Berkshire Hathaway B (BRK.B) AI Stock Analysis

• Market Cap: $1.06T
• Dividend Yield: N/A
• Average Volume (3M): 4.52M
• Price to Earnings (P/E): 12.9
• Beta (1Y): 0.52
• Revenue Growth: 0.63%
• EPS Growth: 10.77%
• Country: US
• Employees: 392,400
• Sector: Financial
• Sector Strength: 75
• Industry: Insurance - Diversified
• EPS (TTM): 4.46
• Shares Outstanding: 1,342,836,700
• 10 Day Avg. Volume: 4,434,327
• 30 Day Avg. Volume: 4,520,669
• PEG Ratio: 0.24
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.28
• Enterprise Value/Market Cap: 0.73
• Enterprise Value/Revenue: 0.45
• Enterprise Value/Gross Profit: 1.82
• Enterprise Value/Ebitda: 1.60
• 1Y Price Target: $591.00
• Price Target Upside: 21.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• 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 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 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 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

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

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

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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	948.47B	958.78B	873.73B
	Total Debt
140.31B	143.53B	133.57B	127.68B	119.25B	122.36B
	Net Debt
98.13B	95.80B	95.55B	91.87B	31.07B	74.37B
	Total Liabilities
507.79B	502.23B	499.21B	466.78B	443.85B	422.39B
	Stockholders Equity
654.47B	649.37B	561.27B	473.42B	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: Negative
• Last Price: 485.14
• 50DMA: Negative
• 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 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HIG	79 Outperform	$35.76B	12.54	18.49%	1.66%	7.55%	14.16%
PFG	73 Outperform	$16.99B	16.25	9.70%	4.01%	5.84%	-10.64%
ACGL	73 Outperform	$34.16B	9.25	18.42%	―	25.29%	-23.19%
AIG	68 Neutral	$49.24B	19.09	6.13%	2.14%	-44.30%	-33.09%
BRK.A	67 Neutral	$1.04T	12.94	13.20%	―	0.63%	10.77%
BRK.B	67 Neutral	$1.06T	12.88	13.20%	―	0.63%	10.77%
Sector *	64 Neutral	$12.73B	9.77	7.84%	78.17%	12.05%	-7.99%