Metlife (MET) AI Stock Analysis

• Market Cap: $51.30B
• Dividend Yield: 2.85%
• Average Volume (3M): 4.19M
• Price to Earnings (P/E): 12.6
• Beta (1Y): 0.95
• Revenue Growth: 8.77%
• EPS Growth: 110.90%
• Country: US
• Employees: 45,000
• Sector: Financial
• Sector Strength: 86
• Industry: Insurance - Life
• EPS (TTM): 1.96
• Shares Outstanding: 671,297,850
• 10 Day Avg. Volume: 3,241,361
• 30 Day Avg. Volume: 4,192,924
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.46
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 1.07
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $92.91
• Price Target Upside: 21.58% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

MetLife's overall stock score reflects strong financial performance with robust profitability, stable financial health, and excellent cash flow generation. Positive earnings call sentiment and recent corporate events further enhance the outlook, despite technical analysis indicating mixed signals. Attractive valuation metrics support a favorable view, while challenges in Asia and currency impacts in Latin America remain noteworthy.

Positive Factors

Capital Management

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

Earnings Growth

MET reiterated its long-term guide for double-digit EPS growth and a 15-17% ROE.

Investment Income

Higher private equity returns led to an outperformance in net investment income, which exceeded forecasts.

Negative Factors

Earnings Volatility

There is some potential near-term earnings volatility given MET's greater weighting to 'variable' private equity/real estate investment.

Sector Performance

Underperformance in Retirement and Income Solutions and Asia sectors negatively impacted overall performance.

Sector Underperformance

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

Metlife Business Overview & Revenue Model

Company Description

MetLife, Inc., a financial services company, provides insurance, annuities, employee benefits, and asset management services worldwide. It operates through five segments: U.S.; Asia; Latin America; Europe, the Middle East and Africa; and MetLife Holdings. The company offers life, dental, group short-and long-term disability, individual disability, pet insurance, accidental death and dismemberment, vision, and accident and health coverages, as well as prepaid legal plans; administrative services-only arrangements to employers; and general and separate account, and synthetic guaranteed interest contracts, as well as private floating rate funding agreements. It also provides pension risk transfers, institutional income annuities, structured settlements, and capital markets investment products; and other products and services, such as life insurance products and funding agreements for funding postretirement benefits, as well as company, bank, or trust-owned life insurance used to finance nonqualified benefit programs for executives. In addition, it provides fixed, indexed-linked, and variable annuities; and pension products; regular savings products; whole and term life, endowments, universal and variable life, and group life products; longevity reinsurance solutions; credit insurance products; and protection against long-term health care services. MetLife, Inc. was founded in 1863 and is headquartered in New York, New York.

How the Company Makes Money

MetLife generates revenue primarily through the collection of premiums from its diverse range of insurance products, including life, dental, disability, and accident & health insurance. In addition to premium income, the company earns money through investment income, leveraging its substantial portfolio of invested assets. These investments include fixed income securities, equities, real estate, and other financial instruments. MetLife also benefits from fees and charges associated with its annuity and retirement products, as well as from its employee benefits solutions offered to corporate clients. The company's earnings are influenced by factors such as interest rates, underwriting results, and claims experience, as well as its strategic partnerships and acquisitions that enhance its market presence and product offerings.

Metlife Financial Statement Overview

Summary

MetLife's financial statements collectively portray a company with strong profitability, stable financial health, and excellent cash flow generation. The income statement highlights efficient revenue management and moderate growth, while the balance sheet indicates prudent leverage and strong returns on equity. The cash flow analysis underscores robust cash generation, supporting operational and strategic goals. While there are minor concerns regarding declining EBITDA margins and stockholders' equity, the overall financial health remains commendable.

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
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
69.90B	66.41B	69.90B	71.08B	67.84B
	Gross Profit
69.90B	65.91B	69.90B	71.08B	67.84B
	EBIT
6.66B	66.90B	3.10B	5.49B	5.07B
	EBITDA
6.66B	3.92B	7.97B	10.13B	8.46B
	Net Income Common Stockholders
4.43B	1.58B	2.35B	6.86B	5.41B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
100.57B	302.05B	301.91B	367.50B	378.51B
	Total Assets
677.46B	687.58B	666.61B	759.71B	795.15B
	Total Debt
18.71B	18.83B	17.98B	17.43B	18.15B
	Net Debt
-1.35B	-1.81B	-2.21B	-2.62B	-1.65B
	Total Liabilities
649.75B	657.33B	639.32B	691.96B	720.33B
	Stockholders Equity
27.45B	30.02B	27.04B	67.48B	74.56B
Cash Flow		Free Cash Flow
14.60B	13.72B	13.20B	16.96B	7.37B
	Operating Cash Flow
14.60B	13.72B	13.20B	12.60B	11.64B
	Investing Cash Flow
-11.49B	-10.25B	-2.62B	-11.19B	-18.57B
	Financing Cash Flow
-3.13B	-2.94B	-10.11B	-1.38B	10.73B

Metlife Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 76.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MET, the sentiment is Neutral. The current price of 76.42 is above the 20-day moving average (MA) of 73.93, below the 50-day MA of 77.52, and below the 200-day MA of 78.93, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 53.53 is Neutral, neither overbought nor oversold. The STOCH value of 69.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MET.

Metlife Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MET	77 Outperform	$51.30B	12.60	16.08%	2.85%	8.77%	110.90%
UNM	76 Outperform	$13.86B	9.28	14.68%	2.13%	1.69%	25.54%
GL	74 Outperform	$10.02B	9.89	21.87%	0.81%	5.41%	16.60%
PUK	72 Outperform	$28.19B	12.94	12.82%	2.12%	-14.78%	34.80%
PRU	71 Outperform	$36.07B	16.25	8.04%	5.15%	2.47%	6.88%
AFL	68 Neutral	$57.80B	16.51	15.63%	1.97%	-12.79%	-29.30%
Sector *	64 Neutral	$12.52B	9.82	7.95%	16985.69%	12.70%	-4.60%

Metlife Corporate Events

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.

Spark’s Take on MET Stock

According to Spark, TipRanks’ AI Analyst, MET is a Neutral.

MetLife’s overall stock score reflects a mixed financial picture with strong revenue and net income growth but concerns about financial stability due to negative equity and declining cash flows. The stock’s technical indicators show weak momentum, but its valuation remains attractive with a low P/E ratio and solid dividend yield. The positive earnings call highlights strategic growth initiatives, providing a balanced view of opportunities and challenges.

To see Spark’s full report on MET stock, click here.

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.

Spark’s Take on MET Stock

According to Spark, TipRanks’ AI Analyst, MET is a Neutral.

MetLife’s overall stock score reflects a mixed financial picture with strong revenue and net income growth but concerns about financial stability due to negative equity and declining cash flows. The stock’s technical indicators show weak momentum, but its valuation remains attractive with a low P/E ratio and solid dividend yield. The positive earnings call highlights strategic growth initiatives, providing a balanced view of opportunities and challenges.

To see Spark’s full report on MET stock, click here.

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.

MetLife Announces Leadership Changes and Board Expansion

On January 7, 2025, MetLife announced the resignation of Tamara L. Schock as Executive Vice President and Chief Accounting Officer, effective March 15, 2025. Toby Srihiran Brown was appointed as the interim Chief Accounting Officer while a search for a permanent replacement is conducted. Additionally, on February 25, 2025, MetLife’s Board of Directors expanded from thirteen to fourteen members, electing Christian Mumenthaler as an independent director effective May 1, 2025, and appointing him to the Finance and Risk Committee and the Investment Committee.