Brighthouse Financial (BHF)
NASDAQ:BHF
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Brighthouse Financial
(NASDAQ:BHF)
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Rating:54Neutral
Price Target:
$63.00
▲(3.74% Upside)
Action:DowngradedDate:02/25/26
The score is held back primarily by weak cash-flow quality and recent bearish technical momentum. These are partially offset by improving leverage and the shareholder-approved all-cash acquisition, with valuation appearing moderate based on the P/E.
Positive Factors
Stable annuity and life-insurance franchise
Brighthouse’s business model centers on annuities and life insurance sold through third-party distribution, producing recurring premium, fee and spread income. That mix creates durable, contract-driven cash flows and long-duration liabilities where scale in product administration and distribution supports steady revenue over years.
Negative Factors
Persistent negative operating cash flow
Sustained negative operating cash flow signals earnings quality and liquidity concerns for an insurer reliant on investment spread and policy flows. Weak cash generation constrains reinvestment, hedging liquidity, and dividend or liability management flexibility, increasing reliance on capital markets or parent support.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable annuity and life-insurance franchise
Brighthouse’s business model centers on annuities and life insurance sold through third-party distribution, producing recurring premium, fee and spread income. That mix creates durable, contract-driven cash flows and long-duration liabilities where scale in product administration and distribution supports steady revenue over years.
Read all positive factors
Brighthouse Financial (BHF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.47B
Dividend YieldN/A
Average Volume (3M)675.72K
Price to Earnings (P/E)8.6
Beta (1Y)0.87
Revenue Growth27.71%
EPS GrowthN/A
CountryUS
Employees1,400
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)3.70
Shares Outstanding57,184,097
10 Day Avg. Volume530,011
30 Day Avg. Volume675,722
Financial Highlights & Ratios
PEG Ratio0.36
Price to Book (P/B)0.55
Price to Sales (P/S)0.60
P/FCF Ratio-36.31
Enterprise Value/Market Cap0.36
Enterprise Value/Revenue0.19
Enterprise Value/Gross Profit0.54
Enterprise Value/Ebitda1.98
Forecast
1Y Price Target
$68.50Price Target Upside12.79% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)19.99
Revenue Forecast (FY)$8.74B
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 c...
How the Company Makes Money
Brighthouse Financial generates revenue primarily through the sale of its insurance and annuity products. Key revenue streams include premiums collected from life insurance policies, fees from asset management on its annuity products, and investme...
Brighthouse Financial Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong sales performance and shareholder returns, contrasted by declining adjusted earnings and challenges in underwriting margins. The company's strong capital and liquidity position provides a solid foundation, but the decline in earnings and statutory losses raise concerns.Positive Updates
Strong Annuity and Life Insurance Sales
Total annuity sales were $2.6 billion, increasing 16% sequentially and 8% year-over-year. Shield sales contributed significantly with $1.9 billion in the quarter. Life insurance sales reached a record $69 million year-to-date, a 21% increase from the same period in 2024.
Negative Updates
Adjusted Earnings Decline
Adjusted earnings for the quarter were $198 million, down from $245 million in the first quarter of 2025 and $346 million in the second quarter of 2024. The drop was attributed to lower alternative investment income and a lower underwriting margin.
Read all updates
Q2-2025 Updates
Positive
Negative
Strong Annuity and Life Insurance Sales
Total annuity sales were $2.6 billion, increasing 16% sequentially and 8% year-over-year. Shield sales contributed significantly with $1.9 billion in the quarter. Life insurance sales reached a record $69 million year-to-date, a 21% increase from the same period in 2024.
Read all positive updates
Company Guidance
During Brighthouse Financial's Second Quarter 2025 Earnings Conference Call, the company reported strong financial performance and progress in strategic initiatives. Annuity sales reached $2.6 billion, reflecting a 16% sequential increase and an 8% increase compared to the previous year, with Shield sales contributing $1.9 billion. Life insurance sales totaled $33 million, leading to record year-to-date sales of $69 million, up 21% from 2024. The company maintained a robust liquidity position with over $900 million in liquid assets at the holding company as of June 30, 2025. The estimated combined risk-based capital (RBC) ratio stood between 405% and 425%, within the target range of 400% to 450%. Corporate expenses decreased to $202 million from $239 million in the first quarter. The company repurchased $43 million in common stock during the second quarter, contributing to $102 million year-to-date repurchases, with a remaining $441 million capacity under the share repurchase program. Adjusted earnings for the quarter were $198 million, or $3.43 per share.Brighthouse Financial Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
66
Positive
Cash Flow
30
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 6.21B | 4.37B | 3.95B | 6.63B | 3.58B |
| Gross Profit | 4.41B | 2.01B | 336.00M | 6.57B | 3.07B |
| EBITDA | 626.00M | 574.00M | -1.32B | 4.88B | 2.17B |
| Net Income | 433.00M | 388.00M | -1.11B | 3.88B | 1.64B |
Balance Sheet | |||||
| Total Assets | 240.74B | 239.27B | 237.21B | 226.01B | 261.30B |
| Cash, Cash Equivalents and Short-Term Investments | 5.39B | 5.04B | 3.85B | 4.12B | 4.47B |
| Total Debt | 3.15B | 3.15B | 3.16B | 3.16B | 3.16B |
| Total Liabilities | 233.91B | 234.24B | 232.20B | 220.41B | 245.09B |
| Stockholders Equity | 6.77B | 4.96B | 4.94B | 5.46B | 16.14B |
Cash Flow | |||||
| Free Cash Flow | -102.00M | -290.00M | -137.00M | -1.23B | 746.00M |
| Operating Cash Flow | -102.00M | -290.00M | -137.00M | -1.23B | 746.00M |
| Investing Cash Flow | 164.00M | -2.19B | -3.20B | -8.28B | -12.24B |
| Financing Cash Flow | -108.00M | 3.68B | 3.07B | 9.14B | 11.86B |
Brighthouse Financial Technical Analysis
Positive
60.73
Price Trends
61.43
Negative
63.20
Negative
56.65
Positive
Market Momentum
-0.16
Negative
52.59
Neutral
80.43
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BHF, the sentiment is Positive. The current price of 60.73 is above the 20-day moving average (MA) of 60.07, below the 50-day MA of 61.43, and above the 200-day MA of 56.65, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 52.59 is Neutral, neither overbought nor oversold. The STOCH value of 80.43 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BHF.
Brighthouse Financial Risk Analysis
Brighthouse Financial disclosed 48 risk factors in its most recent earnings report. Brighthouse Financial reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
While the Merger is pending, we will be subject to business uncertainties and certain contractual restrictions that could adversely affect our business, results of operations or financial condition Q4, 2025
2.
Failure to complete the Merger could adversely affect our business, results of operations or financial condition, including in the event the Company is required to pay the termination fee Q4, 2025
3.
The completion of the Merger is subject to a number of conditions, many of which are largely outside the parties' control, and, if these conditions are not satisfied or waived, the Merger may not be completed within the expected timeframe or at all Q4, 2025
Brighthouse Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | $3.26B | 15.25 | 5.75% | 2.91% | -4.58% | ― | |
62 Neutral | $3.98B | 11.12 | 8.60% | 1.54% | -1.61% | 15.79% | |
61 Neutral | $6.50B | 6.91 | 12.03% | 3.93% | 35.76% | 636.97% | |
58 Neutral | $3.39B | 447.44 | 2.54% | ― | 1.41% | 150.35% | |
58 Neutral | $7.15B | 276.83 | 0.26% | 2.98% | 24.94% | ― | |
54 Neutral | $3.47B | 8.55 | 7.20% | ― | 27.71% | ― |
* Financial Sector Average
BHF
Brighthouse Financial
60.73
10.23
20.26%
CNO
CNO Financial
42.25
5.05
13.56%
GNW
Genworth Financial
8.75
2.07
30.99%
LNC
Lincoln National
34.20
5.62
19.66%
JXN
Jackson Financial Incorporation
101.62
31.22
44.35%
FG
F&G Annuities & Life Inc
24.03
-9.06
-27.38%
Brighthouse Financial Corporate Events
Business Operations and StrategyM&A TransactionsShareholder Meetings
Brighthouse Financial Shareholders Approve Aquarian Capital Acquisition
Positive
Feb 12, 2026
On February 12, 2026, Brighthouse Financial stockholders held a virtual special meeting at which they approved a merger agreement under which an affiliate of Aquarian Capital LLC will acquire the insurer in an all-cash transaction valued at about ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.