METLIFE INC (MET)
US59156R1086 - Common Stock
Overall MET gets a fundamental rating of 3 out of 10. We evaluated MET against 141 industry peers in the Insurance industry. MET may be in some trouble as it scores bad on both profitability and health. MET is valued correctly, but it does not seem to be growing.
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.
In the past 5 years MET has always been profitable.
Each year in the past 5 years MET had a positive operating cash flow.
1.2 Ratios
MET has a Return On Assets of 0.20%. This is in the lower half of the industry: MET underperforms 67.63% of its industry peers.
MET's Return On Equity of 4.60% is on the low side compared to the rest of the industry. MET is outperformed by 60.43% of its industry peers.
MET has a Return On Invested Capital (0.38%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MET is below the industry average of 4.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 4.6% | ||
| ROIC | 0.38% |
ROA(3y)0.46%
ROA(5y)0.56%
ROE(3y)7.3%
ROE(5y)7.5%
ROIC(3y)0.61%
ROIC(5y)0.7%
1.3 Margins
The Profit Margin of MET (2.06%) is worse than 65.47% of its industry peers.
MET's Profit Margin has declined in the last couple of years.
MET has a Operating Margin of 4.79%. This is in the lower half of the industry: MET underperforms 64.03% of its industry peers.
In the last couple of years the Operating Margin of MET has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.79% | ||
| PM (TTM) | 2.06% | ||
| GM | N/A |
OM growth 3Y-25.42%
OM growth 5Y-15.29%
PM growth 3Y-35.4%
PM growth 5Y-22.4%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
MET has a worse debt/assets ratio than last year.
2.2 Solvency
MET has a debt to FCF ratio of 1.37. This is a very positive value and a sign of high solvency as it would only need 1.37 years to pay back of all of its debts.
MET's Debt to FCF ratio of 1.37 is fine compared to the rest of the industry. MET outperforms 64.75% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that MET is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.63, MET is not doing good in the industry: 69.06% of the companies in the same industry are doing better.
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 | 0.63 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | N/A |
ROIC/WACC0.05
WACC7.99%
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 7.31% 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 6.37% on average per year.
MET shows a decrease in Revenue. In the last year, the revenue decreased by -3.70%.
The Revenue has been decreasing by -0.32% on average over the past years.
EPS 1Y (TTM)7.31%
EPS 3Y5.96%
EPS 5Y6.37%
EPS growth Q2Q24.52%
Revenue 1Y (TTM)-3.7%
Revenue growth 3Y-0.46%
Revenue growth 5Y-0.32%
Revenue growth Q2Q16.62%
3.2 Future
MET is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 2.17% yearly.
The Revenue is expected to grow by 3.50% on average over the next years.
EPS Next Y19.99%
EPS Next 2Y17.05%
EPS Next 3Y14.79%
EPS Next 5Y2.17%
Revenue Next Year2.3%
Revenue Next 2Y3.21%
Revenue Next 3Y3.5%
Revenue Next 5YN/A
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 decreasing.
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
With a Price/Earnings ratio of 9.86, the valuation of MET can be described as very reasonable.
MET's Price/Earnings ratio is a bit cheaper when compared to the industry. MET is cheaper than 62.59% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 25.20. MET is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.22, the valuation of MET can be described as reasonable.
MET's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MET is cheaper than 68.35% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.60. MET is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 8.22 |
4.2 Price Multiples
MET's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, MET is valued a bit cheaper than 79.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.81 | ||
| EV/EBITDA | 12.81 |
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 14.79% in the coming years.
PEG (NY)0.49
PEG (5Y)1.55
EPS Next 2Y17.05%
EPS Next 3Y14.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.97%, MET has a reasonable but not impressive dividend return.
MET's Dividend Yield is a higher than the industry average which is at 4.36.
MET's Dividend Yield is a higher than the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
5.2 History
The dividend of MET has a limited annual growth rate of 5.17%.
MET has paid a dividend for at least 10 years, which is a reliable track record.
MET has decreased its dividend recently.
Dividend Growth(5Y)5.17%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
127.83% of the earnings are spent on dividend by MET. This is not a sustainable payout ratio.
MET's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP127.83%
EPS Next 2Y17.05%
EPS Next 3Y14.79%
METLIFE INC
NYSE:MET (4/24/2024, 2:13:04 PM)
72.39
+0.17 (+0.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap52.34B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.97% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.86 | ||
| Fwd PE | 8.22 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.49
PEG (5Y)1.55
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.2% | ||
| ROE | 4.6% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.79% | ||
| PM (TTM) | 2.06% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)7.31%
EPS 3Y5.96%
EPS 5Y
EPS growth Q2Q
EPS Next Y19.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-3.7%
Revenue growth 3Y-0.46%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y