TheStreet Downgrades Berkshire Hathaway Shares

TheStreet has decided to downgrade Berkshire Hathaway stock from a bite will hold. They see the strength and the company in multiple areas, such as good cash flow, great operations, excellent revenue growth, excellent growth and net income and many other areas. But, TheStreet also seems to find weaknesses such as poor profit margins and premium valuations.

Here are the main highlights from the most recent ratings report offered by ThStreet.com:

  • Revenues have risen by 15.9% from the same quarter one year earlier. The company’s revenue growth appears to help boost the earnings per share of the business.
  • Berkshire Hathaway’s net operating cash flow has increased by 41.09%, or $6,856.00 million, comparatively when looking at the same quarter last year.
  • The company has improved its earnings per share by a total of 47.2% in this most recent quarter, when compared to the same quarter just one year ago. The business has continued to demonstrate a pattern of positive earnings per share growth, and this has been consistent over the last two years. TheStreet expects this trend to continue. The trend also shows us that the businesses performance is improving. During the past fiscal year, Berkshire raised its bottom line by earning $5.98 per share versus $4.14 per share in the year prior. The market currently expects to see earnings improvements this year in the amount of $9351.55 versus $5.98.
  • The company’s gross profit margins are actually rather low. They are currently at 20.36%. Regardless of the low profit margins of Berkshire Hathaway, it still managed to increase from last year’s same period.

The company Berkshire Hathaway is a publicly owned investment manager. The firm has a market cap of $148.33 billion, and it owns businesses in many different sectors. They have a property business, reinsurance, insurance, casualty risk business, financial business and they are a huge part of the insurance industry. The share price is currently of 28.5% this year as of Friday’s closing price.