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 143 industry peers in the Insurance industry. MET may be in some trouble as it scores bad on both profitability and health. A decent growth rate in combination with a cheap valuation! Better keep an eye on MET.
1. Profitability
1.1 Basic Checks
In the past year MET was profitable.
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 0.62% is on the low side compared to the rest of the industry. MET is outperformed by 69.23% of its industry peers.
MET has a better Return On Equity (15.40%) than 65.03% of its industry peers.
MET has a worse Return On Invested Capital (0.76%) than 62.94% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MET is below the industry average of 4.47%.
The last Return On Invested Capital (0.76%) for MET is above the 3 year average (0.52%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 15.4% | ||
| ROIC | 0.76% |
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
The Profit Margin of MET (5.95%) is worse than 62.24% of its industry peers.
In the last couple of years the Profit Margin of MET has declined.
MET's Operating Margin of 9.46% is in line compared to the rest of the industry. MET outperforms 45.45% of its industry peers.
In the last couple of years the Operating Margin of MET has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.46% | ||
| PM (TTM) | 5.95% | ||
| 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
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.
Compared to 5 years ago, MET has less shares outstanding
MET has a worse debt/assets ratio than last year.
2.2 Solvency
MET has a debt to FCF ratio of 1.28. This is a very positive value and a sign of high solvency as it would only need 1.28 years to pay back of all of its debts.
MET's Debt to FCF ratio of 1.28 is in line compared to the rest of the industry. MET outperforms 58.04% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that MET is somewhat dependend on debt financing.
MET has a worse Debt to Equity ratio (0.68) than 81.12% 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 | 0.68 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | N/A |
ROIC/WACC0.1
WACC7.67%
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 10.90%, 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.
Looking at the last year, MET shows a small growth in Revenue. The Revenue has grown by 6.19% 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)10.9%
EPS 3Y-3.75%
EPS 5Y5.91%
EPS Q2Q%7.77%
Revenue 1Y (TTM)6.19%
Revenue growth 3Y-0.02%
Revenue growth 5Y0.37%
Sales Q2Q%5.45%
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 11.93% on average per year.
The Revenue is expected to grow by 5.09% on average over the next years.
EPS Next Y14.04%
EPS Next 2Y13.58%
EPS Next 3Y12.39%
EPS Next 5Y11.93%
Revenue Next Year3.68%
Revenue Next 2Y3.79%
Revenue Next 3Y3.8%
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
MET is valuated reasonably with a Price/Earnings ratio of 9.24.
71.33% of the companies in the same industry are more expensive than MET, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.79. MET is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.10 indicates a reasonable valuation of MET.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MET indicates a somewhat cheap valuation: MET is cheaper than 72.03% of the companies listed in the same industry.
MET is valuated cheaply when we compare the Price/Forward Earnings ratio to 21.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.24 | ||
| Fwd PE | 8.1 |
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 69.93% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MET is valued a bit cheaper than 76.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.51 | ||
| EV/EBITDA | 6.71 |
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 12.39% in the coming years.
PEG (NY)0.66
PEG (5Y)1.56
EPS Next 2Y13.58%
EPS Next 3Y12.39%
5. Dividend
5.1 Amount
MET has a Yearly Dividend Yield of 2.99%.
MET's Dividend Yield is a higher than the industry average which is at 3.22.
MET's Dividend Yield is a higher than the S&P500 average which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
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
40.87% 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.
DP40.87%
EPS Next 2Y13.58%
EPS Next 3Y12.39%
75.19
-0.67 (-0.88%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners74.66%
Inst Owner Change0.17%
Ins Owners0.15%
Ins Owner Change6.7%
Market Cap51.22B
Analysts78.1
Price Target94.1 (25.15%)
Short Float %1.26%
Short Ratio1.84
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.99% |
Yearly Dividend2.43
Dividend Growth(5Y)4.59%
DP40.87%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-6.36%
Min EPS beat(2)-10.99%
Max EPS beat(2)-1.74%
EPS beat(4)1
Avg EPS beat(4)-1.38%
Min EPS beat(4)-10.99%
Max EPS beat(4)7.34%
EPS beat(8)3
Avg EPS beat(8)-2.46%
EPS beat(12)6
Avg EPS beat(12)3.08%
EPS beat(16)10
Avg EPS beat(16)12.88%
Revenue beat(2)1
Avg Revenue beat(2)-3.16%
Min Revenue beat(2)-6.53%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-2.92%
Min Revenue beat(4)-6.53%
Max Revenue beat(4)0.2%
Revenue beat(8)4
Avg Revenue beat(8)-0.68%
Revenue beat(12)5
Avg Revenue beat(12)-1.57%
Revenue beat(16)8
Avg Revenue beat(16)0.53%
PT rev (1m)0.94%
PT rev (3m)3.93%
EPS NQ rev (1m)-3.3%
EPS NQ rev (3m)-6.96%
EPS NY rev (1m)-1.78%
EPS NY rev (3m)-5.29%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)0.74%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.24 | ||
| Fwd PE | 8.1 | ||
| P/S | 0.72 | ||
| P/FCF | 3.51 | ||
| P/OCF | 3.51 | ||
| P/B | 1.87 | ||
| P/tB | 2.76 | ||
| EV/EBITDA | 6.71 |
EPS(TTM)8.14
EY10.83%
EPS(NY)9.28
Fwd EY12.35%
FCF(TTM)21.43
FCFY28.5%
OCF(TTM)21.43
OCFY28.5%
SpS104.29
BVpS40.29
TBVpS27.22
PEG (NY)0.66
PEG (5Y)1.56
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.62% | ||
| ROE | 15.4% | ||
| ROCE | 0.99% | ||
| ROIC | 0.76% | ||
| ROICexc | 0.78% | ||
| ROICexgc | 1.14% | ||
| OM | 9.46% | ||
| PM (TTM) | 5.95% | ||
| GM | N/A | ||
| FCFM | 20.55% |
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 Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 1.28 | ||
| Debt/EBITDA | 2.52 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.48 | ||
| Cash Conversion | 196.34% | ||
| Profit Quality | 345.43% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score8
WACC7.67%
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)10.9%
EPS 3Y-3.75%
EPS 5Y5.91%
EPS Q2Q%7.77%
EPS Next Y14.04%
EPS Next 2Y13.58%
EPS Next 3Y12.39%
EPS Next 5Y11.93%
Revenue 1Y (TTM)6.19%
Revenue growth 3Y-0.02%
Revenue growth 5Y0.37%
Sales Q2Q%5.45%
Revenue Next Year3.68%
Revenue Next 2Y3.79%
Revenue Next 3Y3.8%
Revenue Next 5Y5.09%
EBIT growth 1Y109.57%
EBIT growth 3Y-9.43%
EBIT growth 5Y-3.13%
EBIT Next Year17.1%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y6.39%
FCF growth 3Y5.04%
FCF growth 5Y1.15%
OCF growth 1Y6.39%
OCF growth 3Y5.04%
OCF growth 5Y1.15%