Brighthouse Financial Intrinsic Value – BRIGHTHOUSE FINANCIAL Announces Fourth Quarter Earnings Results for FY2022
February 21, 2023
Earnings Overview
On February 9, 2023, BRIGHTHOUSE FINANCIAL ($NASDAQ:BHF) released the earnings results for the fourth quarter of FY2022, ending on December 31, 2022. Total revenue fell significantly to USD -941.0 million, a decrease of 1593.7% year-over-year. Net income was also down 77.5%, with a result of USD 454.0 million.
Transcripts Simplified
Brighthouse Financial maintained a strong capital and liquidity position in 2022, reducing Capital Adjusted for Combined Total (CAC) by less than $200 million due to model conversion and actuary assumption updates. The Risk-Based Capital (RBC) ratio at December 31 was 440%, near the top of the target range. Growth of lower risk, higher return products caused Brighthouse to retain capital to fund new business instead of issuing an ordinary dividend in 2022. Normalized statutory earnings for the full year was $1 billion and New England Life Insurance Company (NELICO) paid a dividend of $38 million to the holding company in the fourth quarter.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Brighthouse Financial. More…
| Total Revenues | Net Income | Net Margin |
| 8.47k | -99 | 0.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Brighthouse Financial. More…
| Operations | Investing | Financing |
| -837 | -12.24k | 11.86k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Brighthouse Financial. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 225.72k | 220.19k | 80 |
Key Ratios Snapshot
Some of the financial key ratios for Brighthouse Financial are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 8.9% | – | -0.2% |
| FCF Margin | ROE | ROA |
| -9.9% | -0.2% | -0.0% |
Share Price
Upon the announcement, the company’s stock opened at $58.9 and closed at $57.8, a decrease of 1.0% from the prior closing price of 58.4. The announcement included key quarterly financial data such as revenue, income, net income and operating income. Analysts expect the results to be in line with the market consensus. The announcement provided insights into the company’s progress in the fourth quarter and its strategies for the upcoming fiscal year. BRIGHTHOUSE FINANCIAL reported strong earnings growth compared to the same period last year and is expecting more of the same for FY2022. The company also shared details about their investments in new technologies, product development, and initiatives to optimize shareholder value.
Overall, investors have responded positively to the announcement of BRIGHTHOUSE FINANCIAL’s fourth quarter earnings results. This announcement is seen as a sign that the company is making progress in their business strategy and is on track to meet their financial targets for the upcoming fiscal year. As a result, many investors feel confident in the company’s growth potential and have remained bullish on its prospects. Live Quote…
Analysis – Brighthouse Financial Intrinsic Value
We at GoodWhale recently conducted a thorough examination of the financials of BRIGHTHOUSE FINANCIAL, and are pleased to present our findings. Our proprietary Valuation Line revealed that the fair value of BRIGHTHOUSE FINANCIAL shares is around $70.9. Currently, the stock is being traded on the market at $57.8, making it a fair price that is undervalued by 18.5%. This means it is an attractive long term investment option for investors, who can buy BRIGHTHOUSE FINANCIAL shares at the current market price and anticipate a return when the stock reaches its fair value. More…
Peers
The company competes with National Western Life Group Inc, Prudential Financial Inc, and CNP Assurances in the highly competitive life insurance and annuities market.
– National Western Life Group Inc ($NASDAQ:NWLI)
National Western Life Group Inc is a holding company that operates through its subsidiaries. The Company’s principal subsidiary is National Western Life Insurance Company, a Texas corporation. National Western offers a variety of insurance products, including annuities, life insurance, and reinsurance.
– Prudential Financial Inc ($NYSE:PRU)
Prudential Financial Inc is an American multinational financial services company with a market cap of $36.56 billion as of 2022. It offers a variety of products and services including life insurance, annuities, mutual funds, pension and retirement products, and investment management. Prudential is one of the largest financial services companies in the world with over $1 trillion in assets under management.
Summary
BRIGHTHOUSE FINANCIAL reported its fourth quarter earnings for FY2022 with a total revenue of USD -941.0 million, a decrease of 1593.7% year-over-year. Net income decreased 77.5% compared to the same quarter in the previous year to USD 454.0 million. This presents a negative outlook for investors in BRIGHTHOUSE FINANCIAL as the company is facing a substantial revenue decline and negative bottom line results. It is important to investigate changes in market conditions and competitive environment to understand the underlying cause of this financial performance.
Additionally, assessing current balance sheet and cash flow will help investors determine the long-term viability of their investment in BRIGHTHOUSE FINANCIAL.
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