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MET

MetLife NYSE:MET Stock Report

Last Price

US$62.62

Market Cap

US$49.9b

7D

2.9%

1Y

0.4%

Updated

03 Oct, 2022

Data

Company Financials +
MET fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance2/6
Financial Health2/6
Dividends5/6

MET Stock Overview

MetLife, Inc., a financial services company, provides insurance, annuities, employee benefits, and asset management services worldwide.

MetLife, Inc. Competitors

Price History & Performance

Summary of all time highs, changes and price drops for MetLife
Historical stock prices
Current Share PriceUS$62.62
52 Week HighUS$73.18
52 Week LowUS$57.05
Beta1.05
1 Month Change-3.75%
3 Month Change0.45%
1 Year Change0.40%
3 Year Change39.31%
5 Year Change18.17%
Change since IPO324.54%

Recent News & Updates

Aug 29

MetLife to acquire ESG-focused fixed income manager, Affirmative Investment

MetLife (NYSE:MET) Investment Management ("MIM") has agreed to acquire Affirmative Investment Management ("AIM"), a specialist global environmental, social, and corporate governance impact fixed income investment manager, to bolster its ESG investment and reporting capabilities, the company said Monday. Terms of the acquisition weren't disclosed. The acquisition will bring MIM additional capabilities to evaluate sustainability and risk considerations in public fixed income, private fixed income, and real estate. As of June 30, 2022, AIM's assets under management were $1.01B. By comparison MIM's total AUM as of June 30 was $590.9B. "By combining AIM’s expertise with MIM’s commitment to sustainable investing, we will be even better positioned to provide comprehensive insight and counsel to clients and consultants on ESG considerations," Steven J. Goulart, president of MIM and executive vice president and chief investment officer for MetLife (MET). Earlier in August, MetLife (MET) Q2 revenue was helped by higher premiums and fee growth, offset by investment losses

Aug 12

MetLife: Investors Should Look Past The Noisy Q2 2022 Results

MetLife's stock has outperformed the broader market by a wide margin over the last 8+ months. MetLife's Q2 2022 earnings had a lot of noise in the numbers, but in my opinion, the operating results (and management commentary) showed that the long-term thesis remains intact. We are long MetLife, and we plan to stay long the stock. MetLife's (MET) stock has performed well so far in 2022, as it has outperformed the broader market by almost 16bps over the last 8+ months. MET data by YCharts I think shareholders should consider staying the course with their MET shares, even after the recent outperformance, as I still believe MetLife is a great, long-term investment at today's price. In my opinion, whether the U.S. enters into a recession or not, this global insurer is well-positioned for 2023 and beyond. Investment Thesis MetLife is a global insurance company that has been busy de-risking its business profile (and investment portfolio) over the last few years. As such, MetLife's global business is well-positioned to weather a downturn in the global economy but the company also stands to benefit from an improving economic backdrop and a potentially rising interest rate environment. Additionally, this global insurer should be viewed as a capital return story, as the current management team has an impressive track record of returning excess capital to shareholders, while also improving the company's long-term business prospects in several key industries. The Latest: The Noisy Q2 2022 Results MetLife has reported strong operating results over the last few quarters and Q2 2022 was more of the same, as the company released results that beat the consensus bottom-line estimate. The company reported adjusted EPS of $2.00 (beat by $0.55) on total revenue of $15.6bn. Q2'22 Press Release Highlights from the quarter: Premiums, fees and other revenues increased by 23% YoY, which was positively impacted by premium and fee pricing growth Net investment income declined by 32% YoY as results were impacted by rising interest rates and other macro factors (more on this below) The Q2 2022 direct expense ratio was 11.9%, which is well-below the long-term target of 12.3% Adjusted earnings were $1.6bn (or $2.00 per share) as compared to $2.1bn (or $2.37 per share) in the year-ago quarter There was a lot of noise in the Q2 2022 results but, in my opinion, the overall takeaway is that the company's long-term thesis remains intact. I consider the impact of the sharp rise in interest rates as noise because, while the company has to book accounting losses, I believe a higher rate environment is a net-positive for MetLife over the long haul. For example, the company's new money rate (i.e., the yield for new money being invested) was 3.92% for Q2 2022 and that compares to the roll-off yield of 3.71% (i.e., the yield for the investments that matured), which makes this the first quarter in over a decade that MetLife did not have spread compression for its investment portfolio. As such, the accounting losses booked as a result of rising rates should be viewed as short-term noise, in my opinion. To this point, another factor that impacted earnings is the material net derivative losses that were booked for the quarter. Q2'22 Earnings Slides For context, net derivative losses totaled $1.2bn ($944mm after-tax) in Q2 2022 as compared to net derivative gains of $421mm ($333mm after-tax) in the same period of the prior year. That is, there was an after-tax swing in earnings of ~$1.3bn that was largely a result of several macro factors (i.e., sharp increase in interest rates, strengthening U.S. dollar, currency fluctuations, etc.), which again I would argue are short-term headwinds. However, make no mistake about it, MetLife's earnings were under pressure for most business units. Q2'22 Earnings Slides The significant decline in variable interest income ("VII") was one of the main factors that negatively impacted earnings in Q2 2022. Q2'22 Earnings Slides The weaker-than-expected VII was mainly driven by the disappointing returns for private equity investments during the quarter. Looking back, MetLife's VII results have been an earnings growth driver over last few years so investors should pay close attention to how the next year or so shapes out. One down quarter shouldn't cause investors to be too concerned but I do expect for the VII results to remain under pressure through at least 2022. MetLife's Q2 2022 results were well-received by the market because I believe investors were willing (and able) to look past some of the noise in the numbers. A rising interest rate environment is a net-positive for a global insurance company from a long-term perspective so the large quarterly swings in operating results shouldn't be viewed as deal breakers, as some pundits would have you believe. Moreover, I believe bulls should continue to hang their hat on the fact that MetLife's management team has also remained committed to rewarding patient shareholders through the market turmoil. The Capital Return Story Continues MetLife's management team has a strong track record of returning capital to shareholders over the last few years and the latest quarter was no exception. In Q2 2022, management returned more than $1.5bn to shareholders in the form of dividends ($408mm) and buybacks ($1.1bn). Moreover, the team has bought back ~$2bn in common stock over the first half of 2022, which adds to the long-term trend of a shrinking share count for this global insurer. MET Average Diluted Shares Outstanding (Annual) data by YCharts During the conference call, management mentioned that they intend to repurchase additional shares in the second half of the year but that they would likely slow the pace over the next few months. It's also important to highlight that management proactively accelerated their buybacks as the market pulled back over the last two quarters, which is an encouraging sign for shareholders. MetLife has an above-average dividend yield and, as shown by the payout ratio, the company has the room to grow its dividend in the years ahead. Fidelity The capital return story is a big reason to consider staying long the stock but it's not the only reason. Valuation MetLife's stock is currently trading above its 5-yr trends for several valuation metrics.

Shareholder Returns

METUS InsuranceUS Market
7D2.9%-1.1%-2.5%
1Y0.4%-3.8%-23.2%

Return vs Industry: MET exceeded the US Insurance industry which returned -3.8% over the past year.

Return vs Market: MET exceeded the US Market which returned -23.2% over the past year.

Price Volatility

Is MET's price volatile compared to industry and market?
MET volatility
MET Average Weekly Movement3.3%
Insurance Industry Average Movement4.5%
Market Average Movement6.8%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.8%

Stable Share Price: MET is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: MET's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1863n/aMichel Khalafhttps://www.metlife.com

MetLife, Inc., a financial services company, provides insurance, annuities, employee benefits, and asset management services worldwide. It operates through five segments: U.S.; Asia; Latin America; Europe, the Middle East and Africa; and MetLife Holdings. The company offers life, dental, group short-and long-term disability, individual disability, pet insurance, accidental death and dismemberment, vision, and accident and health coverages, as well as prepaid legal plans; administrative services-only arrangements to employers; and general and separate account, and synthetic guaranteed interest contracts, as well as private floating rate funding agreements.

MetLife, Inc. Fundamentals Summary

How do MetLife's earnings and revenue compare to its market cap?
MET fundamental statistics
Market CapUS$49.95b
Earnings (TTM)US$3.41b
Revenue (TTM)US$68.31b

14.7x

P/E Ratio

0.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MET income statement (TTM)
RevenueUS$68.31b
Cost of RevenueUS$51.59b
Gross ProfitUS$16.72b
Other ExpensesUS$13.31b
EarningsUS$3.41b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.27
Gross Margin24.48%
Net Profit Margin4.99%
Debt/Equity Ratio275.1%

How did MET perform over the long term?

See historical performance and comparison

Dividends

3.2%

Current Dividend Yield

47%

Payout Ratio