NYSE:MET

Stock Analysis Report

Executive Summary

MetLife, Inc. engages in the insurance, annuities, employee benefits, and asset management businesses.

Rewards

Trading at 55.4% below its fair value

Pays a high and reliable dividend of 3.37%

Risk Analysis

Earnings are forecast to decline by an average of -1% per year for the next 3 years



Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

How has MetLife's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MET has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.4%

MET

0.9%

US Insurance

1.5%

US Market


1 Year Return

16.5%

MET

19.2%

US Insurance

20.1%

US Market

Return vs Industry: MET underperformed the US Insurance industry which returned 19.2% over the past year.

Return vs Market: MET underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

METIndustryMarket
7 Day1.4%0.9%1.5%
30 Day-0.6%3.3%1.4%
90 Day6.4%6.8%8.7%
1 Year20.9%16.5%22.1%19.2%22.7%20.1%
3 Year22.6%-1.3%37.3%26.8%50.1%40.5%
5 Year34.2%1.3%73.7%52.9%73.1%54.1%

Price Volatility Vs. Market

How volatile is MetLife's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is MetLife undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MET ($52.28) is trading below our estimate of fair value ($117.32)

Significantly Below Fair Value: MET is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MET is good value based on its PE Ratio (8.6x) compared to the Insurance industry average (14x).

PE vs Market: MET is good value based on its PE Ratio (8.6x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: MET's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MET is good value based on its PB Ratio (0.7x) compared to the US Insurance industry average (1.1x).


Next Steps

Future Growth

How is MetLife forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-1.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MET's earnings are forecast to decline over the next 3 years (-1% per year).

Earnings vs Market: MET's earnings are forecast to decline over the next 3 years (-1% per year).

High Growth Earnings: MET's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MET's revenue (0.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: MET's revenue (0.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MET's Return on Equity is forecast to be low in 3 years time (10.8%).


Next Steps

Past Performance

How has MetLife performed over the past 5 years?

-0.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MET has high quality earnings.

Growing Profit Margin: MET's current net profit margins (8.2%) are higher than last year (7.3%).


Past Earnings Growth Analysis

Earnings Trend: MET's earnings have declined by -0.5% per year over the past 5 years.

Accelerating Growth: MET's earnings growth over the past year (14.8%) exceeds its 5-year average (-0.5% per year).

Earnings vs Industry: MET earnings growth over the past year (14.8%) underperformed the Insurance industry 22%.


Return on Equity

High ROE: MET's Return on Equity (8.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is MetLife's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: MET has a low level of unsold assets or inventory.

Debt Coverage by Assets: MET's debt is covered by short term assets (assets are 1x debt).


Financial Institutions Analysis

Asset Level: MET's level of assets compared to its equity is moderate.

Allowance for Bad Loans: Insufficient data to determine if MET has a sufficient allowance for bad loans.

Low Risk Liabilities: MET reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if MET has an acceptable proportion of non-loan assets held.

Low Risk Deposits: MET has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if MET has an appropriate level of bad loans.


Next Steps

Dividend

What is MetLife's current dividend yield, its reliability and sustainability?

3.37%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%1.4%markettop25%3.7%industryaverage2.2%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: MET's dividend (3.37%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: MET's dividend (3.37%) is low compared to the top 25% of dividend payers in the US market (3.69%).


Stability and Growth of Payments

Stable Dividend: MET's dividends per share have been stable in the past 10 years.

Growing Dividend: MET's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.7%), MET's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MET's dividends in 3 years are forecast to be well covered by earnings (31% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Michel Khalaf (55yo)

0.8yrs

Tenure

US$10,807,500

Compensation

Mr. Michel A. Khalaf has been President, Chief Executive Officer and Director of MetLife, Inc. since May 1, 2019. Mr. Khalaf served as President of U.S. Business & EMEA at MetLife, Inc. since July 11, 2017 ...


CEO Compensation Analysis

Compensation vs Market: Michel's total compensation ($USD10.81M) is about average for companies of similar size in the US market ($USD10.81M).

Compensation vs Earnings: Michel's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Michel Khalaf
CEO, President & Director0.8yrsUS$10.81m0.0025% $1.2m
John McCallion
Executive VP & CFO1.8yrsUS$3.34m0.0027% $1.3m
Steven Goulart
Executive VP & Chief Investment Officer8.8yrsUS$6.73m0.012% $5.9m
Bill Pappas
Executive VP and Head of Global Technology & Operations0.3yrsno datano data
Tamara Schock
Executive VP & Chief Accounting Officer0.9yrsno datano data
John Hall
Senior VP & Head of Investor Relations0yrsno datano data
Stephen Gauster
Executive VP & General Counsel2.6yrsno data0.00027% $129.2k
Randolph Clerihue
Chief Communications Officer1.8yrsno datano data
Esther Lee
Executive VP & Global Chief Marketing Officer5.1yrsno data0.0033% $1.6m
Susan Podlogar
Executive VP & Chief HR Officer2.6yrsno data0.000040% $19.1k

1.8yrs

Average Tenure

55yo

Average Age

Experienced Management: MET's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michel Khalaf
CEO, President & Director0.8yrsUS$10.81m0.0025% $1.2m
Eric Sacha Clurfain
Chairman1yrsno datano data
William Kennard
Independent Director6.4yrsUS$331.68kno data
David Herzog
Independent Director3.3yrsUS$341.68k0.0012% $574.2k
Carlos Gutierrez
Independent Director6.9yrsUS$301.68k0.0030% $1.4m
James Kilts
Independent Director15.1yrsUS$336.68k0.0085% $4.1m
Edward Kelly
Independent Director5yrsUS$336.68k0.0019% $918.8k
Catherine Kinney
Independent Director10.8yrsUS$306.68k0.0052% $2.5m
Robert Hubbard
Non-Executive Chairman & Independent Lead Director0.8yrsUS$356.68k0.00085% $406.7k
Cheryl Grisé
Independent Director16yrsUS$326.68k0.00051% $244.0k

5.7yrs

Average Tenure

63.5yo

Average Age

Experienced Board: MET's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

MetLife, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MetLife, Inc.
  • Ticker: MET
  • Exchange: NYSE
  • Founded: 1868
  • Industry: Life and Health Insurance
  • Sector: Insurance
  • Market Cap: US$47.852b
  • Shares outstanding: 915.30m
  • Website: https://www.metlife.com

Number of Employees


Location

  • MetLife, Inc.
  • 200 Park Avenue
  • New York
  • New York
  • 10166
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
METNYSE (New York Stock Exchange)YesCommon StockUSUSDApr 2000
MWZDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2000
MET *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 2000
0K0XLSE (London Stock Exchange)YesCommon StockGBUSDApr 2000
METLWBAG (Wiener Boerse AG)YesCommon StockATEURApr 2000
MET.PRANYSE (New York Stock Exchange)PFD A FLT RATEUSUSDJun 2005
METB34BOVESPA (Bolsa de Valores de Sao Paulo)EACH BDR REPR 1 COM STK USD0.01BRBRLAug 2015
A19YH3DB (Deutsche Boerse AG)5.875%-FRN T1 PERP USD 'D'DEUSDMar 2018
MET.PRENYSE (New York Stock Exchange)DEP SHS PFD EUSUSDMay 2018
MET.PRFNYSE (New York Stock Exchange)4.75% DP PFD FUSUSDJan 2020

Biography

MetLife, Inc. engages in the insurance, annuities, employee benefits, and asset management businesses. 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, accidental death and dismemberment, vision, and accident and health coverages, as well as prepaid legal plans; administrative services-only arrangements to employers; and stable value products, including general and separate account guaranteed interest contracts, and private floating rate funding agreements. It also provides pension risk transfers, institutional income annuities, tort settlements, and capital markets investment products; and other products and services, such as life insurance products and funding agreements for funding postretirement benefits, as well as company, bank, or trust-owned life insurance used to finance nonqualified benefit programs for executives. In addition, the company offers automobile, homeowners’, and personal excess liability, as well as small business owners’ property, liability, and business interruption insurance products. Further, it provides fixed annuities and pension products; medical and credit insurance products; variable, universal, term, endowment, and whole life insurance products; variable, and fixed and indexed-linked annuities; and protection against costs of long-term health care services. The company serves individuals, corporations and their employees, and other institutions and their members through independent agents, property and casualty specialists, sales forces, sales teams and relationship managers, and sponsoring organizations and affinity groups, as well as through career and independent agencies, bancassurance, direct marketing and e-commerce, brokers, and other third-party distribution channels. MetLife, Inc. was founded in 1868 and is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:37
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.