Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a hold with a ratings score of C . The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and attractive valuation levels. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.
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Highlights from the ratings report include:
- MET's revenue growth has slightly outpaced the industry average of 0.7%. Since the same quarter one year prior, revenues slightly increased by 7.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 108.6% when compared to the same quarter one year prior, rising from $1,100.00 million to $2,295.00 million.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, METLIFE INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Despite currently having a low debt-to-equity ratio of 0.53, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.
- The gross profit margin for METLIFE INC is rather low; currently it is at 20.70%. Regardless of MET's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, MET's net profit margin of 12.50% compares favorably to the industry average.
MetLife, Inc., through its subsidiaries, provides insurance, annuities, and employee benefit programs in the United States, Japan, Latin America, the Asia Pacific, Europe, and the Middle East. The company has a P/E ratio of 5.3, below the average insurance industry P/E ratio of 5.5 and below the S&P 500 P/E ratio of 17.7. MetLife has a market cap of $36.54 billion and is part of the
industry. Shares are up 11.8% year to date as of the close of trading on Thursday.
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--Written by a member of TheStreet Ratings Staff.