METLIFE INC (MET) Stock Fundamental Analysis
NYSE:MET - New York Stock Exchange, Inc. - US59156R1086 - Common Stock - Currency: USD
Overall MET gets a fundamental rating of 4 out of 10. We evaluated MET against 143 industry peers in the Insurance industry. MET has a bad profitability rating. Also its financial health evaluation is rather negative. A decent growth rate in combination with a cheap valuation! Better keep an eye on MET.
1. Profitability
1.1 Basic Checks
MET had positive earnings in the past year.
In the past year MET had a positive cash flow from operations.
Each year in the past 5 years MET has been profitable.
MET had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MET has a Return On Assets of 0.62%. This is in the lower half of the industry: MET underperforms 68.53% of its industry peers.
With a decent Return On Equity value of 15.40%, MET is doing good in the industry, outperforming 66.43% of the companies in the same industry.
The Return On Invested Capital of MET (0.76%) is worse than 62.94% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MET is below the industry average of 4.47%.
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
Looking at the Profit Margin, with a value of 5.95%, MET is doing worse than 61.54% of the companies in the same industry.
In the last couple of years the Profit Margin of MET has declined.
With a Operating Margin value of 9.46%, MET perfoms like the industry average, outperforming 45.45% 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 | 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.
Compared to 1 year ago, MET has less shares outstanding
The number of shares outstanding for MET has been reduced compared to 5 years ago.
MET has a worse debt/assets ratio than last year.
2.2 Solvency
MET has a debt to FCF ratio of 1.28. 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 has a Debt to FCF ratio (1.28) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.68 indicates that MET is somewhat dependend on debt financing.
MET has a Debt to Equity ratio of 0.68. This is amonst the worse of the industry: MET underperforms 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
WACC7.72%
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.
MET shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.96%.
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)8.96%
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.
Based on estimates for the next years, MET will show a small growth in Revenue. The Revenue will grow by 5.09% on average per year.
EPS Next Y14.04%
EPS Next 2Y13.58%
EPS Next 3Y12.39%
EPS Next 5Y11.93%
Revenue Next Year3.64%
Revenue Next 2Y3.78%
Revenue Next 3Y3.8%
Revenue Next 5Y5.09%
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 accelerating.
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
A Price/Earnings ratio of 9.41 indicates a reasonable valuation of MET.
MET's Price/Earnings ratio is a bit cheaper when compared to the industry. MET is cheaper than 69.93% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.22. MET is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 7.41, the valuation of MET can be described as very cheap.
MET's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MET is cheaper than 75.52% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.86. MET is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.41 | ||
| Fwd PE | 7.41 |
4.2 Price Multiples
67.83% of the companies in the same industry are more expensive than MET, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MET is valued a bit cheaper than 78.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.58 | ||
| EV/EBITDA | 6.79 |
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 12.39% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.67
PEG (5Y)1.59
EPS Next 2Y13.58%
EPS Next 3Y12.39%
5. Dividend
5.1 Amount
MET has a Yearly Dividend Yield of 3.00%.
Compared to an average industry Dividend Yield of 3.27, MET pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, MET pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
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.
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
40.87% of the earnings are spent on dividend by MET. 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.
DP40.87%
EPS Next 2Y13.58%
EPS Next 3Y12.39%
77.81
+2.04 (+2.69%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners74.66%
Inst Owner Change-0.57%
Ins Owners0.15%
Ins Owner Change6.7%
Market Cap52.32B
Analysts78.1
Price Target94.1 (20.94%)
Short Float %1.13%
Short Ratio1.65
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3% |
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)-5.79%
PT rev (3m)-4.7%
EPS NQ rev (1m)-2.45%
EPS NQ rev (3m)-5.46%
EPS NY rev (1m)-1.76%
EPS NY rev (3m)-4.5%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)-1.99%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.41 | ||
| Fwd PE | 7.41 | ||
| P/S | 0.74 | ||
| P/FCF | 3.58 | ||
| P/OCF | 3.58 | ||
| P/B | 1.91 | ||
| P/tB | 2.82 | ||
| EV/EBITDA | 6.79 |
EPS(TTM)8.27
EY10.63%
EPS(NY)10.5
Fwd EY13.5%
FCF(TTM)21.71
FCFY27.9%
OCF(TTM)21.71
OCFY27.9%
SpS105.66
BVpS40.82
TBVpS27.58
PEG (NY)0.67
PEG (5Y)1.59
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
WACC7.72%
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 Y14.04%
EPS Next 2Y13.58%
EPS Next 3Y12.39%
EPS Next 5Y11.93%
Revenue 1Y (TTM)8.96%
Revenue growth 3Y-0.02%
Revenue growth 5Y0.37%
Sales Q2Q%10.64%
Revenue Next Year3.64%
Revenue Next 2Y3.78%
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%