Briefing on the Fundamentals of Berkshire Hathaway (BRK-B)

Now trading at a price of $309.38, Berkshire Hathaway has moved 0.1% so far today. In contrast, the S&P 500 index moved -1.0%.

Berkshire Hathaway shares moved -10.3% over the last 52 weeks, with a high of $354.33 and a low of $259.85. During this time, the stock lagged the S&P 500 index by -2.0%. As of January 2022, the company's 50-day average price is $306.65. Berkshire Hathaway Inc., through its subsidiaries, engages in the insurance, freight rail transportation, and utility businesses worldwide. The Large-Cap Financial Services company has 383,000 full time employees and is based in Omaha, NE. Berkshire has not offered any dividends in the last year.

Snapshot of the Company's Net Margins in Line With the 15.21% Industry Average:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $327,223 $286,256 $354,636 $234,190
Revenue Growth n/a -12.52% 23.89% -33.96%
Net Margins 24.88% 14.85% 25.32% -9.74%
Net Margins Growth n/a -40.31% 70.51% -138.47%
Earnings Per Share $33.22 $17.78 $39.64 -$10.4
EPS Growth n/a -46.48% 122.95% -126.24%
Diluted Shares (MM) 2,451 2,392 2,265 1,298
Free Cash Flow (MM) $22,708 $26,761 $26,145 $21,760
FCF Growth n/a 17.85% -2.3% -16.77%
Capital Expenditures (MM) -$15,979 -$13,012 -$13,276 -$15,464
LT Debt to Equity 0.23 0.26 0.22 0.25

Berkshire Hathaway has negative earnings for the current period, so its trailing twelve month P/E ratio is not meaningful. But based on its EPS guidance of 17.79, the company has a forward P/E ratio of 17.4. In contrast, the Financial Services sector's average P/E ratio is 14.34.

On the other hand, Berkshire is possibly undervalued in terms of its net assets because its P/B ratio is 0.0 compared to its sector average of 1.57.

Berkshire Hathaway's strong cash flow trend and reasonable levels of debt attenuate the company's lofty valuation in terms of earnings and assets.

Series([], ) Is the Subject of Mixed Market Indicators:

The only analyst following Berkshire Hathaway has set a target price of $371.0 per share, which is -16.61 away from its current price. This analyst rates the stock as hold.

The company has a very low short interest since 0.6% of the company's shares are tied to short positions. Institutions own 66.1% of Berkshire Hathaway's shares, while the insider ownership rate stands at 0.37%. The biggest shareholder is the Vanguard Group, Inc. with a 11% stake in the company worth approximately $42,769,608,483.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.