BRK-A Berkshire Hathaway Inc. - Fundamental Analysis
AI Analysis
Powered by advanced machine learning algorithms
Key Strengths
Key Risks
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Berkshire is attractively valued on trailing earnings versus peers like Visa (P/E 32.42) and Mastercard (P/E 34.83), though its growth profile does not justify premium multiples, making current valuation appropriate rather than compelling.
- P/E of 16.29 offers a 30% discount to sector average of 23.27
- Price/Book of 1.57 is conservative for a firm with Berkshire’s asset quality and diversification
- Forward P/E of 25.54 suggests overvaluation if earnings growth does not sustain
- EV/EBITDA and EV/Revenue unavailable, limiting full enterprise valuation context
While earnings momentum is positive, the lack of top-line growth and muted price action over the past six months contrast with the strong upward trajectory seen in peers like Wells Fargo (+12.9% 6M), indicating limited near-term upside catalysts.
- Earnings growth of 17.2% YoY indicates ongoing operational improvement and investment gains
- Strong free cash flow generation (implied by operating cash flow strength) supports future acquisitions and equity investments
- Revenue growth of only 2.1% YoY signals limited organic expansion across operating subsidiaries
- No visible inflection in price momentum (6M: -0.9%) to suggest near-term re-rating catalyst
Historical performance reflects Berkshire’s strength as a long-term compounder (5Y: +118.5%, 3Y: +63.1%), though recent stagnation (1Y: +9.0%, 6M: -0.9%) and lack of earnings surprises indicate a pause in momentum.
- Consistent profitability with stable gross and operating margins over time
- 5-year return of +118.5% demonstrates long-term compounding power and capital allocation discipline
- No quarterly earnings beats in recent history, suggesting either conservative guidance or lack of operational upside
- Missing quarterly data prevents trend analysis of earnings progression
Berkshire’s financial health is superior to peers, with leverage and liquidity metrics far exceeding sector norms, though the lack of disclosed cash and debt figures introduces opacity into capital allocation strategy.
- Debt/Equity ratio of 0.18 is exceptionally low, providing significant cushion against economic downturns
- Current and Quick Ratios above 2.5 indicate robust short-term liquidity and minimal solvency risk
- Total Cash and Total Debt figures unavailable, limiting full transparency into cash deployment capacity
- High cash balance (implied) may signal capital deployment drag, especially in a rising rate environment
The absence of a dividend policy is a structural feature of BRK-A’s capital allocation strategy, prioritizing reinvestment and buybacks, but this reduces attractiveness in a yield-sensitive market environment.
- N/A
- No dividend paid (0.00% yield), limiting appeal to income investors
- No history of dividend growth or policy, reducing total return potential relative to yield-bearing peers
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for BRK-A and closest competitors.
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
BRK-A
Berkshire Hathaway Inc.
Primary
|
+118.5% | +63.1% | +9.0% | -0.9% | +2.7% | +2.1% |
|
BRK-B
Berkshire Hathaway Inc.
Peer
|
+118.3% | +64.2% | +8.8% | -1.0% | +2.5% | +2.0% |
|
V
Visa Inc.
Peer
|
+60.9% | +60.8% | +7.8% | -9.3% | -4.3% | -1.6% |
|
MA
Mastercard Incorporated
Peer
|
+67.4% | +61.7% | +5.5% | -6.2% | -3.0% | -1.1% |
|
WFC
Wells Fargo & Company
Peer
|
+283.2% | +96.9% | +19.4% | +12.9% | -1.1% | -1.1% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability
Profit margins and return metrics
Growth
Revenue and earnings growth rates
Financial Health
Balance sheet strength and liquidity metrics
Quarterly Earnings History
EPS performance vs analyst estimates
Financial Services Sector Comparison
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
BRK-A
Berkshire Hathaway Inc.
|
NEUTRAL | $1.11T | 16.29 | 10.2% | 18.1% | $763867.0 | |
|
BRK-B
Berkshire Hathaway Inc.
|
BULLISH | $1.11T | 16.29 | 10.2% | 18.1% | $508.94 | |
|
V
Visa Inc.
|
NEUTRAL | $636.9B | 32.42 | 52.1% | 50.1% | $330.02 | |
|
MA
Mastercard Incorporated
|
BULLISH | $490.06B | 34.83 | 184.9% | 45.3% | $545.73 | |
|
WFC
Wells Fargo & Company
|
BULLISH | $266.98B | 14.01 | 11.5% | 26.6% | $85.05 |
Wall Street Analysts
Professional analyst ratings and price targets