METLIFE INC (MET)
US59156R1086 - Common Stock
Taking everything into account, MET scores 4 out of 10 in our fundamental rating. MET was compared to 140 industry peers in the Insurance industry. While MET is still in line with the averages on profitability rating, there are concerns on its financial health. MET may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year MET was profitable.
MET had a positive operating cash flow in the past year.
Each year in the past 5 years MET has been profitable.
Each year in the past 5 years MET had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MET (0.51%) is worse than 66.19% of its industry peers.
MET has a Return On Equity of 11.53%. This is comparable to the rest of the industry: MET outperforms 56.12% of its industry peers.
The Return On Invested Capital of MET (0.73%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MET is below the industry average of 4.27%.
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
With a Profit Margin value of 4.99%, MET perfoms like the industry average, outperforming 43.88% of the companies in the same industry.
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 43.88% 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MET is destroying value.
The number of shares outstanding for MET has been reduced compared to 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
The Debt to FCF ratio of MET is 1.24, which is an excellent value as it means it would take MET, only 1.24 years of fcf income to pay off all of its debts.
MET has a Debt to FCF ratio of 1.24. This is comparable to the rest of the industry: MET outperforms 58.99% of its industry peers.
A Debt/Equity ratio of 0.61 indicates that MET is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, MET is doing worse than 71.94% of the companies in the same industry.
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
WACC7.94%
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.
MET shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.37% yearly.
MET shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.21%.
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.
Based on estimates for the next years, MET will show a small growth in Revenue. The Revenue will grow by 4.48% on average per year.
EPS Next Y15.02%
EPS Next 2Y15.81%
EPS Next 3Y13.87%
EPS Next 5Y4.53%
Revenue Next Year1.92%
Revenue Next 2Y3.12%
Revenue Next 3Y2.95%
Revenue Next 5Y4.48%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
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 10.83, 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 64.03% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.96, MET is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.79, the valuation of MET can be described as reasonable.
69.78% of the companies in the same industry are more expensive than MET, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, MET is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.83 | ||
| Fwd PE | 8.79 |
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 69.06% of the companies listed in the same industry.
MET's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MET is cheaper than 78.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.95 | ||
| EV/EBITDA | 7.96 |
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 13.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.72
PEG (5Y)1.7
EPS Next 2Y15.81%
EPS Next 3Y13.87%
5. Dividend
5.1 Amount
MET has a Yearly Dividend Yield of 2.64%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.25, MET pays a bit more dividend than its industry peers.
MET's Dividend Yield is comparable with the S&P500 average which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
5.2 History
The dividend of MET has a limited annual growth rate of 5.17%.
MET has paid a dividend for at least 10 years, which is a reliable track record.
MET has decreased its dividend recently.
Dividend Growth(5Y)5.17%
Div Incr Years1
Div Non Decr Years1
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 2Y15.81%
EPS Next 3Y13.87%
METLIFE INC
NYSE:MET (11/22/2024, 11:14:04 AM)
86.51
+1.32 (+1.55%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap59.90B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.83 | ||
| Fwd PE | 8.79 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.72
PEG (5Y)1.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.51% | ||
| ROE | 11.53% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.78% | ||
| PM (TTM) | 4.99% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.8%
EPS 3Y5.96%
EPS 5Y
EPS Q2Q%
EPS Next Y15.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.21%
Revenue growth 3Y-0.49%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y