AFLAC INC (AFL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AFL - US0010551028 - Common Stock
96.6 EUR
+1.04 (+1.09%)
Taking everything into account, AFL scores 4 out of 10 in our fundamental rating. AFL was compared to 43 industry peers in the Insurance industry. While AFL belongs to the best of the industry regarding profitability, there are concerns on its financial health. AFL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
AFL had positive earnings in the past year.
In the past year AFL had a positive cash flow from operations.
Each year in the past 5 years AFL has been profitable.
In the past 5 years AFL always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of AFL (3.41%) is better than 86.05% of its industry peers.
With a Return On Equity value of 14.53%, AFL perfoms like the industry average, outperforming 55.81% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.81%, AFL belongs to the top of the industry, outperforming 88.37% of the companies in the same industry.
AFL had an Average Return On Invested Capital over the past 3 years of 3.95%. This is in line with the industry average of 2.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 14.53% | ||
| ROIC | 3.81% |
ROA(3y)3.83%
ROA(5y)3.43%
ROE(3y)20.97%
ROE(5y)18.03%
ROIC(3y)3.95%
ROIC(5y)3.48%
1.3 Margins
Looking at the Profit Margin, with a value of 23.55%, AFL belongs to the top of the industry, outperforming 95.35% of the companies in the same industry.
AFL's Profit Margin has improved in the last couple of years.
AFL has a better Operating Margin (29.97%) than 90.70% of its industry peers.
In the last couple of years the Operating Margin of AFL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 29.97% | ||
| PM (TTM) | 23.55% | ||
| GM | N/A |
OM growth 3Y11.49%
OM growth 5Y10.66%
PM growth 3Y13.73%
PM growth 5Y14.22%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AFL is destroying value.
AFL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for AFL has been reduced compared to 5 years ago.
Compared to 1 year ago, AFL has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of AFL is 3.34, which is a good value as it means it would take AFL, 3.34 years of fcf income to pay off all of its debts.
AFL has a Debt to FCF ratio of 3.34. This is comparable to the rest of the industry: AFL outperforms 53.49% of its industry peers.
AFL has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of AFL (0.30) is better than 86.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | N/A |
ROIC/WACC0.48
WACC7.88%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
AFL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.70%, which is quite good.
The Earnings Per Share has been growing by 10.21% on average over the past years. This is quite good.
Looking at the last year, AFL shows a small growth in Revenue. The Revenue has grown by 2.32% in the last year.
The Revenue has been decreasing by -3.26% on average over the past years.
EPS 1Y (TTM)8.7%
EPS 3Y6.78%
EPS 5Y10.21%
EPS Q2Q%15.28%
Revenue 1Y (TTM)2.32%
Revenue growth 3Y-5.07%
Revenue growth 5Y-3.26%
Sales Q2Q%60.73%
3.2 Future
AFL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.96% yearly.
Based on estimates for the next years, AFL will show a small growth in Revenue. The Revenue will grow by 2.42% on average per year.
EPS Next Y-3.55%
EPS Next 2Y1.32%
EPS Next 3Y2.63%
EPS Next 5Y3.96%
Revenue Next Year3.34%
Revenue Next 2Y1.36%
Revenue Next 3Y1.6%
Revenue Next 5Y2.42%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.84 indicates a correct valuation of AFL.
Based on the Price/Earnings ratio, AFL is valued a bit more expensive than 65.12% of the companies in the same industry.
AFL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.45.
Based on the Price/Forward Earnings ratio of 15.01, the valuation of AFL can be described as correct.
74.42% of the companies in the same industry are cheaper than AFL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.46. AFL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 15.01 |
4.2 Price Multiples
65.12% of the companies in the same industry are more expensive than AFL, based on the Enterprise Value to EBITDA ratio.
65.12% of the companies in the same industry are cheaper than AFL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.13 | ||
| EV/EBITDA | 9.94 |
4.3 Compensation for Growth
The decent profitability rating of AFL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.45
EPS Next 2Y1.32%
EPS Next 3Y2.63%
5. Dividend
5.1 Amount
AFL has a Yearly Dividend Yield of 2.21%.
With a Dividend Yield of 2.21, AFL pays less dividend than the industry average, which is at 4.64. 86.05% of the companies listed in the same industry pay a better dividend than AFL!
AFL's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
5.2 History
On average, the dividend of AFL grows each year by 13.11%, which is quite nice.
Dividend Growth(5Y)13.11%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
AFL pays out 28.14% of its income as dividend. This is a sustainable payout ratio.
AFL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.14%
EPS Next 2Y1.32%
EPS Next 3Y2.63%
FRA:AFL (11/21/2025, 7:00:00 PM)
96.6
+1.04 (+1.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners59.68%
Inst Owner ChangeN/A
Ins Owners0.8%
Ins Owner ChangeN/A
Market Cap51.66B
Revenue(TTM)17.70B
Net Income(TTM)4.17B
Analysts66.67
Price Target97.08 (0.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
Yearly Dividend1.67
Dividend Growth(5Y)13.11%
DP28.14%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.27%
Min EPS beat(2)3.7%
Max EPS beat(2)38.84%
EPS beat(4)2
Avg EPS beat(4)9.18%
Min EPS beat(4)-4.02%
Max EPS beat(4)38.84%
EPS beat(8)5
Avg EPS beat(8)8.24%
EPS beat(12)9
Avg EPS beat(12)10.33%
EPS beat(16)11
Avg EPS beat(16)8.31%
Revenue beat(2)1
Avg Revenue beat(2)1.13%
Min Revenue beat(2)-4.81%
Max Revenue beat(2)7.07%
Revenue beat(4)2
Avg Revenue beat(4)2.34%
Min Revenue beat(4)-21.36%
Max Revenue beat(4)28.46%
Revenue beat(8)4
Avg Revenue beat(8)0.43%
Revenue beat(12)7
Avg Revenue beat(12)1.66%
Revenue beat(16)11
Avg Revenue beat(16)2.22%
PT rev (1m)2.78%
PT rev (3m)2.3%
EPS NQ rev (1m)0.54%
EPS NQ rev (3m)1.57%
EPS NY rev (1m)0%
EPS NY rev (3m)0.94%
Revenue NQ rev (1m)-1.27%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.21%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.84 | ||
| Fwd PE | 15.01 | ||
| P/S | 3.36 | ||
| P/FCF | 23.13 | ||
| P/OCF | 23.13 | ||
| P/B | 2.07 | ||
| P/tB | 2.07 | ||
| EV/EBITDA | 9.94 |
EPS(TTM)6.51
EY6.74%
EPS(NY)6.43
Fwd EY6.66%
FCF(TTM)4.18
FCFY4.32%
OCF(TTM)4.18
OCFY4.32%
SpS28.73
BVpS46.56
TBVpS46.56
PEG (NY)N/A
PEG (5Y)1.45
Graham Number82.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.41% | ||
| ROE | 14.53% | ||
| ROCE | 4.39% | ||
| ROIC | 3.81% | ||
| ROICexc | 4.03% | ||
| ROICexgc | 4.12% | ||
| OM | 29.97% | ||
| PM (TTM) | 23.55% | ||
| GM | N/A | ||
| FCFM | 14.54% |
ROA(3y)3.83%
ROA(5y)3.43%
ROE(3y)20.97%
ROE(5y)18.03%
ROIC(3y)3.95%
ROIC(5y)3.48%
ROICexc(3y)4.12%
ROICexc(5y)3.62%
ROICexgc(3y)4.23%
ROICexgc(5y)3.71%
ROCE(3y)4.56%
ROCE(5y)4.02%
ROICexgc growth 3Y16.53%
ROICexgc growth 5Y12.62%
ROICexc growth 3Y16.64%
ROICexc growth 5Y12.6%
OM growth 3Y11.49%
OM growth 5Y10.66%
PM growth 3Y13.73%
PM growth 5Y14.22%
GM growth 3YN/A
GM growth 5YN/A
F-Score7
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.34 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 28.52 | ||
| Cash Conversion | 41.68% | ||
| Profit Quality | 61.72% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC7.88%
ROIC/WACC0.48
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)70.18%
Profit Quality(5y)90.4%
High Growth Momentum
Growth
EPS 1Y (TTM)8.7%
EPS 3Y6.78%
EPS 5Y10.21%
EPS Q2Q%15.28%
EPS Next Y-3.55%
EPS Next 2Y1.32%
EPS Next 3Y2.63%
EPS Next 5Y3.96%
Revenue 1Y (TTM)2.32%
Revenue growth 3Y-5.07%
Revenue growth 5Y-3.26%
Sales Q2Q%60.73%
Revenue Next Year3.34%
Revenue Next 2Y1.36%
Revenue Next 3Y1.6%
Revenue Next 5Y2.42%
EBIT growth 1Y11.33%
EBIT growth 3Y5.83%
EBIT growth 5Y7.05%
EBIT Next Year-7.19%
EBIT Next 3Y-1.6%
EBIT Next 5YN/A
FCF growth 1Y-24.1%
FCF growth 3Y-18.77%
FCF growth 5Y-13.08%
OCF growth 1Y-24.1%
OCF growth 3Y-18.77%
OCF growth 5Y-13.08%
AFLAC INC / AFL.DE FAQ
What is the ChartMill fundamental rating of AFLAC INC (AFL.DE) stock?
ChartMill assigns a fundamental rating of 4 / 10 to AFL.DE.
What is the valuation status of AFLAC INC (AFL.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to AFLAC INC (AFL.DE). This can be considered as Overvalued.
What is the profitability of AFL stock?
AFLAC INC (AFL.DE) has a profitability rating of 7 / 10.
What are the PE and PB ratios of AFLAC INC (AFL.DE) stock?
The Price/Earnings (PE) ratio for AFLAC INC (AFL.DE) is 14.84 and the Price/Book (PB) ratio is 2.07.
What is the earnings growth outlook for AFLAC INC?
The Earnings per Share (EPS) of AFLAC INC (AFL.DE) is expected to decline by -3.55% in the next year.