METLIFE INC (MET) Stock Fundamental Analysis
USA - NYSE:MET - US59156R1086 - Common Stock
78.64 USD
-0.83 (-1.04%)
78.64 USD
0 (0%)
MET gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. MET may be in some trouble as it scores bad on both profitability and health. MET is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MET was profitable.
In the past year MET had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of 0.58%, MET is doing worse than 66.44% of the companies in the same industry.
MET has a better Return On Equity (14.78%) than 70.55% of its industry peers.
MET has a Return On Invested Capital of 0.74%. This is in the lower half of the industry: MET underperforms 63.70% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MET is below the industry average of 4.51%.
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
With a Profit Margin value of 5.60%, MET is not doing good in the industry: 61.64% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of MET has declined.
MET has a worse Operating Margin (9.33%) than 61.64% of its industry peers.
MET's Operating Margin has declined in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MET is destroying value.
Compared to 1 year ago, MET has less shares outstanding
MET has less shares outstanding than it did 5 years ago.
MET has a worse debt/assets ratio than last year.
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 Debt to FCF ratio of 1.31. This is in the better half of the industry: MET outperforms 64.38% 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
WACC7.56%
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 5.51% 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 0.77% 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)5.51%
EPS 3Y-3.75%
EPS 5Y5.91%
EPS Q2Q%21.54%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y-0.02%
Revenue growth 5Y0.37%
Sales Q2Q%1.63%
3.2 Future
The Earnings Per Share is expected to grow by 11.71% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.29% on average over the next years.
EPS Next Y7.91%
EPS Next 2Y12.02%
EPS Next 3Y11.88%
EPS Next 5Y11.71%
Revenue Next Year2.94%
Revenue Next 2Y3.4%
Revenue Next 3Y3.79%
Revenue Next 5Y4.29%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.33, the valuation of MET can be described as very reasonable.
Based on the Price/Earnings ratio, MET is valued a bit cheaper than 62.33% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, MET is valued rather cheaply.
MET is valuated cheaply with a Price/Forward Earnings ratio of 7.70.
Based on the Price/Forward Earnings ratio, MET is valued a bit cheaper than the industry average as 71.92% of the companies are valued more expensively.
MET's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 34.59.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 7.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MET is valued a bit cheaper than the industry average as 70.55% of the companies are valued more expensively.
79.45% of the companies in the same industry are more expensive than MET, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.43 | ||
| EV/EBITDA | 6.67 |
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)1.18
PEG (5Y)1.58
EPS Next 2Y12.02%
EPS Next 3Y11.88%
5. Dividend
5.1 Amount
MET has a Yearly Dividend Yield of 2.83%.
Compared to an average industry Dividend Yield of 3.47, MET pays a bit more dividend than its industry peers.
MET's Dividend Yield is a higher than the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
5.2 History
The dividend of MET has a limited annual growth rate of 4.59%.
MET has been paying a dividend for at least 10 years, so it has 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
41.87% of the earnings are spent on dividend by MET. 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.
DP41.87%
EPS Next 2Y12.02%
EPS Next 3Y11.88%
78.64
-0.83 (-1.04%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners91.3%
Inst Owner Change0.54%
Ins Owners0.17%
Ins Owner Change-0.09%
Market Cap52.30B
Revenue(TTM)71.94B
Net Income(TTM)4.09B
Analysts80
Price Target96.75 (23.03%)
Short Float %1.43%
Short Ratio3.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.83% |
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)1.49%
PT rev (3m)-1.02%
EPS NQ rev (1m)0.91%
EPS NQ rev (3m)-1.91%
EPS NY rev (1m)0.51%
EPS NY rev (3m)-2.85%
Revenue NQ rev (1m)0.34%
Revenue NQ rev (3m)0.73%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-0.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 7.7 | ||
| P/S | 0.72 | ||
| P/FCF | 3.43 | ||
| P/OCF | 3.43 | ||
| P/B | 1.89 | ||
| P/tB | 2.82 | ||
| EV/EBITDA | 6.67 |
EPS(TTM)8.43
EY10.72%
EPS(NY)10.21
Fwd EY12.99%
FCF(TTM)22.9
FCFY29.12%
OCF(TTM)22.9
OCFY29.12%
SpS109.89
BVpS41.63
TBVpS27.88
PEG (NY)1.18
PEG (5Y)1.58
Graham Number88.86
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
WACC7.56%
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)5.51%
EPS 3Y-3.75%
EPS 5Y5.91%
EPS Q2Q%21.54%
EPS Next Y7.91%
EPS Next 2Y12.02%
EPS Next 3Y11.88%
EPS Next 5Y11.71%
Revenue 1Y (TTM)0.77%
Revenue growth 3Y-0.02%
Revenue growth 5Y0.37%
Sales Q2Q%1.63%
Revenue Next Year2.94%
Revenue Next 2Y3.4%
Revenue Next 3Y3.79%
Revenue Next 5Y4.29%
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 7.91% in the next year.
How sustainable is the dividend of METLIFE INC (MET) stock?
The dividend rating of METLIFE INC (MET) is 5 / 10 and the dividend payout ratio is 41.87%.