BRK-B
Berkshire Hathaway Inc.
Financial Services · Insurance - Diversified · United States · Stock
Score Breakdown
Scored for Safe Long-Term Investing profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The perfect financial health score — driven by a 16.3 interest coverage ratio and over $1.2 trillion in total assets — provides a strong foundation, but it alone cannot lift the composite score without support from growth or dividend factors.
- Near-zero revenue growth and a 24.8% decline in net income produced a below-midpoint growth score, meaningfully dragging down the overall composite.
- The confirmed absence of any dividend payment results in the minimum dividend score, removing a full factor's worth of potential upside from the total.
Why Not Higher
- Zero dividend income and no thematic tailwind assignment together contribute 0 out of a possible 40 points on those two factors, creating a structural ceiling on the composite score.
- The sharp swing in quarterly operating income — from a peak of $38.1 billion in 2025Q3 to just $12.3 billion in 2026Q1 — alongside flat annual revenue growth, limits both the momentum and growth scores.
Data Confidence
8 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue was essentially flat, moving from FY2024's $371,433,000,000 to FY2025's $371,444,000,000, a change of +0.0%. Net income declined from FY2024's $88,995,000,000 to FY2025's $66,968,000,000, a drop of -24.8%.
The model penalized the near-zero top-line expansion and the significant contraction in net income, resulting in a below-midpoint growth score that reflects stagnant revenue and meaningfully lower earnings year-over-year.
In FY2025, Berkshire Hathaway posted an operating margin of 22.2% and a net margin of 18.0%, while return on equity stood at 9.3%.
The model rewarded the double-digit operating and net margins as indicators of durable earnings power, though the relatively moderate return on equity of 9.3% in FY2025 tempered the score below the maximum.
In FY2025, Berkshire Hathaway's interest coverage ratio was 16.3, and total assets stood at $1,222,176,000,000.
An interest coverage ratio of 16.3 in FY2025 signals that operating income comfortably exceeds interest obligations by a wide margin, and the massive asset base underscores the scale and balance-sheet strength the model rewarded with a perfect score.
Quarterly revenue was relatively stable across the last four reported periods (2025Q2: $92,515,000,000; 2025Q3: $94,972,000,000; 2025Q4: $94,232,000,000; 2026Q1: $93,675,000,000), but net income and operating income showed sharp swings, peaking in 2025Q3 at $30,796,000,000 and $38,105,000,000 respectively before declining to $10,106,000,000 and $12,319,000,000 in 2026Q1.
The model appears to have recognized the stable revenue trend but penalized the pronounced deceleration in both net income and operating income from the 2025Q3 peak through 2026Q1, producing a near-midpoint momentum score.
Berkshire Hathaway does not currently pay a dividend; this is a genuine characteristic of the company, not a data limitation.
Because the model rewards dividend income and payout history, a confirmed non-payer receives the minimum score on this factor.
Berkshire Hathaway is not currently assigned to any of the 24 tracked macro themes in the model.
The absence of a theme assignment means no thematic tailwind contributed to the score; this is a neutral classification rather than a negative signal about the company's business.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Berkshire Hathaway's composite score of 49.8/100 reflects a company of extraordinary financial scale and balance-sheet strength, offset by stagnant revenue growth, a meaningful decline in net income, and the absence of a dividend. Revenue was essentially flat year-over-year at roughly $371 billion, while net income fell nearly 25% from FY2024 to FY2025. The company's fortress-like financial health — with an interest coverage ratio of 16.3 and over $1.2 trillion in total assets — anchors the score, but weak growth momentum and no dividend income limit the overall rating.
Plain English
Berkshire Hathaway is a massive, financially rock-solid company, but its earnings dropped sharply last year and its revenue barely moved, which holds back its overall score — and since it pays no dividends, income-focused investors get nothing extra from holding it.
Bull Case vs. Bear Case
Bull Case
- Exceptional balance-sheet strength: an interest coverage ratio of 16.3 means operating income covers interest expenses more than 16 times over, and total assets exceed $1.2 trillion, signaling deep financial resilience.
- Durable profitability: Berkshire posted a 22.2% operating margin and an 18.0% net margin in FY2025, demonstrating consistent earnings power across its diversified operations.
- Stable top-line base: quarterly revenue held in a tight band between roughly $92.5 billion and $95.0 billion across the last four reported quarters, suggesting a reliable and predictable revenue foundation.
Bear Case
- Net income fell sharply by 24.8% year-over-year, from approximately $89 billion in FY2024 to roughly $67 billion in FY2025, representing a significant contraction in bottom-line earnings.
- Revenue growth was essentially zero, with FY2025 revenue of $371,444,000,000 barely above FY2024's $371,433,000,000, offering no meaningful top-line expansion.
- Berkshire pays no dividend, meaning shareholders receive no income return while holding the stock, which the model penalizes with the minimum dividend score.
What Could Change the Picture
Bullish Triggers
- A sustained recovery in net income and operating income from the sharp decline seen between 2025Q3 and 2026Q1 — where operating income fell from $38.1 billion to $12.3 billion — would signal renewed earnings momentum.
- A meaningful acceleration in revenue growth beyond the near-zero rate observed in FY2025 would materially improve the growth score and overall composite rating.
Bearish Triggers
- If the pronounced deceleration in net income and operating income seen through 2026Q1 continues or deepens, the momentum and growth profiles could deteriorate further.
- A decline in the interest coverage ratio or erosion of the massive asset base would undermine the perfect financial health score that currently anchors the composite rating.
Risk Profile
Very Low RiskBerkshire Hathaway carries a Very Low risk rating, supported by an interest coverage ratio of 16.3 in FY2025 and a total asset base exceeding $1.2 trillion, which together indicate the company can comfortably service its obligations. However, the sharp swings in quarterly net income and operating income — with net income dropping from $30.8 billion in 2025Q3 to $10.1 billion in 2026Q1 — introduce some earnings volatility worth monitoring.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.