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BHFAO Stock Analysis - Brighthouse Financial, Inc. AI Rating

BHFAO Nasdaq Life Insurance DE CIK: 0001685040
Recently Updated • Analysis: Mar 21, 2026 • SEC Data: 2025-12-31
AI Rating
BUY
72% Confidence

📊 BHFAO Key Takeaways

Revenue: $6.8B
Net Margin: 6.4%
Free Cash Flow: $259.0M
Current Ratio: N/A
Debt/Equity: 0.47x
EPS: $5.71
AI Rating: BUY with 72% confidence

Investment Thesis

Brighthouse Financial demonstrates strong fundamental momentum with revenue growth of 43.2% YoY and net income growth of 30.8% YoY, indicating effective business expansion in the life insurance sector. However, the company operates with a modest net margin of 6.4% and critically low ROA of 0.2%, reflecting the capital-intensive nature of insurance operations, while the improving 7.0% operating margin suggests operational leverage is beginning to take effect.

BHFAO Strengths

  • + Robust revenue growth of 43.2% YoY demonstrates strong market demand and business expansion
  • + Net income growth of 30.8% YoY outpaces revenue growth, indicating improving operational efficiency
  • + Strong balance sheet with $5.4B in cash and reasonable debt/equity ratio of 0.47x provides financial flexibility
  • + Positive free cash flow of $259.0M with 3.8% FCF margin indicates ability to fund operations and capital allocation
  • + EPS growth of 23.1% YoY demonstrates improving shareholder value creation

BHFAO Risks

  • ! Critically low ROA of 0.2% indicates poor asset utilization efficiency, typical but concerning even for insurance sector
  • ! Modest net margin of 6.4% leaves limited cushion for underwriting losses or market downturns
  • ! Interest coverage ratio of 3.1x provides modest protection against debt service obligations
  • ! Heavy asset base of $241.8B with $235.0B liabilities creates significant operational and market risk exposure
  • ! Limited insider buying activity (7 Form 4 filings) may suggest cautious management sentiment

Key Metrics to Watch

BHFAO Financial Metrics

Revenue
$6.8B
Net Income
$433.0M
EPS (Diluted)
$5.71
Free Cash Flow
$259.0M
Total Assets
$241.8B
Cash Position
$5.4B

💡 AI Analyst Insight

The relatively thin 3.8% FCF margin may limit capital allocation flexibility. The current ratio below 1.0x warrants monitoring of short-term liquidity.

BHFAO Profitability Ratios

Gross Margin N/A
Operating Margin 7.0%
Net Margin 6.4%
ROE 6.4%
ROA 0.2%
FCF Margin 3.8%

BHFAO vs Finance Sector

How Brighthouse Financial, Inc. compares to Finance sector averages

Net Margin
BHFAO 6.4%
vs
Sector Avg 25.0%
BHFAO Sector
ROE
BHFAO 6.4%
vs
Sector Avg 12.0%
BHFAO Sector
Current Ratio
BHFAO 0.0x
vs
Sector Avg 1.2x
BHFAO Sector
Debt/Equity
BHFAO 0.5x
vs
Sector Avg 2.0x
BHFAO Sector

Sector benchmarks are approximate industry averages. Actual sector performance may vary.

BHFAO Balance Sheet & Liquidity

Current Ratio
N/A
Quick Ratio
N/A
Debt/Equity
0.47x
Debt/Assets
97.2%
Interest Coverage
3.12x
Long-term Debt
$3.2B

BHFAO 5-Year Financial Trend

BHFAO 5-year financial data: Year 2021: Revenue $8.5B, Net Income -$740.0M, EPS $-6.76. Year 2022: Revenue $8.5B, Net Income -$1.1B, EPS $-11.58. Year 2023: Revenue $6.9B, Net Income $1.6B, EPS $18.39. Year 2024: Revenue $6.9B, Net Income $3.9B, EPS $51.30. Year 2025: Revenue $6.8B, Net Income -$1.1B, EPS $-18.39.
Revenue
Net Income
EPS (right axis)

5-Year Trend Summary: Brighthouse Financial, Inc.'s revenue has declined by 20% over the 5-year period, indicating business contraction. The most recent EPS of $-18.39 indicates the company is currently unprofitable.

BHFAO Growth Metrics (YoY)

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
3.8%
Free cash flow / Revenue

BHFAO Quarterly Performance

Quarterly financial performance data for Brighthouse Financial, Inc. including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
Q3 2025 $1.8B $176.0M $2.47
Q2 2025 $871.0M $34.0M $0.12
Q1 2025 $74.0M -$268.0M $-5.04
Q3 2024 $1.2B $176.0M $2.47
Q2 2024 $263.0M $34.0M $0.12
Q1 2024 $74.0M -$493.0M $-7.72
Q3 2023 $1.1B -$195.0M $-4.08
Q2 2023 $263.0M -$175.0M $-3.01

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

BHFAO Capital Allocation

Operating Cash Flow
$259.0M
Cash generated from operations
Stock Buybacks
$102.0M
Shares repurchased (TTM)
Dividends
None
No dividend program

BHFAO SEC Filings

Access official SEC EDGAR filings for Brighthouse Financial, Inc. (CIK: 0001685040)

📋 Recent SEC Filings

Date Form Document Action
Mar 2, 2026 4 xslF345X05/wk-form4_1772494249.xml View →
Mar 2, 2026 4 xslF345X05/wk-form4_1772494158.xml View →
Mar 2, 2026 4 xslF345X05/wk-form4_1772494068.xml View →
Mar 2, 2026 4 xslF345X05/wk-form4_1772493934.xml View →
Mar 2, 2026 4 xslF345X05/wk-form4_1772493847.xml View →

Frequently Asked Questions about BHFAO

What is the AI rating for BHFAO?

Brighthouse Financial, Inc. (BHFAO) has an AI rating of BUY with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are BHFAO's key strengths?

Robust revenue growth of 43.2% YoY demonstrates strong market demand and business expansion. Net income growth of 30.8% YoY outpaces revenue growth, indicating improving operational efficiency.

What are the risks of investing in BHFAO?

Critically low ROA of 0.2% indicates poor asset utilization efficiency, typical but concerning even for insurance sector. Modest net margin of 6.4% leaves limited cushion for underwriting losses or market downturns.

What is BHFAO's revenue and growth?

Brighthouse Financial, Inc. reported revenue of $6.8B.

Does BHFAO pay dividends?

Brighthouse Financial, Inc. does not currently pay dividends.

Where can I find BHFAO SEC filings?

Official SEC filings for Brighthouse Financial, Inc. (CIK: 0001685040) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.

What is BHFAO's EPS?

Brighthouse Financial, Inc. has a diluted EPS of $5.71.

How is the AI analysis conducted?

Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.

Disclaimer: This analysis is generated by Claude AI based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Mar 21, 2026 | Data as of: 2025-12-31 | Powered by Claude AI