Berkshire Hathaway A (BRK.A) AI Stock Analysis

• Market Cap: $1.13T
• Dividend Yield: N/A
• Average Volume (3M): 1.85K
• Price to Earnings (P/E): 12.7
• Beta (1Y): 0.56
• Revenue Growth: 1.91%
• EPS Growth: -6.72%
• Country: US
• Employees: 392,400
• Sector: Financial
• Sector Strength: 83
• Industry: Insurance - Diversified
• EPS (TTM): 61913.64
• Shares Outstanding: 544,953
• 10 Day Avg. Volume: 1,379
• 30 Day Avg. Volume: 1,855
• PEG Ratio: 0.24
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.03
• Price to Cash Flow (P/CF): 60.80
• P/FCF Ratio: 48.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $752,148.00
• Price Target Upside: -5.25% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Berkshire Hathaway's strong financial performance, characterized by robust revenue growth, profitability, and a solid balance sheet, underpins its high score. The company's reasonable valuation further supports the stock's attractiveness. While technical indicators suggest the stock is in an upward trend, caution is advised due to potential overbought conditions.

Berkshire Hathaway A Business Overview & Revenue Model

Company Description

Berkshire Hathaway Inc., through its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses worldwide. It provides property, casualty, life, accident, and health insurance and reinsurance; and operates railroad systems in North America. The company also generates, transmits, stores, and distributes electricity from natural gas, coal, wind, solar, hydroelectric, nuclear, and geothermal sources; operates natural gas distribution and storage facilities, interstate pipelines, liquefied natural gas facilities, and compressor and meter stations; and holds interest in coal mining assets. In addition, the company manufactures boxed chocolates and other confectionery products; specialty chemicals, metal cutting tools, and components for aerospace and power generation applications; flooring products; insulation, roofing, and engineered products; building and engineered components; paints and coatings; and bricks and masonry products, as well as offers manufactured and site-built home construction, and related lending and financial services. Further, it provides recreational vehicles, apparel products, jewelry, and custom picture framing products, as well as alkaline batteries; castings, forgings, fasteners/fastener systems, and aerostructures; and seamless pipes, fittings, downhole casing and tubing, and mill forms. Additionally, the company distributes televisions and information; franchises and services quick service restaurants; distributes electronic components; and offers logistics services, grocery and foodservice distribution services, and professional aviation training and shared aircraft ownership programs. It also retails automobiles; furniture, bedding, and accessories; household appliances, electronics, and computers; jewelry, watches, crystal, china, stemware, flatware, gifts, and collectibles; kitchenware; and motorcycle apparel and equipment. The company was incorporated in 1998 and is headquartered in Omaha, Nebraska.

How the Company Makes Money

Berkshire Hathaway makes money through a combination of wholly owned subsidiaries and significant equity investments. Its primary revenue streams include insurance premiums from its insurance operations such as GEICO and Berkshire Hathaway Reinsurance Group, which also provide the company with substantial 'float'—the funds available for investment before claims are paid. Additionally, the company earns income from its diverse range of subsidiaries in industries like energy, rail transportation, and manufacturing, which contribute to its operating profits. Investment income from its extensive portfolio of publicly traded stocks also plays a significant role in its revenue model. The conglomerate's performance is bolstered by strategic acquisitions and partnerships that enhance its competitive position across various sectors.

Berkshire Hathaway A Financial Statement Overview

Summary

Berkshire Hathaway demonstrates strong financial performance with consistent revenue growth and robust profitability. The balance sheet shows a low leverage with a Debt-to-Equity ratio of 0.24 and an impressive ROE of 17.1%. Cash flow remains solid despite a decline in free cash flow, reflecting significant investment activities.

Income Statement

Berkshire Hathaway's income statement reveals strong financial performance with consistent revenue growth, notably a 29.4% increase from 2022 to 2023. Gross profit margin remains robust at 100% for 2023, indicating effective cost management. However, EBIT and EBITDA margins are not available for 2024 due to missing data. Net profit margin was strong at 23.5% in 2023, reflecting solid profitability.

Balance Sheet

The company's balance sheet is solid, with a strong equity base and a Debt-to-Equity ratio of 0.24 in 2023, indicating low leverage. Return on Equity (ROE) was impressive at 17.1% for 2023, highlighting efficient use of shareholder funds. The equity ratio of 52.5% in 2023 reflects a stable financial structure with significant shareholder equity.

Cash Flow

Berkshire Hathaway's cash flow statement shows a decline in free cash flow from 2023 to 2024, but operating cash flow remains healthy at $30.6 billion in 2024. The operating cash flow to net income ratio of 0.51 in 2023 indicates strong cash generation relative to earnings, though the free cash flow to net income ratio has decreased, suggesting higher capital expenditures.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
371.43B	364.48B	302.09B	354.64B	286.26B
	Gross Profit
371.43B	123.20B	177.77B	193.41B	110.47B
	EBIT
345.79B	123.20B	37.32B	111.69B	55.69B
	EBITDA
0.00	137.66B	-15.25B	126.58B	80.39B
	Net Income Common Stockholders
89.00B	96.22B	-22.82B	89.94B	42.52B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
334.20B	167.64B	128.59B	146.72B	138.29B
	Total Assets
1.15T	1.07T	948.45B	958.78B	873.73B
	Total Debt
124.76B	128.27B	122.74B	114.26B	116.89B
	Net Debt
77.03B	90.25B	86.93B	26.08B	68.91B
	Total Liabilities
502.23B	499.21B	467.83B	443.85B	422.39B
	Stockholders Equity
649.37B	561.27B	472.36B	506.20B	443.16B
Cash Flow		Free Cash Flow
11.62B	29.79B	21.76B	26.14B	26.76B
	Operating Cash Flow
30.59B	49.20B	37.22B	39.42B	39.77B
	Investing Cash Flow
-10.29B	-32.66B	-87.60B	29.39B	-37.76B
	Financing Cash Flow
-10.36B	-14.40B	-1.66B	-28.51B	-18.34B

Berkshire Hathaway A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 793787.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BRK.A, the sentiment is Positive. The current price of 793787.6 is above the 20-day moving average (MA) of 783534.52, above the 50-day MA of 754390.10, and above the 200-day MA of 697745.79, indicating a bullish trend. The MACD of 5211.21 indicates Positive momentum. The RSI at 57.86 is Neutral, neither overbought nor oversold. The STOCH value of 78.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BRK.A.

Berkshire Hathaway A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BRK.A	80 Outperform	$1.13T	12.66	14.70%	―	1.91%	-6.72%
ACGL	79 Outperform	$34.61B	8.23	22.02%	―	26.24%	-3.87%
HIG	79 Outperform	$33.12B	11.21	19.58%	1.71%	8.19%	29.77%
BRK.B	75 Outperform	$1.13T	12.70	14.70%	―	1.91%	-6.72%
AIG	70 Outperform	$47.85B	16.19	7.10%	1.95%	-28.56%	1.14%
PFG	66 Neutral	$16.34B	10.88	14.28%	4.01%	18.02%	171.70%
Sector *	63 Neutral	$13.51B	9.48	9.36%	4.87%	16.09%	-8.30%