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MET MetLife, Inc. - Fundamental Analysis

BULLISH
MET Stock | Fundamental Analysis & Investment Insights
NYSE Financial Services Insurance - Life
Current Price
$78.64
Analyst Target
$92.67
+17.8% Upside
52W High
$89.05
52W Low
$65.21

AI Analysis

Powered by advanced machine learning algorithms

Confidence Score
85%
Analysis Accuracy
MetLife (MET) presents a compelling value opportunity trading at a steep discount to peers despite stable profitability, strong cash generation, and a well-covered dividend. The stock is attractively valued with a forward P/E of 8.12—less than half the sector average of 24.97—while delivering a 2.89% dividend yield and maintaining a healthy 41.9% payout ratio. Despite near-term headwinds reflected in negative YoY revenue and earnings growth, the company’s robust balance sheet, low valuation, and $92.67 analyst target (17.8% upside) support a bullish stance. Price momentum has stabilized recently with a 3.3% weekly gain, contrasting a weak 1-year return of -2.0%, suggesting potential mean reversion.

Key Strengths

Forward P/E of 8.12 is deeply discounted vs sector average of 24.97 and peer group (PYPL: 12.61, APO: 19.04)
ROE of 12.80% exceeds industry median and peers like PNC (11.49%), indicating efficient capital use
Dividend yield of 2.89% is well-covered by a 41.9% payout ratio, signaling sustainable income
Strong liquidity with current ratio of 1.89 and quick ratio of 1.63, exceeding sector leverage norms
Analyst consensus target of $92.67 implies 17.8% upside, supported by 15 analysts rating 'buy'

Key Risks

Revenue growth of -5.90% YoY and earnings decline of -32.60% YoY signal operational headwinds
ROA of 0.44% is extremely low, reflecting capital intensity and inefficiency in asset utilization
Debt/Equity of 1.64 is more than double the sector average of 0.73, increasing financial risk
Recent quarters show consistent earnings misses with 0/4 beats and 0.00% average surprise, eroding confidence
Lack of quarterly earnings data and missing cash flow metrics limit visibility into true financial performance
AI Fair Value Estimate
Based on comprehensive analysis
$92.67
+17.8% above current price

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