Brighthouse Financial (BHF) AI Stock Analysis

• Market Cap: $2.99B
• Dividend Yield: N/A
• Average Volume (3M): 775.34K
• Price to Earnings (P/E): 6.2
• Beta (1Y): 0.97
• Revenue Growth: 142.17%
• EPS Growth: N/A
• Country: US
• Employees: 1,400
• Sector: Financial
• Sector Strength: 80
• Industry: Insurance - Life
• EPS (TTM): 4.01
• Shares Outstanding: 57,408,985
• 10 Day Avg. Volume: 851,253
• 30 Day Avg. Volume: 775,339
• PEG Ratio: -3.36
• Price to Book (P/B): 0.68
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.25
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 0.57
• Enterprise Value/Ebitda: -0.84
• 1Y Price Target: $59.67
• Price Target Upside: 14.73% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7

• 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.

Mergers and Acquisitions

Upgrading BHF to Strong Buy, as it could unlock substantial value via a whole company sale or by using creative options to free up capital.

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, Inc. (BHF) is a major provider of annuities and life insurance in the United States. The company focuses on offering a range of financial products designed to help individuals protect their financial futures. Brighthouse Financial operates primarily in the insurance sector, delivering solutions that are tailored to meet the retirement and protection needs of its customers. The company was established as a spin-off from MetLife, Inc. and is headquartered 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 show volatility and instability. The income statement indicates inconsistent revenue growth and volatile net profit margins. The balance sheet is weak, with negative equity and high liabilities, raising solvency concerns. Cash flow is strained, with consistently negative free cash flow and fluctuations in operating cash flow.

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	6.91B	4.37B	4.12B	8.47B	7.14B	8.50B
Gross Profit	4.88B	4.37B	4.12B	8.47B	7.14B	8.50B
EBITDA	-168.00M	574.00M	0.00	0.00	0.00	0.00
Net Income	613.00M	388.00M	-1.11B	10.00M	-103.00M	-1.06B
Balance Sheet
Total Assets	234.68B	238.54B	236.34B	225.72B	259.84B	247.87B
Cash, Cash Equivalents and Short-Term Investments	85.31B	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	229.38B	234.24B	231.33B	220.19B	4.22B	5.06B
Stockholders Equity	5.24B	4.96B	4.94B	5.46B	16.14B	18.02B
Cash Flow
Free Cash Flow	386.00M	-290.00M	-137.00M	-1.15B	746.00M	888.00M
Operating Cash Flow	386.00M	-290.00M	-137.00M	-1.15B	746.00M	888.00M
Investing Cash Flow	-1.01B	-100.00M	-3.20B	-8.28B	-12.24B	-5.84B
Financing Cash Flow	1.46B	3.68B	3.07B	9.07B	11.86B	6.19B

Brighthouse Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 52.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 52.01 is below the 20-day moving average (MA) of 55.38, below the 50-day MA of 57.44, and below the 200-day MA of 53.16, indicating a bearish trend. The MACD of -1.60 indicates Positive momentum. The RSI at 36.48 is Neutral, neither overbought nor oversold. The STOCH value of 22.78 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
GNW	73 Outperform	$3.24B	15.28	2.73%	―	0.98%	156.14%
JXN	69 Neutral	$6.29B	85.79	1.24%	3.64%	3.55%	8.91%
FG	67 Neutral	$4.20B	8.42	12.72%	2.79%	-1.72%	95.91%
LNC	65 Neutral	$5.85B	4.87	16.91%	5.14%	8.31%	-2.30%
Sector *	64 Neutral	$6.51B	11.17	7.19%	226.02%	23.75%	4.96%
CNO	61 Neutral	$3.72B	13.11	12.47%	1.81%	-0.78%	-16.22%
BHF	49 Neutral	$2.99B	6.22	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.