Brighthouse Financial, Inc. Fundamental Analysis (NASDAQ: BHFAN)
Brighthouse Financial, Inc. Fundamental Analysis (NASDAQ: BHFAN)
Brighthouse Financial, Inc. (NASDAQ: BHFAN) shows moderate financial fundamentals with a PE ratio of 4.12, profit margin of 13.22%, and ROE of 13.17%. The company generates $6.2B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 31.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze BHFAN's fundamental strength across five key dimensions:
Efficiency Score
WeakBHFAN struggles to generate sufficient returns from assets.
Valuation Score
ExcellentBHFAN trades at attractive valuation levels.
Growth Score
ModerateBHFAN shows steady but slowing expansion.
Financial Health Score
ExcellentBHFAN maintains a strong and stable balance sheet.
Profitability Score
WeakBHFAN struggles to sustain strong margins.
Key Financial Metrics
Is BHFAN Expensive or Cheap?
P/E Ratio
BHFAN trades at 4.12 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, BHFAN's PEG of -0.01 indicates potential undervaluation.
Price to Book
The market values Brighthouse Financial, Inc. at 0.46 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.18 times EBITDA. This is generally considered low.
How Well Does BHFAN Make Money?
Net Profit Margin
For every $100 in sales, Brighthouse Financial, Inc. keeps $13.22 as profit after all expenses.
Operating Margin
Core operations generate 15.52 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.17 in profit for every $100 of shareholder equity.
ROA
Brighthouse Financial, Inc. generates $0.34 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Brighthouse Financial, Inc. generates limited operating cash flow of $-892.14M, signaling weaker underlying cash strength.
Free Cash Flow
Brighthouse Financial, Inc. generates weak or negative free cash flow of $-892.14M, restricting financial flexibility.
FCF Per Share
Each share generates $-15.57 in free cash annually.
FCF Yield
BHFAN converts -29.92% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
4.12
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.46
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.48
vs 25 benchmark
Current Ratio
Current assets to current liabilities
8792.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.003
vs 25 benchmark
ROCE
Return on capital employed
0.004
vs 25 benchmark
How BHFAN Stacks Against Its Sector Peers
| Metric | BHFAN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 4.12 | 21.10 | Better (Cheaper) |
| ROE | 13.17% | 652.00% | Weak |
| Net Margin | 13.22% | -1585.00% (disorted) | Strong |
| Debt/Equity | 0.48 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 8792.80 | 910.69 | Strong Liquidity |
| ROA | 0.34% | -574.00% (disorted) | Weak |
BHFAN outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Brighthouse Financial, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Value, Dividend, Cyclical
EPS CAGR
N/A
Industry Style: Value, Dividend, Cyclical
FCF CAGR
N/A
Industry Style: Value, Dividend, Cyclical