METLIFE INC (MET) Stock Fundamental Analysis
NYSE:MET - New York Stock Exchange, Inc. - US59156R1086 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to MET. MET was compared to 144 industry peers in the Insurance industry. While MET is still in line with the averages on profitability rating, there are concerns on its financial health. MET is valued quite cheap, while showing a decent growth score. This is a good combination!
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.
In the past 5 years MET has always been profitable.
In the past 5 years MET always reported a positive cash flow from operatings.
1.2 Ratios
MET's Return On Assets of 0.63% is on the low side compared to the rest of the industry. MET is outperformed by 64.58% of its industry peers.
MET's Return On Equity of 15.66% is fine compared to the rest of the industry. MET outperforms 75.00% 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 40.28% 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 last Return On Invested Capital (0.78%) for MET is above the 3 year average (0.52%), which is a sign of increasing profitability.
| 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 42.36% of its industry peers.
In the last couple of years the Profit Margin of MET has declined.
MET has a Operating Margin (9.57%) which is comparable to the rest of the industry.
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.
The number of shares outstanding for MET has been reduced compared to 1 year ago.
Compared to 5 years ago, MET has less shares outstanding
The debt/assets ratio for MET is higher compared to a year ago.
2.2 Solvency
MET has a debt to FCF ratio of 1.16. 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 59.72% 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 worse Debt to Equity ratio (0.70) than 83.33% 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 | 0.7 | ||
| Debt/FCF | 1.16 | ||
| Altman-Z | N/A |
ROIC/WACC0.09
WACC9.15%
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.
MET shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.94%.
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.
MET is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.28% yearly.
EPS Next Y13.25%
EPS Next 2Y13.07%
EPS Next 3Y12.51%
EPS Next 5Y12.04%
Revenue Next Year3.19%
Revenue Next 2Y3.19%
Revenue Next 3Y3.94%
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.
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 9.72.
Compared to the rest of the industry, the Price/Earnings ratio of MET indicates a somewhat cheap valuation: MET is cheaper than 69.44% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MET to the average of the S&P500 Index (26.98), we can say MET is valued rather cheaply.
A Price/Forward Earnings ratio of 7.72 indicates a rather cheap valuation of MET.
MET's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MET is cheaper than 69.44% of the companies in the same industry.
MET's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.72 | ||
| Fwd PE | 7.72 |
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 72.22% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MET indicates a somewhat cheap valuation: MET is cheaper than 78.47% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.26 | ||
| EV/EBITDA | 6.64 |
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.
MET's earnings are expected to grow with 12.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.73
PEG (5Y)1.65
EPS Next 2Y13.07%
EPS Next 3Y12.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.84%, MET has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.51, MET pays a bit more dividend than its industry peers.
MET's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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.
The dividend of MET is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.02%
EPS Next 2Y13.07%
EPS Next 3Y12.51%
80.37
+0.41 (+0.51%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners74.99%
Inst Owner Change-1.71%
Ins Owners0.17%
Ins Owner Change6.1%
Market Cap53.95B
Analysts79.05
Price Target96.82 (20.47%)
Short Float %1.33%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.84% |
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)2.34%
PT rev (3m)-3.06%
EPS NQ rev (1m)0.33%
EPS NQ rev (3m)-2.07%
EPS NY rev (1m)0.63%
EPS NY rev (3m)-2.43%
Revenue NQ rev (1m)1.6%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)1.32%
Revenue NY rev (3m)0.27%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.72 | ||
| Fwd PE | 7.72 | ||
| P/S | 0.73 | ||
| P/FCF | 3.26 | ||
| P/OCF | 3.26 | ||
| P/B | 1.96 | ||
| P/tB | 2.92 | ||
| EV/EBITDA | 6.64 |
EPS(TTM)8.27
EY10.29%
EPS(NY)10.41
Fwd EY12.95%
FCF(TTM)24.63
FCFY30.64%
OCF(TTM)24.63
OCFY30.64%
SpS109.61
BVpS40.95
TBVpS27.49
PEG (NY)0.73
PEG (5Y)1.65
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
WACC9.15%
ROIC/WACC0.09
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 Y13.25%
EPS Next 2Y13.07%
EPS Next 3Y12.51%
EPS Next 5Y12.04%
Revenue 1Y (TTM)8.94%
Revenue growth 3Y-0.02%
Revenue growth 5Y0.37%
Sales Q2Q%10.64%
Revenue Next Year3.19%
Revenue Next 2Y3.19%
Revenue Next 3Y3.94%
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%