Thinking of Investing in MET? What Our Analysts Know.

MetLife logged a 1.7% change during today's afternoon session, and is now trading at a price of $63.73 per share.

Over the last year, MetLife logged a -5.0% change, with its stock price reaching a high of $77.36 and a low of $48.95. Over the same period, the stock underperformed the S&P 500 index by -11.0%. As of April 2023, the company's 50-day average price was $57.82. MetLife, Inc., a financial services company, provides insurance, annuities, employee benefits, and asset management services worldwide. Based in New York, NY, the large-cap Finance company has 45,000 full time employees. MetLife has offered a 3.2% dividend yield over the last 12 months.

Low Leverage Levels but a Declining EPS Growth Trend:

2019-12-31 2020-12-31 2021-12-31 2022-12-31
Revenue (MM) $69,620 $67,842 $71,080 $69,898
Interest Income (MM) -$955 -$913 -$920 -$938
Net Margins 8.47% 7.97% 9.22% 3.63%
Net Income (MM) $5,899 $5,407 $6,554 $2,539
Depreciation & Amort. (MM) -$630 -$619 -$694 -$673
Earnings Per Share $6.25 $5.68 $7.31 $1.04
EPS Growth n/a -9.12% 28.7% -85.77%
Diluted Shares (MM) 915 913 869 766
Free Cash Flow (MM) $13,786 $11,639 $12,596 $13,204
Long Term Debt (MM) $16,616 $17,756 $17,089 $17,805
Net Debt / EBITDA 0.03 -0.19 -0.27 -0.5

MetLife has a steady stream of strong cash flows and low leverage. Additionally, the company's financial statements display stable revenues and no capital expenditures and decent net margins with a negative growth trend. However, the firm has declining EPS growth.

MetLife's Valuation Is in Line With Its Sector Averages:

MetLife has a trailing twelve month P/E ratio of 55.6, compared to an average of 14.34 for the Finance sector. Based on its EPS guidance of $9.24, the company has a forward P/E ratio of 6.3. The 8.1% compound average growth rate of MetLife's historical and projected earnings per share yields a PEG ratio of 6.84. This suggests that these shares are overvalued. The market is placing a fair value on MetLife's equity, since its P/B ratio of 1.59 is comparable to its sector average of 1.57. The company's shares are currently trading -5.6% below their Graham number. In conclusion, MetLife's impressive cash flow trend, decent P/B ratio, and reasonable use of leverage demonstrate that the company may still be fairly valued — despite its elevated earnings multiple.

MetLife Has an Average Rating of Buy:

The 13 analysts following MetLife have set target prices ranging from $58.0 to $85.0 per share, for an average of $76.43 with a buy rating. As of April 2023, the company is trading -24.3% away from its average target price, indicating that there is an analyst consensus of some upside potential.

MetLife has a very low short interest because 1.5% of the company's shares are sold short. Institutions own 75.5% of the company's shares, and the insider ownership rate stands at 16.03%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 8% stake in the company is worth $3,836,272,188.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.