Metlife (MET) AI Stock Analysis

• Market Cap: $53.66B
• Dividend Yield: 2.77%
• Average Volume (3M): 2.78M
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.91
• Revenue Growth: 8.77%
• EPS Growth: 110.90%
• Country: US
• Employees: 45,000
• Sector: Financial
• Sector Strength: 79
• Industry: Insurance - Life
• EPS (TTM): 1.96
• Shares Outstanding: 671,297,850
• 10 Day Avg. Volume: 2,398,319
• 30 Day Avg. Volume: 2,783,009
• PEG Ratio: 4.01
• Price to Book (P/B): 1.98
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.23
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.17
• Enterprise Value/Gross Profit: 0.65
• Enterprise Value/Ebitda: 15.49
• 1Y Price Target: $93.45
• Price Target Upside: 17.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 79 Outperform
• Price Target: $90.00 ▲(13.31%Upside)

MetLife demonstrates strong financial health and strategic execution, as evidenced by robust earnings growth and effective risk management. The valuation is fair, with a reasonable P/E ratio and attractive dividend yield. Technical indicators suggest stability in stock price movement. While there are challenges in Asia and Latin America, the overall positive sentiment from the earnings call and strategic initiatives supports a favorable stock outlook.

Positive Factors

Pension Risk Transfer

Pension Risk Transfer sales of $2.5bn showed 39% YoY growth, a positive surprise despite expectations for lumpiness.

Reinsurance Transaction

The transaction to reinsure $10 billion of US retail variable annuity and rider reserves is viewed positively by investors.

Stock Buyback

Robust repurchases of $1.4 billion exceeded estimates, showing strong capital management.

Negative Factors

Earnings Performance

Adjusted EPS of $2.09 for 4Q24 missed the forecast, with underperformance in Group Benefits, Retirement and Income Solutions, and Latin America.

Geographic Earnings Impact

The international earnings growth outlook was weaker than expected, primarily due to FX impacts in Asia and LatAm.

Investment Sensitivity

MET has a higher sensitivity to 'variable' private equity/real estate investment returns compared to peers, which could impact EPS with changes in VII returns.

Metlife Business Overview & Revenue Model

Company Description

MetLife, Inc. (MET) is a leading global provider of insurance, annuities, employee benefits, and asset management services. Established in 1868 and headquartered in New York City, MetLife operates in more than 40 countries, serving approximately 90 million customers worldwide. The company is organized into three main segments: U.S., Asia, and Latin America, providing life insurance, disability insurance, dental insurance, and retirement and savings products, among other services.

How the Company Makes Money

MetLife makes money primarily through the sale of insurance policies and financial products. Its revenue streams include premiums from policyholders for life, disability, dental, and other insurance products, as well as income from investments made with the collected premiums. The company also earns fees from managing retirement plans and providing employee benefit programs. MetLife's earnings are bolstered by its global presence, enabling it to leverage diverse markets. Key partnerships with corporations and financial institutions help expand its distribution and reach, further contributing to its revenue.

Metlife Financial Statement Overview

Summary

MetLife's financial statements demonstrate strong profitability, stable financial health, and excellent cash flow generation. The income statement shows efficient revenue management and moderate growth. The balance sheet indicates prudent leverage and strong ROE, while cash flow analysis highlights robust cash generation. Minor concerns include declining EBITDA margins and stockholders' equity.

Income Statement

Metlife's TTM (Trailing-Twelve-Months) financial performance shows strong gross profit and net income, with a gross profit margin of 100% due to revenue equaling gross profit. The net profit margin is a healthy 6.15%, indicating efficient management of expenses relative to revenue. Revenue growth from the previous year is 4.74%, showing positive momentum in revenue generation. The EBIT margin is 6.95%, but a declining trend in EBITDA margin from the previous annual report suggests potential cost pressures. Overall, the income statement reflects solid profitability and moderate growth.

Balance Sheet

The balance sheet demonstrates a robust equity position, with a debt-to-equity ratio of 0.55, indicating moderate leverage. Return on equity (ROE) is 16.39%, reflecting strong profitability relative to shareholder investments. The equity ratio stands at 4.00%, highlighting a substantial asset base supported by equity. However, the decrease in stockholders' equity over the past few years may signal potential challenges in maintaining equity levels. Overall, the balance sheet indicates financial stability with manageable leverage.

Cash Flow

Cash flow analysis reveals significant strengths, with a free cash flow growth rate of 13.25% from the previous year, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 3.79, suggesting robust cash flow efficiency. The free cash flow to net income ratio is 3.67, further emphasizing the company's ability to convert earnings into cash. These metrics reflect strong cash flow management and capacity to fund operations and growth initiatives.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
72.92B	69.90B	66.41B	67.82B	63.65B	67.84B
	Gross Profit
72.92B	69.90B	65.91B	67.82B	63.65B	67.84B
	EBIT
6.45B	6.66B	2.16B	6.36B	8.52B	6.93B
	EBITDA
2.94B	6.66B	3.92B	7.97B	9.74B	8.46B
	Net Income Common Stockholders
4.50B	4.43B	1.58B	5.28B	6.86B	5.41B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
348.27B	100.57B	302.05B	301.91B	367.50B	378.51B
	Total Assets
740.46B	677.46B	687.58B	663.07B	759.71B	795.15B
	Total Debt
16.85B	18.71B	18.83B	17.98B	17.43B	18.15B
	Net Debt
253.00M	-1.35B	-1.81B	-2.21B	-2.62B	-1.65B
	Total Liabilities
674.08B	649.75B	657.33B	632.95B	691.96B	720.33B
	Stockholders Equity
66.14B	27.45B	30.02B	29.88B	67.48B	74.56B
Cash Flow		Free Cash Flow
16.53B	14.60B	13.72B	13.04B	12.35B	11.64B
	Operating Cash Flow
17.05B	14.60B	13.72B	13.04B	12.35B	11.64B
	Investing Cash Flow
-12.19B	-11.49B	-10.25B	-2.62B	-11.19B	-18.57B
	Financing Cash Flow
-2.65B	-3.13B	-2.94B	-9.95B	-1.38B	10.73B

Metlife Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 79.43
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MET, the sentiment is Positive. The current price of 79.43 is above the 20-day moving average (MA) of 79.26, above the 50-day MA of 76.45, and below the 200-day MA of 79.88, indicating a neutral trend. The MACD of 0.56 indicates Positive momentum. The RSI at 54.65 is Neutral, neither overbought nor oversold. The STOCH value of 82.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MET.

Metlife Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNM	79 Outperform	$14.21B	9.61	14.68%	2.06%	1.69%	25.54%
MET	79 Outperform	$53.66B	13.01	16.08%	2.77%	8.77%	110.90%
PUK	77 Outperform	$30.61B	14.10	12.82%	1.95%	-14.78%	34.80%
GL	74 Outperform	$9.91B	9.77	20.47%	0.82%	5.41%	16.60%
PRU	71 Outperform	$37.38B	16.71	8.04%	5.01%	2.47%	6.88%
Sector *	64 Neutral	$12.83B	9.78	7.78%	16985.64%	12.26%	-7.81%
AFL	64 Neutral	$56.05B	16.18	14.41%	2.11%	-12.66%	-29.30%

Metlife Corporate Events

MetLife Announces Quarterly Dividends for Preferred Stock

On May 15, 2025, MetLife, Inc. announced the declaration of quarterly dividends for its preferred stock series. These dividends, payable on June 16, 2025, include $0.35141735 per share for Series A, $351.5625 per share for Series E, and $296.875 per share for Series F, reflecting MetLife’s ongoing commitment to returning value to its shareholders.

The most recent analyst rating on (MET) stock is a Buy with a $85.00 price target. To see the full list of analyst forecasts on Metlife stock, see the MET Stock Forecast page.

MetLife Reports Strong Q1 2025 Financial Results

On April 30, 2025, MetLife, Inc. announced its financial results for the first quarter of 2025, reporting a 10% increase in net income to $879 million and a 14% rise in premiums, fees, and other revenues to $13.6 billion. The company also authorized a new $3.0 billion share repurchase program and entered into a reinsurance agreement with Talcott Financial Group. The results reflect strong performance across various segments, including a 29% increase in Group Benefits adjusted earnings and significant sales growth in Asia and Latin America. These developments underscore MetLife’s robust operational performance and strategic initiatives to enhance shareholder value.

MetLife Announces $10 Billion Reinsurance Agreement

On April 30, 2025, MetLife, Inc. announced an agreement with Talcott Resolution Life Insurance Company to reinsure approximately $10 billion of U.S. retail variable annuity and rider reserves. This transaction is expected to reduce MetLife’s enterprise risk associated with capital markets and significantly lower its retail variable annuity tail risk by reducing account values by approximately 40%. The transaction aligns with MetLife’s strategic priorities and is expected to close in the second half of 2025, subject to regulatory approvals.

MetLife Director David Herzog Announces Resignation

On March 27, 2025, David L. Herzog, a director of MetLife, Inc., announced his resignation from the Board, effective May 1, 2025, and his decision not to seek re-election at the 2025 annual shareholders meeting. Herzog’s resignation was not due to any disagreements with the company’s operations, policies, or practices, indicating a smooth transition without internal conflicts.