Overall MET gets a fundamental rating of 4 out of 10. We evaluated MET against 148 industry peers in the Insurance industry. Both the profitability and financial health of MET have multiple concerns. MET is not valued too expensively and it also shows a decent growth rate.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year MET was profitable.
MET had a positive operating cash flow in the past year.
In the past 5 years MET has always been profitable.
In the past 5 years MET always reported a positive cash flow from operatings.

1.2 Ratios

The Return On Assets of MET (0.50%) is worse than 70.95% of its industry peers.
With a Return On Equity value of 12.56%, MET perfoms like the industry average, outperforming 57.43% of the companies in the same industry.
MET has a worse Return On Invested Capital (0.64%) than 66.89% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MET is significantly below the industry average of 14.94%.
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.
MET's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 8.34%, MET is not doing good in the industry: 66.22% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of MET has declined.

		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

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
MET has less shares outstanding than it did 1 year ago.
MET has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MET has a worse debt to assets ratio.

2.2 Solvency

MET has a debt to FCF ratio of 1.36. This is a very positive value and a sign of high solvency as it would only need 1.36 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.36, MET is in the better half of the industry, outperforming 62.16% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that MET is somewhat dependend on debt financing.
MET's Debt to Equity ratio of 0.69 is on the low side compared to the rest of the industry. MET is outperformed by 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

WACC7.66%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has been growing slightly by 5.51% 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.
MET shows a small growth in Revenue. In the last year, the Revenue has grown by 0.79%.
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.
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 Y7.87%

EPS Next 2Y10.66%

EPS Next 3Y11.05%

EPS Next 5Y11.82%

Revenue Next Year12.79%

Revenue Next 2Y3.38%

Revenue Next 3Y3.49%

Revenue Next 5Y4.27%

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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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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 66.89% of the companies in the same industry.
When comparing the Price/Earnings ratio of MET to the average of the S&P500 Index (28.32), we can say MET is valued rather cheaply.
MET is valuated cheaply with a Price/Forward Earnings ratio of 7.91.
Based on the Price/Forward Earnings ratio, MET is valued a bit cheaper than 70.95% of the companies in the same industry.
MET is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	9.36
Fwd PE	7.91

4.2 Price Multiples

MET's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MET is cheaper than 64.19% of the companies in the same industry.
78.38% 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	3.55
EV/EBITDA	7.39

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)1.19

PEG (5Y)1.58

EPS Next 2Y10.66%

EPS Next 3Y11.05%

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5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.90%, MET has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.23, MET pays a bit more dividend than its industry peers.
MET's Dividend Yield is rather good when compared to the S&P500 average which is at 1.83.

		Industry Rank	Sector Rank
Dividend Yield	2.9%

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

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 2Y10.66%

EPS Next 3Y11.05%

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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.