow
-23.48B-10.29B-32.66B-87.60B29.39B-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
Negative
Last Price485.14
Price Trends
50DMA
509.88
Negative
100DMA
504.09
Negative
200DMA
482.19
Positive
Market Momentum
MACD
-6.96
Positive
RSI
36.33
Neutral
STOCH
22.84
Neutral
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 485.14 is below the 20-day moving average (MA) of 495.99, below the 50-day MA of 509.88, and above the 200-day MA of 482.19, indicating a neutral trend. The MACD of -6.96 indicates Positive momentum. The RSI at 36.33 is Neutral, neither overbought nor oversold. The STOCH value of 22.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
HIHIG
79
Outperform
$35.76B12.5418.49%1.66%7.55%14.16%
PFPFG
73
Outperform
$16.99B16.259.70%4.01%5.84%-10.64%
73
Outperform
$34.16B9.2518.42%25.29%-23.19%
AIAIG
68
Neutral
$49.24B19.096.13%2.14%-44.30%-33.09%
67
Neutral
$1.04T12.9413.20%0.63%10.77%
67
Neutral
$1.06T12.8813.20%0.63%10.77%
64
Neutral
$12.73B9.777.84%78.17%12.05%-7.99%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
BRK.B
Berkshire Hathaway B
485.14
75.99
18.57%
AIG
American International Group
84.25
10.93
14.91%
ACGL
Arch Capital Group
90.30
-7.12
-7.31%
BRK.A
Berkshire Hathaway A
728,200.00
110,950.10
17.97%
HIG
Hartford Financial
124.90
22.93
22.49%
PFG
Principal Financial
75.97
-1.42
-1.83%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.