Brighthouse Financial, Inc. (NASDAQ:BHF) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Brighthouse Financial, Inc. provides annuity and life insurance products in the United States. On 31 December 2022, the US$2.9b market-cap company posted a loss of US$99m for its most recent financial year. As path to profitability is the topic on Brighthouse Financial's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Brighthouse Financial is bordering on breakeven, according to the 8 American Insurance analysts. They expect the company to post a final loss in 2022, before turning a profit of US$696m in 2023. So, the company is predicted to breakeven approximately a year from now or less! We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 40% is expected, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.
Underlying developments driving Brighthouse Financial's growth isn’t the focus of this broad overview, but, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we would like to bring into light with Brighthouse Financial is its debt-to-equity ratio of 174%. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. A higher level of debt requires more stringent capital management which increases the risk in investing in the loss-making company.
There are key fundamentals of Brighthouse Financial which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Brighthouse Financial, take a look at Brighthouse Financial's company page on Simply Wall St. We've also put together a list of relevant factors you should further examine:
Valuation: What is Brighthouse Financial worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Brighthouse Financial is currently mispriced by the market.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Brighthouse Financial’s board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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