METLIFE INC (MET) Stock Fundamental Analysis
NYSE:MET - New York Stock Exchange, Inc. - US59156R1086 - Common Stock - Currency: USD
We assign a fundamental rating of 3 out of 10 to MET. MET was compared to 143 industry peers in the Insurance industry. MET has a bad profitability rating. Also its financial health evaluation is rather negative. MET has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MET had positive earnings in the past year.
MET had a positive operating cash flow in the past year.
MET had positive earnings in each of the past 5 years.
Of the past 5 years MET 4 years had a positive operating cash flow.
1.2 Ratios
MET's Return On Assets of 0.51% is on the low side compared to the rest of the industry. MET is outperformed by 73.76% of its industry peers.
The Return On Equity of MET (11.53%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 0.68%, MET is not doing good in the industry: 63.12% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.51% | ||
| ROE | 11.53% | ||
| ROIC | 0.68% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MET has a Profit Margin of 4.99%. This is in the lower half of the industry: MET underperforms 60.99% of its industry peers.
MET's Profit Margin has declined in the last couple of years.
The Operating Margin of MET (8.78%) is comparable to the rest of the industry.
MET's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.78% | ||
| PM (TTM) | 4.99% | ||
| GM | N/A |
OM growth 3Y-9.67%
OM growth 5Y-3.65%
PM growth 3Y-12.67%
PM growth 5Y-6.21%
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.
MET has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
The Debt to FCF ratio of MET is 1.24, which is an excellent value as it means it would take MET, only 1.24 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MET (1.24) is better than 60.99% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that MET is somewhat dependend on debt financing.
The Debt to Equity ratio of MET (0.61) is worse than 78.72% of its industry peers.
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 | 0.61 | ||
| Debt/FCF | 1.24 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC7.9%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
MET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.90%, which is quite good.
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 6.16%.
MET shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.35% yearly.
EPS 1Y (TTM)10.9%
EPS 3Y-3.75%
EPS 5Y5.91%
EPS Q2Q%7.77%
Revenue 1Y (TTM)6.16%
Revenue growth 3Y-0.04%
Revenue growth 5Y0.35%
Sales Q2Q%5.45%
3.2 Future
Based on estimates for the next years, MET will show a small growth in Earnings Per Share. The EPS will grow by 3.00% on average per year.
Based on estimates for the next years, MET will show a small growth in Revenue. The Revenue will grow by 5.72% on average per year.
EPS Next Y15.97%
EPS Next 2Y13.43%
EPS Next 3Y12.08%
EPS Next 5Y3%
Revenue Next Year4.78%
Revenue Next 2Y4.48%
Revenue Next 3Y5.72%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
MET is valuated reasonably with a Price/Earnings ratio of 9.95.
Based on the Price/Earnings ratio, MET is valued a bit cheaper than the industry average as 65.96% of the companies are valued more expensively.
MET is valuated cheaply when we compare the Price/Earnings ratio to 29.63, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 8.58, the valuation of MET can be described as very reasonable.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MET indicates a somewhat cheap valuation: MET is cheaper than 68.09% of the companies listed in the same industry.
MET's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 8.58 |
4.2 Price Multiples
Based on the Price/Free Cash Flow ratio, MET is valued a bit cheaper than the industry average as 75.89% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.68 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
MET's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MET's earnings are expected to grow with 12.08% in the coming years.
PEG (NY)0.62
PEG (5Y)1.69
EPS Next 2Y13.43%
EPS Next 3Y12.08%
5. Dividend
5.1 Amount
MET has a Yearly Dividend Yield of 2.63%.
Compared to an average industry Dividend Yield of 3.09, MET pays a bit more dividend than its industry peers.
MET's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
5.2 History
The dividend of MET has a limited annual growth rate of 5.17%.
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)5.17%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
48.75% 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 slower than its dividend. This means the dividend growth is not sustainable.
DP48.75%
EPS Next 2Y13.43%
EPS Next 3Y12.08%
81.01
-1.73 (-2.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners74.66%
Inst Owner Change-1.01%
Ins Owners0.15%
Ins Owner Change0.42%
Market Cap55.83B
Analysts78.1
Price Target99.03 (22.24%)
Short Float %1.18%
Short Ratio1.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.63% |
Yearly Dividend2.34
Dividend Growth(5Y)5.17%
DP48.75%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.83%
Min EPS beat(2)-10.99%
Max EPS beat(2)7.34%
EPS beat(4)2
Avg EPS beat(4)-0.66%
Min EPS beat(4)-10.99%
Max EPS beat(4)7.34%
EPS beat(8)3
Avg EPS beat(8)-3.1%
EPS beat(12)7
Avg EPS beat(12)7.06%
EPS beat(16)11
Avg EPS beat(16)15.01%
Revenue beat(2)0
Avg Revenue beat(2)-3.45%
Min Revenue beat(2)-6.53%
Max Revenue beat(2)-0.38%
Revenue beat(4)1
Avg Revenue beat(4)-2.86%
Min Revenue beat(4)-6.53%
Max Revenue beat(4)0.41%
Revenue beat(8)3
Avg Revenue beat(8)-1.54%
Revenue beat(12)5
Avg Revenue beat(12)-0.54%
Revenue beat(16)8
Avg Revenue beat(16)1.62%
PT rev (1m)2.22%
PT rev (3m)6.34%
EPS NQ rev (1m)-4.89%
EPS NQ rev (3m)-7.87%
EPS NY rev (1m)-3.68%
EPS NY rev (3m)-4.11%
Revenue NQ rev (1m)1.11%
Revenue NQ rev (3m)1.15%
Revenue NY rev (1m)0.94%
Revenue NY rev (3m)0.41%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.95 | ||
| Fwd PE | 8.58 | ||
| P/S | 0.78 | ||
| P/FCF | 3.68 | ||
| P/OCF | 3.68 | ||
| P/B | 1.81 | ||
| P/tB | 2.57 | ||
| EV/EBITDA | N/A |
EPS(TTM)8.14
EY10.05%
EPS(NY)9.44
Fwd EY11.65%
FCF(TTM)22.01
FCFY27.17%
OCF(TTM)22.01
OCFY27.17%
SpS103.58
BVpS44.81
TBVpS31.53
PEG (NY)0.62
PEG (5Y)1.69
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.51% | ||
| ROE | 11.53% | ||
| ROCE | 0.89% | ||
| ROIC | 0.68% | ||
| ROICexc | 0.7% | ||
| ROICexgc | 1.03% | ||
| OM | 8.78% | ||
| PM (TTM) | 4.99% | ||
| GM | N/A | ||
| FCFM | 21.25% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-9.67%
OM growth 5Y-3.65%
PM growth 3Y-12.67%
PM growth 5Y-6.21%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 1.24 | ||
| Debt/EBITDA | N/A | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.91 | ||
| Cash Conversion | N/A | ||
| Profit Quality | 425.98% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC7.9%
ROIC/WACC0.09
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)10.9%
EPS 3Y-3.75%
EPS 5Y5.91%
EPS Q2Q%7.77%
EPS Next Y15.97%
EPS Next 2Y13.43%
EPS Next 3Y12.08%
EPS Next 5Y3%
Revenue 1Y (TTM)6.16%
Revenue growth 3Y-0.04%
Revenue growth 5Y0.35%
Sales Q2Q%5.45%
Revenue Next Year4.78%
Revenue Next 2Y4.48%
Revenue Next 3Y5.72%
Revenue Next 5YN/A
EBIT growth 1Y57.88%
EBIT growth 3Y-9.71%
EBIT growth 5Y-3.31%
EBIT Next Year17.1%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y37.9%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y37.9%
OCF growth 3YN/A
OCF growth 5YN/A