METLIFE INC (MET)
US59156R1086 - Common Stock
Taking everything into account, MET scores 4 out of 10 in our fundamental rating. MET was compared to 141 industry peers in the Insurance industry. MET has a bad profitability rating. Also its financial health evaluation is rather negative. MET scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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.
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
The Return On Assets of MET (0.51%) is worse than 72.86% of its industry peers.
MET has a Return On Equity of 11.53%. This is comparable to the rest of the industry: MET outperforms 51.43% of its industry peers.
The Return On Invested Capital of MET (0.73%) is worse than 60.71% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MET is below the industry average of 4.38%.
The 3 year average ROIC (0.61%) for MET is below the current ROIC(0.73%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.51% | ||
| ROE | 11.53% | ||
| ROIC | 0.73% |
ROA(3y)0.46%
ROA(5y)0.56%
ROE(3y)7.3%
ROE(5y)7.5%
ROIC(3y)0.61%
ROIC(5y)0.7%
1.3 Margins
The Profit Margin of MET (4.99%) is worse than 60.00% of its industry peers.
MET's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 8.78%, MET perfoms like the industry average, outperforming 46.43% of the companies in the same 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-25.82%
OM growth 5Y-15.56%
PM growth 3Y-35.38%
PM growth 5Y-22.38%
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.
MET has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MET has less shares outstanding
The debt/assets ratio for MET is higher compared to a year ago.
2.2 Solvency
MET has a debt to FCF ratio of 1.24. This is a very positive value and a sign of high solvency as it would only need 1.24 years to pay back of all of its debts.
MET has a Debt to FCF ratio of 1.24. This is in the better half of the industry: MET outperforms 61.43% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that MET is somewhat dependend on debt financing.
MET has a worse Debt to Equity ratio (0.61) than 78.57% 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
WACC8.02%
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 14.80%, which is quite good.
Measured over the past 5 years, MET shows a small growth in Earnings Per Share. The EPS has been growing by 6.37% on average per year.
Looking at the last year, MET shows a quite strong growth in Revenue. The Revenue has grown by 11.21% in the last year.
The Revenue has been decreasing by -0.33% on average over the past years.
EPS 1Y (TTM)14.8%
EPS 3Y5.96%
EPS 5Y6.37%
EPS Q2Q%0%
Revenue 1Y (TTM)11.21%
Revenue growth 3Y-0.49%
Revenue growth 5Y-0.33%
Sales Q2Q%-3.42%
3.2 Future
The Earnings Per Share is expected to grow by 4.53% on average over the next years.
The Revenue is expected to grow by 4.76% on average over the next years.
EPS Next Y13.84%
EPS Next 2Y15.55%
EPS Next 3Y13.72%
EPS Next 5Y4.53%
Revenue Next Year1.39%
Revenue Next 2Y3.09%
Revenue Next 3Y3.35%
Revenue Next 5Y4.76%
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
With a Price/Earnings ratio of 10.18, the valuation of MET can be described as very reasonable.
62.86% of the companies in the same industry are more expensive than MET, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MET to the average of the S&P500 Index (27.20), we can say MET is valued rather cheaply.
The Price/Forward Earnings ratio is 8.30, which indicates a very decent valuation of MET.
Based on the Price/Forward Earnings ratio, MET is valued a bit cheaper than 70.71% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MET to the average of the S&P500 Index (23.73), we can say MET is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.18 | ||
| Fwd PE | 8.3 |
4.2 Price Multiples
70.00% of the companies in the same industry are more expensive than MET, based on the Enterprise Value to EBITDA ratio.
78.57% 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 | 3.71 | ||
| EV/EBITDA | 7.58 |
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 13.72% in the coming years.
PEG (NY)0.74
PEG (5Y)1.6
EPS Next 2Y15.55%
EPS Next 3Y13.72%
5. Dividend
5.1 Amount
MET has a Yearly Dividend Yield of 2.72%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.35, MET pays a bit more dividend than its industry peers.
MET's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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
MET pays out 48.75% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of MET is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP48.75%
EPS Next 2Y15.55%
EPS Next 3Y13.72%
METLIFE INC
NYSE:MET (12/20/2024, 8:24:05 PM)
After market: 81.36 0 (0%)81.36
+1.25 (+1.56%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners76.07%
Inst Owner Change-2.06%
Ins Owners0.16%
Ins Owner Change0.95%
Market Cap56.34B
Analysts79.05
Price Target95.82 (17.77%)
Short Float %1.07%
Short Ratio1.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.72% |
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)3.21%
PT rev (3m)10.37%
EPS NQ rev (1m)-0.74%
EPS NQ rev (3m)-6.41%
EPS NY rev (1m)-1.03%
EPS NY rev (3m)-5.08%
Revenue NQ rev (1m)1.37%
Revenue NQ rev (3m)1.5%
Revenue NY rev (1m)-0.52%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.18 | ||
| Fwd PE | 8.3 | ||
| P/S | 0.79 | ||
| P/FCF | 3.71 | ||
| P/OCF | 3.71 | ||
| P/B | 1.82 | ||
| P/tB | 2.59 | ||
| EV/EBITDA | 7.58 |
EPS(TTM)7.99
EY9.82%
EPS(NY)9.8
Fwd EY12.05%
FCF(TTM)21.91
FCFY26.93%
OCF(TTM)21.91
OCFY26.93%
SpS103.1
BVpS44.6
TBVpS31.38
PEG (NY)0.74
PEG (5Y)1.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.51% | ||
| ROE | 11.53% | ||
| ROCE | 0.89% | ||
| ROIC | 0.73% | ||
| ROICexc | 0.75% | ||
| ROICexgc | 1.1% | ||
| OM | 8.78% | ||
| PM (TTM) | 4.99% | ||
| GM | N/A | ||
| FCFM | 21.25% |
ROA(3y)0.46%
ROA(5y)0.56%
ROE(3y)7.3%
ROE(5y)7.5%
ROIC(3y)0.61%
ROIC(5y)0.7%
ROICexc(3y)0.63%
ROICexc(5y)0.72%
ROICexgc(3y)0.91%
ROICexgc(5y)1.06%
ROCE(3y)0.74%
ROCE(5y)0.86%
ROICexcg growth 3Y-22.95%
ROICexcg growth 5Y-16.22%
ROICexc growth 3Y-22.5%
ROICexc growth 5Y-15.72%
OM growth 3Y-25.82%
OM growth 5Y-15.56%
PM growth 3Y-35.38%
PM growth 5Y-22.38%
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 | 2.7 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.91 | ||
| Cash Conversion | 217.04% | ||
| Profit Quality | 425.98% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.02%
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)584.49%
Profit Quality(5y)443.73%
High Growth Momentum
Growth
EPS 1Y (TTM)14.8%
EPS 3Y5.96%
EPS 5Y6.37%
EPS Q2Q%0%
EPS Next Y13.84%
EPS Next 2Y15.55%
EPS Next 3Y13.72%
EPS Next 5Y4.53%
Revenue 1Y (TTM)11.21%
Revenue growth 3Y-0.49%
Revenue growth 5Y-0.33%
Sales Q2Q%-3.42%
Revenue Next Year1.39%
Revenue Next 2Y3.09%
Revenue Next 3Y3.35%
Revenue Next 5Y4.76%
EBIT growth 1Y57.88%
EBIT growth 3Y-26.19%
EBIT growth 5Y-15.84%
EBIT Next Year17.94%
EBIT Next 3Y5.61%
EBIT Next 5YN/A
FCF growth 1Y-5.68%
FCF growth 3Y5.64%
FCF growth 5Y3.17%
OCF growth 1Y-5.68%
OCF growth 3Y5.64%
OCF growth 5Y3.17%