Berkshire Hathaway Inc. (BRK.B) Stock Guide

May 19, 2020
57

Before we start: if you're looking for BRK.B stock price, you can quickly find it out by visiting Finny and typing "BRK.B quote". If you're looking for a quick scoop on BRK.B stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "BRK.B". You'll get all this info in one place. Or you can just type "BRK.B news" to get the latest stock news.

Looking to buy or sell Berkshire Hathaway Inc. (BRK.B)? Interested in getting the full scoop on BRK.B, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this BRK.B stock guide, we'll address key questions about BRK.B, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are BRK.B earnings?
2. BRK.B buy or sell? What is BRK.B Finny Score?
3. What are the reasons to buy BRK.B? Why should I buy BRK.B stock?
4. What are the reasons to sell BRK.B? Why should I sell BRK.B stock?
5. What are BRK.B key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are BRK.B earnings?

BRK.B trailing 12-month earnings per share (EPS) is $6,142.19.

Analysis

2. BRK.B buy or sell? What is BRK.B Finny Score?

Our quantitative analysis shows 4 reasons to buy and 3 reasons to sell BRK.B, resulting in Finny Score of 57.

3. What are the reasons to buy BRK.B? Why should I buy BRK.B stock?

Here are the reasons to buy BRK.B stock:

  • Book value per share, which is a good proxy for measuring changes in Berkshire's intrinsic value, increased at an astounding compounded growth rate (CAGR) of 19.0% in the past five decades. The stock is currently trading at the lowest price to book value since 2012. Berkshire's stock performance has been equally strong outpacing S&P 500 index by a substantial margin.
  • Growing insurance business, strategic acquisitions, and a sturdy capital level should continue to drive Berkshire's shares higher. With a huge cash hoard, we believe Berkshire Hathaway will successfully continue its acquisition spree. Also, analysts think Berkshire's earnings will grow in 2019 and 2020.
  • Berkshire Hathaway has a great portfolio of companies. Its inorganic growth story seems impressive and is expected to be accretive to earnings going forward. Its investment history boasts stakes at Apple, the four biggest U.S. airlines, Precision Castparts, Kraft Heinz, pipeline operator Kinder Morgan, Visa, and Bank of New York Mellon among others.
  • BRK.B profitability is improving. The YoY profit margin change was 7.56 percentage points. See BRK.B profitability chart.
  • BRK.B Price/Book ratio is 0.00, which is low compared to its industry peers’ P/B ratios. See BRK.B forward Price/Book ratio chart.
  • BRK.B PEG ratio (P/E adjusted for growth) is 0.75, which is low compared to its industry peers’ PEG ratios. See BRK.B PEG chart.
  • BRK.B cash to debt ratio is 1.32, higher than the average industry (0.26) and sector (0.18) cash to debt ratio. See BRK.B cash to debt chart.

4. What are the reasons to sell BRK.B? Why should I sell BRK.B stock?

Let's look at the reasons to sell BRK.B stock (i.e., the bear case):

  • Given the size and scale of its operations, Berkshire's biggest hurdle longer term will be its ability to consistently find deals that not only add value but are large enough to be meaningful.
  • The other big issue facing the firm is the longevity of chairman and CEO Warren Buffett (who turns 89 in August) and managing partner Charlie Munger (who turned 95 in January).
  • Berkshire's insurance operation faces competition and pronounced cyclicality which occasionally produces large losses. Much of its other operations are economically sensitive and focused more on the U.S. market.
  • BRK.B quarterly revenue growth was 1.00%, lower than the industry and sector average revenue growth (1.08% and 2.03%, respectively). See BRK.B revenue growth chart.
  • BRK.B Price/Sales ratio is 1.62, which is high compared to its industry peers’ P/S ratios. See BRK.B forward Price/Sales ratio chart.
  • BRK.B short interest (days to cover the shorts) ratio is 2.01. The stock garners more short interest than the average industry, sector or S&P 500 stock. See BRK.B short interest ratio chart.

Key Stats

5. What are BRK.B key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for BRK.B:

Metrics BRK.B
Price $184.00
Average Price Target / Upside N/A
Average Analyst Rating N/A
Forward Dividend Yield 0.00%
Industry Insurance - Diversified
Sector Financial Services
Number of Employees 389,000
Market Cap $415.17B
Forward P/E Ratio 15.40
Price/Book Ratio 1.62
Revenue (TTM) $256.69B
YoY Quarterly Revenue Growth 1.00%
Profit Margin 3.90%

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