METLIFE INC (MET) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MET - US59156R1086 - Common Stock
82.28 USD
-0.33 (-0.4%)
82.28 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to MET. MET was compared to 147 industry peers in the Insurance industry. MET may be in some trouble as it scores bad on both profitability and health. 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.
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
MET has a worse Return On Assets (0.50%) than 72.11% of its industry peers.
With a Return On Equity value of 12.56%, MET perfoms like the industry average, outperforming 56.46% of the companies in the same industry.
The Return On Invested Capital of MET (0.64%) is worse than 68.03% of its industry peers.
MET had an Average Return On Invested Capital over the past 3 years of 0.52%. This is significantly below the industry average of 14.89%.
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
The Profit Margin of MET (5.05%) is worse than 65.99% of its industry peers.
In the last couple of years the Profit Margin of MET has declined.
The Operating Margin of MET (8.34%) is worse than 67.35% 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
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.
The number of shares outstanding for MET has been reduced compared to 1 year ago.
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
The Debt to FCF ratio of MET is 1.36, which is an excellent value as it means it would take MET, only 1.36 years of fcf income to pay off all of its debts.
MET has a Debt to FCF ratio of 1.36. This is in the better half of the industry: MET outperforms 62.59% of its industry peers.
MET has a Debt/Equity ratio of 0.69. This is a neutral value indicating MET is somewhat dependend on debt financing.
MET has a Debt to Equity ratio of 0.69. This is amonst the worse of the industry: MET underperforms 84.35% 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 | 0.69 | ||
| Debt/FCF | 1.36 | ||
| Altman-Z | N/A |
ROIC/WACC0.08
WACC7.64%
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.
The Revenue has been growing slightly by 0.79% in the past year.
MET shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.37% yearly.
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
The Earnings Per Share is expected to grow by 11.82% on average over the next years. This is quite good.
Based on estimates for the next years, MET will show a small growth in Revenue. The Revenue will grow by 4.27% on average per year.
EPS Next Y7.88%
EPS Next 2Y11.39%
EPS Next 3Y11.66%
EPS Next 5Y11.82%
Revenue Next Year11.33%
Revenue Next 2Y3.4%
Revenue Next 3Y3.37%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.76, the valuation of MET can be described as very reasonable.
MET's Price/Earnings ratio is a bit cheaper when compared to the industry. MET is cheaper than 65.99% of the companies in the same industry.
MET is valuated cheaply when we compare the Price/Earnings ratio to 26.43, which is the current average of the S&P500 Index.
MET is valuated reasonably with a Price/Forward Earnings ratio of 8.15.
Based on the Price/Forward Earnings ratio, MET is valued a bit cheaper than the industry average as 70.07% 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 23.66.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 8.15 |
4.2 Price Multiples
MET's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MET is cheaper than 63.27% of the companies in the same industry.
78.91% 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 | 7.73 |
4.3 Compensation for Growth
MET's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.24
PEG (5Y)1.65
EPS Next 2Y11.39%
EPS Next 3Y11.66%
5. Dividend
5.1 Amount
MET has a Yearly Dividend Yield of 2.76%. Purely for dividend investing, there may be better candidates out there.
MET's Dividend Yield is a higher than the industry average which is at 2.64.
Compared to an average S&P500 Dividend Yield of 1.87, MET pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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
46.97% 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.
DP46.97%
EPS Next 2Y11.39%
EPS Next 3Y11.66%
82.28
-0.33 (-0.4%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners76.54%
Inst Owner Change5.36%
Ins Owners0.18%
Ins Owner Change0.54%
Market Cap54.21B
Revenue(TTM)71.96B
Net Income(TTM)3.63B
Analysts80
Price Target95.59 (16.18%)
Short Float %1.69%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
Yearly Dividend2.43
Dividend Growth(5Y)4.59%
DP46.97%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-2.86%
Min EPS beat(2)-6.87%
Max EPS beat(2)1.16%
EPS beat(4)1
Avg EPS beat(4)-2.58%
Min EPS beat(4)-6.87%
Max EPS beat(4)1.16%
EPS beat(8)3
Avg EPS beat(8)-1.62%
EPS beat(12)4
Avg EPS beat(12)-2.92%
EPS beat(16)8
Avg EPS beat(16)4.65%
Revenue beat(2)0
Avg Revenue beat(2)-5.03%
Min Revenue beat(2)-5.79%
Max Revenue beat(2)-4.27%
Revenue beat(4)2
Avg Revenue beat(4)-1.81%
Min Revenue beat(4)-5.79%
Max Revenue beat(4)2.63%
Revenue beat(8)3
Avg Revenue beat(8)-2.34%
Revenue beat(12)5
Avg Revenue beat(12)-1.97%
Revenue beat(16)6
Avg Revenue beat(16)-1.99%
PT rev (1m)-1.2%
PT rev (3m)0.41%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)-0.34%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)34.03%
Revenue NQ rev (3m)34.27%
Revenue NY rev (1m)8.15%
Revenue NY rev (3m)8.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 8.15 | ||
| P/S | 0.75 | ||
| P/FCF | 3.71 | ||
| P/OCF | 3.71 | ||
| P/B | 1.87 | ||
| P/tB | 2.73 | ||
| EV/EBITDA | 7.73 |
EPS(TTM)8.43
EY10.25%
EPS(NY)10.1
Fwd EY12.28%
FCF(TTM)22.2
FCFY26.98%
OCF(TTM)22.2
OCFY26.98%
SpS109.21
BVpS43.93
TBVpS30.12
PEG (NY)1.24
PEG (5Y)1.65
Graham Number91.28
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.5% | ||
| ROE | 12.56% | ||
| ROCE | 0.83% | ||
| ROIC | 0.64% | ||
| ROICexc | 0.66% | ||
| ROICexgc | 0.97% | ||
| OM | 8.34% | ||
| PM (TTM) | 5.05% | ||
| GM | N/A | ||
| FCFM | 20.33% |
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-Score5
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 1.36 | ||
| Debt/EBITDA | 2.95 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.77 | ||
| Cash Conversion | 217.79% | ||
| Profit Quality | 402.5% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC7.64%
ROIC/WACC0.08
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 Y7.88%
EPS Next 2Y11.39%
EPS Next 3Y11.66%
EPS Next 5Y11.82%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y-0.02%
Revenue growth 5Y0.37%
Sales Q2Q%1.63%
Revenue Next Year11.33%
Revenue Next 2Y3.4%
Revenue Next 3Y3.37%
Revenue Next 5Y4.27%
EBIT growth 1Y-4.29%
EBIT growth 3Y-9.43%
EBIT growth 5Y-3.13%
EBIT Next Year17.1%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y34.94%
FCF growth 3Y5.04%
FCF growth 5Y1.15%
OCF growth 1Y34.94%
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 7.88% 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 46.97%.