Company Analysis
Berkshire Hathaway Inc
BRK.B • Financial Services
AI Summary
Berkshire Hathaway Inc. is a diversified holding company with a strong balance sheet, evidenced by a low debt-to-equity ratio of 0.18, and a solid return on equity of 10.3%. Trading at a modest premium to its fair value with a P/E of 14.5, it offers an attractive valuation for value-oriented investors seeking exposure to a broad range of high-quality businesses. Its managed risk profile and stable earnings power make it a compelling opportunity for long-term capital appreciation.
GoodStock Company Score
Score Breakdown
GoodStock Estimated Valuation
Valuation Range vs. Current Price
GoodStock Price Momentum
Momentum Indicators
BRK.B Stock Price
GoodStockClassification
| Theme | Quality | Momentum | Value |
|---|---|---|---|
| Best in Class | + | + | + |
| Quality at a Price | + | + | - |
| Contrarian | + | - | + |
| Yesterday's News | + | - | - |
| Restructuring | - | + | + |
| Momentum Trap | - | + | - |
| Value Trap | - | - | + |
| Worst in Class | - | - | - |
These investments were once popular but have lost favor due to changing market dynamics or industry trends. While potentially undervalued, they come with increased risk. Investors may explore them for potential rebounds, but careful evaluation of underlying challenges is essential to avoid continued decline.
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Financial Ratios
AI Financial Ratios Summary
The company's high Earnings per Share (EPS) of 50,396.49 indicates strong profitability on a per-share basis, while a P/E ratio of 14.48 suggests the stock is reasonably valued relative to its earnings. The Return on Equity (10.31%) reflects moderate efficiency in generating profits from shareholders' equity, supported by a low Debt-to-Equity ratio of 0.18, which indicates minimal leverage and financial stability. However, the Interest Coverage Ratio of 0.57 raises concerns about the company's ability to meet interest obligations, potentially signaling financial risk despite healthy liquidity, as shown by a quick ratio of 1.08. Interconnectivity among these ratios suggests that while profitability and liquidity appear solid, the low interest coverage could hinder future growth or stock appreciation unless the company improves its debt management, which is essential for the stock to realize its full potential.
- $50.4 K
- 14.48
- 10.31%
- 0.18%
- 0.57
- $958 K
- 1.08%
- $1050 B
Operational Ratios
AI Operational Ratios Summary
The company’s operating margin of 12.52% and gross margin of 24.81% suggest moderate efficiency in managing core operations and production costs. Its net profit margin of 19.31% indicates solid profitability, while the return on assets at 5.96% reflects moderate asset utilization efficiency. Although the absence of dividends and a declining free cash flow CAGR of -1.32% may temper growth outlooks, the positive CAPEX CAGR of 9.97% signals ongoing investments that could support future expansion and profitability.
- 12.52%
- 24.81%
- 19.31%
- 5.96%
- $0.0
- 0.0%
- -1.32%
- 9.97%
Valuation Ratios
AI Valuation Ratios Summary
The company's negative Price to SAP 500 ratio (-25.23) and a negative PEG ratio (-1.38) suggest that traditional valuation metrics are not providing a clear comparison, likely due to negative or volatile earnings. However, the high Book Value Per Share (497,171.86) and substantial Cash Per Share (35,950.8) indicate strong asset backing and liquidity, which could imply the company is undervalued relative to its net assets. Overall, these metrics suggest cautious optimism for investment potential, especially if the company can improve its earnings stability.
- $775 K
- $685 K
- $42.2 K
- -25.23%
- -1.38
- $44
- $497 K
- 36 K