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 142 industry peers in the Insurance industry. MET has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
MET had a positive operating cash flow in each of the past 5 years.
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 64.08% of its industry peers.
Looking at the Return On Equity, with a value of 15.66%, MET is in the better half of the industry, outperforming 76.06% of the companies in the same industry.
MET has a Return On Invested Capital of 0.78%. This is comparable to the rest of the industry: MET outperforms 40.14% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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's Profit Margin of 5.85% is in line compared to the rest of the industry. MET outperforms 42.96% of its industry peers.
In the last couple of years the Profit Margin of MET has declined.
With a Operating Margin value of 9.57%, MET perfoms like the industry average, outperforming 48.59% of the companies in the same industry.
MET's Operating Margin has declined in the last couple of years.
| 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
MET has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MET has been reduced compared to 1 year ago.
The number of shares outstanding for MET has been reduced compared to 5 years ago.
The debt/assets ratio for MET is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of MET is 1.16, which is an excellent value as it means it would take MET, only 1.16 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 1.16, MET perfoms like the industry average, outperforming 58.45% of the companies in the same industry.
A Debt/Equity ratio of 0.70 indicates that 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 83.10% 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/WACC0.1
WACC7.78%
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 grown by an nice 8.10% 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.
Looking at the last year, MET shows a quite strong growth in Revenue. The Revenue has grown by 8.94% in the last year.
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
The Earnings Per Share is expected to grow by 11.93% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.09% on average over the next years.
EPS Next Y12.54%
EPS Next 2Y12.6%
EPS Next 3Y12.25%
EPS Next 5Y11.93%
Revenue Next Year1.85%
Revenue Next 2Y2.61%
Revenue Next 3Y4.1%
Revenue Next 5Y5.09%
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
With a Price/Earnings ratio of 9.50, the valuation of MET can be described as very reasonable.
71.83% of the companies in the same industry are more expensive than MET, based on the Price/Earnings ratio.
MET's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.25.
The Price/Forward Earnings ratio is 7.61, which indicates a rather cheap valuation of MET.
Based on the Price/Forward Earnings ratio, MET is valued a bit cheaper than the industry average as 70.42% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.15, MET is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 7.61 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MET is valued a bit cheaper than the industry average as 71.13% of the companies are valued more expensively.
MET's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MET is cheaper than 78.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.19 | ||
| EV/EBITDA | 6.48 |
4.3 Compensation for Growth
The 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 12.25% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.76
PEG (5Y)1.61
EPS Next 2Y12.6%
EPS Next 3Y12.25%
5. Dividend
5.1 Amount
MET has a Yearly Dividend Yield of 2.88%. Purely for dividend investing, there may be better candidates out there.
MET's Dividend Yield is a higher than the industry average which is at 3.09.
Compared to an average S&P500 Dividend Yield of 2.38, MET pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
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
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 2Y12.6%
EPS Next 3Y12.25%
78.58
-0.28 (-0.36%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners74.66%
Inst Owner Change-1.71%
Ins Owners0.15%
Ins Owner Change6.09%
Market Cap52.75B
Analysts78.1
Price Target94.61 (20.4%)
Short Float %1.22%
Short Ratio1.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.88% |
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)0.54%
PT rev (3m)-4.46%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)-2.85%
EPS NY rev (1m)-1.32%
EPS NY rev (3m)-3.07%
Revenue NQ rev (1m)-2.84%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)-1.73%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 7.61 | ||
| P/S | 0.72 | ||
| P/FCF | 3.19 | ||
| P/OCF | 3.19 | ||
| P/B | 1.92 | ||
| P/tB | 2.86 | ||
| EV/EBITDA | 6.48 |
EPS(TTM)8.27
EY10.52%
EPS(NY)10.32
Fwd EY13.13%
FCF(TTM)24.63
FCFY31.34%
OCF(TTM)24.63
OCFY31.34%
SpS109.61
BVpS40.95
TBVpS27.49
PEG (NY)0.76
PEG (5Y)1.61
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
WACC7.78%
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 Y12.54%
EPS Next 2Y12.6%
EPS Next 3Y12.25%
EPS Next 5Y11.93%
Revenue 1Y (TTM)8.94%
Revenue growth 3Y-0.02%
Revenue growth 5Y0.37%
Sales Q2Q%10.64%
Revenue Next Year1.85%
Revenue Next 2Y2.61%
Revenue Next 3Y4.1%
Revenue Next 5Y5.09%
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%