MUN:BROC

Stock Analysis Report

Brighthouse Financial

Executive Summary

Brighthouse Financial, Inc. provides annuity and life insurance products in the United States.


Snowflake Analysis

Reasonable growth potential and fair value.


Similar Companies

Share Price & News

How has Brighthouse Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BROC's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

52.3%

BROC

1.2%

DE Insurance

2.2%

DE Market


1 Year Return

-31.2%

BROC

-17.1%

DE Insurance

-17.2%

DE Market

Return vs Industry: BROC underperformed the German Insurance industry which returned -17.1% over the past year.

Return vs Market: BROC underperformed the German Market which returned -17.2% over the past year.


Shareholder returns

BROCIndustryMarket
7 Day52.3%1.2%2.2%
30 Day-33.9%-20.0%-15.7%
90 Day-35.0%-28.2%-24.0%
1 Year-31.2%-31.2%-13.5%-17.1%-14.9%-17.2%
3 Yearn/a9.1%-4.1%-16.4%-23.3%
5 Yearn/a22.2%-2.2%-16.5%-27.8%

Price Volatility Vs. Market

How volatile is Brighthouse Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Brighthouse Financial undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BROC (€23) is trading below our estimate of fair value (€103.64)

Significantly Below Fair Value: BROC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BROC is unprofitable, so we can't compare its PE Ratio to the Insurance industry average.

PE vs Market: BROC is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate BROC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: BROC is good value based on its PB Ratio (0.2x) compared to the DE Insurance industry average (0.9x).


Next Steps

Future Growth

How is Brighthouse Financial forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

78.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BROC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: BROC is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: BROC's is expected to become profitable in the next 3 years.

Revenue vs Market: BROC's revenue (6% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: BROC's revenue (6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BROC's Return on Equity is forecast to be low in 3 years time (5.1%).


Next Steps

Past Performance

How has Brighthouse Financial performed over the past 5 years?

10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BROC is currently unprofitable.

Growing Profit Margin: BROC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BROC is unprofitable, but has reduced losses over the past 5 years at a rate of 10.2% per year.

Accelerating Growth: Unable to compare BROC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: BROC is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (17.9%).


Return on Equity

High ROE: BROC has a negative Return on Equity (-4.53%), as it is currently unprofitable.


Next Steps

Financial Health

How is Brighthouse Financial's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BROC has a low level of unsold assets or inventory.

Debt Coverage by Assets: BROC's debt is covered by short term assets (assets are 2.6x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable BROC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BROC is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -13.4% per year.


Financial Institutions Analysis

Asset Level: BROC's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if BROC has a sufficient allowance for bad loans.

Low Risk Liabilities: BROC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BROC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BROC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BROC has an appropriate level of bad loans.


Next Steps

Dividend

What is Brighthouse Financial's current dividend yield, its reliability and sustainability?

0.20%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BROC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate BROC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BROC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BROC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BROC's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.0yrs

Average management tenure


CEO

Brighthouse Financial has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Conor Murphy
Executive VP & COO1.67yrsUS$3.88m0.024% $543.7k
John Rosenthal
Executive VP & Chief Investment Officer3.58yrsUS$5.12m0.050% $1.2m
Christine DeBiase
Executive VP2yrsUS$4.33m0.030% $683.5k
Edward Spehar
Executive VP & CFO0.58yrno data0.0048% $110.0k
Lynn Dumais
Chief Accounting Officerno datano data0.0064% $147.7k
David Rosenbaum
Head of Investor Relationsno datano datano data
Myles Lambert
Executive VP and Chief Distribution & Marketing Officer3.58yrsno data0.019% $440.4k
Jin Chang
VP & Treasurerno datano datano data
D. Arrington
Corporate Secretaryno datano datano data

2.0yrs

Average Tenure

50yo

Average Age

Experienced Management: BROC's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Charles Chaplin
Independent Chairman of the Board2.58yrsUS$563.28k0.014% $319.2k
Eric Steigerwalt
Director3.58yrsUS$15.54m0.13% $3.0m
Margaret McCarthy
Independent Director1.25yrsUS$89.96k0.0042% $97.3k
Diane Offereins
Independent Director2.58yrsUS$363.28k0.0045% $103.3k
Eileen Mallesch
Independent Director1.25yrsUS$89.96k0.0014% $32.6k
Irene Britt
Independent Director2.58yrsUS$363.28k0.0045% $103.3k
Patrick Shouvlin
Independent Director2.67yrsUS$368.28k0.0092% $213.1k
Paul Wetzel
Independent Director2.58yrsUS$345.78k0.0045% $103.3k
William Wallace
Independent Director2.58yrsUS$363.28k0.0092% $213.1k

2.6yrs

Average Tenure

62yo

Average Age

Experienced Board: BROC's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: BROC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Brighthouse Financial, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Brighthouse Financial, Inc.
  • Ticker: BROC
  • Exchange: MUN
  • Founded: 2016
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$2.540b
  • Listing Market Cap: US$2.312b
  • Shares outstanding: 105.10m
  • Website: https://www.brighthousefinancial.com

Number of Employees


Location

  • Brighthouse Financial, Inc.
  • 11225 North Community House Road
  • Charlotte
  • North Carolina
  • 28277
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BHFNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2017
BROCMUN (Boerse Muenchen)YesCommon StockDEEURJul 2017
BHF *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2017
0HPHLSE (London Stock Exchange)YesCommon StockGBUSDJul 2017
BROCBRSE (Berne Stock Exchange)YesCommon StockCHCHFJul 2017
BHFA.PNasdaqGS (Nasdaq Global Select)6.6% DP PFD AUSUSDMar 2019

Biography

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 consist of term, universal, whole, and variable life products for policyholders’ needs for financial security and protected wealth transfer. The Run-off segment provides structured settlements, pension risk transfer contracts, certain company-owned life insurance policies, funding agreements, and universal life with secondary guarantees. The company was founded in 2016 and is headquartered in Charlotte, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 23:18
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.