FMP

FMP

Berkshire Hathaway Inc. (NYSE:BRK-B) Financial Performance and Market Valuation

  • Earnings Per Share (EPS) of $4.72 met market expectations, showcasing the company's consistent performance.
  • Revenue of approximately $93.86 billion significantly surpassed estimates, highlighting the effectiveness of its diverse business model.
  • The company's financial health is solid, with a low debt-to-equity ratio of 0.22 and a strong current ratio of 5.94.

Berkshire Hathaway Inc. (NYSE:BRK-B) is a multinational conglomerate holding company led by renowned investor Warren Buffett. It owns a diverse range of businesses, including insurance, railroads, utilities, and manufacturing. The company is known for its strong financial performance and strategic acquisitions. Competitors include large conglomerates like General Electric and investment firms such as BlackRock.

On May 3, 2025, BRK-B reported earnings per share (EPS) of $4.72, aligning perfectly with market expectations. The company achieved a revenue of approximately $93.86 billion, significantly surpassing the estimated $81.59 billion. This revenue beat highlights the company's robust business model and ability to generate substantial income across its diverse portfolio.

Despite the impressive revenue figures, Berkshire Hathaway's operating earnings fell short of expectations. This shortfall is partly due to a 48% decline in insurance earnings, primarily impacted by wildfires in California. However, BNSF, a subsidiary of Berkshire Hathaway, delivered strong results, marking a positive shift from past trends and contributing to the overall revenue success.

Berkshire Hathaway's financial metrics provide further insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 13.08, indicating how the market values its earnings. Its price-to-sales ratio is about 2.74, reflecting the market's valuation of its revenue. Additionally, the enterprise value to sales ratio stands at 2.97, offering another perspective on its valuation relative to sales.

The company's financial health is underscored by a low debt-to-equity ratio of 0.22, indicating a conservative approach to debt. A strong current ratio of 5.94 highlights its ability to cover short-term liabilities with short-term assets. Despite a high enterprise value to operating cash flow ratio of 41.19, Berkshire Hathaway maintains an earnings yield of approximately 7.64%, providing a solid return on investment.