Investment Thesis
Berkshire Hathaway demonstrates solid operational fundamentals with strong revenue growth of 50.2% YoY and healthy profitability metrics including an 18% net margin and 22.2% operating margin. The company maintains exceptional financial stability with minimal leverage (0.00x debt/equity), substantial cash generation ($25B FCF), and a fortress balance sheet with $717.4B in equity supporting $1.2T in assets.
Strengths
- Exceptional revenue growth of 50.2% YoY indicating strong operational momentum
- Fortress balance sheet with zero debt-to-equity ratio and $52.6B cash position
- Robust cash generation with $25B free cash flow and 6.7% FCF margin
- Healthy profitability with 18% net margin and 22.2% operating margin
- Strong interest coverage ratio of 16.3x demonstrating debt servicing capability
- Significant operating cash flow of $46B supporting capital allocation flexibility
Risks
- ROE of 9.3% and ROA of 5.5% are modest, suggesting capital efficiency challenges relative to large asset base
- Net income declined 0.4% YoY despite 50.2% revenue growth, indicating margin compression or one-time items
- High capital expenditure relative to free cash flow may pressure future distributions
- Large equity base requires exceptional returns to drive shareholder value creation
Key Metrics to Watch
- Net income growth trajectory and margin sustainability amid revenue expansion
- Return on equity trend as company deploys substantial cash and investment portfolio
- Operating cash flow consistency and capital expenditure requirements
- Debt-to-equity ratio and cash position changes reflecting capital allocation decisions
Financial Metrics
Revenue
371.4B
Net Income
67.0B
EPS (Diluted)
$0.00
Free Cash Flow
25.0B
Total Assets
1.2T
Cash
52.6B
Profitability Ratios
Gross Margin
N/A
Operating Margin
22.2%
Net Margin
18.0%
ROE
9.3%
ROA
5.5%
FCF Margin
6.7%
Balance Sheet & Liquidity
Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.00x
Debt/Assets
41.1%
Interest Coverage
16.27x
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-17T23:30:12.325587 |
Data as of: 2025-12-31 |
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