Brighthouse Financial Inc. Depositary Shares 6.75% Non-Cumulative Preferred Stock Series B (BHFAO)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach this as a preferred holder, not as an owner of the common equity. The quoted $13.42 on 2026-10-13 is the depositary preferred, yielding 11.99% on a 6.75% non-cumulative coupon. FairStock's issuer-level calculations show P/E 1.06, P/B 0.12, ROE 13.54%, D/E 1.78, and Piotroski 4/9. Those are statistically cheap, but they describe the common/issuer, and for a non-cumulative preferred the upside is capped while the downside is not. The filed record is volatile. In FY2023, the company lost $1.1B. It earned $388.0M in FY2024 and $433.0M in FY2025. In fiscal Q1 2026, the quarter ended 2026-03-31, it lost $766.0M; in fiscal Q2 2026, the quarter ended 2026-06-30, it earned $981.0M on $1.6B of revenue. That is a turnaround by Lynch's computed category, but not a smooth one. An annuity and life insurer lives on spread, investment results, reserves, and capital. The data lacks CET1, net interest margin, combined ratio, statutory capital, and reserve adequacy, so I cannot verify the safety of the preferred dividend. A high yield near the 52-week low may reflect real value, or it may reflect risk that the dividend is skipped. Non-cumulative means missed payments do not have to be made up. I would demand a margin of safety in the capital structure, not just a low P/B. At this price, the market is pricing distress or poor capital returns; the key question is whether the earnings recovery is durable.

In plain English: Brighthouse Financial sells annuities and life insurance in the U.S. Its results have been uneven: a big profit in the latest quarter followed a large loss the quarter before, though it has been profitable over the last two full years. The preferred shares pay a high dividend and trade near the bottom of their 52-week range, so the price looks cheap only if the company can keep paying that dividend.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer