METLIFE INC (MET) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MET - US59156R1086 - Common Stock
82.16 USD
-0.09 (-0.11%)
81.59 USD
-0.57 (-0.69%)
Overall MET gets a fundamental rating of 4 out of 10. We evaluated MET against 147 industry peers in the Insurance industry. MET has a bad profitability rating. Also its financial health evaluation is rather negative. MET is not valued too expensively and it also shows a decent 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.
In the past 5 years MET has always been profitable.
MET had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.50%, MET is not doing good in the industry: 74.15% of the companies in the same industry are doing better.
MET has a Return On Equity (12.56%) which is in line with its industry peers.
MET's Return On Invested Capital of 0.64% is on the low side compared to the rest of the industry. MET is outperformed by 68.03% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MET is significantly below the industry average of 14.90%.
The 3 year average ROIC (0.52%) for MET is below the current ROIC(0.64%), indicating increased profibility in the last year.
| 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 68.03% of its industry peers.
MET's Profit Margin has declined in the last couple of years.
The Operating Margin of MET (8.34%) is worse than 67.35% of its industry peers.
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
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MET is destroying value.
Compared to 1 year ago, MET has less shares outstanding
MET has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MET is higher compared to a year ago.
2.2 Solvency
MET has a debt to FCF ratio of 1.36. 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 61.90% of the companies in the same industry.
A Debt/Equity ratio of 0.69 indicates that MET is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.69, MET is not doing good in the industry: 84.35% of the companies in the same industry are doing better.
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
WACC7.64%
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%.
The Earnings Per Share has been growing slightly by 5.91% on average over the past years.
Looking at the last year, MET shows a small growth in Revenue. The Revenue has grown by 0.79% in the last 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
Based on estimates for the next years, MET will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.82% on average per year.
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 Y7.88%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MET is valuated reasonably with a Price/Earnings ratio of 9.75.
63.27% of the companies in the same industry are more expensive than MET, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MET to the average of the S&P500 Index (26.54), we can say MET is valued rather cheaply.
MET is valuated reasonably with a Price/Forward Earnings ratio of 8.13.
MET's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MET is cheaper than 69.39% of the companies in the same industry.
MET is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 8.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MET is valued a bit cheaper than 63.95% of the companies in the same industry.
78.23% 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 | 3.7 | ||
| EV/EBITDA | 7.73 |
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)1.24
PEG (5Y)1.65
EPS Next 2Y11.39%
EPS Next 3Y11.66%
5. Dividend
5.1 Amount
MET has a Yearly Dividend Yield of 2.76%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.74, MET pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 1.96, MET pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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
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 2Y11.39%
EPS Next 3Y11.66%
82.16
-0.09 (-0.11%)
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 Change0.56%
Market Cap54.13B
Revenue(TTM)71.96B
Net Income(TTM)3.63B
Analysts80
Price Target95.59 (16.35%)
Short Float %1.4%
Short Ratio2.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.76% |
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)-0.73%
EPS NQ rev (3m)-0.48%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)0.7%
Revenue NQ rev (1m)34.03%
Revenue NQ rev (3m)34.27%
Revenue NY rev (1m)8.15%
Revenue NY rev (3m)8.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.75 | ||
| Fwd PE | 8.13 | ||
| P/S | 0.75 | ||
| P/FCF | 3.7 | ||
| P/OCF | 3.7 | ||
| P/B | 1.87 | ||
| P/tB | 2.73 | ||
| EV/EBITDA | 7.73 |
EPS(TTM)8.43
EY10.26%
EPS(NY)10.1
Fwd EY12.29%
FCF(TTM)22.2
FCFY27.02%
OCF(TTM)22.2
OCFY27.02%
SpS109.21
BVpS43.93
TBVpS30.12
PEG (NY)1.24
PEG (5Y)1.65
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
WACC7.64%
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%.