METLIFE INC (MET) Stock Fundamental Analysis
USA - NYSE:MET - US59156R1086 - Common Stock
79.16 USD
+0.09 (+0.11%)
79.16 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to MET. MET was compared to 146 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
In the past year MET was profitable.
In the past year MET had a positive cash flow from operations.
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
MET has a Return On Assets of 0.58%. This is in the lower half of the industry: MET underperforms 63.70% of its industry peers.
MET has a better Return On Equity (14.78%) than 73.29% of its industry peers.
The Return On Invested Capital of MET (0.74%) is worse than 60.96% of its industry peers.
MET had an Average Return On Invested Capital over the past 3 years of 0.52%. This is below the industry average of 4.47%.
The 3 year average ROIC (0.52%) for MET is below the current ROIC(0.74%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 14.78% | ||
| ROIC | 0.74% |
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 5.60%. This is in the lower half of the industry: MET underperforms 61.64% of its industry peers.
In the last couple of years the Profit Margin of MET has declined.
Looking at the Operating Margin, with a value of 9.33%, MET is in line with its industry, outperforming 43.15% of the companies in the same industry.
MET's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.33% | ||
| PM (TTM) | 5.6% | ||
| 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
MET has a debt to FCF ratio of 1.31. This is a very positive value and a sign of high solvency as it would only need 1.31 years to pay back of all of its debts.
MET has a Debt to FCF ratio of 1.31. This is comparable to the rest of the industry: MET outperforms 58.90% of its industry peers.
MET has a Debt/Equity ratio of 0.72. This is a neutral value indicating MET is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.72, MET is not doing good in the industry: 86.30% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for MET, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 1.31 | ||
| Altman-Z | N/A |
ROIC/WACC0.1
WACC7.58%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
MET shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.25%.
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 6.26%.
The Revenue has been growing slightly by 0.37% on average over the past years.
EPS 1Y (TTM)0.25%
EPS 3Y-3.75%
EPS 5Y5.91%
EPS Q2Q%-11.4%
Revenue 1Y (TTM)6.26%
Revenue growth 3Y-0.02%
Revenue growth 5Y0.37%
Sales Q2Q%-4.08%
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 11.71% on average per year.
MET is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.26% yearly.
EPS Next Y7.13%
EPS Next 2Y11.7%
EPS Next 3Y11.63%
EPS Next 5Y11.71%
Revenue Next Year2.63%
Revenue Next 2Y3.06%
Revenue Next 3Y3.57%
Revenue Next 5Y4.26%
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
A Price/Earnings ratio of 9.88 indicates a reasonable valuation of MET.
Based on the Price/Earnings ratio, MET is valued a bit cheaper than 66.44% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.38. MET is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.79, the valuation of MET can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MET indicates a somewhat cheap valuation: MET is cheaper than 71.23% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. MET is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.88 | ||
| Fwd PE | 7.79 |
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 68.49% of the companies listed in the same industry.
MET's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MET is cheaper than 80.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.46 | ||
| EV/EBITDA | 6.63 |
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)1.39
PEG (5Y)1.67
EPS Next 2Y11.7%
EPS Next 3Y11.63%
5. Dividend
5.1 Amount
MET has a Yearly Dividend Yield of 2.87%.
MET's Dividend Yield is a higher than the industry average which is at 3.43.
MET's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
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.
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
41.87% of the earnings are spent on dividend by MET. 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.
DP41.87%
EPS Next 2Y11.7%
EPS Next 3Y11.63%
79.16
+0.09 (+0.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners91.39%
Inst Owner Change-5.98%
Ins Owners0.17%
Ins Owner Change-0.24%
Market Cap52.64B
Analysts79.05
Price Target95.2 (20.26%)
Short Float %1.37%
Short Ratio2.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.87% |
Yearly Dividend2.43
Dividend Growth(5Y)4.59%
DP41.87%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-4.86%
Min EPS beat(2)-6.87%
Max EPS beat(2)-2.86%
EPS beat(4)0
Avg EPS beat(4)-5.61%
Min EPS beat(4)-10.99%
Max EPS beat(4)-1.74%
EPS beat(8)2
Avg EPS beat(8)-1.81%
EPS beat(12)4
Avg EPS beat(12)-2.85%
EPS beat(16)8
Avg EPS beat(16)6.84%
Revenue beat(2)1
Avg Revenue beat(2)-0.82%
Min Revenue beat(2)-4.27%
Max Revenue beat(2)2.63%
Revenue beat(4)2
Avg Revenue beat(4)-1.99%
Min Revenue beat(4)-6.53%
Max Revenue beat(4)2.63%
Revenue beat(8)4
Avg Revenue beat(8)-1.35%
Revenue beat(12)6
Avg Revenue beat(12)-0.87%
Revenue beat(16)7
Avg Revenue beat(16)-1.46%
PT rev (1m)-2.61%
PT rev (3m)-1.32%
EPS NQ rev (1m)-1.53%
EPS NQ rev (3m)-4.28%
EPS NY rev (1m)-3.55%
EPS NY rev (3m)-4.8%
Revenue NQ rev (1m)-0.64%
Revenue NQ rev (3m)1.21%
Revenue NY rev (1m)-0.86%
Revenue NY rev (3m)-0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.88 | ||
| Fwd PE | 7.79 | ||
| P/S | 0.72 | ||
| P/FCF | 3.46 | ||
| P/OCF | 3.46 | ||
| P/B | 1.9 | ||
| P/tB | 2.84 | ||
| EV/EBITDA | 6.63 |
EPS(TTM)8.01
EY10.12%
EPS(NY)10.16
Fwd EY12.83%
FCF(TTM)22.9
FCFY28.93%
OCF(TTM)22.9
OCFY28.93%
SpS109.89
BVpS41.63
TBVpS27.88
PEG (NY)1.39
PEG (5Y)1.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.58% | ||
| ROE | 14.78% | ||
| ROCE | 0.97% | ||
| ROIC | 0.74% | ||
| ROICexc | 0.77% | ||
| ROICexgc | 1.12% | ||
| OM | 9.33% | ||
| PM (TTM) | 5.6% | ||
| GM | N/A | ||
| FCFM | 20.84% |
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-Score7
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 1.31 | ||
| Debt/EBITDA | 2.64 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.7 | ||
| Cash Conversion | 202.22% | ||
| Profit Quality | 372.26% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC7.58%
ROIC/WACC0.1
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)0.25%
EPS 3Y-3.75%
EPS 5Y5.91%
EPS Q2Q%-11.4%
EPS Next Y7.13%
EPS Next 2Y11.7%
EPS Next 3Y11.63%
EPS Next 5Y11.71%
Revenue 1Y (TTM)6.26%
Revenue growth 3Y-0.02%
Revenue growth 5Y0.37%
Sales Q2Q%-4.08%
Revenue Next Year2.63%
Revenue Next 2Y3.06%
Revenue Next 3Y3.57%
Revenue Next 5Y4.26%
EBIT growth 1Y42.7%
EBIT growth 3Y-9.43%
EBIT growth 5Y-3.13%
EBIT Next Year17.1%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y29.98%
FCF growth 3Y5.04%
FCF growth 5Y1.15%
OCF growth 1Y29.98%
OCF growth 3Y5.04%
OCF growth 5Y1.15%