Metlife Inc (NYSE: MET)

Sector: Financial Services Industry: Insurance - Life CIK: 0001099219
Market Cap 81.60 Bn
P/B 1.58
P/E 15.56
P/S 1.20
ROIC (Qtr) 7.54
Div Yield % 2.84
Rev 1y % (Qtr) -5.85
Total Debt (Qtr) 20.23 Bn
Debt/Equity (Qtr) 0.70
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About

Investment thesis

Bull case

  • Strong operating cash flow of 14.63B provides robust 0.72x coverage of total debt 20.23B, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 710.63B provides 35.13x coverage of total debt 20.23B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 14.63B provides exceptional 696.52x coverage of minority interest expenses 21M, showing strong core operations.
  • Cash position of 20.23B provides exceptional 963.48x coverage of minority interest expenses 21M, indicating strong liquidity.
  • Operating cash flow of 14.63B provides strong 25.48x coverage of tax liabilities 574M, showing excellent fiscal position.

Bear case

  • Operating cash flow of 14.63B barely covers its investment activities of (16.68B), with a coverage ratio of -0.88, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 14.63B provides thin coverage of dividend payments of (1.51B) with a -9.67 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Cash reserves of 20.23B provide limited coverage of acquisition spending of (557M), which is -36.32x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of 14.63B barely covers operating expenses of 13.54B with a 1.08 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Retained earnings of 43.89B provide limited buffer against comprehensive income items of (17.57B), which is -2.50x, indicating elevated exposure to market risks.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Insurance - Life
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MET Metlife Inc 81.60 Bn 15.56 1.20 20.23 Bn
2 AFL Aflac Inc 78.90 Bn 18.62 3.49 8.69 Bn
3 MFC Manulife Financial Corp 63.37 Bn 16.53 2.20 10.71 Bn
4 PUK Prudential Plc 38.02 Bn 21.76 0.58 -
5 PRU Prudential Financial Inc 36.75 Bn 10.28 0.60 32.56 Bn
6 PRI Primerica, Inc. 19.72 Bn 133.62 17.82 0.65 Bn
7 UNM Unum Group 18.81 Bn 64.52 1.80 3.77 Bn
8 GL Globe Life Inc. 14.78 Bn 13.56 2.87 2.71 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.12 0.25
EV to Cash from Ops. EV/CFO 6.77 38.74
EV to Debt EV to Debt 4.18 4.98
EV to EBIT EV/EBIT 17.65 18.23
EV to EBITDA EV/EBITDA 15.12 14.59
EV to Free Cash Flow [EV/FCF] EV/FCF 6.77 34.05
EV to Market Cap EV to Market Cap 1.04 1.00
EV to Revenue EV/Rev 1.24 2.53
Price to Book Value [P/B] P/B 1.58 2.19
Price to Earnings [P/E] P/E 15.56 26.16
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 2.11 3.59
Dividend Payout Ratio % Div Payout % (Qtr) 41.80 22.49
Dividend per Basic Share Div per Share (Qtr) 1.69 1.48
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 7.66 0.41
Interest Coverage Interest Coverage 0.00 7.54
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -27.98
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -7.04 19.69
Dividend Growth (1y) % Div 1y % (Qtr) -20.89 15.89
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 2.10 89.68
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -4.42 64.87
EBIT Growth (1y) % EBIT 1y % (Qtr) -4.98 82.78
EBT Growth (1y) % EBT 1y % (Qtr) -4.98 344.70
EPS Growth (1y) % EPS 1y % (Qtr) 7.23 2,261.01
FCF Growth (1y) % FCF 1y % (Qtr) -3.57 186.52
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1.66 50.91
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.10 0.13
Cash Payout Ratio Cash Payout (Qtr) 0.10 0.12
Cash Ratio Cash Ratio 0.00 0.00
Current Ratio Current Ratio 0.00 0.00
Debt to Equity Ratio Debt/Equity (Qtr) 0.70 0.49
Interest Cover Ratio Interest Cover Ratio 0.00 7.54
Times Interest Earned Times Interest Earned 0.00 7.54
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 7.80 15.04
EBIT Margin % EBIT Margin % (Qtr) 6.82 14.45
EBT Margin % EBT Margin % (Qtr) 6.82 12.36
Gross Margin % Gross Margin % (Qtr) 25.70 45.61
Net Profit Margin % Net Margin % (Qtr) 5.10 10.89