Attractive Price-to-Earnings Ratio
Low Price-to-Sales Ratio
Strong Return on Equity
Healthy Gross Profit Margin
Low Debt Levels
Good Interest Coverage
🏆 Strong Market Position
💵 Solid Financial Performance
🌍 Diversified Business Model
🚀 New Frontier Strategy
🌐 Expansion in International Markets
Moderate Price-to-Cash-Flow Ratio
Narrow Operating and Net Profit Margins
Poor Liquidity Ratios
⚠️ Volatility in Investment Income
📉 Currency Headwinds
Overall, MetLife demonstrates a strong business model with a solid market position and diversified revenue streams. The New Frontier strategy promises growth potential, although challenges such as currency fluctuations and investment income volatility may affect future performance. The company remains well-capitalized and committed to delivering shareholder value through disciplined management and strategic investments.
Analysis Date: February 6, 2025
Last Updated: March 12, 2025
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
Benjamin Graham's value investing approach focuses on finding stocks with a significant margin of safety between their intrinsic value and market price.
Intrinsic Value
Estimated fair value based on Graham's formula
$241.22
Current Market Price: $66.61
IV/P Ratio: 3.62x (>1.0 indicates undervalued)
Margin of Safety
Gap between intrinsic value and market price
72.0%
Graham recommended a minimum of 20-30% margin of safety
Higher values indicate a greater potential discount to fair value
Graham Criteria Checklist
Benjamin Graham's value investing checklist for MET
Positive earnings (5+ years)
Dividend history (5+ years)
P/E ratio ≤ 20 (11.02)
P/B ratio ≤ 1.5 (1.78)
Current ratio ≥ 2.0
Long-term debt < Net current assets
Margin of safety (72.0%)
MET does not meet all Graham criteria
Trailing Twelve Months (TTM) values provide a view of the company's performance over the last year.
A return on equity (ROE) of 15.51% demonstrates effective use of equity to generate profits, indicating a strong performance in returning value to shareholders.
The gross profit margin of 100% suggests a robust ability to convert sales into actual profit before overhead costs, indicating strong pricing power.
Operating profit margin (6.34%) and net profit margin (6.26%) are relatively low, indicating that a significant portion of revenue is consumed by costs.
Profitability metrics measure a company's ability to generate earnings relative to its revenue, operating costs, and other relevant metrics. Higher values generally indicate better performance.
Return on Equity (ROE)
Measures how efficiently a company uses its equity to generate profits
15.51%
Higher values indicate better returns for shareholders
TTM (as of 2025-04-16)
Return on Assets (ROA)
Measures how efficiently a company uses its assets to generate profits
0.19%
Higher values indicate better asset utilization
TTM (as of 2025-04-16)
Gross Profit Margin
Percentage of revenue retained after accounting for cost of goods sold
100.00%
Higher values indicate better efficiency in production
TTM (as of 2025-04-16)
Net Profit Margin
Percentage of revenue retained after accounting for all expenses
6.26%
Higher values indicate better overall profitability
TTM (as of 2025-04-16)
A debt-to-equity ratio of 0.68 and debt-to-assets ratio of 2.76% indicate that the company is not heavily leveraged, suggesting a lower financial risk.
An interest coverage ratio of 4.32 indicates that the company generates sufficient earnings to cover its interest obligations, reflecting strong financial stability.
Current, quick, and cash ratios all being zero indicate a concerning liquidity position, suggesting potential difficulties in meeting short-term obligations.
Financial health metrics assess a company's ability to meet its financial obligations and its overall financial stability.
Debt to Equity Ratio
Total debt divided by total equity
0.68x
Lower values indicate less financial leverage and risk
Less than 1.0 is conservative, 1.0-2.0 is moderate, >2.0 indicates high risk
Q4 2024
Current Ratio
Current assets divided by current liabilities
MET: No data available
MetLife operates with a market-leading portfolio across various business segments, particularly in group benefits, which continues to show impressive growth and performance. This leadership is bolstered by their scale, technology, and disciplined approach, positioning them to outpace competitors.
The company reported an adjusted ROE of 15.2%, exceeding their target range, showcasing strong capital efficiency and effective management of expenses.
MetLife's diversified earnings across segments—group benefits, retirement income solutions, and international businesses—demonstrates resilience and balance, allowing the company to perform well under various economic conditions.
The company faced challenges with variable investment income, which fell short of their target for 2024, indicating potential volatility in returns that could affect future earnings.
MetLife's New Frontier strategy focuses on responsible growth through four strategic priorities, which are expected to drive adjusted earnings growth significantly. This includes expanding group benefits and international markets, which are poised for further development.
The company is well-positioned to capitalize on growth opportunities in Asia and Latin America, where strong demand and improved digital distribution are expected to drive sales growth.
Strengthening of the US dollar is anticipated to create headwinds for adjusted earnings growth, particularly affecting international segments.