MetLife (MET) Looks Solid Through 2010 and Beyond - Barron's
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Price: $91.65 +0.55%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.6%
EPS Growth %: +16.8%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.6%
EPS Growth %: +16.8%
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Shares of MetLife (NYSE: MET) are trading 1.43% higher to $36.14, as an article from Barron's recommends to stick with the stock.
Barron's says that the stock is trading relatively cheap, and it also pays out a pretty handsome dividend of $0.185 quarterly, amounting to a 2% yield. The dividend has about $6.4 billion in cash fow behind it, making it even more attractive.
Shares have gained 19.68% since January 29, 2009, and have been up 1.67% YTD so far. Shares, minus the dip in March, have stayed flat, gaining 5.4% through 2009.
MET currently trades at 8.5x FY10 EPS estimates, and about a 0.85 price/book value.
One of the biggest factors for MetLife's argument is that it didn't take any of the government TARP funds, making it like the Ford Motor (NYSE: F) of the insurance industry. And we all know how Ford is doing currently.
MET has a long-term growth rate of 10%, better than larger conglomerates like Pridential (NYSE: PRU), and more P&C focused companies like Allstate (NYSE: ALL).
MET life is currently in talks with AIG (NYSE: AIG) over their Japanese business unit, Alico. Though Japan is showing some economic weakness lately, Alico has been in the country selling cancer and medical coverage for about 40 years. The country also has an expanding elderly population, opening up more business opportunities.
MET currently has limited exposure to international operations, deriving just $4 billion of fees and revenues from outside the U.S. The company saw total revenues of $33.5 billion in 2009.
One risk is MET's, along with many other insurers, exposure to CMBS' [Commercial Mortgage-Backed Securities]. Barclays believes that insurers are well aware of this risk, and are positioned to side-step some of the fallout that may occur. Another risk is integration of Alico, should the deal with AIG go through.
MetLife is expected to report their earnings for Q409 on Tuesday, February 2, 2010, after the market closes.
Barron's says that the stock is trading relatively cheap, and it also pays out a pretty handsome dividend of $0.185 quarterly, amounting to a 2% yield. The dividend has about $6.4 billion in cash fow behind it, making it even more attractive.
Shares have gained 19.68% since January 29, 2009, and have been up 1.67% YTD so far. Shares, minus the dip in March, have stayed flat, gaining 5.4% through 2009.
MET currently trades at 8.5x FY10 EPS estimates, and about a 0.85 price/book value.
One of the biggest factors for MetLife's argument is that it didn't take any of the government TARP funds, making it like the Ford Motor (NYSE: F) of the insurance industry. And we all know how Ford is doing currently.
MET has a long-term growth rate of 10%, better than larger conglomerates like Pridential (NYSE: PRU), and more P&C focused companies like Allstate (NYSE: ALL).
MET life is currently in talks with AIG (NYSE: AIG) over their Japanese business unit, Alico. Though Japan is showing some economic weakness lately, Alico has been in the country selling cancer and medical coverage for about 40 years. The country also has an expanding elderly population, opening up more business opportunities.
MET currently has limited exposure to international operations, deriving just $4 billion of fees and revenues from outside the U.S. The company saw total revenues of $33.5 billion in 2009.
One risk is MET's, along with many other insurers, exposure to CMBS' [Commercial Mortgage-Backed Securities]. Barclays believes that insurers are well aware of this risk, and are positioned to side-step some of the fallout that may occur. Another risk is integration of Alico, should the deal with AIG go through.
MetLife is expected to report their earnings for Q409 on Tuesday, February 2, 2010, after the market closes.
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