Today we're going to take a closer look at Large-Cap Finance company MetLife, whose shares are currently trading at $80.18. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
MetLife Is Trading Near Its Fair Value:
MetLife, Inc., a financial services company, provides insurance, annuities, employee benefits, and asset management services worldwide. The company belongs to the Finance sector, which has an average price to earnings (P/E) ratio of 15.92 and an average price to book (P/B) ratio of 1.78. In contrast, MetLife has a trailing 12 month P/E ratio of 15.1 and a P/B ratio of 1.83.
MetLife has moved -2.9% over the last year compared to 15.2% for the S&P 500 — a difference of -18.1%. MetLife has a 52 week high of $89.05 and a 52 week low of $65.21.
An Excellent Current Ratio but a Flat EPS Growth Trend:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $69,620 | $67,842 | $68,696 | $68,770 | $66,905 | $70,986 |
| Interest Income (M) | $955 | $913 | $920 | $938 | $1,045 | $738 |
| Operating Margins | 10% | 10% | 12% | 9% | 9% | 8% |
| Net Margins | 8% | 8% | 10% | 8% | 2% | 6% |
| Net Income (M) | $5,899 | $5,407 | $6,855 | $5,284 | $1,578 | $4,426 |
| Depreciation & Amort. (M) | $630 | $619 | $694 | $673 | $718 | $124 |
| Diluted Shares (M) | 944 | 913 | 869 | 809 | 762 | 711 |
| Earnings Per Share | $6.06 | $5.68 | $7.65 | $6.3 | $1.81 | $5.94 |
| EPS Growth | n/a | -6.27% | 34.68% | -17.65% | -71.27% | 228.18% |
| Avg. Price | $40.69 | $36.3 | $56.92 | $64.26 | $66.13 | $80.21 |
| P/E Ratio | 6.67 | 6.35 | 7.38 | 10.12 | 36.34 | 13.41 |
| Free Cash Flow (M) | $13,786 | $11,639 | $12,347 | $13,044 | $13,721 | $14,598 |
| EV / EBITDA | 3.47 | 2.25 | 3.67 | 5.44 | 5.26 | 6.79 |
| Total Debt (M) | $3,385 | $3,546 | $3,497 | $3,333 | $3,280 | $3,629 |
| Net Debt / EBITDA | -1.78 | -2.15 | -1.8 | -2.54 | -2.7 | -2.69 |
| Current Ratio | 70.63 | 50.37 | 58.79 | 115.4 | 173.44 | 43.16 |
MetLife has an excellent current ratio of 43.16, low leverage levels, and generally positive cash flows. However, the firm has weak operating margins with a stable trend. Finally, we note that MetLife has flat EPS growth.
