METLIFE INC (MET) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MET - US59156R1086 - Common Stock
81.35 USD
-0.22 (-0.27%)
81.35 USD
0 (0%)
MET gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 148 industry peers in the Insurance industry. Both the profitability and financial health of MET have multiple concerns. MET has a correct valuation and a medium growth rate.
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.
Each year in the past 5 years MET has been profitable.
In the past 5 years MET always reported a positive cash flow from operatings.
1.2 Ratios
MET's Return On Assets of 0.50% is on the low side compared to the rest of the industry. MET is outperformed by 71.62% of its industry peers.
Looking at the Return On Equity, with a value of 12.56%, MET is in line with its industry, outperforming 56.76% of the companies in the same industry.
With a Return On Invested Capital value of 0.64%, MET is not doing good in the industry: 67.57% of the companies in the same industry are doing better.
MET had an Average Return On Invested Capital over the past 3 years of 0.52%. This 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
MET has a worse Profit Margin (5.05%) than 65.54% of its industry peers.
MET's Profit Margin has declined in the last couple of years.
MET's Operating Margin of 8.34% is on the low side compared to the rest of the industry. MET is outperformed by 66.89% 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.
MET has a worse debt/assets ratio than last year.
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.
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.
A Debt/Equity ratio of 0.69 indicates that MET is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.69, MET is doing worse than 84.46% of the companies in the same industry.
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 | 0.69 | ||
| Debt/FCF | 1.36 | ||
| Altman-Z | N/A |
ROIC/WACC0.08
WACC7.61%
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 5.51%.
Measured over the past 5 years, MET shows a small growth in Earnings Per Share. The EPS has been growing by 5.91% on average per year.
The Revenue has been growing slightly by 0.79% in the past 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)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.
MET is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.27% yearly.
EPS Next Y7.88%
EPS Next 2Y11.39%
EPS Next 3Y11.66%
EPS Next 5Y11.82%
Revenue Next Year11.33%
Revenue Next 2Y3.4%
Revenue Next 3Y3.37%
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 9.65, 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 66.22% of the companies in the same industry.
MET is valuated cheaply when we compare the Price/Earnings ratio to 26.61, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 8.05 indicates a reasonable 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 72.30% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MET to the average of the S&P500 Index (24.01), we can say MET is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.65 | ||
| Fwd PE | 8.05 |
4.2 Price Multiples
63.51% of the companies in the same industry are more expensive than MET, based on the Enterprise Value to EBITDA ratio.
MET's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MET is cheaper than 79.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.66 | ||
| EV/EBITDA | 7.64 |
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)1.22
PEG (5Y)1.63
EPS Next 2Y11.39%
EPS Next 3Y11.66%
5. Dividend
5.1 Amount
MET has a Yearly Dividend Yield of 2.78%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.30, MET pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.87, MET pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
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.
The dividend of MET is growing, but earnings are growing more, so the dividend growth is sustainable.
DP46.97%
EPS Next 2Y11.39%
EPS Next 3Y11.66%
81.35
-0.22 (-0.27%)
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 Cap53.60B
Revenue(TTM)71.96B
Net Income(TTM)3.63B
Analysts80
Price Target95.59 (17.5%)
Short Float %1.69%
Short Ratio2.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.78% |
Yearly Dividend2.43
Dividend Growth(5Y)4.59%
DP46.97%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)-1.2%
PT rev (3m)0.41%
EPS NQ rev (1m)-0.16%
EPS NQ rev (3m)-0.34%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)6.74%
Revenue NQ rev (3m)34.27%
Revenue NY rev (1m)8.15%
Revenue NY rev (3m)8.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.65 | ||
| Fwd PE | 8.05 | ||
| P/S | 0.74 | ||
| P/FCF | 3.66 | ||
| P/OCF | 3.66 | ||
| P/B | 1.85 | ||
| P/tB | 2.7 | ||
| EV/EBITDA | 7.64 |
EPS(TTM)8.43
EY10.36%
EPS(NY)10.1
Fwd EY12.42%
FCF(TTM)22.2
FCFY27.29%
OCF(TTM)22.2
OCFY27.29%
SpS109.21
BVpS43.93
TBVpS30.12
PEG (NY)1.22
PEG (5Y)1.63
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
WACC7.61%
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 Y7.88%
EPS Next 2Y11.39%
EPS Next 3Y11.66%
EPS Next 5Y11.82%
Revenue 1Y (TTM)0.79%
Revenue growth 3Y-0.02%
Revenue growth 5Y0.37%
Sales Q2Q%1.63%
Revenue Next Year11.33%
Revenue Next 2Y3.4%
Revenue Next 3Y3.37%
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 of METLIFE INC (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 expected EPS growth for MET stock?
The Earnings per Share (EPS) of METLIFE INC (MET) is expected to grow by 7.88% in the next year.
How sustainable is the dividend of METLIFE INC (MET) stock?
The dividend rating of METLIFE INC (MET) is 5 / 10 and the dividend payout ratio is 46.97%.