AFLAC INC (AFL.DE) Stock Fundamental Analysis
FRA:AFL - Deutsche Boerse Ag - US0010551028 - Common Stock - Currency: EUR
Overall AFL gets a fundamental rating of 4 out of 10. We evaluated AFL against 32 industry peers in the Insurance industry. AFL has an excellent profitability rating, but there are concerns on its financial health. AFL is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year AFL was profitable.
AFL had a positive operating cash flow in the past year.
In the past 5 years AFL has always been profitable.
AFL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AFL has a Return On Assets of 2.97%. This is in the better half of the industry: AFL outperforms 80.00% of its industry peers.
With a decent Return On Equity value of 15.34%, AFL is doing good in the industry, outperforming 70.00% of the companies in the same industry.
The Return On Invested Capital of AFL (2.62%) is better than 80.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for AFL is in line with the industry average of 2.08%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 15.34% | ||
| ROIC | 2.62% |
ROA(3y)3.2%
ROA(5y)2.93%
ROE(3y)18.35%
ROE(5y)16.14%
ROIC(3y)2.74%
ROIC(5y)2.48%
1.3 Margins
AFL has a better Profit Margin (22.02%) than 96.67% of its industry peers.
AFL's Profit Margin has improved in the last couple of years.
The Operating Margin of AFL (27.54%) is better than 96.67% of its industry peers.
AFL's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.54% | ||
| PM (TTM) | 22.02% | ||
| GM | N/A |
OM growth 3Y13.66%
OM growth 5Y8.26%
PM growth 3Y4.91%
PM growth 5Y13.25%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AFL is destroying value.
AFL has less shares outstanding than it did 1 year ago.
AFL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AFL is higher compared to a year ago.
2.2 Solvency
AFL has a debt to FCF ratio of 2.45. This is a good value and a sign of high solvency as AFL would need 2.45 years to pay back of all of its debts.
AFL's Debt to FCF ratio of 2.45 is fine compared to the rest of the industry. AFL outperforms 63.33% of its industry peers.
AFL has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.32, AFL is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.45 | ||
| Altman-Z | N/A |
ROIC/WACC0.31
WACC8.38%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
AFL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 7.64%.
The Earnings Per Share has been growing by 8.67% on average over the past years. This is quite good.
AFL shows a decrease in Revenue. In the last year, the revenue decreased by -8.64%.
Measured over the past years, AFL shows a decrease in Revenue. The Revenue has been decreasing by -3.05% on average per year.
EPS 1Y (TTM)7.64%
EPS 3Y8.14%
EPS 5Y8.67%
EPS Q2Q%17.39%
Revenue 1Y (TTM)-8.64%
Revenue growth 3Y-5.48%
Revenue growth 5Y-3.05%
Sales Q2Q%-40.42%
3.2 Future
The Earnings Per Share is expected to grow by 5.64% on average over the next years.
Based on estimates for the next years, AFL will show a small growth in Revenue. The Revenue will grow by 0.29% on average per year.
EPS Next Y17.3%
EPS Next 2Y6.34%
EPS Next 3Y5.61%
EPS Next 5Y5.64%
Revenue Next Year-5.88%
Revenue Next 2Y-2.48%
Revenue Next 3Y-1.36%
Revenue Next 5Y0.29%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 15.58 indicates a correct valuation of AFL.
Compared to the rest of the industry, the Price/Earnings ratio of AFL indicates a slightly more expensive valuation: AFL is more expensive than 73.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.47, AFL is valued a bit cheaper.
With a Price/Forward Earnings ratio of 15.20, AFL is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AFL indicates a rather expensive valuation: AFL more expensive than 93.33% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, AFL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.58 | ||
| Fwd PE | 15.2 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AFL.
AFL's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AFL is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.64 | ||
| EV/EBITDA | 11.05 |
4.3 Compensation for Growth
AFL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AFL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.9
PEG (5Y)1.8
EPS Next 2Y6.34%
EPS Next 3Y5.61%
5. Dividend
5.1 Amount
AFL has a Yearly Dividend Yield of 2.14%.
Compared to an average industry Dividend Yield of 5.01, AFL's dividend is way lower than its industry peers. On top of this 86.67% of the companies listed in the same industry pay a better dividend than AFL!
Compared to an average S&P500 Dividend Yield of 2.28, AFL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
5.2 History
On average, the dividend of AFL grows each year by 9.41%, which is quite nice.
Dividend Growth(5Y)9.41%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
27.72% of the earnings are spent on dividend by AFL. This is a low number and sustainable payout ratio.
The dividend of AFL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP27.72%
EPS Next 2Y6.34%
EPS Next 3Y5.61%
AFLAC INC
FRA:AFL (2/4/2025, 7:00:00 PM)
104.1
+0.25 (+0.24%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners61.92%
Inst Owner ChangeN/A
Ins Owners0.73%
Ins Owner ChangeN/A
Market Cap57.83B
Analysts66.32
Price Target102.26 (-1.77%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend1.62
Dividend Growth(5Y)9.41%
DP27.72%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.11%
Min EPS beat(2)13.31%
Max EPS beat(2)26.91%
EPS beat(4)3
Avg EPS beat(4)7.29%
Min EPS beat(4)-14.93%
Max EPS beat(4)26.91%
EPS beat(8)7
Avg EPS beat(8)10.9%
EPS beat(12)9
Avg EPS beat(12)8.03%
EPS beat(16)13
Avg EPS beat(16)10.05%
Revenue beat(2)1
Avg Revenue beat(2)-8.04%
Min Revenue beat(2)-34%
Max Revenue beat(2)17.93%
Revenue beat(4)2
Avg Revenue beat(4)-1.47%
Min Revenue beat(4)-34%
Max Revenue beat(4)25.28%
Revenue beat(8)5
Avg Revenue beat(8)1.32%
Revenue beat(12)9
Avg Revenue beat(12)2.17%
Revenue beat(16)12
Avg Revenue beat(16)2.36%
PT rev (1m)-1.3%
PT rev (3m)6.46%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)2.94%
EPS NY rev (1m)-0.05%
EPS NY rev (3m)6.67%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)-3.85%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)-7.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.58 | ||
| Fwd PE | 15.2 | ||
| P/S | 3.45 | ||
| P/FCF | 18.64 | ||
| P/OCF | 18.64 | ||
| P/B | 2.41 | ||
| P/tB | 2.41 | ||
| EV/EBITDA | 11.05 |
EPS(TTM)6.68
EY6.42%
EPS(NY)6.85
Fwd EY6.58%
FCF(TTM)5.59
FCFY5.37%
OCF(TTM)5.59
OCFY5.37%
SpS30.13
BVpS43.25
TBVpS43.25
PEG (NY)0.9
PEG (5Y)1.8
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 15.34% | ||
| ROCE | 3.73% | ||
| ROIC | 2.62% | ||
| ROICexc | 2.74% | ||
| ROICexgc | 2.8% | ||
| OM | 27.54% | ||
| PM (TTM) | 22.02% | ||
| GM | N/A | ||
| FCFM | 18.54% |
ROA(3y)3.2%
ROA(5y)2.93%
ROE(3y)18.35%
ROE(5y)16.14%
ROIC(3y)2.74%
ROIC(5y)2.48%
ROICexc(3y)2.83%
ROICexc(5y)2.56%
ROICexgc(3y)2.91%
ROICexgc(5y)2.63%
ROCE(3y)3.89%
ROCE(5y)3.52%
ROICexcg growth 3Y16.34%
ROICexcg growth 5Y6.59%
ROICexc growth 3Y16.35%
ROICexc growth 5Y6.6%
OM growth 3Y13.66%
OM growth 5Y8.26%
PM growth 3Y4.91%
PM growth 5Y13.25%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.45 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 26.47 | ||
| Cash Conversion | 57.16% | ||
| Profit Quality | 84.2% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC8.38%
ROIC/WACC0.31
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)92.53%
Profit Quality(5y)113.48%
High Growth Momentum
Growth
EPS 1Y (TTM)7.64%
EPS 3Y8.14%
EPS 5Y8.67%
EPS Q2Q%17.39%
EPS Next Y17.3%
EPS Next 2Y6.34%
EPS Next 3Y5.61%
EPS Next 5Y5.64%
Revenue 1Y (TTM)-8.64%
Revenue growth 3Y-5.48%
Revenue growth 5Y-3.05%
Sales Q2Q%-40.42%
Revenue Next Year-5.88%
Revenue Next 2Y-2.48%
Revenue Next 3Y-1.36%
Revenue Next 5Y0.29%
EBIT growth 1Y-16.45%
EBIT growth 3Y7.43%
EBIT growth 5Y4.95%
EBIT Next Year7.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-13.7%
FCF growth 3Y-18.8%
FCF growth 5Y-11.91%
OCF growth 1Y-13.7%
OCF growth 3Y-18.8%
OCF growth 5Y-11.91%