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Berkshire Hathaway Inc
BRK.A : NYSE : Financial
$215,700.00 -1,300.00 | -0.60%
Today's Range: 215,675.05 - 217,500.00
Avg. Daily Volume: 300
05/26/15 - 4:00 PM ET

Financial Analysis


BERKSHIRE HATHAWAY's gross profit margin for the first quarter of its fiscal year 2015 has increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry.

During the same period, stockholders' equity ("net worth") has increased by 6.08% from the same quarter last year.

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Income Statement Q1 FY15 Q1 FY14
Net Sales ($mil)48644.045453.0
EBITDA ($mil)10393.09152.0
EBIT ($mil)8522.07380.0
Net Income ($mil)5164.04705.0


Balance Sheet Q1 FY15 Q1 FY14
Cash & Equiv. ($mil)71426.057017.0
Total Assets ($mil)531076.0494944.0
Total Debt ($mil)83795.073223.0
Equity ($mil)241458.0227612.0


Profitability Q1 FY15 Q1 FY14
Gross Profit Margin21.3720.14
EBITDA Margin21.3620.13
Operating Margin17.5216.24
Sales Turnover0.370.37
Return on Assets3.823.89
Return on Equity8.428.47
Debt Q1 FY15 Q1 FY14
Current Ratio0.00.0
Debt/Capital0.260.24
Interest Expense875.0782.0
Interest Coverage9.749.44


Share Data Q1 FY15 Q1 FY14
Shares outstanding (mil)2464.472466.43
Div / share0.00.0
EPS2.11.91
Book value / share97.9892.28
Institutional Own % n/a n/a
Avg Daily Volume287.0353.0

Valuation


BUY. BERKSHIRE HATHAWAY's P/E ratio indicates a significant premium compared to an average of 10965.26 for the Diversified Financial Services industry and a significant premium compared to the S&P 500 average of 20.83. For additional comparison, its price-to-book ratio of 2227.90 indicates a significant premium versus the S&P 500 average of 2.88 and a significant premium versus the industry average of 913.26. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, BERKSHIRE HATHAWAY proves to trade at a premium to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
BRK.A 26458.18 Peers 10965.26   BRK.A 16276.54 Peers 6905.09

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

BRK.A is trading at a significant premium to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

BRK.A is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
BRK.A 17.10 Peers 12.09   BRK.A 0.18 Peers 0.21

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

BRK.A is trading at a significant premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

BRK.A trades at a discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BRK.A 2227.90 Peers 913.26   BRK.A 5.49 Peers 9.12

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

BRK.A is trading at a significant premium to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, BRK.A is expected to significantly trail its peers on the basis of its earnings growth rate

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
BRK.A 2718.76 Peers 1086.86   BRK.A 7.72 Peers 10.86

Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

BRK.A is trading at a significant premium to its industry.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

BRK.A significantly trails its peers on the basis of sales growth

 

 

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