Berkshire Hathaway Inc

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BRK.A : NYSE : Financial
$273139.0 -1461.0 | -0.53%
Today's Range: 272000.0 - 274200.0
Avg. Daily Volume: 300.0
09/22/17 - 4:00 PM ET

Financial Analysis


BERKSHIRE HATHAWAY's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased.

During the same period, stockholders' equity ("net worth") has increased by 14.30% from the same quarter last year.

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Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)57518.054254.0
EBITDA ($mil)9616.010127.0
EBIT ($mil)7320.07893.0
Net Income ($mil)4262.05001.0


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)108511.079040.0
Total Assets ($mil)665590.0592816.0
Total Debt ($mil)102270.0101413.0
Equity ($mil)300659.0263025.0


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin16.7218.67
EBITDA Margin16.7118.66
Operating Margin12.7314.55
Sales Turnover0.360.37
Return on Assets3.274.3
Return on Equity7.259.69
Debt Q2 FY17 Q2 FY16
Current Ratio0.00.0
Debt/Capital0.250.28
Interest Expense1500.0727.0
Interest Coverage4.8810.86


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)2466.912465.72
Div / share0.00.0
EPS1.732.03
Book value / share121.88106.67
Institutional Own % n/a n/a
Avg Daily Volume295.0320.0

Valuation


BUY. BERKSHIRE HATHAWAY's P/E ratio indicates a significant premium compared to an average of 14585.21 for the Diversified Financial Services industry and a significant premium compared to the S&P 500 average of 24.88. For additional comparison, its price-to-book ratio of 2201.58 indicates a significant premium versus the S&P 500 average of 3.10 and a significant premium versus the industry average of 1049.91. 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 30318.87 Peers 14585.21   BRK.A 15095.47 Peers 7207.83

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 22.42 Peers 12.70   BRK.A 0.28 Peers 0.15

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.

 

Premium. 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 significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BRK.A 2201.58 Peers 1049.91   BRK.A -14.42 Peers -12.35

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 2759.26 Peers 1315.64   BRK.A 10.43 Peers 10.54

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

BRK.A is keeping pace with its peers on the basis of sales growth.

 

 

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