Berkshire Hathaway Stock Piotroski F Score

BRK-B Stock  USD 453.20  3.86  0.86%   
This module uses fundamental data of Berkshire Hathaway to approximate its Piotroski F score. Berkshire Hathaway F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Berkshire Hathaway. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Berkshire Hathaway financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Check out Berkshire Hathaway Altman Z Score, Berkshire Hathaway Correlation, Berkshire Hathaway Valuation, as well as analyze Berkshire Hathaway Alpha and Beta and Berkshire Hathaway Hype Analysis.
  
At present, Berkshire Hathaway's Short and Long Term Debt Total is projected to increase significantly based on the last few years of reporting. The current year's Net Debt is expected to grow to about 94.8 B, whereas Short and Long Term Debt is forecasted to decline to about 5.1 B. At present, Berkshire Hathaway's PTB Ratio is projected to slightly decrease based on the last few years of reporting. The current year's Book Value Per Share is expected to grow to 275.76, whereas Price To Sales Ratio is forecasted to decline to 2.02.
At this time, it appears that Berkshire Hathaway's Piotroski F Score is Poor. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
4.0
Piotroski F Score - Poor
Current Return On Assets

Positive

Focus
Change in Return on Assets

Increased

Focus
Cash Flow Return on Assets

Positive

Focus
Current Quality of Earnings (accrual)

Decreasing

Focus
Asset Turnover Growth

Decrease

Focus
Current Ratio Change

Decrease

Focus
Long Term Debt Over Assets Change

Higher Leverage

Focus
Change In Outstending Shares

Increase

Focus
Change in Gross Margin

Increase

Focus

Berkshire Hathaway Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Berkshire Hathaway is to make sure Berkshire is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Berkshire Hathaway's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Berkshire Hathaway's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Asset Turnover0.240.3406
Way Down
Very volatile
Gross Profit Margin0.430.338
Significantly Up
Pretty Stable
Net Debt94.8 B90.2 B
Sufficiently Up
Slightly volatile
Total Current Liabilities7.8 B8.3 B
Notably Down
Pretty Stable
Non Current Liabilities Total515.5 B491 B
Sufficiently Up
Slightly volatile
Total Assets1.1 T1.1 T
Sufficiently Up
Slightly volatile
Total Current Assets222.4 B211.8 B
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities51.7 B49.2 B
Sufficiently Up
Slightly volatile

Berkshire Hathaway F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Berkshire Hathaway's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Berkshire Hathaway in a much-optimized way.

About Berkshire Hathaway Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Book Value Per Share

275.76

At present, Berkshire Hathaway's Book Value Per Share is projected to increase significantly based on the last few years of reporting.

Berkshire Hathaway Current Valuation Drivers

We derive many important indicators used in calculating different scores of Berkshire Hathaway from analyzing Berkshire Hathaway's financial statements. These drivers represent accounts that assess Berkshire Hathaway's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Berkshire Hathaway's important valuation drivers and their relationship over time.
201920202021202220232024 (projected)
Market Cap489.0B503.4B554.6B680.6B775.1B813.9B
Enterprise Value560.0B570.6B623.5B767.5B865.4B908.7B

Berkshire Hathaway ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Berkshire Hathaway's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Berkshire Hathaway's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Berkshire Hathaway Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Berkshire Hathaway's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Berkshire Hathaway using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Berkshire Hathaway based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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Other Information on Investing in Berkshire Stock

Berkshire Hathaway financial ratios help investors to determine whether Berkshire Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Berkshire with respect to the benefits of owning Berkshire Hathaway security.