We assign a fundamental rating of 4 out of 10 to MET. MET was compared to 148 industry peers in the Insurance industry. Both the profitability and financial health of MET have multiple concerns. MET has a correct valuation and a medium growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

MET had positive earnings in the past year.
In the past year MET had a positive cash flow from operations.
MET had positive earnings in each of the past 5 years.
Each year in the past 5 years MET had a positive operating cash flow.

1.2 Ratios

MET's Return On Assets of 0.50% is on the low side compared to the rest of the industry. MET is outperformed by 70.95% of its industry peers.
MET has a Return On Equity of 12.56%. This is comparable to the rest of the industry: MET outperforms 57.43% of its industry peers.
MET has a Return On Invested Capital of 0.64%. This is in the lower half of the industry: MET underperforms 66.89% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MET is significantly below the industry average of 14.94%.
The 3 year average ROIC (0.52%) for MET is below the current ROIC(0.64%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	0.5%
ROE	12.56%
ROIC	0.64%

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 has a worse Profit Margin (5.05%) than 64.86% of its industry peers.
MET's Profit Margin has declined in the last couple of years.
MET's Operating Margin of 8.34% is on the low side compared to the rest of the industry. MET is outperformed by 66.22% of its industry peers.
MET's Operating Margin has declined in the last couple of years.

		Industry Rank	Sector Rank
OM	8.34%
PM (TTM)	5.05%
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

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MET is destroying value.
Compared to 1 year ago, MET has less shares outstanding
The number of shares outstanding for MET has been reduced compared to 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 1.36. This is a very positive value and a sign of high solvency as it would only need 1.36 years to pay back of all of its debts.
MET has a better Debt to FCF ratio (1.36) than 62.16% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that MET is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, MET is not doing good in the industry: 83.78% of the companies in the same industry are doing better.
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	0.69
Debt/FCF	1.36
Altman-Z	N/A

ROIC/WACC0.08

WACC7.63%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 5.51% over the past year.
The Earnings Per Share has been growing slightly by 5.91% on average over the past years.
MET shows a small growth in Revenue. In the last year, the Revenue has grown by 0.79%.
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)5.51%

EPS 3Y-3.75%

EPS 5Y5.91%

EPS Q2Q%21.54%

Revenue 1Y (TTM)0.79%

Revenue growth 3Y-0.02%

Revenue growth 5Y0.37%

Sales Q2Q%1.63%

3.2 Future

Based on estimates for the next years, MET will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.82% on average per year.
MET is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.27% yearly.

EPS Next Y7.87%

EPS Next 2Y10.66%

EPS Next 3Y11.05%

EPS Next 5Y11.82%

Revenue Next Year12.79%

Revenue Next 2Y3.38%

Revenue Next 3Y3.49%

Revenue Next 5Y4.27%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

MET is valuated reasonably with a Price/Earnings ratio of 9.15.
Based on the Price/Earnings ratio, MET is valued a bit cheaper than 68.92% of the companies in the same industry.
MET's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.25.
Based on the Price/Forward Earnings ratio of 7.74, the valuation of MET can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MET indicates a somewhat cheap valuation: MET is cheaper than 71.62% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 25.98, MET is valued rather cheaply.

		Industry Rank	Sector Rank
PE	9.15
Fwd PE	7.74

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, MET is valued a bit cheaper than the industry average as 64.86% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MET is valued a bit cheaper than the industry average as 78.38% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	3.48
EV/EBITDA	7.23

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)1.16

PEG (5Y)1.55

EPS Next 2Y10.66%

EPS Next 3Y11.05%

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5. Dividend

5.1 Amount

MET has a Yearly Dividend Yield of 2.95%.
Compared to an average industry Dividend Yield of 2.41, MET pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.82, MET pays a better dividend.

		Industry Rank	Sector Rank
Dividend Yield	2.95%

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 46.97% of its income as dividend. This is a bit on the high side, but may be sustainable.
MET's earnings are growing more than its dividend. This makes the dividend growth sustainable.

DP46.97%

EPS Next 2Y10.66%

EPS Next 3Y11.05%

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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 for 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 PE and PB ratios for MET stock?

The Price/Earnings (PE) ratio for METLIFE INC (MET) is 9.15 and the Price/Book (PB) ratio is 1.76.

What is the financial health of METLIFE INC (MET) stock?

The financial health rating of METLIFE INC (MET) is 3 / 10.