Brighthouse Financial Intrinsic Value – BRIGHTHOUSE FINANCIAL Reports 77.5% Decrease in Net Income for Fourth Quarter of FY2022
February 20, 2023
Earnings report
BRIGHTHOUSE FINANCIAL ($NASDAQ:BHF) reported a 77.5% decrease in net income for the fourth quarter of FY2022 which ended on December 31, 2022. The company’s total revenue was USD -941.0 million, a 1593.7% decrease when compared to the same period the previous year. This decrease is largely attributed to the increased costs associated with the company’s expanded services. The company also saw a drastic decline in net income of USD 454.0 million for this quarter, a decrease of more than three-quarters compared to the same period the year before.
This is believed to be due to changes in the market as a result of shifting trends and customer behavior. BRIGHTHOUSE FINANCIAL’s fourth quarter results are indicative of how the market can be unpredictable despite the best laid plans and forecasting. The company is now focusing on finding ways to increase revenue and optimize operations while navigating the current market uncertainties.
Price History
On Thursday, BRIGHTHOUSE FINANCIAL stock opened at $58.9 and closed at $57.8, down 1.0% from last closing price of 58.4. This dramatic drop in net income has raised concerns about the company’s future prospects and led investors to question their investment decisions. The cause of this dramatic decrease in net income has not yet been determined, though analysts speculate that it is likely due to decreased consumer spending as a result of the ongoing economic downturn.
In addition, the company’s debt obligations may have put pressure on profits. BRIGHTHOUSE FINANCIAL is currently working to assess the situation and find ways to increase profitability. Management has announced a comprehensive review of their operations, with the goal of optimizing profitability and creating a more sustainable business model. Investors will be closely watching the company’s results in the coming quarters to determine whether these efforts have been effective. In the meantime, they should weigh their investment options carefully and make sure they understand the risks involved with investing in BRIGHTHOUSE FINANCIAL. Live Quote…
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% |
Analysis – Brighthouse Financial Intrinsic Value
GoodWhale is committed to helping investors make financial decisions. Our proprietary Valuation Line is used to analyze the financials of BRIGHTHOUSE FINANCIAL, and the results show that the fair value of BRIGHTHOUSE FINANCIAL share is estimated to be around $72.6. As of now, the company’s stock is trading at a price of $57.8, which is 20.4% lower than the estimated fair value. As such, investors may want to consider accumulating the stock at its current discount. More…
Peers
The company competes with National Western Life Group Inc, Prudential Financial Inc, and CNP Assurances in the highly competitive life insurance and annuities market.
– National Western Life Group Inc ($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 has posted greatly reduced financial results for the past year. Total revenue came to USD 941.0 million, a decrease of 1593.7% compared to the same period of the previous year. Net income also dropped to USD 454.0 million, representing a year-on-year decrease of 77.5%.
These figures suggest that BrightHouse Financial is facing challenging times and may be subject to great uncertainty in the coming months. Investors should take a prudent approach when considering an investment in BrightHouse Financial, as the outlook for this company is uncertain.
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