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.
