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BHF

Brighthouse FinancialNasdaqGS:BHF Stock Report

Market Cap

US$3.6b

7D

0.1%

1Y

71.6%

Updated

26 Sep, 2021

Data

Company Financials +
BHF fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance0/6
Financial Health4/6
Dividends0/6

BHF Overview

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

Rewards

Trading at 75.7% below our estimate of its fair value

Earnings are forecast to grow 138.33% per year

Risk Analysis

No risks detected for BHF from our risk checks.

Brighthouse Financial Competitors

MetLife

NYSE:MET

US$52.6b

Prudential Financial

NYSE:PRU

US$40.1b

Lincoln National

NYSE:LNC

US$12.9b

Globe Life

NYSE:GL

US$9.0b

Price History & Performance

Summary of all time highs, changes and price drops for Brighthouse Financial
Historical stock prices
Current Share PriceUS$44.29
52 Week HighUS$26.26
52 Week LowUS$49.99
Beta1.57
1 Month Change-9.70%
3 Month Change-1.82%
1 Year Change71.60%
3 Year Change0.11%
5 Year Changen/a
Change since IPO-28.24%

Recent News & Updates

Jul 04

Brighthouse Financial: Opaque, With Massive Upside Potential

Brighthouse's financials are hard to analyze due to GAAP accounting and the opacity of the variable annuity business. The company has been a strong compounder of book value in the past. Brighthouse trades at a large discount to book value, and there is considerable insider ownership that aligns management with outside investors.

Shareholder Returns

BHFUS InsuranceUS Market
7D0.1%0.3%0.1%
1Y71.6%42.2%35.3%

Return vs Industry: BHF exceeded the US Insurance industry which returned 42.2% over the past year.

Return vs Market: BHF exceeded the US Market which returned 35.3% over the past year.

Price Volatility

Is BHF's price volatile compared to industry and market?
BHF volatility
BHF Beta1.57
Industry Beta0.97
Market Beta1

Stable Share Price: BHF is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: BHF's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20161,400Eric Steigerwalthttps://www.brighthousefinancial.com

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.

Brighthouse Financial Fundamentals Summary

How do Brighthouse Financial's earnings and revenue compare to its market cap?
BHF fundamental statistics
Market CapUS$3.64b
Earnings (TTM)-US$4.66b
Revenue (TTM)US$3.05b

1.2x

P/S Ratio

-0.8x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
BHF income statement (TTM)
RevenueUS$3.05b
Cost of RevenueUS$6.52b
Gross Profit-US$3.47b
ExpensesUS$1.18b
Earnings-US$4.66b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Nov 04, 2021

Earnings per share (EPS)-56.69
Gross Margin-113.94%
Net Profit Margin-152.79%
Debt/Equity Ratio55.7%

How did BHF perform over the long term?

See historical performance and comparison

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: BHF ($44.29) is trading below our estimate of fair value ($182.34)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: BHF is good value based on its PB Ratio (0.2x) compared to the US Insurance industry average (1.1x).


Future Growth

How is Brighthouse Financial forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

138.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BHF is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

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

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

Revenue vs Market: BHF's revenue (10.6% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: BHF's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BHF's Return on Equity is forecast to be low in 3 years time (9.9%).


Past Performance

How has Brighthouse Financial performed over the past 5 years?

4.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BHF is currently unprofitable.

Growing Profit Margin: BHF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: BHF is unprofitable, but has reduced losses over the past 5 years at a rate of 4.1% per year.

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

Earnings vs Industry: BHF is unprofitable, making it difficult to compare its past year earnings growth to the Insurance industry (76%).


Return on Equity

High ROE: BHF has a negative Return on Equity (-28.28%), as it is currently unprofitable.


Financial Health

How is Brighthouse Financial's financial position?


Financial Position Analysis

Short Term Liabilities: BHF's short term assets ($25.9B) exceed its short term liabilities ($15.1B).

Long Term Liabilities: BHF's short term assets ($25.9B) do not cover its long term liabilities ($222.6B).


Debt to Equity History and Analysis

Debt Level: BHF's debt to equity ratio (55.7%) is considered high.

Reducing Debt: BHF's debt to equity ratio has reduced from 105.4% to 55.7% over the past 5 years.


Balance Sheet


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 BHF has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: BHF is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 26.1% per year.


Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if BHF'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 BHF's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Eric Steigerwalt (59 yo)

5.08yrs

Tenure

US$8,133,344

Compensation

Mr. Eric Thomas Steigerwalt has been the President, Chief Executive Officer and Director at Brighthouse Financial, Inc. since August 2016. Mr. Steigerwalt serves as Chairman, Chief Executive Officer and Pr...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD8.13M) is above average for companies of similar size in the US market ($USD5.28M).

Compensation vs Earnings: Eric's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: BHF's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: BHF's board of directors are considered experienced (4.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Brighthouse Financial, Inc.
  • Ticker: BHF
  • Exchange: NasdaqGS
  • Founded: 2016
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$3.638b
  • Shares outstanding: 82.15m
  • Website: https://www.brighthousefinancial.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:04
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.