Stock of the Day

November 11, 2019

MetLife (MET)

$95.42
+$0.25 (+0.3%)
Market Cap: $61.26B

About MetLife

MetLife, Inc., a financial services company, provides insurance, annuities, employee benefits, and asset management services worldwide. It operates through six segments: Retirement and Income Solutions; Group Benefits; 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; 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 incorporated in 1999 and is based in New York, New York.

MetLife Bull Case

Here are some ways that investors could benefit from investing in MetLife, Inc.:

  • The current stock price is around $92, which is significantly below its fifty-two week high of $100.93, suggesting potential for price appreciation.
  • MetLife, Inc. recently reported strong earnings, with an EPS of $2.43, exceeding analysts' expectations, indicating robust financial performance.
  • The company has initiated a $3.00 billion share buyback program, which often signals that management believes the stock is undervalued, potentially enhancing shareholder value.
  • With a return on equity of 23.39%, MetLife, Inc. demonstrates effective management of shareholder funds, which is attractive to investors looking for efficient capital use.
  • The company offers a quarterly dividend of $0.5925, translating to an annual yield of 2.5%, providing a steady income stream for investors.

MetLife Bear Case

Investors should be bearish about investing in MetLife, Inc. for these reasons:

  • The company's revenue for the latest quarter was $13.52 billion, which fell short of analyst estimates, raising concerns about future growth potential.
  • MetLife, Inc. has a relatively low current ratio of 0.20, indicating potential liquidity issues, which could affect its ability to meet short-term obligations.
  • The beta of 0.78 suggests that the stock is less volatile than the market, which may not appeal to investors seeking high-growth opportunities.
  • Despite a strong EPS, the net margin of 4.57% indicates that profitability could be a concern, as it reflects the percentage of revenue that remains after all expenses are paid.
  • The company has a debt-to-equity ratio of 0.52, which, while manageable, indicates that it relies on debt financing, potentially increasing financial risk in adverse conditions.
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