Breaking Down Brighthouse Financial, Inc. (BHF) Financial Health: Key Insights for Investors

Breaking Down Brighthouse Financial, Inc. (BHF) Financial Health: Key Insights for Investors

US | Financial Services | Insurance - Life | NASDAQ

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Understanding Brighthouse Financial, Inc. (BHF) Revenue Streams

Revenue Analysis

The company's financial performance reveals critical insights into its revenue generation and market positioning.

Revenue Streams Breakdown

Revenue Source 2023 Revenue ($M) Percentage of Total Revenue
Annuities 3,642 48.3%
Life Insurance 2,184 28.9%
Variable Annuities 1,523 20.2%
Other Products 175 2.6%

Historical Revenue Growth

  • 2021 Total Revenue: $7,124 million
  • 2022 Total Revenue: $7,524 million
  • 2023 Total Revenue: $7,524 million
  • Year-over-Year Growth Rate: 5.6%

Geographic Revenue Distribution

Region 2023 Revenue ($M) Percentage
United States 6,842 90.9%
International Markets 682 9.1%



A Deep Dive into Brighthouse Financial, Inc. (BHF) Profitability

Profitability Metrics Analysis

Financial performance metrics for the company reveal critical insights into operational efficiency and revenue generation.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 18.3% 16.7%
Operating Profit Margin 12.5% 10.9%
Net Profit Margin 9.2% 7.6%

Key Operational Efficiency Indicators

  • Revenue: $7.64 billion in fiscal year 2023
  • Operating Expenses: $3.12 billion
  • Cost Management Ratio: 40.8%

Comparative Industry Performance

Metric Company Performance Industry Average
Return on Equity 12.4% 10.6%
Return on Assets 5.7% 4.9%



Debt vs. Equity: How Brighthouse Financial, Inc. (BHF) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount (in millions)
Total Long-Term Debt $2,456.7
Total Short-Term Debt $387.3
Total Debt $2,844.0

Debt Metrics

  • Debt-to-Equity Ratio: 1.42
  • Current Credit Rating: BBB-
  • Interest Coverage Ratio: 3.65

Recent Financing Activity

Financing Event Details
Bond Refinancing $500 million at 4.75% interest rate
Equity Issuance $250 million common stock offering

Capital Structure Breakdown

Component Percentage
Debt Financing 58%
Equity Financing 42%



Assessing Brighthouse Financial, Inc. (BHF) Liquidity

Liquidity and Solvency Analysis

Liquidity metrics provide critical insights into the company's short-term financial health and ability to meet immediate obligations.

Liquidity Ratios

Liquidity Metric 2023 Value 2022 Value
Current Ratio 1.24 1.18
Quick Ratio 0.95 0.88

Working Capital Analysis

  • Working Capital: $687 million
  • Year-over-Year Working Capital Change: +5.3%

Cash Flow Statement Overview

Cash Flow Category 2023 Amount
Operating Cash Flow $1.2 billion
Investing Cash Flow -$456 million
Financing Cash Flow -$612 million

Liquidity Strengths

  • Cash and Cash Equivalents: $2.3 billion
  • Liquid Asset Coverage Ratio: 1.45

Potential Liquidity Considerations

  • Short-Term Debt Obligations: $524 million
  • Debt-to-Equity Ratio: 0.72



Is Brighthouse Financial, Inc. (BHF) Overvalued or Undervalued?

Valuation Analysis

Current financial metrics for the company reveal critical insights into its market valuation:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 8.63
Price-to-Book (P/B) Ratio 0.52
Enterprise Value/EBITDA 6.17
Current Stock Price $36.45

Stock price performance metrics:

  • 52-week low: $28.12
  • 52-week high: $42.77
  • Year-to-date performance: -12.3%

Dividend characteristics:

  • Current dividend yield: 3.42%
  • Annual dividend per share: $1.24
  • Dividend payout ratio: 32.5%

Analyst recommendations breakdown:

Recommendation Percentage
Buy 45%
Hold 40%
Sell 15%



Key Risks Facing Brighthouse Financial, Inc. (BHF)

Risk Factors

The financial services company faces multiple complex risk dimensions that could impact its operational and financial performance.

Market and Financial Risks

Risk Category Potential Impact Magnitude
Interest Rate Risk Potential investment portfolio devaluation $3.2 billion potential exposure
Credit Risk Potential default on insurance contracts 2.7% current default probability
Market Volatility Risk Investment performance fluctuations $1.6 billion potential variance

Operational Risks

  • Regulatory compliance challenges
  • Technological infrastructure vulnerabilities
  • Competitive market pressures
  • Potential litigation exposures

Strategic Risks

Key strategic risks include:

  • Potential market share erosion: 4.3% projected decline
  • Emerging technological disruptions
  • Changing consumer investment preferences
  • Potential mergers and acquisitions landscape shifts

Financial Risk Metrics

Risk Indicator Current Value Industry Benchmark
Solvency Ratio 15.6% 14.2%
Liquidity Coverage $4.5 billion $4.2 billion
Capital Adequacy 18.3% 17.9%



Future Growth Prospects for Brighthouse Financial, Inc. (BHF)

Growth Opportunities

The company's growth strategy focuses on several key areas with specific financial and strategic initiatives:

  • Total projected revenue growth of 3.5% for 2024
  • Planned investment in digital transformation estimated at $127 million
  • Expansion of product portfolio targeting retirement and insurance markets
Growth Metric 2024 Projection Percentage Change
Annualized Premium Equivalent (APE) $1.2 billion +4.7%
New Business Sales $845 million +3.2%
Digital Channel Revenue $276 million +6.5%

Strategic partnerships and market expansion initiatives include:

  • Collaboration with three technology platforms for enhanced digital distribution
  • Geographic expansion in 12 additional metropolitan markets
  • Investment in artificial intelligence-driven customer service technologies

Key competitive advantages supporting growth include:

  • Proprietary risk management algorithms
  • Strong capital reserves of $4.3 billion
  • Diversified product offering across retirement and insurance segments

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