AFLAC INC (AFL.DE) Stock Fundamental Analysis
FRA:AFL - Deutsche Boerse Ag - US0010551028 - Common Stock - Currency: EUR
Overall AFL gets a fundamental rating of 5 out of 10. We evaluated AFL against 33 industry peers in the Insurance industry. While AFL has a great profitability rating, there are quite some concerns on its financial health. AFL has a decent growth rate and is not valued too expensively.
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.
In the past 5 years AFL has always been profitable.
Each year in the past 5 years AFL had a positive operating cash flow.
1.2 Ratios
The Return On Assets of AFL (4.63%) is better than 91.67% of its industry peers.
AFL has a better Return On Equity (20.86%) than 88.89% of its industry peers.
The Return On Invested Capital of AFL (4.90%) is better than 91.67% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for AFL is in line with the industry average of 2.25%.
The 3 year average ROIC (3.95%) for AFL is below the current ROIC(4.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 20.86% | ||
| ROIC | 4.9% |
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 28.76%, AFL belongs to the top of the industry, outperforming 94.44% of the companies in the same industry.
In the last couple of years the Profit Margin of AFL has grown nicely.
Looking at the Operating Margin, with a value of 34.94%, AFL belongs to the top of the industry, outperforming 97.22% of the companies in the same industry.
AFL's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 34.94% | ||
| PM (TTM) | 28.76% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AFL is destroying value.
Compared to 1 year ago, AFL has less shares outstanding
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
AFL has a debt to FCF ratio of 2.74. This is a good value and a sign of high solvency as AFL would need 2.74 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.74, AFL is in the better half of the industry, outperforming 63.89% of the companies in the same industry.
A Debt/Equity ratio of 0.28 indicates that AFL is not too dependend on debt financing.
AFL's Debt to Equity ratio of 0.28 is fine compared to the rest of the industry. AFL outperforms 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | N/A |
ROIC/WACC0.6
WACC8.23%
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 15.34%, which is quite good.
Measured over the past years, AFL shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.21% on average per year.
AFL shows a small growth in Revenue. In the last year, the Revenue has grown by 1.21%.
AFL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.26% yearly.
EPS 1Y (TTM)15.34%
EPS 3Y6.78%
EPS 5Y10.21%
EPS Q2Q%25.6%
Revenue 1Y (TTM)1.21%
Revenue growth 3Y-5.07%
Revenue growth 5Y-3.26%
Sales Q2Q%43.05%
3.2 Future
AFL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.18% yearly.
The Revenue is expected to grow by 1.08% on average over the next years.
EPS Next Y-4.48%
EPS Next 2Y0.47%
EPS Next 3Y1.18%
EPS Next 5YN/A
Revenue Next Year4.06%
Revenue Next 2Y2.74%
Revenue Next 3Y1.08%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 14.86 indicates a correct valuation of AFL.
AFL's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 29.35, AFL is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.56, which indicates a correct valuation of AFL.
AFL's Price/Forward Earnings ratio is rather expensive when compared to the industry. AFL is more expensive than 86.11% of the companies in the same industry.
AFL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 15.56 |
4.2 Price Multiples
AFL's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. AFL is cheaper than 83.33% of the companies in the same industry.
AFL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.66 | ||
| EV/EBITDA | 8.01 |
4.3 Compensation for Growth
The excellent profitability rating of AFL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.46
EPS Next 2Y0.47%
EPS Next 3Y1.18%
5. Dividend
5.1 Amount
AFL has a Yearly Dividend Yield of 2.15%. Purely for dividend investing, there may be better candidates out there.
AFL's Dividend Yield is slightly below the industry average, which is at 4.64.
Compared to an average S&P500 Dividend Yield of 2.33, AFL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
5.2 History
The dividend of AFL is nicely growing with an annual growth rate of 13.11%!
Dividend Growth(5Y)13.11%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
AFL pays out 19.97% 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.
DP19.97%
EPS Next 2Y0.47%
EPS Next 3Y1.18%
FRA:AFL (3/7/2025, 7:00:00 PM)
98.82
-0.82 (-0.82%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners59.77%
Inst Owner ChangeN/A
Ins Owners0.79%
Ins Owner ChangeN/A
Market Cap54.01B
Analysts66
Price Target102.32 (3.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.15% |
Yearly Dividend1.77
Dividend Growth(5Y)13.11%
DP19.97%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.44%
Min EPS beat(2)-4.02%
Max EPS beat(2)26.91%
EPS beat(4)3
Avg EPS beat(4)10.02%
Min EPS beat(4)-4.02%
Max EPS beat(4)26.91%
EPS beat(8)6
Avg EPS beat(8)8.6%
EPS beat(12)9
Avg EPS beat(12)7.69%
EPS beat(16)12
Avg EPS beat(16)9.72%
Revenue beat(2)1
Avg Revenue beat(2)-2.77%
Min Revenue beat(2)-34%
Max Revenue beat(2)28.46%
Revenue beat(4)3
Avg Revenue beat(4)9.42%
Min Revenue beat(4)-34%
Max Revenue beat(4)28.46%
Revenue beat(8)6
Avg Revenue beat(8)6.31%
Revenue beat(12)9
Avg Revenue beat(12)4.28%
Revenue beat(16)12
Avg Revenue beat(16)3.7%
PT rev (1m)0.06%
PT rev (3m)-0.21%
EPS NQ rev (1m)-3.02%
EPS NQ rev (3m)-6.64%
EPS NY rev (1m)-2.58%
EPS NY rev (3m)-4.61%
Revenue NQ rev (1m)5.08%
Revenue NQ rev (3m)3.02%
Revenue NY rev (1m)4.03%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 15.56 | ||
| P/S | 3.1 | ||
| P/FCF | 21.66 | ||
| P/OCF | 21.66 | ||
| P/B | 2.25 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 8.01 |
EPS(TTM)6.65
EY6.73%
EPS(NY)6.35
Fwd EY6.43%
FCF(TTM)4.56
FCFY4.62%
OCF(TTM)4.56
OCFY4.62%
SpS31.89
BVpS43.98
TBVpS43.98
PEG (NY)N/A
PEG (5Y)1.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 20.86% | ||
| ROCE | 5.66% | ||
| ROIC | 4.9% | ||
| ROICexc | 5.18% | ||
| ROICexgc | 5.3% | ||
| OM | 34.94% | ||
| PM (TTM) | 28.76% | ||
| GM | N/A | ||
| FCFM | 14.3% |
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)4.01%
ROICexcg growth 3Y16.5%
ROICexcg growth 5Y12.6%
ROICexc growth 3Y16.61%
ROICexc growth 5Y12.58%
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 Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.74 | ||
| Debt/EBITDA | 0.99 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 36.74 | ||
| Cash Conversion | 36.27% | ||
| Profit Quality | 49.73% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score7
WACC8.23%
ROIC/WACC0.6
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)15.34%
EPS 3Y6.78%
EPS 5Y10.21%
EPS Q2Q%25.6%
EPS Next Y-4.48%
EPS Next 2Y0.47%
EPS Next 3Y1.18%
EPS Next 5YN/A
Revenue 1Y (TTM)1.21%
Revenue growth 3Y-5.07%
Revenue growth 5Y-3.26%
Sales Q2Q%43.05%
Revenue Next Year4.06%
Revenue Next 2Y2.74%
Revenue Next 3Y1.08%
Revenue Next 5YN/A
EBIT growth 1Y21.18%
EBIT growth 3Y5.83%
EBIT growth 5Y7.05%
EBIT Next Year86.7%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-15.14%
FCF growth 3Y-18.77%
FCF growth 5Y-13.08%
OCF growth 1Y-15.14%
OCF growth 3Y-18.77%
OCF growth 5Y-13.08%