Berkshire Hathaway (BRK.B)
Financials · $1.26T market cap · SEC CIK 0001067983
ahead of 63% of the S&P 500 · #28 of 76 in Financials
Next reports on Feb 26, 2027.
The case for BRK.B
- 22% of revenue drops through to net profit.
- Earnings per share up 36.3%.
- Reasonably priced for its growth: 14.7× earnings, where 8% a year of growth would justify about 20×.
- Moves less than the market (beta 0.00).
The case against
- Weakest against its peers: revenue growth of +3.9% is slower than 81% of Financials companies.
- Its weakest area is profitability (45/100): return on equity 12%, net margin 22.3%, gross margin 25%.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 62 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 54 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 45 |
| Momentumhow the price has behaved lately | 66 |
| Stabilityhow violently it moves, what it owes and what it pays you | 82 |
- Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
- Each factor except momentum is half fixed thresholds, half rank among the 76 Financials companies.
The financials
Revenue growth
Is the business growing? Slowly
| Last 12 months | +3.9% |
|---|---|
| Over 5 years | +8.6% a year |
| FY2025 revenue | $371B (0%) |
Free cash flow
Is it generating real cash? Not meaningful for a financial company
Profit margins
Is profitability improving? No, slipping
| Gross margin | 25% |
|---|---|
| Operating margin | 14% |
| Net margin, FY24 → FY25 → now | 24.0% → 18.0% → 22.3% |
Debt vs. cash
Is the balance sheet healthy? Not judged for a financial company
| Cash | $52.6B |
|---|---|
| Long-term debt | n/a |
| Net cash | n/a |
Valuation
Is the stock price reasonable? Yes, it looks cheap
| P/E | 14.7× |
|---|---|
| Fair P/E for its growth | 20× |
| Forward P/E | 26.0× |
| EV / EBITDA | 20.0× |
At 14.7× earnings it trades below the 20× that 8% a year of growth would justify. It is judged on earnings alone: its book value is not what it earns on, as it would be for a bank or insurer.
The financials, five years deep
Pulled from Berkshire Hathaway's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $371B | $371B | $364B | $302B | $276B |
| Change on the year | 0% | +2% | +21% | +9% | — |
| Free cash flow | |||||
| Free cash flow | $25.0B | $11.6B | $29.8B | $21.9B | $26.2B |
| Of revenue | 7% | 3% | 8% | 7% | 9% |
| Profit margins | |||||
| Net margin | 18.0% | 24.0% | 26.4% | −7.5% | 32.6% |
| Debt vs. cash | |||||
| Cash | $52.6B | $48.4B | $38.6B | $36.4B | $88.7B |
Filings
The text of this 10-K could not be read automatically. The original is linked below.