Berkshire Hathaway Inc

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BRK.B : NYSE : Financial
$169.89 up 2.54 | 1.52%
Today's Range: 167.9 - 170.15
Avg. Daily Volume: 3551200.0
06/28/17 - 4:02 PM ET

Financial Analysis


BERKSHIRE HATHAWAY's gross profit margin for the first quarter of its fiscal year 2017 has significantly 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 13.21% from the same quarter last year.

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Income Statement Q1 FY17 Q1 FY16
Net Sales ($mil)65187.052163.0
EBITDA ($mil)8759.09514.0
EBIT ($mil)6516.07389.0
Net Income ($mil)4060.05589.0


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)104655.064947.0
Total Assets ($mil)654451.0586315.0
Total Debt ($mil)103956.0101539.0
Equity ($mil)292851.0258661.0


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin13.4418.24
EBITDA Margin13.4318.23
Operating Margin10.014.17
Sales Turnover0.360.37
Return on Assets3.444.18
Return on Equity7.699.47
Debt Q1 FY17 Q1 FY16
Current Ratio0.00.0
Debt/Capital0.260.28
Interest Expense1067.01173.0
Interest Coverage6.116.3


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)2466.842465.49
Div / share0.00.0
EPS1.652.27
Book value / share118.72104.91
Institutional Own % n/a n/a
Avg Daily Volume3614434.03507849.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 13258.03 for the Diversified Financial Services industry and a discount compared to the S&P 500 average of 25.75. For additional comparison, its price-to-book ratio of 1.42 indicates a significant discount versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 1012.51. 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 18.40 Peers 13258.03   BRK.B 9.58 Peers 6841.48

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 11.34   BRK.B 0.00 Peers 0.17

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 1.42 Peers 1012.51   BRK.B -7.95 Peers -4.94

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 1.75 Peers 1252.99   BRK.B 10.30 Peers 10.29

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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