Measuring MetLife, Inc.'s (NYSE:MET) track record of past performance is a useful exercise for investors. It enables us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess MET's recent performance announced on 30 June 2019 and weigh these figures against its long-term trend and industry movements.
How Well Did MET Perform?
MET's trailing twelve-month earnings (from 30 June 2019) of US$5.9b has jumped 13% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of -4.2%, indicating the rate at which MET is growing has accelerated. What's enabled this growth? Let's take a look at whether it is solely due to an industry uplift, or if MetLife has experienced some company-specific growth.
In terms of returns from investment, MetLife has fallen short of achieving a 20% return on equity (ROE), recording 9.5% instead. Furthermore, its return on assets (ROA) of 0.9% is below the US Insurance industry of 2.5%, indicating MetLife's are utilized less efficiently. However, its return on capital (ROC), which also accounts for MetLife’s debt level, has increased over the past 3 years from 1.0% to 1.3%.
What does this mean?
MetLife's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. While MetLife has a good historical track record with positive growth and profitability, there's no certainty that this will extrapolate into the future. I recommend you continue to research MetLife to get a more holistic view of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for MET’s future growth? Take a look at our free research report of analyst consensus for MET’s outlook.
- Financial Health: Are MET’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 30 June 2019. This may not be consistent with full year annual report figures.
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