MetLife Preferred Debt To Equity vs. Return On Asset

MET-PF Preferred Stock  USD 21.33  0.04  0.19%   
Based on the measurements of profitability obtained from MetLife Preferred's financial statements, MetLife Preferred Stock may not be well positioned to generate adequate gross income at the present time. It has a very high chance of underperforming in December. Profitability indicators assess MetLife Preferred's ability to earn profits and add value for shareholders.
For MetLife Preferred profitability analysis, we use financial ratios and fundamental drivers that measure the ability of MetLife Preferred to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well MetLife Preferred Stock utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between MetLife Preferred's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of MetLife Preferred Stock over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
Please note, there is a significant difference between MetLife Preferred's value and its price as these two are different measures arrived at by different means. Investors typically determine if MetLife Preferred is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, MetLife Preferred's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

MetLife Preferred Stock Return On Asset vs. Debt To Equity Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining MetLife Preferred's current stock value. Our valuation model uses many indicators to compare MetLife Preferred value to that of its competitors to determine the firm's financial worth.
MetLife Preferred Stock is considered to be number one stock in debt to equity category among its peers. It also is considered to be number one stock in return on asset category among its peers . The ratio of Debt To Equity to Return On Asset for MetLife Preferred Stock is about  448.53 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the MetLife Preferred's earnings, one of the primary drivers of an investment's value.

MetLife Return On Asset vs. Debt To Equity

Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.

MetLife Preferred

D/E

 = 

Total Debt

Total Equity

 = 
1.52 %
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
Return on Asset or ROA shows how effective is the management of the company in generating income from utilizing all of the assets at their disposal. It is a useful ratio to evaluate the performance of different departments of a company as well as to understand management performance over time.

MetLife Preferred

Return On Asset

 = 

Net Income

Total Assets

 = 
0.0034
Return on Asset measures overall efficiency of a company in generating profits from its total assets. It is expressed as the percentage of profits earned per dollar of Asset. A low ROA typically means that a company is asset-intensive and therefore will needs more money to continue generating revenue in the future.

MetLife Return On Asset Comparison

MetLife Preferred is currently under evaluation in return on asset category among its peers.

MetLife Preferred Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in MetLife Preferred, profitability is also one of the essential criteria for including it into their portfolios because, without profit, MetLife Preferred will eventually generate negative long term returns. The profitability progress is the general direction of MetLife Preferred's change in net profit over the period of time. It can combine multiple indicators of MetLife Preferred, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
MetLife, Inc. engages in the insurance, annuities, employee benefits, and asset management businesses worldwide. MetLife, Inc. was founded in 1863 and is headquartered in New York, New York. Metlife is traded on New York Stock Exchange in the United States.

MetLife Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on MetLife Preferred. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of MetLife Preferred position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the MetLife Preferred's important profitability drivers and their relationship over time.

Use MetLife Preferred in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if MetLife Preferred position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in MetLife Preferred will appreciate offsetting losses from the drop in the long position's value.

MetLife Preferred Pair Trading

MetLife Preferred Stock Pair Trading Analysis

The ability to find closely correlated positions to MetLife Preferred could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace MetLife Preferred when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back MetLife Preferred - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling MetLife Preferred Stock to buy it.
The correlation of MetLife Preferred is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as MetLife Preferred moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if MetLife Preferred Stock moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for MetLife Preferred can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your MetLife Preferred position

In addition to having MetLife Preferred in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Electronic Equipment Thematic Idea Now

Electronic Equipment
Electronic Equipment Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Electronic Equipment theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Electronic Equipment Theme or any other thematic opportunities.
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Other Information on Investing in MetLife Preferred Stock

To fully project MetLife Preferred's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of MetLife Preferred Stock at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include MetLife Preferred's income statement, its balance sheet, and the statement of cash flows.
Potential MetLife Preferred investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although MetLife Preferred investors may work on each financial statement separately, they are all related. The changes in MetLife Preferred's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on MetLife Preferred's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.