NEW YORK (TheStreet) -- Berkshire Hathaway
(BRK.A - Get Report) shares are up 1.5% to $202,605 on Thursday as the company topped $200,000 per share for the first time.
The stock has more than doubled since the first time it hit six figures on October 5, 2006.
Berkshire Hathaway reported second quarter earnings of $6.4 billion, or $3,889 per Class A share, earlier this month.
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TheStreet Ratings team rates BERKSHIRE HATHAWAY as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BERKSHIRE HATHAWAY (BRK.A) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- BRK.A's revenue growth has slightly outpaced the industry average of 11.3%. Since the same quarter one year prior, revenues rose by 11.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- BERKSHIRE HATHAWAY has improved earnings per share by 40.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BERKSHIRE HATHAWAY increased its bottom line by earning $7.89 versus $5.98 in the prior year. This year, the market expects an improvement in earnings ($9895.57 versus $7.89).
- The net income growth from the same quarter one year ago is equivalent to that of the Diversified Financial Services industry, but is greater than that of the S&P 500. The net income increased by 40.8% when compared to the same quarter one year prior, rising from $4,541.00 million to $6,395.00 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Diversified Financial Services industry and the overall market on the basis of return on equity, BERKSHIRE HATHAWAY has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: BRK.A Ratings Report