METLIFE INC (MET) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MET - US59156R1086 - Common Stock
78.94 USD
-0.84 (-1.05%)
78.94 USD
0 (0%)
Taking everything into account, MET scores 4 out of 10 in our fundamental rating. MET was compared to 148 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.
MET had positive earnings in each of the past 5 years.
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 0.50%, MET is doing worse than 70.95% of the companies in the same industry.
MET has a Return On Equity of 12.56%. This is comparable to the rest of the industry: MET outperforms 57.43% of its industry peers.
Looking at the Return On Invested Capital, with a value of 0.64%, MET is doing worse than 66.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MET is significantly below the industry average of 14.88%.
The last Return On Invested Capital (0.64%) for MET is above the 3 year average (0.52%), which is a sign of increasing profitability.
| 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 64.86% of its industry peers.
In the last couple of years the Profit Margin of MET has declined.
MET's Operating Margin of 8.34% is on the low side compared to the rest of the industry. MET is outperformed by 66.22% 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.
Compared to 1 year ago, MET has less shares outstanding
The number of shares outstanding for MET has been reduced compared to 5 years ago.
The debt/assets ratio for MET is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of MET is 1.36, 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.
With a decent Debt to FCF ratio value of 1.36, MET is doing good in the industry, outperforming 62.16% of the companies in the same industry.
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 83.78% 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
WACC7.57%
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.
The Earnings Per Share has been growing slightly by 5.91% on average over the past years.
The Revenue has been growing slightly by 0.79% in the past 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)0.79%
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.
The Revenue is expected to grow by 4.27% on average over the next years.
EPS Next Y7.98%
EPS Next 2Y11.45%
EPS Next 3Y11.81%
EPS Next 5Y11.82%
Revenue Next Year13.63%
Revenue Next 2Y3.67%
Revenue Next 3Y3.64%
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.
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
Based on the Price/Earnings ratio of 9.36, the valuation of MET can be described as reasonable.
MET's Price/Earnings ratio is a bit cheaper when compared to the industry. MET is cheaper than 68.24% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.51. MET is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 7.81 indicates a rather cheap valuation of MET.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MET indicates a somewhat cheap valuation: MET is cheaper than 73.65% 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 23.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.36 | ||
| Fwd PE | 7.81 |
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 63.51% of the companies listed in the same industry.
79.73% 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 | 3.56 | ||
| EV/EBITDA | 7.4 |
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)1.17
PEG (5Y)1.59
EPS Next 2Y11.45%
EPS Next 3Y11.81%
5. Dividend
5.1 Amount
MET has a Yearly Dividend Yield of 2.80%. 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 2.42.
MET's Dividend Yield is a higher than the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
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
MET pays out 46.97% of its income as dividend. 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 2Y11.45%
EPS Next 3Y11.81%
78.94
-0.84 (-1.05%)
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 Change0.39%
Market Cap52.01B
Revenue(TTM)71.96B
Net Income(TTM)3.63B
Analysts80
Price Target96.36 (22.07%)
Short Float %1.5%
Short Ratio2.32
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.8% |
Yearly Dividend2.43
Dividend Growth(5Y)4.59%
DP46.97%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
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)0.57%
PT rev (3m)1.21%
EPS NQ rev (1m)-0.07%
EPS NQ rev (3m)-0.42%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.57%
Revenue NQ rev (1m)13.73%
Revenue NQ rev (3m)52.71%
Revenue NY rev (1m)10.39%
Revenue NY rev (3m)10.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.36 | ||
| Fwd PE | 7.81 | ||
| P/S | 0.72 | ||
| P/FCF | 3.56 | ||
| P/OCF | 3.56 | ||
| P/B | 1.8 | ||
| P/tB | 2.62 | ||
| EV/EBITDA | 7.4 |
EPS(TTM)8.43
EY10.68%
EPS(NY)10.11
Fwd EY12.81%
FCF(TTM)22.2
FCFY28.12%
OCF(TTM)22.2
OCFY28.12%
SpS109.21
BVpS43.93
TBVpS30.12
PEG (NY)1.17
PEG (5Y)1.59
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
WACC7.57%
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 Y7.98%
EPS Next 2Y11.45%
EPS Next 3Y11.81%
EPS Next 5Y11.82%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y-0.02%
Revenue growth 5Y0.37%
Sales Q2Q%1.63%
Revenue Next Year13.63%
Revenue Next 2Y3.67%
Revenue Next 3Y3.64%
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 for 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 PE and PB ratios for MET stock?
The Price/Earnings (PE) ratio for METLIFE INC (MET) is 9.36 and the Price/Book (PB) ratio is 1.8.
What is the financial health of METLIFE INC (MET) stock?
The financial health rating of METLIFE INC (MET) is 3 / 10.