METLIFE INC (MET) Stock Fundamental Analysis
NYSE:MET - New York Stock Exchange, Inc. - US59156R1086 - Common Stock - Currency: USD
MET gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 145 industry peers in the Insurance industry. There are concerns on the financial health of MET while its profitability can be described as average. MET may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year MET was profitable.
In the past year MET had a positive cash flow from operations.
MET had positive earnings in each of the past 5 years.
MET had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MET has a worse Return On Assets (0.63%) than 63.45% of its industry peers.
MET's Return On Equity of 15.66% is fine compared to the rest of the industry. MET outperforms 75.86% of its industry peers.
MET has a Return On Invested Capital of 0.78%. This is comparable to the rest of the industry: MET outperforms 40.69% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MET is below the industry average of 4.07%.
The 3 year average ROIC (0.52%) for MET is below the current ROIC(0.78%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.63% | ||
| ROE | 15.66% | ||
| ROIC | 0.78% |
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 5.85%. This is comparable to the rest of the industry: MET outperforms 43.45% of its industry peers.
MET's Profit Margin has declined in the last couple of years.
MET has a Operating Margin (9.57%) which is in line with its industry peers.
In the last couple of years the Operating Margin of MET has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.57% | ||
| PM (TTM) | 5.85% | ||
| 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
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 1.16. This is a very positive value and a sign of high solvency as it would only need 1.16 years to pay back of all of its debts.
With a Debt to FCF ratio value of 1.16, MET perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
MET has a Debt/Equity ratio of 0.70. This is a neutral value indicating MET is somewhat dependend on debt financing.
MET has a Debt to Equity ratio of 0.70. This is amonst the worse of the industry: MET underperforms 82.07% 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 | 0.7 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | N/A |
ROIC/WACC0.1
WACC7.79%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
MET shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.10%, which is quite good.
MET shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.91% yearly.
The Revenue has grown by 8.94% in the past year. This is quite good.
MET shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.37% yearly.
EPS 1Y (TTM)8.1%
EPS 3Y-3.75%
EPS 5Y5.91%
EPS Q2Q%7.1%
Revenue 1Y (TTM)8.94%
Revenue growth 3Y-0.02%
Revenue growth 5Y0.37%
Sales Q2Q%10.64%
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 12.04% yearly.
The Revenue is expected to grow by 4.28% on average over the next years.
EPS Next Y11.07%
EPS Next 2Y12.84%
EPS Next 3Y12.1%
EPS Next 5Y12.04%
Revenue Next Year3.49%
Revenue Next 2Y3.58%
Revenue Next 3Y3.8%
Revenue Next 5Y4.28%
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
MET is valuated reasonably with a Price/Earnings ratio of 9.40.
Based on the Price/Earnings ratio, MET is valued a bit cheaper than 68.97% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.41, MET is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.50, the valuation of MET can be described as very cheap.
Based on the Price/Forward Earnings ratio, MET is valued a bit cheaper than the industry average as 71.03% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 35.19, MET is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 7.5 |
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 72.41% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MET is valued a bit cheaper than 78.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.16 | ||
| EV/EBITDA | 6.41 |
4.3 Compensation for Growth
MET's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MET's earnings are expected to grow with 12.10% in the coming years.
PEG (NY)0.85
PEG (5Y)1.59
EPS Next 2Y12.84%
EPS Next 3Y12.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.90%, MET has a reasonable but not impressive dividend return.
MET's Dividend Yield is a higher than the industry average which is at 3.76.
MET's Dividend Yield is a higher than the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
5.2 History
The dividend of MET has a limited annual growth rate of 4.59%.
MET has paid a dividend for at least 10 years, which is 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 40.02% 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.
DP40.02%
EPS Next 2Y12.84%
EPS Next 3Y12.1%
77.7
-0.67 (-0.85%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners74.99%
Inst Owner Change-0.15%
Ins Owners0.17%
Ins Owner Change6.1%
Market Cap52.16B
Analysts79.05
Price Target96.82 (24.61%)
Short Float %1.42%
Short Ratio2.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.9% |
Yearly Dividend2.43
Dividend Growth(5Y)4.59%
DP40.02%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.3%
Min EPS beat(2)-2.86%
Max EPS beat(2)-1.74%
EPS beat(4)1
Avg EPS beat(4)-2.06%
Min EPS beat(4)-10.99%
Max EPS beat(4)7.34%
EPS beat(8)3
Avg EPS beat(8)-0.6%
EPS beat(12)5
Avg EPS beat(12)0.77%
EPS beat(16)9
Avg EPS beat(16)10.06%
Revenue beat(2)2
Avg Revenue beat(2)1.41%
Min Revenue beat(2)0.2%
Max Revenue beat(2)2.63%
Revenue beat(4)2
Avg Revenue beat(4)-1.02%
Min Revenue beat(4)-6.53%
Max Revenue beat(4)2.63%
Revenue beat(8)5
Avg Revenue beat(8)0.32%
Revenue beat(12)6
Avg Revenue beat(12)-0.6%
Revenue beat(16)9
Avg Revenue beat(16)0.91%
PT rev (1m)0.35%
PT rev (3m)-3.56%
EPS NQ rev (1m)-5.29%
EPS NQ rev (3m)-5.78%
EPS NY rev (1m)-1.3%
EPS NY rev (3m)-4.31%
Revenue NQ rev (1m)-0.24%
Revenue NQ rev (3m)-1.68%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.4 | ||
| Fwd PE | 7.5 | ||
| P/S | 0.71 | ||
| P/FCF | 3.16 | ||
| P/OCF | 3.16 | ||
| P/B | 1.9 | ||
| P/tB | 2.83 | ||
| EV/EBITDA | 6.41 |
EPS(TTM)8.27
EY10.64%
EPS(NY)10.36
Fwd EY13.34%
FCF(TTM)24.63
FCFY31.69%
OCF(TTM)24.63
OCFY31.69%
SpS109.61
BVpS40.95
TBVpS27.49
PEG (NY)0.85
PEG (5Y)1.59
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.63% | ||
| ROE | 15.66% | ||
| ROCE | 1.02% | ||
| ROIC | 0.78% | ||
| ROICexc | 0.81% | ||
| ROICexgc | 1.17% | ||
| OM | 9.57% | ||
| PM (TTM) | 5.85% | ||
| GM | N/A | ||
| FCFM | 22.47% |
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-Score8
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.7 | ||
| Debt/FCF | 1.16 | ||
| Debt/EBITDA | 2.48 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.84 | ||
| Cash Conversion | 213.15% | ||
| Profit Quality | 384.02% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC7.79%
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)8.1%
EPS 3Y-3.75%
EPS 5Y5.91%
EPS Q2Q%7.1%
EPS Next Y11.07%
EPS Next 2Y12.84%
EPS Next 3Y12.1%
EPS Next 5Y12.04%
Revenue 1Y (TTM)8.94%
Revenue growth 3Y-0.02%
Revenue growth 5Y0.37%
Sales Q2Q%10.64%
Revenue Next Year3.49%
Revenue Next 2Y3.58%
Revenue Next 3Y3.8%
Revenue Next 5Y4.28%
EBIT growth 1Y77.29%
EBIT growth 3Y-9.43%
EBIT growth 5Y-3.13%
EBIT Next Year17.1%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y25.34%
FCF growth 3Y5.04%
FCF growth 5Y1.15%
OCF growth 1Y25.34%
OCF growth 3Y5.04%
OCF growth 5Y1.15%