Brighthouse Financial Profit Margin vs. Price To Book

BHF Stock  USD 48.96  0.51  1.05%   
Taking into consideration Brighthouse Financial's profitability measurements, Brighthouse Financial may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in January. Profitability indicators assess Brighthouse Financial's ability to earn profits and add value for shareholders.

Brighthouse Financial Net Profit Margin

(0.26)

At this time, Brighthouse Financial's Sales General And Administrative To Revenue is most likely to increase slightly in the upcoming years. The Brighthouse Financial's current Price Sales Ratio is estimated to increase to 0.99, while Operating Cash Flow Sales Ratio is forecasted to increase to (0.03). The Brighthouse Financial's current Income Quality is estimated to increase to 0.13, while Accumulated Other Comprehensive Income is forecasted to increase to (5 B).
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.80.9
Fairly Down
Slightly volatile
For Brighthouse Financial profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Brighthouse Financial to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Brighthouse Financial utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Brighthouse Financial's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Brighthouse Financial over time as well as its relative position and ranking within its peers.
  
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For more detail on how to invest in Brighthouse Stock please use our How to Invest in Brighthouse Financial guide.
Is Life & Health Insurance space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Brighthouse Financial. If investors know Brighthouse will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Brighthouse Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.64)
Earnings Share
(20.13)
Revenue Per Share
77.866
Quarterly Revenue Growth
0.726
Return On Assets
(0)
The market value of Brighthouse Financial is measured differently than its book value, which is the value of Brighthouse that is recorded on the company's balance sheet. Investors also form their own opinion of Brighthouse Financial's value that differs from its market value or its book value, called intrinsic value, which is Brighthouse Financial's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Brighthouse Financial's market value can be influenced by many factors that don't directly affect Brighthouse Financial's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Brighthouse Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Brighthouse Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Brighthouse Financial's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Brighthouse Financial Price To Book vs. Profit Margin Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Brighthouse Financial's current stock value. Our valuation model uses many indicators to compare Brighthouse Financial value to that of its competitors to determine the firm's financial worth.
Brighthouse Financial is rated below average in profit margin category among its peers. It is rated below average in price to book category among its peers . At this time, Brighthouse Financial's Net Loss is most likely to slightly decrease in the upcoming years. Comparative valuation analysis is a catch-all technique that is used if you cannot value Brighthouse Financial by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Brighthouse Price To Book vs. Profit Margin

Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.

Brighthouse Financial

Profit Margin

 = 

Net Income

Revenue

X

100

 = 
(0.25) %
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is the accounting value of assets minus liabilities.

Brighthouse Financial

P/B

 = 

MV Per Share

BV Per Share

 = 
0.52 X
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.

Brighthouse Price To Book Comparison

Brighthouse Financial is currently under evaluation in price to book category among its peers.

Brighthouse Financial Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Brighthouse Financial, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Brighthouse Financial will eventually generate negative long term returns. The profitability progress is the general direction of Brighthouse Financial's change in net profit over the period of time. It can combine multiple indicators of Brighthouse Financial, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-5.2 B-5 B
Operating Income-1.5 B-1.4 B
Income Before Tax-1.5 B-1.4 B
Net Loss-1.1 B-1.1 B
Income Tax Expense-367 M-348.6 M
Net Loss-3.9 B-3.7 B
Total Other Income Expense Net-1.5 B-1.4 B
Net Loss-89.1 M-93.6 M
Interest Income219.7 M169.2 M
Net Interest Income-175.9 M-184.7 M
Change To Netincome-1.5 B-1.6 B
Net Loss(18.39)(17.47)
Income Quality 0.12  0.13 
Net Income Per E B T 0.75  0.70 

Brighthouse Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Brighthouse Financial. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Brighthouse Financial position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Brighthouse Financial's important profitability drivers and their relationship over time.

Use Brighthouse Financial in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Brighthouse Financial position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Brighthouse Financial will appreciate offsetting losses from the drop in the long position's value.

Brighthouse Financial Pair Trading

Brighthouse Financial Pair Trading Analysis

The ability to find closely correlated positions to Brighthouse Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Brighthouse Financial when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Brighthouse Financial - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Brighthouse Financial to buy it.
The correlation of Brighthouse Financial is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Brighthouse Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Brighthouse Financial moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Brighthouse Financial can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Brighthouse Financial position

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When determining whether Brighthouse Financial is a strong investment it is important to analyze Brighthouse Financial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Brighthouse Financial's future performance. For an informed investment choice regarding Brighthouse Stock, refer to the following important reports:
Check out Trending Equities.
For more detail on how to invest in Brighthouse Stock please use our How to Invest in Brighthouse Financial guide.
You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
To fully project Brighthouse Financial's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Brighthouse Financial at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Brighthouse Financial's income statement, its balance sheet, and the statement of cash flows.
Potential Brighthouse Financial investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Brighthouse Financial investors may work on each financial statement separately, they are all related. The changes in Brighthouse Financial's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Brighthouse Financial's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.