MetLife Inc (MET) stock analysis

P/E below its 5-year median

MetLife's P/E of 13.4 is below its own 5-year median of 14.4.

P/E above the industry

MetLife's P/E of 13.4 is above the Life Insurance median of 10.8.

P/S above the industry

MetLife's price-to-sales of 0.79 is above the Life Insurance median of 0.67.

P/B above the industry

MetLife's price-to-book of 2.94 is above the Life Insurance median of 1.11.

Trading above fair value

The share price of $102.94 is above our fair value estimate of $73.93.

Margin of safety under 20%

The price is 39.2% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 3.9% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -9.2% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 33.5% over the last twelve months, against a 5-year average of -9.0% a year.

Growing faster than the industry

Revenue grew 14.8% over the last twelve months; the Life Insurance median is 7.1%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin trend

Banks and insurers do not report gross profit.

Return on equity under 15%

Return on equity was 20.0% over the last twelve months and averaged 10.7% over five years; we look for 15% on both.

Return on assets under 1%

Return on assets was 0.7%; for a bank or insurer, 1% or more is considered good.

Return on equity above the industry

MetLife's return on equity of 20.0% is above the Life Insurance median of 12.6%.

Earnings shrank over 5 years

Net income shrank 9.0% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 6.2% over the last twelve months, against a 5-year average of 6.1%.

Net margin below the industry

MetLife's net margin of 6.2% is below the Life Insurance median of 8.1%.

Low debt

Debt is 1.3% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 0.5% five years ago to 1.3%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 4841% of total debt.

Interest coverage

Interest expense is not reported separately.

Short-term liquidity

Insurers do not split assets into current and non-current.

Bankruptcy risk (Altman Z)

The Altman model does not apply to insurers.

Pays a dividend

MetLife paid dividends worth 1.7% of the share price over the last twelve months.

Yield below Treasuries

The 1.7% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; MetLife yields 1.7%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 10 fiscal years.

Covered by earnings

Dividends take 29.4% of net income.

Cash-flow cover

Needs dividends paid and free cash flow.