Berkshire Hathaway Inc

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BRK.B : NYSE : Financial
$178.54 up 1.07 | 0.6%
Today's Range: 177.6 - 178.97
Avg. Daily Volume: 3111000.0
08/16/17 - 4:03 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 Volume3158819.03801686.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 14381.33 for the Diversified Financial Services industry and a discount compared to the S&P 500 average of 24.31. For additional comparison, its price-to-book ratio of 1.45 indicates a significant discount versus the S&P 500 average of 3.03 and a significant discount versus the industry average of 1036.47. 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 19.93 Peers 14381.33   BRK.B 9.92 Peers 7171.95

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 12.31   BRK.B 0.00 Peers 0.15

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 1.45 Peers 1036.47   BRK.B -14.42 Peers -11.78

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 1.81 Peers 1295.10   BRK.B 10.43 Peers 10.49

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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