Berkshire Hathaway Inc.BRK-B
NYQ • Financial Services
$505.54
P/E
11.35
PEG
0.02
FCF Yield
2.3%
Rev Growth YoY
+41.5% YoY
Gross Margin
24.6%
Health Score
7/10
D/E Ratio
0.17
Confidence
MEDIUM
Business Snapshot
Berkshire Hathaway is a diversified financial holding company whose largest operations sit in insurance and reinsurance, alongside substantial railroad, utility and energy, manufacturing, and retail businesses. Its insurance operations generate float — premiums collected upfront and paid out later — which the company deploys into a large investment portfolio, making it as much a capital allocator as an operator. It is a dominant, blue-chip player in diversified insurance and one of the largest companies in the world by market capitalisation, at $1.08 trillion. Scale is enormous: trailing twelve-month revenue is $117.89 billion. What sets it apart is the combination of a conservative balance sheet, a debt/equity ratio of just 0.17x, and a permanent-capital structure that lets it hold assets indefinitely without redemption pressure.
Financial Health
Gross margin stands at 24.6%, with no prior-year figure available for comparison, while the net margin (TTM) is 22.3% — a strong bottom-line conversion for a company of this size. The balance sheet is conservative rather than stretched: debt/equity of 0.17x and a current ratio of 1.34x indicate ample liquidity and modest leverage...
Risk Assessment
- EARNINGS QUALITY — Only 2 of the last 4 quarters beat estimates, a mixed record that limits confidence in management's forward guidance.
- ANALYST SUPPORT — Only 10% of analysts rate the stock a buy, with 30% hold and a Sell consensus, indicating limited Wall Street conviction.
- EARNINGS VOLATILITY — Earnings growth of 457.6% year-over-year — note this figure may be distorted or reflect a data error, and is heavily influenced by investment gains rather than core operations.
- VALUATION DIVERGENCE — The FMP DCF fair value is not available, leaving only the Python DCF estimate of $558.08, which carries a stated sensitivity of 15-25% to terminal growth assumptions.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- DATA COMPLETENESS — Net income (TTM) and prior-year gross margin are absent, limiting the depth of margin trend analysis....
Gross margin stands at 24.6%, with no prior-year figure available for comparison, while the net margin (TTM) is 22.3% — a strong bottom-line conversion for a company of this size. The balance sheet is conservative rather than stretched: debt/equity of 0.17x and a current ratio of 1.34x indicate ample liquidity and modest leverage. Free cash flow is $25.04 billion, a healthy absolute figure, though the FCF yield of 2.3% is modest relative to the $1.08 trillion market cap — a function of the company's sheer size rather than weak cash generation. Return on equity of 12.1% is respectable for a capital-intensive, insurance-anchored conglomerate. Overall, the financial position supports continued reinvestment and internal funding of operations, with the low leverage providing a genuine cushion against adverse insurance or market outcomes.
- EARNINGS QUALITY — Only 2 of the last 4 quarters beat estimates, a mixed record that limits confidence in management's forward guidance. - ANALYST SUPPORT — Only 10% of analysts rate the stock a buy, with 30% hold and a Sell consensus, indicating limited Wall Street conviction. - EARNINGS VOLATILITY — Earnings growth of 457.6% year-over-year — note this figure may be distorted or reflect a data error, and is heavily influenced by investment gains rather than core operations. - VALUATION DIVERGENCE — The FMP DCF fair value is not available, leaving only the Python DCF estimate of $558.08, which carries a stated sensitivity of 15-25% to terminal growth assumptions. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - DATA COMPLETENESS — Net income (TTM) and prior-year gross margin are absent, limiting the depth of margin trend analysis.
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