Stock of the Day

November 11, 2019

MetLife (MET)

$93.99
+$0.29 (+0.3%)
Market Cap: $60.29B

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 $80, reflecting a stable position in the market.
  • MetLife, Inc. has shown a revenue increase of 2.7% compared to the same quarter last year, indicating growth potential.
  • The company recently declared a quarterly dividend of $0.5925, which translates to an annualized dividend yield of approximately 2.5%, providing a steady income stream for investors.
  • With a PE ratio of 16.62, MetLife, Inc. is considered reasonably valued compared to its earnings, suggesting potential for price appreciation.
  • The firm has a solid return on equity of 22.60%, demonstrating effective management and profitability, which can attract long-term investors.

MetLife Bear Case

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

  • The company has a current ratio of 0.20, which may indicate potential liquidity issues, as it suggests that current liabilities exceed current assets.
  • MetLife, Inc. has a debt-to-equity ratio of 0.53, which, while manageable, indicates that the company is somewhat reliant on debt financing, potentially increasing financial risk.
  • Despite a recent revenue increase, the reported revenue of $14.18 billion fell short of analysts' expectations, which could raise concerns about future performance.
  • The stock has a beta of 0.78, suggesting lower volatility compared to the market, which may limit potential high returns for aggressive investors.
  • Analysts project earnings per share of around 9.97 for the current fiscal year, which may not meet the expectations of growth-oriented investors.
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