BHF (Brighthouse Financial) Beneish M-Score: -2.51 (As of Jun. 24, 2026)


BHF Brighthouse Financial Inc BHF
74 GF Score
Price $63.05
GF Value $78.89
Valuation Modestly Undervalued
! 5 Warning Signs
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What is Brighthouse Financial Beneish M-Score?

Brighthouse Financial BHF -0.65% 74 Beneish M-Score is -2.51 as of Jun. 24, 2026. GuruFocus rates BHF with a GF Score™ of 74/100 and a GF Value™ of $78.89 (Modestly Undervalued). The stock has 5 warning signs investors should review. Among 399 Insurance companies, Brighthouse Financial ranks better than 52.38% on this metric.

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.51 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Brighthouse Financial's Beneish M-Score or its related term are showing as below:

BHF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.67   Med: -2.21   Max: 35.5
Current: -2.51

During the past 12 years, the highest Beneish M-Score of Brighthouse Financial was 35.50. The lowest was -2.67. And the median was -2.21.

BHF
74GF Score
Brighthouse Financial Inc BHF
Beneish M-Score is just one metric. See GF Score™, valuation, warning signs, and more.
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Brighthouse Financial Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Brighthouse Financial for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.1885+0.528 * 1+0.404 * 1+0.892 * 0.8269+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2396+4.679 * -0.002133-0.327 * 0.9907
=-2.51

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was $20,842 Mil.
Revenue was 1460 + 1573 + 1708 + 790 = $5,531 Mil.
Gross Profit was 1460 + 1573 + 1708 + 790 = $5,531 Mil.
Total Current Assets was $0 Mil.
Total Assets was $236,803 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $739 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $3,154 Mil.
Net Income was -766 + 137 + 479 + 85 = $-65 Mil.
Non Operating Income was 129 + 133 + 143 + 143 = $548 Mil.
Cash Flow from Operations was -221 + -3 + 117 + -1 = $-108 Mil.
 Total Receivables was $21,208 Mil.
Revenue was 2320 + 1077 + 1963 + 1329 = $6,689 Mil.
Gross Profit was 2320 + 1077 + 1963 + 1329 = $6,689 Mil.
Total Current Assets was $0 Mil.
Total Assets was $234,681 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $721 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $3,155 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(20842 / 5531) / (21208 / 6689)
=3.768216 / 3.170579
=1.1885

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(6689 / 6689) / (5531 / 5531)
=1 / 1
=1

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 0) / 236803) / (1 - (0 + 0) / 234681)
=1 / 1
=1

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=5531 / 6689
=0.8269

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(0 / (0 + 0)) / (0 / (0 + 0))
= /
=1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(739 / 5531) / (721 / 6689)
=0.133611 / 0.107789
=1.2396

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((3154 + 0) / 236803) / ((3155 + 0) / 234681)
=0.013319 / 0.013444
=0.9907

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(-65 - 548 - -108) / 236803
=-0.002133

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Brighthouse Financial has a M-score of -2.51 suggests that the company is unlikely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -2.51 mean?
Brighthouse Financial (BHF) has a Beneish M-Score of -2.51 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Brighthouse Financial and its competitors. According to the industry distribution chart, Brighthouse Financial ranks #190 out of 399 companies in the Insurance industry, placing it in the top 47.6%.
Is Brighthouse Financial's Beneish M-Score too high?
Brighthouse Financial's current Beneish M-Score is -2.51. Based on the distribution chart, Brighthouse Financial ranks #190 out of 399 companies in the Insurance industry, which is above the industry midpoint. Overall, Brighthouse Financial has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Brighthouse Financial's Beneish M-Score compare to FG and GNW?
According to the Insurance industry distribution chart, Brighthouse Financial ranks #190 out of 399 companies for Beneish M-Score. This puts Brighthouse Financial in the upper half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for an Insurance company?
A good Beneish M-Score depends on the Insurance industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Brighthouse Financial and its competitors. Brighthouse Financial's current Beneish M-Score is -2.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Brighthouse Financial stock overvalued right now?
Based on GuruFocus' analysis, Brighthouse Financial (BHF) is currently considered Modestly Undervalued. The stock's GF Value™ is $78.89, compared to a current price of $63.05 — trading 20.1% below its estimated fair value. The current Beneish M-Score is -2.51. Brighthouse Financial's overall GF Score™ is 74/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Brighthouse Financial (BHF), the current Beneish M-Score is -2.51 as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Brighthouse Financial (BHF) Overvalued in 2026?

Based on GuruFocus' analysis, Brighthouse Financial stock appears to be undervalued. The current stock price of $63.05 is trading 20.1% below its estimated GF Value™ of $78.89. GuruFocus considers Brighthouse Financial to be Modestly Undervalued.

Key valuation signals for BHF:

  • Beneish M-Score: -2.51
  • GF Value™: $78.89 vs. price of $63.05 (20.1% below fair value)
  • GF Score™: 74/100 with 5 warning signs

No single metric tells the full story. See the BHF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Brighthouse Financial Business Description

Address 11225 North Community House Road, Charlotte, NC, USA, 28277
Brighthouse Financial Inc is a United States-based provider of annuity products and life insurance through independent distribution channels and marketing arrangements with distribution partners. Its segments are: Annuities, that derives majority of the revenue, includes variable, fixed, index-linked, and income annuities; The life segment includes variable, term, universal, and whole life policies; The Run-off segment consists of products that are no longer actively sold and are separately managed, including ULSG, structured settlements, pension risk transfer contracts, certain company-owned life insurance policies and certain funding agreements; and The Corporate & Other segment consists of activities related to funding agreements associated with the company.
74GF Score

Get the complete analysis for BHF

Beneish M-Score is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$63.05
Price
$78.89
GF Value