Brighthouse Financial (BHF) AI Stock Analysis

• Market Cap: $2.80B
• Dividend Yield: N/A
• Average Volume (3M): 978.51K
• Price to Earnings (P/E): 5.8
• Beta (1Y): 1.00
• Revenue Growth: 142.17%
• EPS Growth: N/A
• Country: US
• Employees: 1,400
• Sector: Financial
• Sector Strength: 73
• Industry: Insurance - Life
• EPS (TTM): 4.01
• Shares Outstanding: 57,408,985
• 10 Day Avg. Volume: 1,060,569
• 30 Day Avg. Volume: 978,506
• PEG Ratio: 0.08
• Price to Book (P/B): 0.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.24
• Enterprise Value/Market Cap: 0.46
• Enterprise Value/Revenue: 0.07
• Enterprise Value/Gross Profit: 0.29
• Enterprise Value/Ebitda: 0.11
• 1Y Price Target: $61.10
• Price Target Upside: 29.59% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10

• Rating: 49 Neutral
• Price Target: ―

Brighthouse Financial's overall stock score is driven by significant financial instability, as indicated by negative equity and volatile cash flows, weighing heavily on its attractiveness. While the company demonstrates strong sales growth and strategic progress, technical indicators reflect bearish momentum, and valuation remains a mixed picture with low P/E but no dividend yield. The positive aspects from the earnings call help offset some risks, but financial challenges and technical weaknesses are predominant concerns.

Positive Factors

Earnings Performance

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

Share Performance

Shares are up roughly 16% (vs. S&P up 0.8%).

Strategic Initiatives

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

Negative Factors

Capital Position

BHF's capital position has been impaired over the past few quarters given hedging issues, basis risk, and capital strain from new business.

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, Inc. provides annuity and life insurance products in the United States. It operates through three segments: Annuities, Life, and Run-off. The Annuities segment offers variable, fixed, index-linked, and income annuities for contract holders' needs for protected wealth accumulation on a tax-deferred basis, wealth transfer, and income security. The Life segment provides term, universal, whole, and variable life policies for policyholders' needs for financial security and protected wealth transfer. The Run-off segment manages structured settlements, pension risk transfer contracts, certain company-owned life insurance policies, funding agreements, and universal life with secondary guarantees. The company was incorporated in 2016 and is based in Charlotte, North Carolina.

How the Company Makes Money

Brighthouse Financial makes money primarily through the sale of annuity and life insurance products. These products generate revenue through premiums collected from policyholders. The company invests these premiums to generate returns, which contribute to its income. Additionally, Brighthouse Financial earns fees from managing certain investment portfolios linked to its annuity and insurance products. The company's earnings are also influenced by factors such as interest rates, mortality rates, and the performance of the financial markets. Partnerships with financial advisors and brokers are significant in distributing their products and expanding their market reach, thereby enhancing revenue growth.

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 insurance industry context partially explains revenue and profit variability, but 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.37B	3.95B	6.63B	3.58B	8.27B
Gross Profit	2.01B	336.00M	6.57B	3.07B	697.00M
EBITDA	574.00M	-1.32B	4.88B	2.17B	-1.24B
Net Income	388.00M	-1.11B	3.88B	1.64B	-1.06B
Balance Sheet
Total Assets	238.54B	236.34B	225.72B	259.84B	247.87B
Cash, Cash Equivalents and Short-Term Investments	86.97B	3.85B	80.77B	94.00B	89.84B
Total Debt	3.15B	3.16B	3.16B	3.16B	3.44B
Total Liabilities	234.24B	231.33B	220.19B	4.22B	5.06B
Stockholders Equity	4.96B	4.94B	5.46B	16.14B	18.02B
Cash Flow
Free Cash Flow	-290.00M	-137.00M	-1.15B	746.00M	888.00M
Operating Cash Flow	-290.00M	-137.00M	-1.15B	746.00M	888.00M
Investing Cash Flow	-100.00M	-3.20B	-8.28B	-12.24B	-5.84B
Financing Cash Flow	3.68B	3.07B	9.07B	11.86B	6.19B

Brighthouse Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 47.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 47.15 is below the 20-day moving average (MA) of 50.31, below the 50-day MA of 54.81, and below the 200-day MA of 53.55, indicating a bearish trend. The MACD of -1.73 indicates Positive momentum. The RSI at 33.44 is Neutral, neither overbought nor oversold. The STOCH value of 6.67 is Positive, 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
GNW	73 Outperform	$3.32B	16.09	2.73%	―	0.98%	156.14%
FG	70 Outperform	$4.33B	8.70	12.72%	2.71%	-1.72%	95.91%
JXN	69 Neutral	$6.29B	85.74	1.24%	3.40%	3.55%	8.91%
LNC	65 Neutral	$5.99B	4.99	16.91%	5.14%	8.31%	-2.30%
CNO	61 Neutral	$3.73B	13.13	11.35%	1.76%	-0.78%	-16.22%
Sector *	58 Neutral	HK$92.81B	5.77	-3.20%	4.92%	5.50%	-56.25%
BHF	49 Neutral	$2.80B	5.78	13.00%	―	142.17%	―

Brighthouse Financial Corporate Events

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.

The most recent analyst rating on (BHF) stock is a Hold with a $59.00 price target. To see the full list of analyst forecasts on Brighthouse Financial stock, see the BHF Stock Forecast page.

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.

The most recent analyst rating on (BHF) stock is a Hold with a $59.00 price target. To see the full list of analyst forecasts on Brighthouse Financial stock, see the BHF Stock Forecast page.

Brighthouse Financial Reports Q1 2025 Results with Net Loss

Brighthouse Financial reported its first-quarter 2025 results, showing a net loss of $294 million, a significant improvement from the $519 million loss in the same quarter of 2024. Despite the net loss, the company achieved adjusted earnings of $245 million, reflecting strong sales of its Shield Level Annuities and a robust capital position. The company also repurchased $85 million of its common stock year-to-date through May 6, 2025, indicating confidence in its financial stability.