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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

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Nov 15, 2025
Market cap
$52.36B
P/E
14.81
ROE
12.8%
Profit margin
5.3%
Debt/Equity
1.64
Dividend yield
2.89%

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

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
76
Strong
Value
94
Future
58
Past
66
Health
74
Dividend
90
AI Verdict
MetLife scores highly on value and dividend dimensions, trading at a steep discount to peers with a strong yield and low forward P/E, while maintaining solid ROE and liquidity. Despite weak near-term growth and earnings momentum, the combination of deep valuation, analyst upside, and capital discipline supports a bullish outlook, particularly in a high-duration yield environment.
Key drivers: Valuation discount to sector (P/E 8.12 vs 24.97), Sustainable 2.89% dividend yield with conservative payout, Analyst target implying 17.8% upside
Confidence
85%
Value
94/100

MetLife trades at a steep discount to the Financial Services sector, which averages a P/E of 24.97 and ROE of 31.58%, highlighting a significant valuation gap despite solid profitability and scale

Positives
  • Forward P/E of 8.12 is deeply undervalued vs sector average of 24.97
  • Price/Book of 1.80 and Price/Sales of 0.73 indicate significant discount to intrinsic value
Watchpoints
  • Lack of EV/EBITDA and EV/Revenue limits enterprise valuation completeness
  • Missing market cap and share count data reduces precision in relative valuation
Future
58/100

Near-term growth trajectory is negative and price momentum has been weak over 1Y (-2.0%) and 6M (-1.3%), though recent weekly strength and low valuation may catalyze mean reversion

Positives
  • Analyst target of $92.67 suggests strong conviction in recovery
  • Recent 3.3% weekly price gain may signal short-term momentum shift
Watchpoints
  • Revenue growth of -5.90% YoY and earnings decline of -32.60% YoY indicate structural challenges
  • No recent quarterly earnings data or growth surprises to confirm turnaround
Past
66/100

While MetLife has delivered strong long-term returns (+99.3% over 5Y), recent underperformance and lack of earnings beats over the last year reflect weakening investor confidence and operational inconsistency

Positives
  • 5-year return of +99.3% demonstrates long-term capital appreciation
  • ROE of 12.80% reflects consistent profitability over time
Watchpoints
  • Last 4 quarters show 0 earnings beats and 0.00% average surprise, signaling deteriorating execution
  • 1-year return of -2.0% underperforms sector and peers like IREN and PYPL
Health
74/100

MetLife maintains solid liquidity but carries significantly higher leverage than sector peers, which may constrain flexibility in rising rate environments despite insurance business model tolerance for leverage

Positives
  • Current ratio of 1.89 and quick ratio of 1.63 indicate strong short-term liquidity
  • Debt levels are manageable within insurance industry norms despite high D/E
Watchpoints
  • Debt/Equity of 1.64 is more than double the sector average of 0.73, increasing leverage risk
  • Missing total debt, cash, and cash flow data limits full solvency assessment
Dividend
90/100

MetLife’s dividend is a key strength, offering a well-covered 2.89% yield that exceeds many peers and supports income-focused investors, with no red flags on sustainability based on current payout ratio

Positives
  • 2.89% dividend yield is attractive in current rate environment
  • 41.9% payout ratio indicates strong coverage and room for future increases
Watchpoints
  • No 5-year yield average or dividend growth history provided, limiting trend analysis
  • Ex-dividend date and payment consistency data missing

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$78.64
Analyst Target
$92.67
Upside/Downside
+17.8%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for MET and closest competitors.

Updated 2025-11-14
Company 5Y 3Y 1Y 6M 1M 1W
MET
MetLife, Inc.
Primary
+99.3% +16.2% -2.0% -1.3% -3.0% +3.3%
ALL
The Allstate Corporation
Peer
+147.3% +74.4% +11.6% +3.5% +6.9% +5.9%
TFC
Truist Financial Corporation
Peer
+16.8% +14.0% +1.8% +11.0% +4.9% +1.4%
PYPL
PayPal Holdings, Inc.
Peer
-67.3% -30.1% -26.8% -13.0% -7.6% -5.2%
AFL
Aflac Incorporated
Peer
+197.5% +73.0% +6.5% +8.2% +4.1% +0.2%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
14.81
Forward P/E
8.12
PEG Ratio
N/A
P/B Ratio
1.8
P/S Ratio
0.73
EV/Revenue
0.98
EV/EBITDA
12.45
Market Cap
$52.36B

Profitability

Profit margins and return metrics

Profit Margin 5.34%
Operating Margin 7.01%
Gross Margin 24.26%
ROE 12.8%
ROA 0.44%

Growth

Revenue and earnings growth rates

Revenue Growth -5.9%
Earnings Growth -32.6%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth -33.2%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
1.64
High debt
Current Ratio
1.89
Good
Quick Ratio
1.63
Excellent
Cash/Share
$44.29

Quarterly Earnings History

EPS performance vs analyst estimates

2026-02-04
$N/A
2025-11-05
$2.37
+2.2% surprise
2025-08-06
$2.02
-6.7% surprise
2025-04-30
$1.28
-32.6% surprise

Financial Services Sector Comparison

Comparing MET against 32 companies in the Financial Services sector (19 bullish, 12 neutral, 1 bearish)
P/E Ratio
14.81
This Stock
vs
22.34
Sector Avg
-33.7% (Discount)
Return on Equity (ROE)
12.8%
This Stock
vs
26.06%
Sector Avg
-50.9% (Below Avg)
Profit Margin
5.34%
This Stock
vs
25.09%
Sector Avg
-78.7% (Weaker)
Debt to Equity
1.64
This Stock
vs
0.75
Sector Avg
+117.6% (Higher)
Revenue Growth
-5.9%
This Stock
vs
20.1%
Sector Avg
-129.4% (Slower)
Current Ratio
1.89
This Stock
vs
1.41
Sector Avg
+34.0% (Stronger)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
MET
MetLife, Inc.
BULLISH $52.36B 14.81 12.8% 5.3% $78.64
ALL
The Allstate Corporation
BULLISH $56.08B 6.95 34.5% 12.5% $214.3
TFC
Truist Financial Corporation
BULLISH $57.99B 12.03 8.0% 28.6% $44.86
PYPL
PayPal Holdings, Inc.
BULLISH $58.77B 12.61 24.4% 15.0% $62.81
AFL
Aflac Incorporated
NEUTRAL $60.28B 15.01 15.6% 23.6% $114.34

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2025-10-01 JOHNSON JEH CHARLES Director Stock Award 534 $43,751
2025-10-01 HARRIS CARLA A Director Stock Award 534 $43,751
2025-10-01 GUTIERREZ CARLOS M. Director Stock Award 534 -
2025-10-01 HAY LAURA J Director Stock Award 534 $43,751
2025-10-01 MUMENTHALER CHRISTIAN STEPHANE Director Stock Award 534 $43,751
2025-10-01 WEINBERGER MARK A Director Stock Award 534 -
2025-10-01 MCKENZIE DIANA L Director Stock Award 534 $43,751
2025-10-01 HUBBARD ROBERT GLENN Director Stock Award 916 $75,048
2025-10-01 MORRISON DENISE M Director Stock Award 534 -
2025-10-01 KENNARD WILLIAM E Director Stock Award 534 $43,751
2025-09-09 JOHNSON JEH CHARLES Director Stock Award 48 $3,806
2025-09-09 HARRIS CARLA A Director Stock Award 30 $2,379
2025-09-09 HAY LAURA J Director Stock Award 26 $2,062
2025-09-09 MUMENTHALER CHRISTIAN STEPHANE Director Stock Award 7 $555
2025-09-09 MCKENZIE DIANA L Director Stock Award 158 $12,528
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
BUY
15 analysts
Keefe, Bruyette & Woods
2025-11-11
main
Outperform Outperform
Wells Fargo
2025-11-07
main
Overweight Overweight
UBS
2025-11-06
main
Buy Buy
Barclays
2025-10-08
main
Overweight Overweight
Wells Fargo
2025-10-08
main
Overweight Overweight
Morgan Stanley
2025-10-07
main
Overweight Overweight
Piper Sandler
2025-09-19
down
Overweight Neutral
Wolfe Research
2025-09-16
init
Outperform
Morgan Stanley
2025-08-18
main
Overweight Overweight
Keefe, Bruyette & Woods
2025-08-11
main
Outperform Outperform