METLIFE INC (MET)
US59156R1086 - Common Stock
MET gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. Both the profitability and financial health of MET have multiple concerns. 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.
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
Looking at the Return On Assets, with a value of 0.33%, MET is doing worse than 64.08% of the companies in the same industry.
The Return On Equity of MET (8.26%) is comparable to the rest of the industry.
MET's Return On Invested Capital of 0.52% is in line compared to the rest of the industry. MET outperforms 50.00% of its industry peers.
MET had an Average Return On Invested Capital over the past 3 years of 0.78%. This is below the industry average of 4.33%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 8.26% | ||
| ROIC | 0.52% |
ROA(3y)0.61%
ROA(5y)0.67%
ROE(3y)8.08%
ROE(5y)8.47%
ROIC(3y)0.78%
ROIC(5y)0.84%
1.3 Margins
MET has a Profit Margin of 3.30%. This is in the lower half of the industry: MET underperforms 61.27% of its industry peers.
In the last couple of years the Profit Margin of MET has declined.
With a Operating Margin value of 6.19%, MET perfoms like the industry average, outperforming 42.96% of the companies in the same industry.
In the last couple of years the Operating Margin of MET has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.19% | ||
| PM (TTM) | 3.3% | ||
| GM | N/A |
OM growth 3Y-21.66%
OM growth 5Y-6.25%
PM growth 3Y-25.67%
PM growth 5Y-11.69%
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.
Compared to 1 year ago, MET has less shares outstanding
Compared to 5 years ago, MET has less shares outstanding
MET has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of MET is 1.71, which is an excellent value as it means it would take MET, only 1.71 years of fcf income to pay off all of its debts.
MET's Debt to FCF ratio of 1.71 is fine compared to the rest of the industry. MET outperforms 64.79% of its industry peers.
MET has a Debt/Equity ratio of 0.73. This is a neutral value indicating MET is somewhat dependend on debt financing.
MET has a worse Debt to Equity ratio (0.73) than 70.42% 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 | 0.73 | ||
| Debt/FCF | 1.71 | ||
| Altman-Z | N/A |
ROIC/WACC0.07
WACC7.58%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for MET have decreased by -6.70% in the last year.
The Earnings Per Share has been growing by 9.03% on average over the past years. This is quite good.
MET shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.37%.
The Revenue has been growing slightly by 2.32% on average over the past years.
EPS 1Y (TTM)-6.7%
EPS 3Y3.83%
EPS 5Y9.03%
EPS growth Q2Q61.16%
Revenue 1Y (TTM)-12.37%
Revenue growth 3Y0.07%
Revenue growth 5Y2.32%
Revenue growth Q2Q-28.8%
3.2 Future
The Earnings Per Share is expected to grow by 3.18% on average over the next years.
Based on estimates for the next years, MET will show a small growth in Revenue. The Revenue will grow by 0.92% on average per year.
EPS Next Y10.16%
EPS Next 2Y16.6%
EPS Next 3Y14.97%
EPS Next 5Y3.18%
Revenue Next Year-7.25%
Revenue Next 2Y-2.09%
Revenue Next 3Y-0.08%
Revenue Next 5Y0.92%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.21, the valuation of MET can be described as very reasonable.
Based on the Price/Earnings ratio, MET is valued a bit cheaper than the industry average as 66.90% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.54. MET is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.89 indicates a rather cheap valuation of MET.
Based on the Price/Forward Earnings ratio, MET is valued a bit cheaper than 73.94% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.22, MET is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.21 | ||
| Fwd PE | 6.89 |
4.2 Price Multiples
MET's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, MET is valued a bit cheaper than the industry average as 78.87% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.31 | ||
| EV/EBITDA | 11.01 |
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.
A more expensive valuation may be justified as MET's earnings are expected to grow with 14.97% in the coming years.
PEG (NY)0.91
PEG (5Y)1.02
EPS Next 2Y16.6%
EPS Next 3Y14.97%
5. Dividend
5.1 Amount
MET has a Yearly Dividend Yield of 3.28%.
MET's Dividend Yield is a higher than the industry average which is at 3.10.
MET's Dividend Yield is a higher than the S&P500 average which is at 2.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
5.2 History
The dividend of MET has a limited annual growth rate of 5.49%.
MET has been paying a dividend for at least 10 years, so it has a reliable track record.
MET has decreased its dividend recently.
Dividend Growth(5Y)5.49%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
83.35% 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.
DP83.35%
EPS Next 2Y16.6%
EPS Next 3Y14.97%
METLIFE INC
NYSE:MET (12/8/2023, 7:04:00 PM)
After market: 64.09 0 (0%)64.09
+0.63 (+0.99%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap47.44B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.28% |
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 | 9.21 | ||
| Fwd PE | 6.89 | ||
| 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)0.91
PEG (5Y)1.02
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.33% | ||
| ROE | 8.26% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.19% | ||
| PM (TTM) | 3.3% | ||
| 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 | 0.73 | ||
| 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)-6.7%
EPS 3Y3.83%
EPS 5Y
EPS growth Q2Q
EPS Next Y10.16%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-12.37%
Revenue growth 3Y0.07%
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