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 reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.
Highlights from the ratings report include:
- Net operating cash flow has increased to $3,186.00 million or 41.78% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 10.86%.
- The revenue fell significantly faster than the industry average of 21.6%. Since the same quarter one year prior, revenues fell by 19.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Insurance industry and the overall market on the basis of return on equity, METLIFE INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The gross profit margin for METLIFE INC is currently extremely low, coming in at 8.10%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -5.78% is significantly below that of 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. MetLife has a market cap of $34.95 billion and is part of the financial sector and insurance industry. The company has a P/E ratio of 13.2, below the S&P 500 P/E ratio of 17.7. Shares are up 6.3% year to date as of the close of trading on Tuesday.
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--Written by a member of TheStreet Ratings Staff.
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