Brighthouse Financial (BHF) AI Stock Analysis

• Market Cap: $2.64B
• Dividend Yield: N/A
• Average Volume (3M): 856.04K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 1.02
• Revenue Growth: 59.27%
• EPS Growth: N/A
• Country: US
• Employees: 1,400
• Sector: Financial
• Sector Strength: 72
• Industry: Insurance - Life
• EPS (TTM): 3.43
• Shares Outstanding: 57,152,370
• 10 Day Avg. Volume: 706,270
• 30 Day Avg. Volume: 856,040
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.40
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 2.67
• Enterprise Value/Ebitda: 6.93
• 1Y Price Target: $59.70
• Price Target Upside: 28.61% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 62 Neutral
• Price Target: $48.00 ▲(3.40% Upside)

Brighthouse Financial's overall stock score reflects a mixed financial performance with strong valuation metrics. The company's profitability and operational efficiency are strengths, but declining revenue and weak cash flow growth are significant concerns. Technical indicators suggest a bearish trend, while the earnings call presents a balanced view with strong sales but declining earnings. The low P/E ratio indicates potential undervaluation, which partially offsets other risks.

Positive Factors

Earnings Performance

BHF reported Q4 EPS of $5.07, above estimates and consensus, indicating stronger-than-expected earnings performance.

Sales Performance

Annuity sales were $2.3B and Shield sales were $2.0B, showing positive growth in sales.

Strategic Initiatives

Strategic initiatives, including a hedging/reinsurance deal, totaled north of $400m benefit to statutory earnings.

Negative Factors

Capital Adequacy

The RBC ratio came in below its 400-450% range for FY 2024, indicating potential capital adequacy concerns.

Corporate Expenses

Corporate expenses were higher than expected, at $239M versus an estimate of $203M.

Financial Stability

Normalized statutory earnings were a loss in the quarter, contributing to a negative outlook on financial stability.

Brighthouse Financial Business Overview & Revenue Model

Company Description

Brighthouse Financial (BHF) is a leading provider of life insurance and annuity products in the United States. Established as a spin-off from MetLife, Brighthouse focuses on offering solutions that help individuals and families achieve financial security, particularly in retirement. The company operates primarily in the insurance and financial services sectors, providing a range of products including term and whole life insurance, fixed and variable annuities, and investment solutions designed to meet the long-term savings and protection needs of its customers.

How the Company Makes Money

Brighthouse Financial generates revenue primarily through the sale of its insurance and annuity products. The company's key revenue streams include premiums collected from life insurance policies and fees from annuity contracts. Additionally, Brighthouse earns income from the investment of premiums and reserves in various financial assets. The company also benefits from asset management fees associated with its investment products. Significant partnerships with financial advisors and broker-dealers enhance its distribution capabilities, allowing Brighthouse to reach a wider customer base and drive sales. Furthermore, the company's focus on innovative product offerings and customer-centric solutions contributes to its financial performance.

Brighthouse Financial Financial Statement Overview

Summary

Brighthouse Financial's financial statements exhibit volatility and financial instability, marked by inconsistent income and cash flow performance, and a weakened balance sheet position with negative equity. The negative equity and cash flow challenges raise concerns about financial resilience and sustainability.

Income Statement

Brighthouse Financial's income statement reveals fluctuating performance with significant swings in net income over recent years. The gross profit margin remains stable due to the nature of the insurance industry, but the net profit margin is volatile, showing a stark improvement in 2024 from a significant loss in 2023. Revenue growth has been inconsistent, with a noticeable drop in 2023 followed by a rebound in 2024.

Balance Sheet

The balance sheet shows a concerning negative equity position in 2024, a significant deterioration from previous years. The debt-to-equity ratio is unfavorable due to negative equity, and the overall financial stability is weakened by high liabilities compared to assets, posing a risk to long-term solvency.

Cash Flow

The cash flow statement highlights challenges with consistently negative free cash flow and operating cash flow in recent years. Although there was a slight improvement in operating cash flow in 2024, the overall cash flow health is weak, with substantial fluctuations in free cash flow growth and negative operating cash flow to net income ratios.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.29B	4.37B	3.95B	6.63B	3.58B	8.50B
Gross Profit	2.37B	2.01B	336.00M	6.57B	3.07B	697.00M
EBITDA	913.00M	574.00M	-1.32B	4.88B	2.17B	-1.24B
Net Income	664.00M	388.00M	-1.11B	3.88B	1.64B	-1.06B
Balance Sheet
Total Assets	242.65B	238.54B	236.34B	225.72B	259.84B	247.87B
Cash, Cash Equivalents and Short-Term Investments	86.38B	86.97B	3.85B	80.77B	94.00B	89.84B
Total Debt	3.15B	3.15B	3.16B	3.16B	3.16B	3.44B
Total Liabilities	236.91B	234.24B	231.33B	220.19B	243.63B	229.78B
Stockholders Equity	5.67B	4.96B	4.94B	5.46B	16.14B	18.02B
Cash Flow
Free Cash Flow	51.00M	-290.00M	-137.00M	-1.15B	746.00M	888.00M
Operating Cash Flow	51.00M	-290.00M	-137.00M	-1.15B	746.00M	888.00M
Investing Cash Flow	188.00M	-2.19B	-3.20B	-8.28B	-12.24B	-5.84B
Financing Cash Flow	860.00M	3.68B	3.07B	9.14B	11.86B	6.19B

Brighthouse Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 46.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BHF, the sentiment is Negative. The current price of 46.42 is below the 20-day moving average (MA) of 46.78, below the 50-day MA of 50.71, and below the 200-day MA of 53.43, indicating a bearish trend. The MACD of -1.26 indicates Negative momentum. The RSI at 43.06 is Neutral, neither overbought nor oversold. The STOCH value of 76.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BHF.

Brighthouse Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FG	79 Outperform	$4.59B	13.93	8.40%	2.55%	1.78%	0.77%
CNO	73 Outperform	$3.68B	13.98	11.35%	1.68%	0.82%	-29.29%
LNC	71 Outperform	$7.69B	7.08	12.97%	4.40%	11.33%	-38.17%
GNW	67 Neutral	$3.46B	19.14	2.42%	―	2.61%	465.03%
Sector *	67 Neutral	¥850.22B	13.13	9.24%	2.97%	7.76%	9.30%
JXN	63 Neutral	$6.67B	82.50	0.30%	3.12%	27.18%	-100.02%
BHF	62 Neutral	$2.64B	5.05	13.53%	―	59.27%	―

Brighthouse Financial Corporate Events

Brighthouse Financial Reports Q2 2025 Earnings Increase

On August 7, 2025, Brighthouse Financial announced its financial results for the second quarter ended June 30, 2025. The company reported a significant increase in net income available to shareholders, reaching $60 million compared to $9 million in the same quarter of 2024. Despite a decrease in adjusted earnings from $346 million in 2024 to $198 million in 2025, the company saw an 8% increase in annuity sales quarter-over-quarter and a 16% sequential rise, driven by fixed annuity sales. Brighthouse Financial also repurchased $102 million of its common stock year-to-date and maintained a robust risk-based capital ratio, reflecting a stable financial position.

Brighthouse Financial Stockholders Vote on Key Proposals

At the 2025 Annual Meeting, Brighthouse Financial‘s stockholders voted on four proposals. The stockholders elected nine directors for a one-year term, ratified Deloitte & Touche LLP as the independent auditor for 2025, approved executive compensation, and endorsed the Employee Plan.

Brighthouse Financial Opposes Potemkin’s Mini-Tender Offer

On May 20, 2025, Brighthouse Financial announced its opposition to an unsolicited mini-tender offer by Potemkin Limited to purchase up to 100,000 shares of its common stock at $36.00 per share, a price significantly below the market value. The company advises shareholders against accepting the offer, which represents a 41.12% discount to the stock’s closing price on May 19, 2025, and highlights that such offers lack the investor protections required by the SEC for larger tender offers.