METLIFE INC (MET) Stock Fundamental Analysis
USA - NYSE:MET - US59156R1086 - Common Stock
79.46 USD
+0.25 (+0.32%)
79.46 USD
0 (0%)
Taking everything into account, MET scores 4 out of 10 in our fundamental rating. MET was compared to 146 industry peers in the Insurance industry. MET has a bad profitability rating. Also its financial health evaluation is rather negative. MET is not valued too expensively and it also shows a decent growth rate. MET also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MET was profitable.
MET had a positive operating cash flow in the past year.
Each year in the past 5 years MET has been profitable.
In the past 5 years MET always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 0.58%, MET is not doing good in the industry: 66.44% of the companies in the same industry are doing better.
The Return On Equity of MET (14.78%) is better than 71.23% of its industry peers.
The Return On Invested Capital of MET (0.74%) is worse than 63.01% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MET is below the industry average of 4.53%.
The last Return On Invested Capital (0.74%) for MET is above the 3 year average (0.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 14.78% | ||
| ROIC | 0.74% |
ROA(3y)0.39%
ROA(5y)0.53%
ROE(3y)9.29%
ROE(5y)8.85%
ROIC(3y)0.52%
ROIC(5y)0.65%
1.3 Margins
MET's Profit Margin of 5.60% is on the low side compared to the rest of the industry. MET is outperformed by 63.01% of its industry peers.
In the last couple of years the Profit Margin of MET has declined.
MET has a Operating Margin (9.33%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MET has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.33% | ||
| PM (TTM) | 5.6% | ||
| GM | N/A |
OM growth 3Y-9.41%
OM growth 5Y-3.49%
PM growth 3Y-12.69%
PM growth 5Y-6.22%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
MET has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MET has less shares outstanding
MET has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MET has a worse debt to assets ratio.
2.2 Solvency
MET has a debt to FCF ratio of 1.31. This is a very positive value and a sign of high solvency as it would only need 1.31 years to pay back of all of its debts.
MET has a better Debt to FCF ratio (1.31) than 60.27% of its industry peers.
MET has a Debt/Equity ratio of 0.72. This is a neutral value indicating MET is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.72, MET is doing worse than 85.62% of the companies in the same industry.
Although MET does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | N/A |
ROIC/WACC0.1
WACC7.58%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 0.25% over the past year.
Measured over the past 5 years, MET shows a small growth in Earnings Per Share. The EPS has been growing by 5.91% on average per year.
Looking at the last year, MET shows a small growth in Revenue. The Revenue has grown by 6.26% in the last year.
Measured over the past years, MET shows a small growth in Revenue. The Revenue has been growing by 0.37% on average per year.
EPS 1Y (TTM)0.25%
EPS 3Y-3.75%
EPS 5Y5.91%
EPS Q2Q%-11.4%
Revenue 1Y (TTM)6.26%
Revenue growth 3Y-0.02%
Revenue growth 5Y0.37%
Sales Q2Q%-4.08%
3.2 Future
MET is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.71% yearly.
Based on estimates for the next years, MET will show a small growth in Revenue. The Revenue will grow by 4.26% on average per year.
EPS Next Y7.78%
EPS Next 2Y12.03%
EPS Next 3Y11.82%
EPS Next 5Y11.71%
Revenue Next Year2.87%
Revenue Next 2Y3.34%
Revenue Next 3Y3.58%
Revenue Next 5Y4.26%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.92 indicates a reasonable valuation of MET.
Based on the Price/Earnings ratio, MET is valued a bit cheaper than 61.64% of the companies in the same industry.
When comparing the Price/Earnings ratio of MET to the average of the S&P500 Index (26.03), we can say MET is valued rather cheaply.
A Price/Forward Earnings ratio of 7.78 indicates a rather cheap valuation of MET.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MET indicates a somewhat cheap valuation: MET is cheaper than 70.55% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.27, MET is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 7.78 |
4.2 Price Multiples
MET's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MET is cheaper than 68.49% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MET indicates a somewhat cheap valuation: MET is cheaper than 78.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.47 | ||
| EV/EBITDA | 6.64 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.27
PEG (5Y)1.68
EPS Next 2Y12.03%
EPS Next 3Y11.82%
5. Dividend
5.1 Amount
MET has a Yearly Dividend Yield of 5.71%, which is a nice return.
Compared to an average industry Dividend Yield of 3.27, MET pays a better dividend. On top of this MET pays more dividend than 90.41% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.38, MET pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.71% |
5.2 History
The dividend of MET has a limited annual growth rate of 4.59%.
MET has paid a dividend for at least 10 years, which is a reliable track record.
MET has decreased its dividend in the last 3 years.
Dividend Growth(5Y)4.59%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
MET pays out 41.87% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of MET is growing, but earnings are growing more, so the dividend growth is sustainable.
DP41.87%
EPS Next 2Y12.03%
EPS Next 3Y11.82%
79.46
+0.25 (+0.32%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners91.3%
Inst Owner Change-0.33%
Ins Owners0.17%
Ins Owner Change-0.27%
Market Cap52.84B
Revenue(TTM)73.08B
Net Income(TTM)4.09B
Analysts80
Price Target96.75 (21.76%)
Short Float %1.43%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.71% |
Yearly Dividend2.43
Dividend Growth(5Y)4.59%
DP41.87%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.86%
Min EPS beat(2)-6.87%
Max EPS beat(2)-2.86%
EPS beat(4)0
Avg EPS beat(4)-5.61%
Min EPS beat(4)-10.99%
Max EPS beat(4)-1.74%
EPS beat(8)2
Avg EPS beat(8)-1.81%
EPS beat(12)4
Avg EPS beat(12)-2.85%
EPS beat(16)8
Avg EPS beat(16)6.84%
Revenue beat(2)1
Avg Revenue beat(2)-0.82%
Min Revenue beat(2)-4.27%
Max Revenue beat(2)2.63%
Revenue beat(4)2
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-6.53%
Max Revenue beat(4)2.63%
Revenue beat(8)4
Avg Revenue beat(8)-1.35%
Revenue beat(12)6
Avg Revenue beat(12)-0.87%
Revenue beat(16)7
Avg Revenue beat(16)-1.46%
PT rev (1m)1.63%
PT rev (3m)-1.02%
EPS NQ rev (1m)1.29%
EPS NQ rev (3m)-1.54%
EPS NY rev (1m)0.39%
EPS NY rev (3m)-2.96%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)-0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.92 | ||
| Fwd PE | 7.78 | ||
| P/S | 0.72 | ||
| P/FCF | 3.47 | ||
| P/OCF | 3.47 | ||
| P/B | 1.91 | ||
| P/tB | 2.85 | ||
| EV/EBITDA | 6.64 |
EPS(TTM)8.01
EY10.08%
EPS(NY)10.22
Fwd EY12.86%
FCF(TTM)22.9
FCFY28.82%
OCF(TTM)22.9
OCFY28.82%
SpS109.89
BVpS41.63
TBVpS27.88
PEG (NY)1.27
PEG (5Y)1.68
Graham Number86.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 14.78% | ||
| ROCE | 0.97% | ||
| ROIC | 0.74% | ||
| ROICexc | 0.77% | ||
| ROICexgc | 1.12% | ||
| OM | 9.33% | ||
| PM (TTM) | 5.6% | ||
| GM | N/A | ||
| FCFM | 20.84% |
ROA(3y)0.39%
ROA(5y)0.53%
ROE(3y)9.29%
ROE(5y)8.85%
ROIC(3y)0.52%
ROIC(5y)0.65%
ROICexc(3y)0.53%
ROICexc(5y)0.66%
ROICexgc(3y)0.78%
ROICexgc(5y)0.97%
ROCE(3y)0.68%
ROCE(5y)0.84%
ROICexgc growth 3Y-6.12%
ROICexgc growth 5Y-2.06%
ROICexc growth 3Y-5.87%
ROICexc growth 5Y-1.33%
OM growth 3Y-9.41%
OM growth 5Y-3.49%
PM growth 3Y-12.69%
PM growth 5Y-6.22%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 1.31 | ||
| Debt/EBITDA | 2.64 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.7 | ||
| Cash Conversion | 202.22% | ||
| Profit Quality | 372.26% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC7.58%
ROIC/WACC0.1
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)633.54%
Profit Quality(5y)464.62%
High Growth Momentum
Growth
EPS 1Y (TTM)0.25%
EPS 3Y-3.75%
EPS 5Y5.91%
EPS Q2Q%-11.4%
EPS Next Y7.78%
EPS Next 2Y12.03%
EPS Next 3Y11.82%
EPS Next 5Y11.71%
Revenue 1Y (TTM)6.26%
Revenue growth 3Y-0.02%
Revenue growth 5Y0.37%
Sales Q2Q%-4.08%
Revenue Next Year2.87%
Revenue Next 2Y3.34%
Revenue Next 3Y3.58%
Revenue Next 5Y4.26%
EBIT growth 1Y42.7%
EBIT growth 3Y-9.43%
EBIT growth 5Y-3.13%
EBIT Next Year17.1%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.98%
FCF growth 3Y5.04%
FCF growth 5Y1.15%
OCF growth 1Y29.98%
OCF growth 3Y5.04%
OCF growth 5Y1.15%
METLIFE INC / MET FAQ
What is the fundamental rating for MET stock?
ChartMill assigns a fundamental rating of 4 / 10 to MET.
What is the valuation status of METLIFE INC (MET) stock?
ChartMill assigns a valuation rating of 6 / 10 to METLIFE INC (MET). This can be considered as Fairly Valued.
What is the profitability of MET stock?
METLIFE INC (MET) has a profitability rating of 3 / 10.
Can you provide the expected EPS growth for MET stock?
The Earnings per Share (EPS) of METLIFE INC (MET) is expected to grow by 7.78% in the next year.
How sustainable is the dividend of METLIFE INC (MET) stock?
The dividend rating of METLIFE INC (MET) is 7 / 10 and the dividend payout ratio is 41.87%.