Sunday, 14 August 2016

Berkshire Hathaway: Growth at Reasonable Price (GARP)

Stock Data:
Recent Stock Performance:

1 Week 1.7%
4 Weeks 4.5%
13 Weeks 1.3%
52 Weeks 3.6%

Berkshire Hathaway Inc.
Key Data:

Current Price (8/12/2016): 221,750
(Figures in U.S. Dollars)

Ticker: BRK.A
Country: United States

Exchanges: NYSE FRA
Major Industry: Diversified Financials

Sub Industry: Fire, Marine, & Casualty Insurance
2015 Sales 210,821,000,000
(Year Ending Jan 2016).
Employees: 331,000

Currency: U.S. Dollars
Market Cap: 364,525,068,000

Fiscal Yr Ends: December
Shares Outstanding: 1,643,856

Share Type: Class A
Closely Held Shares: 438,078

Spreadsheet of financials of Berkshire Hathaway:


1. Revenue grew about 50% over the last 5 years.
2. Pretax profit and Net Income more than doubled over the last 5 years.
3. Earnings generate lots of funds from operations and net cash from operations. These suggest high quality earnings.
4. Capital expenditure is about 50% of net cash from operations.
5. Accordingly about 50% of the net cash from operations are the owners money (free cash flow).
6. Current ratio is about 3. About 80% of the current asset is cash & short term investments.
7. Total Debt of Berkshire is 75 billion and cash is 71 billion, therefore, it is net cash negative. (surprise!)
8. Equity is 259 billion and total liabilities 302 billion (75 billion debts and 227 billion other liabilities).
9. Financial leverage is about 2x. (Total Asset/Total Equity)
10.. Asset Turnover was 0.38, net Profit Margin was 11.4%, Return on Average Asset was 4.4% and Return on Average Equity was 9.6% in 2015.
11. Revenues, Pretax income, net income, profit margins, net operating cash flows, capital expenditures, total assets and total equity have grown consistently over the last 5 years.
12. At price of US 221,750 per share, its present market cap is 365 billion and is 1.4x its book value of 259 billion.
13. Free Cash Flow to Sales was 7.3% in 2015 (a cash cow).
14. Free Cash Flow yield based on the market cap price was 4.2%.

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