Berkshire Hathaway Inc

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BRK.B : NYSE : Financial
$144.16 -0.26 | -0.18%
Today's Range: 143.78 - 144.60
Avg. Daily Volume: 3,461,300
07/29/16 - 3:59 PM ET

Financial Analysis


BERKSHIRE HATHAWAY's gross profit margin for the first quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not.

During the same period, stockholders' equity ("net worth") has increased by 7.12% from the same quarter last year.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)52403.048644.0
EBITDA ($mil)9754.010394.0
EBIT ($mil)7629.08522.0
Net Income ($mil)5589.05164.0


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)64947.071426.0
Total Assets ($mil)586315.0531076.0
Total Debt ($mil)101539.083795.0
Equity ($mil)258661.0241458.0


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin18.6121.37
EBITDA Margin18.6121.36
Operating Margin14.5617.52
Sales Turnover0.370.37
Return on Assets4.183.82
Return on Equity9.478.42
Debt Q1 FY16 Q1 FY15
Current Ratio0.00.0
Debt/Capital0.280.26
Interest Expense1173.0875.0
Interest Coverage6.59.74


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)2465.492464.47
Div / share0.00.0
EPS2.272.1
Book value / share104.9197.98
Institutional Own % n/a n/a
Avg Daily Volume3451510.03990480.0

Valuation


BUY. BERKSHIRE HATHAWAY's P/E ratio indicates a significant discount compared to an average of 8656.47 for the Diversified Financial Services industry and a significant discount compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 1.38 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 835.37. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, BERKSHIRE HATHAWAY proves to trade at a discount 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.B 14.52 Peers 8656.47   BRK.B 10.78 Peers 6379.10

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

BRK.B is trading at a significant discount to its peers.

 

Discount. 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.B is trading at a significant discount 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.B 0.01 Peers 13.24   BRK.B 0.00 Peers 0.33

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

BRK.B is trading at a significant discount 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.B trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
BRK.B 1.38 Peers 835.37   BRK.B 20.48 Peers 36.96

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

BRK.B is trading at a significant discount to its peers.

 

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

However, BRK.B 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.B 1.66 Peers 979.17   BRK.B 8.44 Peers 8.38

Discount. 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.B is trading at a significant discount to its industry on this measurement.

 

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

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

 

 

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