BRK-B Berkshire Hathaway Inc. - Fundamental Analysis
BULLISH
BRK-B Stock | Fundamental Analysis & Investment Insights
NYSE
•
Financial Services
•
Insurance - Diversified
Current Price
$508.94
Analyst Target
$528.67
+3.9% Upside
52W High
$542.07
52W Low
$440.1
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
88%
Analysis Accuracy
Berkshire Hathaway (BRK-B) trades at $508.94, showing resilience with a 2.5% gain over the past month and 8.8% return over the past year, despite a recent 6M dip. The company’s valuation appears attractive relative to peers, with a P/E of 16.29 well below the sector average of 24.27, while delivering strong profitability (41.1% operating margin) and robust earnings growth of 17.2% YoY. Financial health is exceptional, supported by a debt/equity ratio of just 0.18 and strong liquidity (current ratio of 2.72), though the lack of dividend policy and minimal analyst coverage limit some traditional appeal. Analysts recommend a 'buy' with a $528.67 target, implying ~3.9% upside, while insider selling raises minor concerns but does not override the fundamentally sound profile.
Key Strengths
P/E of 16.29 is significantly below Financial Services sector average of 24.27, offering valuation cushion
Exceptional operating margin of 41.10%, reflecting pricing power and cost discipline across operating subsidiaries
Strong earnings growth of 17.2% YoY, outpacing modest 2.1% revenue growth, indicating margin expansion
Superior financial health with debt/equity of 0.18 and current ratio of 2.72, far exceeding sector leverage norms
Market cap of $1.11T places BRK-B among the most dominant players in financial services, with unparalleled capital flexibility
Key Risks
Forward P/E of 25.35 suggests potential earnings compression or high expectations not yet realized
Insider selling activity: $8.43M in sales over last 6 months with no buys, signaling caution at current levels
Revenue growth of only 2.1% YoY indicates limited top-line expansion despite strong earnings momentum
No dividend policy (0% payout ratio), reducing appeal for income-oriented investors despite sector peers like WFC offering yield
Minimal analyst coverage (only 3 analysts) and lack of consensus metrics (e.g., target high/low) reduce market transparency
AI Fair Value Estimate
Based on comprehensive analysis
$528.67
+3.9% above current price
Performance Snowflake
Multi-dimensional AI analysis across 5 key categories
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Historical Performance Trends
Long-term financial metrics and growth patterns
Valuation Metrics
Key valuation ratios and pricing indicators
Profitability, Growth & Financial Health
Detailed profit margins, ROE, debt ratios, and liquidity metrics
Sector Comparison & Peer Analysis
Compare BRK-B against industry averages and similar companies
Insider Trading & Analyst Ratings
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