METLIFE INC (MET) Stock Fundamental Analysis
NYSE:MET - New York Stock Exchange, Inc. - US59156R1086 - Common Stock - Currency: USD
MET gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 144 industry peers in the Insurance industry. MET has a medium profitability rating, but doesn't score so well on its financial health evaluation. MET may be a bit undervalued, certainly considering the very reasonable score on growth
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.
MET had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MET has a worse Return On Assets (0.63%) than 64.58% of its industry peers.
MET has a Return On Equity of 15.66%. This is in the better half of the industry: MET outperforms 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.78%, MET is in line with its industry, outperforming 40.28% of the companies in the same industry.
MET had an Average Return On Invested Capital over the past 3 years of 0.52%. This is below the industry average of 4.07%.
The 3 year average ROIC (0.52%) for MET is below the current ROIC(0.78%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.63% | ||
| ROE | 15.66% | ||
| ROIC | 0.78% |
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 Profit Margin of 5.85%. This is comparable to the rest of the industry: MET outperforms 42.36% of its industry peers.
In the last couple of years the Profit Margin of MET has declined.
MET has a Operating Margin of 9.57%. This is comparable to the rest of the industry: MET outperforms 48.61% of its industry peers.
In the last couple of years the Operating Margin of MET has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.57% | ||
| PM (TTM) | 5.85% | ||
| 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.
Compared to 1 year ago, MET has less shares outstanding
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
The Debt to FCF ratio of MET is 1.16, which is an excellent value as it means it would take MET, only 1.16 years of fcf income to pay off all of its debts.
MET has a Debt to FCF ratio of 1.16. This is comparable to the rest of the industry: MET outperforms 59.72% of its industry peers.
MET has a Debt/Equity ratio of 0.70. This is a neutral value indicating MET is somewhat dependend on debt financing.
MET has a Debt to Equity ratio of 0.70. This is amonst the worse of the industry: MET underperforms 83.33% 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 | 0.7 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC9.15%
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 grown by an nice 8.10% over the past year.
MET shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.91% yearly.
Looking at the last year, MET shows a quite strong growth in Revenue. The Revenue has grown by 8.94% in the last 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)8.1%
EPS 3Y-3.75%
EPS 5Y5.91%
EPS Q2Q%7.1%
Revenue 1Y (TTM)8.94%
Revenue growth 3Y-0.02%
Revenue growth 5Y0.37%
Sales Q2Q%10.64%
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 12.04% on average per year.
Based on estimates for the next years, MET will show a small growth in Revenue. The Revenue will grow by 4.28% on average per year.
EPS Next Y13.25%
EPS Next 2Y13.07%
EPS Next 3Y12.51%
EPS Next 5Y12.04%
Revenue Next Year3.19%
Revenue Next 2Y3.19%
Revenue Next 3Y3.94%
Revenue Next 5Y4.28%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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 9.75, 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 68.75% 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 27.45.
The Price/Forward Earnings ratio is 7.75, which indicates a rather cheap valuation of MET.
69.44% of the companies in the same industry are more expensive than MET, based on the Price/Forward Earnings ratio.
MET is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.90, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 7.75 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MET indicates a somewhat cheap valuation: MET is cheaper than 71.53% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MET is valued a bit cheaper than 77.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.27 | ||
| EV/EBITDA | 6.62 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MET's earnings are expected to grow with 12.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.74
PEG (5Y)1.65
EPS Next 2Y13.07%
EPS Next 3Y12.51%
5. Dividend
5.1 Amount
MET has a Yearly Dividend Yield of 2.84%. 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 3.51.
MET's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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.
The dividend of MET decreased in the last 3 years.
Dividend Growth(5Y)4.59%
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
MET pays out 40.02% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of MET is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.02%
EPS Next 2Y13.07%
EPS Next 3Y12.51%
80.65
+0.5 (+0.62%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners74.99%
Inst Owner Change-1.71%
Ins Owners0.17%
Ins Owner Change6.1%
Market Cap54.14B
Analysts79.05
Price Target96.82 (20.05%)
Short Float %1.42%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
Yearly Dividend2.43
Dividend Growth(5Y)4.59%
DP40.02%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.3%
Min EPS beat(2)-2.86%
Max EPS beat(2)-1.74%
EPS beat(4)1
Avg EPS beat(4)-2.06%
Min EPS beat(4)-10.99%
Max EPS beat(4)7.34%
EPS beat(8)3
Avg EPS beat(8)-0.6%
EPS beat(12)5
Avg EPS beat(12)0.77%
EPS beat(16)9
Avg EPS beat(16)10.06%
Revenue beat(2)2
Avg Revenue beat(2)1.41%
Min Revenue beat(2)0.2%
Max Revenue beat(2)2.63%
Revenue beat(4)2
Avg Revenue beat(4)-1.02%
Min Revenue beat(4)-6.53%
Max Revenue beat(4)2.63%
Revenue beat(8)5
Avg Revenue beat(8)0.32%
Revenue beat(12)6
Avg Revenue beat(12)-0.6%
Revenue beat(16)9
Avg Revenue beat(16)0.91%
PT rev (1m)2.34%
PT rev (3m)-3.06%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)-2.07%
EPS NY rev (1m)0.63%
EPS NY rev (3m)-2.43%
Revenue NQ rev (1m)1.6%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)1.32%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 7.75 | ||
| P/S | 0.74 | ||
| P/FCF | 3.27 | ||
| P/OCF | 3.27 | ||
| P/B | 1.97 | ||
| P/tB | 2.93 | ||
| EV/EBITDA | 6.62 |
EPS(TTM)8.27
EY10.25%
EPS(NY)10.41
Fwd EY12.9%
FCF(TTM)24.63
FCFY30.54%
OCF(TTM)24.63
OCFY30.54%
SpS109.61
BVpS40.95
TBVpS27.49
PEG (NY)0.74
PEG (5Y)1.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.63% | ||
| ROE | 15.66% | ||
| ROCE | 1.02% | ||
| ROIC | 0.78% | ||
| ROICexc | 0.81% | ||
| ROICexgc | 1.17% | ||
| OM | 9.57% | ||
| PM (TTM) | 5.85% | ||
| GM | N/A | ||
| FCFM | 22.47% |
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%
ROICexcg growth 3Y-6.12%
ROICexcg 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-Score8
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 2.48 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.84 | ||
| Cash Conversion | 213.15% | ||
| Profit Quality | 384.02% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC9.15%
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)633.54%
Profit Quality(5y)464.62%
High Growth Momentum
Growth
EPS 1Y (TTM)8.1%
EPS 3Y-3.75%
EPS 5Y5.91%
EPS Q2Q%7.1%
EPS Next Y13.25%
EPS Next 2Y13.07%
EPS Next 3Y12.51%
EPS Next 5Y12.04%
Revenue 1Y (TTM)8.94%
Revenue growth 3Y-0.02%
Revenue growth 5Y0.37%
Sales Q2Q%10.64%
Revenue Next Year3.19%
Revenue Next 2Y3.19%
Revenue Next 3Y3.94%
Revenue Next 5Y4.28%
EBIT growth 1Y77.29%
EBIT growth 3Y-9.43%
EBIT growth 5Y-3.13%
EBIT Next Year17.1%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y25.34%
FCF growth 3Y5.04%
FCF growth 5Y1.15%
OCF growth 1Y25.34%
OCF growth 3Y5.04%
OCF growth 5Y1.15%