Taking everything into account, MET scores 4 out of 10 in our fundamental rating. MET was compared to 148 industry peers in the Insurance industry. MET may be in some trouble as it scores bad on both profitability and health. MET has a correct valuation and a medium 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.
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

Looking at the Return On Assets, with a value of 0.50%, MET is doing worse than 70.95% of the companies in the same industry.
MET's Return On Equity of 12.56% is in line compared to the rest of the industry. MET outperforms 57.43% of its industry peers.
The Return On Invested Capital of MET (0.64%) is worse 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 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

MET's Profit Margin of 5.05% is on the low side compared to the rest of the industry. MET is outperformed by 64.86% of its industry peers.
In the last couple of years the Profit Margin of MET has declined.
MET has a worse Operating Margin (8.34%) than 66.22% 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

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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.
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.
The Debt to FCF ratio of MET (1.36) is better than 62.16% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that MET is somewhat dependend on debt financing.
MET has a worse Debt to Equity ratio (0.69) than 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

WACC7.63%

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

MET shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 5.51%.
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%.
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

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 Y7.87%

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.
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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 9.15, which indicates a very decent valuation of MET.
68.92% of the companies in the same industry are more expensive than MET, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.25, MET is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.74, the valuation of MET can be described as very cheap.
MET's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MET is cheaper than 72.30% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.98. MET is valued rather cheaply when compared to this.

		Industry Rank	Sector Rank
PE	9.15
Fwd PE	7.74

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MET indicates a somewhat cheap valuation: MET is cheaper than 65.54% of the companies listed 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	3.48
EV/EBITDA	7.09

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)1.16

PEG (5Y)1.55

EPS Next 2Y10.66%

EPS Next 3Y11.05%

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5. Dividend

5.1 Amount

MET has a Yearly Dividend Yield of 2.95%.
Compared to an average industry Dividend Yield of 2.41, 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 1.82.

		Industry Rank	Sector Rank
Dividend Yield	2.95%

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 9.15 and the Price/Book (PB) ratio is 1.76.

What is the financial health of METLIFE INC (MET) stock?

The financial health rating of METLIFE INC (MET) is 3 / 10.