MET

MetLife is a high-quality, diversified franchise (Group Benefits, RIS, Asia, LatAm, EMEA, MIM after the Q4-2025 Strategic Reorganization) that throws off enormous cash: FY2025 operating cash flow of $17.1B (+17.1% YoY), $22.0B of cash on the balance sheet, and $4.4B returned to shareholders ($2.88B buybacks + $1.51B dividends), with the 4.3% share-count reduction cushioning per-share results. Management reaffirms a five-year ~$25B free-cash-flow target (2025–2029), a holding-company cash buffer of $3.6B inside its $3.0–4.0B target, and near-term goals of 15–17% adjusted ROE and double-digit adjusted EPS growth. That is a durable, well-capitalized payout machine.

The problem is the trajectory of reported earnings and what you pay for them. GAAP net income fell to $3.38B (-23.7% YoY) and diluted EPS to $4.71 (-20.7%), extending a choppy, lower path (net income ran $6.86B → $5.28B → $1.58B → $4.43B → $3.38B from FY2021–FY2025). GAAP ROE is a modest 11.9% — well below management's 15–17% adjusted target, which signals notable items and reserve/market noise are eating reported results. At $85.95 the stock trades at 18.2x trailing GAAP EPS, a full multiple for a life insurer whose reported earnings are declining; the price is not cheap relative to what the books actually show.