Brighthouse Financial Inc. Depositary Shares 6.6% Non-Cumulative Preferred Stock Series A (BHFAP)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

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

As a value investor, I start with what I own: BHFAP is a non-cumulative preferred claim on Brighthouse Financial, an annuity and life insurer. The common equity numbers are startling: at the 2026-10-13 close of $13.15, FairStock shows a P/E of 1.04, P/B of 0.12 and ROE of 13.54%. But those are calculated from volatile insurance earnings, not a steady consumer staple. Filed figures show FY2023 net loss of $1.1B, then FY2024 net income of $388M and FY2025 net income of $433M. Revenue rose from $4.1B in FY2023 to $4.7B in FY2024 and $6.8B in FY2025, though insurance accounting can be noisy. In fiscal Q1 2026, the quarter ended 2026-03-31, Brighthouse lost $766M; in fiscal Q2 2026, ended 2026-06-30, it earned $981M on $1.6B revenue and $16.53 diluted EPS. That is not a smooth moat; it is a turnaround with accounting and market sensitivity. The 6.6% preferred yields 12.04% at $13.15, a spread that screams risk. Non-cumulative means skipped dividends do not accrue. Leverage, with D/E of 1.78, and a Piotroski F-Score of 4/9, reinforce caution. The data lack CET1, NIM and combined ratio, so I cannot fully judge capital or underwriting quality. Low price-to-book may mean cheap, or it may mean book value is uncertain. I would demand a margin of safety and watch dividend declarations and earnings consistency.

In plain English: Brighthouse Financial sells annuities and life insurance in the United States. Its profits have swung widely, with a large loss in early 2026 and a large gain later, so the business looks uneven. The preferred shares trade at $13.15 and offer a very high stated yield, which often means investors see extra risk; the price looks low against some company numbers, but the safety of the dividend is the key question.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

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