METLIFE INC (MET) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MET - US59156R1086 - Common Stock
80.3 USD
-0.75 (-0.93%)
80.3 USD
0 (0%)
Overall MET gets a fundamental rating of 4 out of 10. We evaluated MET against 148 industry peers in the Insurance industry. MET may be in some trouble as it scores bad on both profitability and health. 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.
MET had a positive operating cash flow in the past year.
MET had positive earnings in each of the past 5 years.
Each year in the past 5 years MET had a positive operating cash flow.
1.2 Ratios
MET has a worse Return On Assets (0.50%) than 71.62% of its industry peers.
MET has a Return On Equity of 12.56%. This is comparable to the rest of the industry: MET outperforms 56.76% of its industry peers.
The Return On Invested Capital of MET (0.64%) is worse than 67.57% of its industry peers.
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.
In the last couple of years the Profit Margin of MET has declined.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MET 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
The Debt to FCF ratio of MET is 1.36, which is an excellent value as it means it would take MET, only 1.36 years of fcf income to pay off 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.
The Debt to Equity ratio of MET (0.69) is worse than 84.46% 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
WACC7.59%
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 5.51% over the past year.
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.
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.
The Revenue is expected to grow by 4.27% on average over the next years.
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
A Price/Earnings ratio of 9.53 indicates a reasonable valuation of MET.
Compared to the rest of the industry, the Price/Earnings ratio of MET indicates a somewhat cheap valuation: MET is cheaper than 66.22% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.57. MET is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.95, which indicates a rather cheap valuation of MET.
71.62% 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 24.04, MET is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.53 | ||
| Fwd PE | 7.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MET is valued a bit cheaper than 62.84% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MET is valued a bit cheaper than the industry average as 79.05% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.62 | ||
| EV/EBITDA | 7.61 |
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)1.21
PEG (5Y)1.61
EPS Next 2Y11.39%
EPS Next 3Y11.66%
5. Dividend
5.1 Amount
MET has a Yearly Dividend Yield of 2.78%.
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 1.88, 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.
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%
80.3
-0.75 (-0.93%)
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 Cap52.91B
Revenue(TTM)71.96B
Net Income(TTM)3.63B
Analysts80
Price TargetN/A
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 | 9.53 | ||
| Fwd PE | 7.95 | ||
| P/S | 0.74 | ||
| P/FCF | 3.62 | ||
| P/OCF | 3.62 | ||
| P/B | 1.83 | ||
| P/tB | 2.67 | ||
| EV/EBITDA | 7.61 |
EPS(TTM)8.43
EY10.5%
EPS(NY)10.1
Fwd EY12.58%
FCF(TTM)22.2
FCFY27.65%
OCF(TTM)22.2
OCFY27.65%
SpS109.21
BVpS43.93
TBVpS30.12
PEG (NY)1.21
PEG (5Y)1.61
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
WACC7.59%
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%.