Berkshire Hathaway Inc (NYSE: BRK-B)

CIK: 0001067983
Market Cap 1,086.07 Bn
P/B 1.56
P/E 16.10
P/S 2.71
ROIC (Qtr) 9.06
Div Yield % 0.00
Rev 1y % (Qtr) 3.00
Total Debt (Qtr) 127.24 Bn
Debt/Equity (Qtr) 0.18
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About

Investment thesis

Bull case

  • Strong tangible asset base of 1107.38B provides 8.70x coverage of total debt 127.24B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 39.40B provides exceptional 140.21x coverage of minority interest expenses 281M, showing strong core operations.
  • Tangible assets of 1107.38B provide exceptional 25.44x coverage of deferred revenue 43.53B, showing strong service capability backing.
  • Cash position of 76.31B provides exceptional 271.55x coverage of minority interest expenses 281M, indicating strong liquidity.
  • Retained earnings of 743.99B represent substantial 1.07x of equity 698.15B, indicating strong internal capital generation.

Bear case

  • Operating cash flow of 39.40B barely covers its investment activities of (1.83B), with a coverage ratio of -21.56, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 76.31B provide limited coverage of acquisition spending of (34M), which is -2244.29x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 39.40B provides insufficient coverage of deferred revenue obligations of 43.53B, which is 0.90x, raising concerns about future service delivery capabilities.
  • High receivables of 53.46B relative to inventory of 25.32B (2.11 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Retained earnings of 743.99B provide limited buffer against comprehensive income items of (2.52B), which is -294.88x, indicating elevated exposure to market risks.

Segments Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Insurance - Diversified
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 BRK-B Berkshire Hathaway Inc 1,086.07 Bn 16.10 2.71 127.24 Bn
2 AIG American International Group, Inc. 44.86 Bn 14.49 1.68 9.19 Bn
3 SLF Sun Life Financial Inc 38.17 Bn 15.06 1.50 7.61 Bn
4 ACGL Arch Capital Group Ltd. 36.73 Bn 9.05 1.88 2.73 Bn
5 BNT Brookfield Wealth Solutions Ltd. 11.42 Bn 8.65 0.80 4.77 Bn
6 FIHL Fidelis Insurance Holdings Ltd 2.08 Bn -143.64 0.81 0.84 Bn
7 IGIC International General Insurance Holdings Ltd. 1.24 Bn 35.96 3.93 0.00 Bn
8 WDH Waterdrop Inc. 0.65 Bn 9.10 1.42 0.01 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.91 0.32
EV to Cash from Ops. EV/CFO 28.24 14.23
EV to Debt EV to Debt 8.74 4.74
EV to EBIT EV/EBIT 12.79 15.68
EV to EBITDA EV/EBITDA 10.71 33.76
EV to Free Cash Flow [EV/FCF] EV/FCF 57.57 18.23
EV to Market Cap EV to Market Cap 1.02 0.76
EV to Revenue EV/Rev 2.78 1.55
Price to Book Value [P/B] P/B 1.56 1.50
Price to Earnings [P/E] P/E 16.10 -4.40
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 2.23
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 395.61
Dividend per Basic Share Div per Share (Qtr) 0.00 1.19
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 10.14
Interest Coverage Int. cover (Qtr) 16.69 9.63
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -3.80 19.97
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 105.23 15.53
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -3.62
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -35.31 7.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -30.55 -3.03
EBIT Growth (1y) % EBIT 1y % (Qtr) -36.82 223.97
EBT Growth (1y) % EBT 1y % (Qtr) -38.35 226.15
EPS Growth (1y) % EPS 1y % (Qtr) -36.78 31.54
FCF Growth (1y) % FCF 1y % (Qtr) -8.12 -17.30
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -26.71 3.76
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.33 0.18
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.16
Cash Ratio Cash Ratio 0.00 0.08
Current Ratio Current Ratio 0.00 0.32
Debt to Equity Ratio Debt/Equity (Qtr) 0.18 0.20
Interest Cover Ratio Int Coverage (Qtr) 16.69 9.63
Times Interest Earned Times Interest Earned (Qtr) 16.69 9.63
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 25.00 13.98
EBIT Margin % EBIT Margin % (Qtr) 21.71 29.75
EBT Margin % EBT Margin % (Qtr) 20.41 15.51
Gross Margin % Gross Margin % (Qtr) 31.20 45.01
Net Profit Margin % Net Margin % (Qtr) 16.80 13.40