Recent News
Reports in mid-July described buyout talks between Brighthouse and Aquarian Holdings, noting potential bids and interest from other private-equity firms; coverage indicated talks could reach resolution within weeks. More recently, reporting highlighted Aquarian’s active fundraising to finance a potential Brighthouse acquisition, with parties engaged in equity and debt arrangements to complete a large-scale bid.
Technical Analysis
Directional indicators show DI+ at 26.64 on a dip-and-reversal and DI- at 22.37 with a decreasing trend; that configuration favors upside pressure even though ADX sits at 18.37, which signals no established trend. Together, those signals imply momentum could drive a new trend but lacks current trend strength.
MACD reads positive at 0.15 with a dip-and-reversal trend while the MACD signal sits at -0.43; the MACD crossing above its signal line confirms bullish momentum and supports the potential for continued upside into the near term.
MRO registers 20.52 with a dip-and-reversal trend; the positive MRO indicates price currently sits above WMDST’s target and therefore faces a mean-reversion bias that could cap gains if momentum stalls.
RSI at 49.14 with a dip-and-reversal trend sits near neutral, pointing to room for momentum to build without immediate overbought risk; that complements the MACD’s bullish read while keeping the risk of a stalled advance intact.
Price relationships reinforce a cautiously constructive outlook: the close at $53.58 lies marginally above the 200-day average ($53.25) and well above the 20- and 50-day averages (20-day $47.82; 50-day $48.91), while the 12-day EMA at $49.25 shows a dip-and-reversal—an early-stage momentum pickup. Ichimoku lines cluster around $51.41–$51.55, providing near-term support and confirming price strength above the cloud.
Bollinger bands place the 1x upper near $51.55 and the 2x upper near $55.27, implying the recent close sits near daily upper-range levels; the super-trend lower at $50.60 gives a clear technical support to watch. Volume running at roughly 2.38M exceeds the 10-day average of ~1.11M, indicating above-average trading interest that aligns with takeover headlines and the MACD signal.
Fundamental Analysis
Brighthouse delivers operating earnings and capital metrics that shape the valuation narrative. EBIT equals $131,000,000 and the EBIT margin stands at 16.58%, above the industry peer mean of 14.54% and marginally below the industry peer median of 16.99%; margin slipped -2.22% quarter-over-quarter and rose +3.24% year-over-year, showing short-term compression but year-over-year expansion.
Reported EPS came in at $3.43 versus an estimate of $4.39, producing an EPS surprise of -21.87%, which represents a meaningful miss relative to consensus expectations. Forward EPS of $4.98 and a forward P/E of 11.41 contrast with current P/E of 15.34, implying earnings-based valuation moved lower into the forward window.
Balance-sheet dynamics drive valuation comparisons. Cash and short-term investments total $87,545,000,000 while market capitalization equals $2,850,719,198, producing an enterprise value of -$81,539,280,802 and an EV-related ratio that reflects a large net cash position. P/B reads 0.50x, well below the industry peer mean of 1.86x, and the P/S ratio at 3.61x sits below the industry peer mean of 5.93x; those multiples support WMDST’s assessment that the current valuation appears under-valued.
Profitability and capital returns look muted: return on equity stands at 1.50% and return on assets at 0.04%. Free cash flow registers negative at -$1,000,000 with a free cash flow yield near -0.035%, and operating cash flow similarly reads negative, highlighting limited near-term cash generation despite the large cash balance. Dividend yield equals 0.88% with a payout ratio of 29.41% and dividend coverage near 3.4x.
Top-line movement shows sharp contraction in the provided growth gauges: revenue growth reads -65.95% with revenue growth year-over-year at -103.89%, and earnings growth marked at -168.06% while the quarterly momentum for earnings showed an 8.47% sequential lift. Those figures indicate volatile comparables and warrant monitoring of revenue and earnings trends over upcoming reports. The company reported second-quarter 2025 results on August 7, 2025, detailing net income of $60 million and adjusted earnings of $198 million while citing an estimated combined risk-based capital ratio that sat within the firm’s target range; the quarter also included $102 million in year-to-date share repurchases.
Valuation summary: WMDST values the stock as under-valued. Key valuation drivers include a sub-1.0 price-to-book multiple, P/E and forward P/E below industry peer benchmarks, and a materially negative enterprise value driven by large cash balances—factors that counterbalance weak cash-flow generation and compressed growth metrics.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-07 |
| NEXT REPORT DATE: | 2025-11-06 |
| CASH FLOW | Begin Period Cash Flow | $ 4.7 B |
| Operating Cash Flow | $ -1.00 M | |
| Capital Expenditures | $ -53.00 M | |
| Change In Working Capital | $ -86.00 M | |
| Dividends Paid | $ -25.00 M | |
| Cash Flow Delta | $ 873.0 M | |
| End Period Cash Flow | $ 5.5 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 790.0 M | |
| Forward Revenue | $ 661.3 M | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | — | |
| Depreciation and Amortization | — | |
| Research and Development | — | |
| Total Operating Expenses | $ 697.0 M | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | — | |
| EBIT | $ 131.0 M | |
| Operating Income | — | |
| Interest Income | — | |
| Interest Expense | $ 38.0 M | |
| Net Interest Income | $ -38.00 M | |
| Income Before Tax | $ 93.0 M | |
| Tax Provision | $ 8.0 M | |
| Tax Rate | 8.602 % | |
| Net Income | $ 85.0 M | |
| Net Income From Continuing Operations | $ 85.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 4.39 | |
| EPS Actual | $ 3.43 | |
| EPS Difference | $ -0.96 | |
| EPS Surprise | -21.868 % | |
| Forward EPS | $ 4.98 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 242.6 B | |
| Intangible Assets | — | |
| Net Tangible Assets | $ 5.7 B | |
| Total Current Assets | — | |
| Cash and Short-Term Investments | $ 87.5 B | |
| Cash | $ 5.5 B | |
| Net Receivables | $ 21.3 B | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | — | |
| Short-Term Debt | — | |
| Total Current Liabilities | — | |
| Net Debt | — | |
| Total Debt | $ 3.2 B | |
| Total Liabilities | $ 236.9 B | |
| EQUITY | ||
| Total Equity | $ 5.7 B | |
| Retained Earnings | $ -1.30 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 99.31 | |
| Shares Outstanding | 57.122 M | |
| Revenue Per-Share | $ 13.83 | |
| VALUATION | Market Capitalization | $ 2.9 B |
| Enterprise Value | $ -81.54 B | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | -103.214 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 42.772 | |
| Asset To Liability | 1.024 | |
| Debt To Capital | 0.357 | |
| Debt To Assets | 0.013 | |
| Debt To Assets QoQ | -3.274 % | |
| Debt To Assets YoY | -2.182 % | |
| Debt To Assets IPRWA | high: 0.178 mean: 0.036 median: 0.027 BHF: 0.013 low: 0.012 |
|
| Debt To Equity | 0.556 | |
| Debt To Equity QoQ | -7.65 % | |
| Debt To Equity YoY | -27.005 % | |
| Debt To Equity IPRWA | high: 0.923 BHF: 0.556 mean: 0.427 median: 0.328 low: 0.173 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 0.503 | |
| Price To Book QoQ | -16.804 % | |
| Price To Book YoY | -26.631 % | |
| Price To Book IPRWA | high: 3.744 mean: 1.862 median: 1.485 BHF: 0.503 low: 0.133 |
|
| Price To Earnings (P/E) | 15.339 | |
| Price To Earnings QoQ | 16.971 % | |
| Price To Earnings YoY | 84.492 % | |
| Price To Earnings IPRWA | high: 59.437 median: 34.71 mean: 34.541 BHF: 15.339 low: -27.988 |
|
| PE/G Ratio | -0.091 | |
| Price To Sales (P/S) | 3.609 | |
| Price To Sales QoQ | 164.557 % | |
| Price To Sales YoY | 69.089 % | |
| Price To Sales IPRWA | high: 13.163 mean: 5.929 median: 3.696 BHF: 3.609 low: 0.952 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 11.411 | |
| Forward PE/G | -0.068 | |
| Forward P/S | 4.311 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 2.145 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.003 | |
| Asset Turnover Ratio QoQ | -66.259 % | |
| Asset Turnover Ratio YoY | -40.575 % | |
| Asset Turnover Ratio IPRWA | high: 0.059 mean: 0.024 median: 0.018 BHF: 0.003 low: -0.001 |
|
| Receivables Turnover | 0.037 | |
| Receivables Turnover Ratio QoQ | -66.059 % | |
| Receivables Turnover Ratio YoY | -43.598 % | |
| Receivables Turnover Ratio IPRWA | high: 4.774 mean: 2.044 median: 0.312 BHF: 0.037 low: -0.023 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 2451.391 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | — | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | — | |
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | — | |
| CapEx To Revenue | -0.067 | |
| CapEx To Depreciation | — | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 8.8 B | |
| Net Invested Capital | $ 8.8 B | |
| Invested Capital | $ 8.8 B | |
| Net Tangible Assets | $ 5.7 B | |
| Net Working Capital | — | |
| LIQUIDITY | ||
| Cash Ratio | — | |
| Current Ratio | — | |
| Current Ratio QoQ | — | |
| Current Ratio YoY | — | |
| Current Ratio IPRWA | — | |
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | — | |
| Cost Of Debt | 1.101 % | |
| Interest Coverage Ratio | 3.447 | |
| Interest Coverage Ratio QoQ | -141.456 % | |
| Interest Coverage Ratio YoY | 151.923 % | |
| Interest Coverage Ratio IPRWA | high: 16.808 mean: 9.012 median: 8.566 BHF: 3.447 low: -3.438 |
|
| Operating Cash Flow Ratio | — | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 3.4 | |
| Dividend Payout Ratio | 0.294 | |
| Dividend Rate | $ 0.44 | |
| Dividend Yield | 0.009 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 3.394 % | |
| Revenue Growth | -65.948 % | |
| Revenue Growth QoQ | -157.141 % | |
| Revenue Growth YoY | -103.889 % | |
| Revenue Growth IPRWA | high: 52.693 % mean: 9.228 % median: 3.296 % low: -13.859 % BHF: -65.948 % |
|
| Earnings Growth | -168.056 % | |
| Earnings Growth QoQ | 846.741 % | |
| Earnings Growth YoY | -641.086 % | |
| Earnings Growth IPRWA | high: 133.333 % mean: 9.974 % median: 8.815 % low: 1.471 % BHF: -168.056 % |
|
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | 16.582 % | |
| EBIT Margin QoQ | -221.738 % | |
| EBIT Margin YoY | 323.767 % | |
| EBIT Margin IPRWA | high: 30.317 % median: 16.987 % BHF: 16.582 % mean: 14.537 % low: -15.679 % |
|
| Return On Sales (ROS) | — | |
| Return On Sales QoQ | — | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -1.00 M | |
| Free Cash Flow Yield | -0.035 % | |
| Free Cash Flow Yield QoQ | -100.759 % | |
| Free Cash Flow Yield YoY | -100.297 % | |
| Free Cash Flow Yield IPRWA | high: 35.936 % mean: 5.566 % median: 2.702 % BHF: -0.035 % low: -3.613 % |
|
| Free Cash Growth | -100.685 % | |
| Free Cash Growth QoQ | -54.997 % | |
| Free Cash Growth YoY | -38.237 % | |
| Free Cash Growth IPRWA | high: 69.926 % median: -32.258 % mean: -97.105 % BHF: -100.685 % low: -514.525 % |
|
| Free Cash To Net Income | -0.012 | |
| Cash Flow Margin | 1.899 % | |
| Cash Flow To Earnings | 0.176 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.036 % | |
| Return On Assets QoQ | -131.858 % | |
| Return On Assets YoY | 157.143 % | |
| Return On Assets IPRWA | high: 0.849 % mean: 0.242 % median: 0.191 % BHF: 0.036 % low: -0.167 % |
|
| Return On Capital Employed (ROCE) | — | |
| Return On Equity (ROE) | 0.015 | |
| Return On Equity QoQ | -129.286 % | |
| Return On Equity YoY | 82.46 % | |
| Return On Equity IPRWA | high: 0.082 median: 0.034 mean: 0.033 BHF: 0.015 low: 0.006 |
|
| DuPont ROE | 1.558 % | |
| Return On Invested Capital (ROIC) | 1.356 % | |
| Return On Invested Capital QoQ | -147.932 % | |
| Return On Invested Capital YoY | -2867.347 % | |
| Return On Invested Capital IPRWA | high: 4.396 % median: 2.743 % mean: 2.425 % BHF: 1.356 % low: -1.573 % |
|