Metlife Stock Intrinsic Value – METLIFE Reports Fourth Quarter Earnings for FY2022 on February 1 2023

Earnings Overview

On February 1 2023, METLIFE ($NYSE:MET) released its financial results for the fourth quarter of FY2022, ending December 31 2022. Total revenue for the quarter amounted to USD 1.3 billion, representing an increase of 11.7% from the same period of last year. Reported net income, meanwhile, totaled USD 16.3 billion, showing a decrease of 18.8% compared to the fourth quarter of FY2021.

Transcripts Simplified

Adjusted earnings in 4Q were $1.2 billion, down 28% year-over-year, while adjusted EPS was $1.55, down 23%. Group Benefits adjusted PFOs were essentially flat year-over-year. Retirement and Income Solutions adjusted earnings were down 40% year-over-year due to lower variable investment income. Credit losses in the portfolio remain modest and net derivative gains were primarily due to the weakening of the U.S. dollar in the quarter.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Metlife. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Metlife. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Metlife. More…

Key Ratios Snapshot

Some of the financial key ratios for Metlife are shown below. More…

Price History

At the opening of the day’s trading, METLIFE stock was valued at $72.4, but at the closing bell it had dropped 0.5% to $72.7 from its previous closing price of $73.0. Despite the slight drop, investors remain optimistic about METLIFE’s potential as it continues to grow and expand. The company has made recent inroads in various sectors, including insurance, investments, and asset management. It has also expanded its presence in the international market and has seen tremendous success so far. The strong performance of its subsidiaries and strategic partnerships have also helped to bolster its overall financial performance in recent years.

METLIFE’s fourth quarter results showed that despite the challenging economic environment, it was still able to maintain its profitability. Overall, investors remain confident in METLIFE’s future performance and are confident that the company will continue to deliver strong results in the coming years. By reporting strong earnings for FY2022, METLIFE has demonstrated its commitment to creating value for its shareholders. Live Quote…

Analysis – Metlife Stock Intrinsic Value

At GoodWhale, we conducted an analysis of METLIFE‘s wellbeing and our proprietary Valuation Line shows that the intrinsic value of METLIFE share is around $58.9. Currently, METLIFE stock is traded at $72.7, meaning there is an overvaluation of 23.4%. This indicates that investors’ expectations of the future performance of METLIFE are currently higher than what we are able to justify with our analysis. More…

Peers

In the insurance industry, MetLife Inc faces competition from Prudential Financial Inc, Great-West Lifeco Inc, Reinsurance Group of America Inc. All of these companies are in the business of providing life insurance and related products to individuals and businesses. MetLife has a diversified product mix that includes life, disability, long-term care, and annuities, among others. Prudential is focused on life insurance and annuities, while Great-West Lifeco and Reinsurance Group of America focus primarily on life insurance.

– Prudential Financial Inc ($NYSE:PRU)

Prudential Financial Inc. is an American multinational financial services company. It offers a variety of financial products and services, including life insurance, annuities, retirement-related services, mutual funds, asset management, and real estate services. As of 2022, it has a market cap of $35.87 billion.

Prudential was founded in 1875 and is headquartered in Newark, New Jersey. It has operations in the United States, Asia, Europe, and Latin America. The company serves individual and institutional customers through its various businesses. These businesses include life insurance, annuities, retirement-related services, mutual funds, asset management, and real estate services.

– Great-West Lifeco Inc ($TSX:GWO)

Great-West Lifeco Inc is a financial services holding company with operations in the United States, Canada, Europe and Asia. The Company’s segments include Great-West Life & Annuity Insurance Company (GWL&A), London Life Insurance Company (London Life), Canada Life Insurance Company (Canada Life), Irish Life Group Limited (Irish Life) and Putnam Investments LLC (Putnam).

– Reinsurance Group of America Inc ($NYSE:RGA)

Reinsurance Group of America, Incorporated is a holding company, which engages in the provision of life reinsurance, financial services, and asset management solutions. It operates through the following segments: Traditional Life Reinsurance, Asset Intensive Life Reinsurance, Group Reinsurance, and Financial Solutions. The company was founded in 1973 and is headquartered in Chesterfield, MO.

Summary

Investors in METLIFE were surprised this quarter with the company reporting an increase in revenue of 11.7%, but a decrease of 18.8% in reported net income. Despite this, shares of METLIFE remain attractive due to its strong balance sheet, attractive dividend yield, and diversified portfolio of products. Analysts remain bullish on the company’s prospects in the long term as they expect METLIFE to continue growing its revenue and profitability.

Additionally, the company is expected to benefit from increased demand for its products and services due to changing customer preferences in the post-pandemic world. Investors should carefully monitor the company’s progress in the coming quarters.