METLIFE INC (MET) Stock Fundamental Analysis
USA - NYSE:MET - US59156R1086 - Common Stock
79.16 USD
+0.09 (+0.11%)
79.16 USD
0 (0%)
Overall MET gets a fundamental rating of 4 out of 10. We evaluated MET against 146 industry peers in the Insurance industry. MET may be in some trouble as it scores bad on both profitability and health. MET scores decently on growth, while it is valued quite cheap. This could make an interesting combination.
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
MET has a worse Return On Assets (0.58%) than 63.70% of its industry peers.
Looking at the Return On Equity, with a value of 14.78%, MET is in the better half of the industry, outperforming 73.29% of the companies in the same industry.
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.
With a Operating Margin value of 9.33%, MET perfoms like the industry average, 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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.
Compared to 1 year ago, MET has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of MET is 1.31, which is an excellent value as it means it would take MET, only 1.31 years of fcf income to pay off all of its debts.
MET has a Debt to FCF ratio (1.31) which is in line with its industry peers.
A Debt/Equity ratio of 0.72 indicates that MET is somewhat dependend on debt financing.
The Debt to Equity ratio of MET (0.72) is worse than 86.30% of its industry peers.
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
The Earnings Per Share has been growing slightly by 0.25% over the past year.
The Earnings Per Share has been growing slightly by 5.91% on average over the past years.
The Revenue has been growing slightly by 6.26% 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)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
MET is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.71% yearly.
The Revenue is expected to grow by 4.26% on average over the next years.
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
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.
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.
When comparing the Price/Earnings ratio of MET to the average of the S&P500 Index (27.38), we can say MET is valued rather cheaply.
A Price/Forward Earnings ratio of 7.79 indicates a rather cheap valuation of MET.
71.92% 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 22.86, MET is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.88 | ||
| Fwd PE | 7.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MET is valued a bit cheaper than the industry average as 68.49% of the companies are valued more expensively.
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 | 6.64 |
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%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.44, MET pays a bit more dividend than its industry peers.
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
MET pays out 41.87% of its income as dividend. 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.
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)-1.67%
EPS NQ rev (1m)0.1%
EPS NQ rev (3m)-4.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-5.4%
Revenue NQ rev (1m)-0.69%
Revenue NQ rev (3m)1.21%
Revenue NY rev (1m)-0.36%
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 | 6.64 |
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%