Berkshire Hathaway Takes a Beating

Hard-hit by the market rout surrounding the coronavirus pandemic, Berkshire Hathaway, the holding company of Warren Buffett, has reported first-quarter net losses of nearly $50 billion, it reported Saturday.

The company, based in Omaha, Nebraska, called the setback “temporary” but said it could not reliably predict when its many businesses would return to normal or when consumers would resume their former buying habits.

Buffett is considered one of the savviest investors anywhere. His fortune of $72 billion is the fourth-largest in the world, according to Forbes, and in normal years, the company’s annual gathering in Omaha is a high-point of the calendar for investors, a “Woodstock for capitalists.”

But the devastating economic impact of the pandemic has hit hard at Berkshire Hathaway’s wide range of investments, and the need for social distancing forced it to hold the annual meeting online.

The meeting is set to begin at 3:45pm Central time (2045 GMT) and will be live-streamed.

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– Growth by one measure –

Buffett, in a statement, played down the bleak-looking net figure. He said a better measure of the company’s performance was its operating earnings, which exclude investments and are less subject to sharp fluctuations.

By that measure, Berkshire Hathaway saw growth to $5.9 billion from $5.55 billion a year earlier.

The brutal drop in the net — to a loss of $49.75 billion from a profit last year of $21.7 billion — resulted primarily from the virus-related decline in value of its broad investment portfolio, which ranges from energy to transport to insurance and technology.

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The annual meeting often has an almost carnival atmosphere, as thousands of fans and investors flock to Nebraska to hear from the celebrated “Oracle of Omaha.” Buffett, famous for his relatively sedate lifestyle, turns 90 on August 30.

In documents filed Saturday, Berkshire noted that until mid-March many of its companies were posting “comparative revenue and earnings increases” over the same 2019 period.

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Many of its companies — including in rail transport, energy production and some manufacturing and service businesses — are deemed essential and are able to continue working amid the far-reaching confinement orders.

But their turnover slowed considerably in April, the company statement said.

Price and Volume

(USD)

Price closing or last bid281,700.00
52 Week High347,400.00
52 Week Low239,440.00
Pricing dateApr-29
10 Day Average Trading Volume0.00
Market Capitalization456,299.10
52 Week High DateJan-16
52 Week Low DateMar-22
3 Month Average Trading Volume0.01
Beta0.79
1 Day Price Change-1.07
13 Week Price Return (Daily)-17.63
26 Week Price Return (Daily)-11.68
5 Day Price Return (Daily)1.06
52 Week Price Return (Daily)-13.56
Year To Date Price Return (Daily)-17.05
Month to Date Price Return (Daily)3.57
Price Relative to S&P500 (4 Week)-9.97
Price Relative to S&P500 (13 Week)-7.13
Price Relative to S&P500 (26 Week)-7.88
Price Relative to S&P500 (52 Week)-13.23
Price Relative to S&P500 (YTD)-7.98
Warren Buffet Quote | Jahangeer Ansari | Flickr

Per Share Data

(USD)

EPS excl. Extra Items (Annual)49,828.45
EPS excl. Extra Items (TTM)49,845.80
EPS Normalized (Annual)49,828.45
Revenue per Share (Annual)155,828.50
Revenue per Share (TTM)155,827.10
Book Value (Per Share Annual)260,676.80
Book Value (Per Share Quarterly)260,676.80
Tangible Book Value (Per Share Annual)191,009.30
Tangible Book Value (Per Share Quarterly)191,009.30
Cash Per Share (Per Share Annual)39,381.55
Cash Per Share (Per Share Quarterly)39,381.55
Cash Flow (Per Share Annual)56,217.14
Cash Flow (Per Share TTM)56,216.63
Dividend (Per Share Annual)
Dividends (Per Share TTM)0.00
EBITD (Per Share TTM)26,278.41
EPS Basic excl. Extra Items (Annual)49,828.45
EPS Basic excl. Extra Items (TTM)49,845.80
EPS incl. Extra Items (Annual)49,828.45
EPS incl. Extra Items (TTM)49,845.80
Free Cash Flow (Per Share TTM)13,897.48
Dividend (Per Share 5Y)
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Valuation

(USD)

P/E excl. Extra Items (Annual)5.65
P/E excl. Extra Items (TTM)5.65
P/E Normalized (Annual)5.65
Price to sales (Annual)1.79
Price to sales (TTM)1.79
Price to Tangible Book (Annual)1.47
Price to Tangible Book (Quarterly)1.47
Price to Free Cash Flow (Per Share Annual)20.09
Price to Cash Flow (Per Share TTM)4.97
Price to Free Cash Flow (Per Share TTM)20.09
Price to Book (Annual)1.08
Price to Book (Quarterly)1.08
P/E Basic excl. Extra Items (TTM)6.81
P/E excl. Extra Items High (TTM)135.46
P/E excl. Extra Items Low (TTM)6.81
P/E incl. Extra Items (TTM)5.65
Net Debt (Interim)39,193.00
Net Debt (Annual)39,193.00
Dividend Yield (5Y)
Dividend Yield
Current Dividend Yield (TTM)0.00
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Financial Strength

(USD)

Free Cash Flow (Annual)22,708.00
Current Ratio (Annual)
Net Interest coverage (Annual)
Long Term Debt/Equity (Annual)23.23
Payout Ratio (Annual)0.00
Quick Ratio (Annual)
Total Debt/Total Equity (Annual)24.33
Current EV/Free Cash Flow (Annual)6.58
Current EV/Free Cash Flow (TTM)6.58
Current Ratio (Quarterly)
Long Term Debt/Equity (Quarterly)23.23
Quick Ratio (Quarterly)
Total Debt/Total Equity (Quarterly)24.33
Free Cash Flow (TTM)22,708.00
Net Interest Coverage (TTM)
Payout Ratio (TTM)0.00

Margins

(%)

Gross Margin (Annual)22.07
Gross Margin (TTM)22.07
Net Profit Margin % (Annual)32.12
Net Profit Margin (TTM)32.12
Operating Margin (Annual)11.36
Operating Margin (TTM)11.36
Pretax Margin (TTM)40.33
Pretax Margin (Annual)40.33
Operating Margin (5Y)11.60
Pretax Margin (5Y)17.04
Free Operating Cash Flow/Revenue (5Y)9.82
Free Operating Cash Flow/Revenue (TTM)8.92
Gross Margin (5Y)22.15
Net Profit Margin (5Y)12.99

Management Effectiveness

(USD)

Return on Assets (Annual)10.72
Return on Equity (TTM)10.72
Return on Average Equity (Annual)21.05
Return on Average equity (TTM)21.05
Return on Investment (Annual)11.76
Return on Investment (TTM)11.75
Return on Average Assets (5Y)4.66
Return on Average Equity (5Y)9.57
Return on Investment (5Y)5.12
Asset Turnover (Annual)0.33
Asset Turnover (TTM)0.33
Inventory Turnover (Annual)10.20
Inventory Turnover (TTM)10.20
Net Income/Employee (Annual)209,588.70
Net Income/Employee (TTM)208,919.50
Receivables Turnover (Annual)16.74
Receivables Turnover (TTM)16.54
Revenue/Employee (Annual)652,443.30
Revenue/Employee (TTM)650,360.10

Growth

(%)

Revenue Growth (Quarterly YoY)2.60
Revenue Growth Rate (5Y)5.51
EPS Growth (Quarterly YoY)214.58
EPS Growth (TTM YoY)2,106.57
EPS Growth Rate (5Y)32.74
Dividend Growth Rate (3Y)
Revenue Growth (TTM YoY)2.74
Revenue Growth (Per Share 5Y)5.64
Revenue Growth Rate (3Y)5.78
EPS Growth Rate (3Y)50.40
Book Value Growth Rate (Per Share 5Y)12.32
Tangible Book Value Total Equity CAGR (5Y)14.19
Capital Spending growth rate 5 year1.02
EBITDA CAGR (5Y)2.07
EBITDA Interim CAGR (5Y)1.10
Free Operating Cash Flow CAGR (5Y)6.18
Total Debt CAGR (5Y)5.29
Net Profit Margin Growth Rate (5Y)25.40

Income Statement

(Mil, USD)

Revenue (Annual)254,616.00
Revenue (TTM)254,616.00
EBITD (Annual)42,938.00
EBITD (TTM)42,938.00
Earnings Before Taxes (Annual)102,696.00
Earnings Before Taxes (TTM)102,696.00
Net Income to Common (Annual)81,417.00
Net Income to Common (TTM)81,417.00
Earnings Before Taxes Normalized (Annual)102,696.00
Net Income Available to Common Normalized (Annual)81,417.00
Diluted Normalized EPS excl. Extra Items (TTM)49,845.80
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S. Jack Heffernan Ph.D. Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

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