AFLAC INC (AFL.DE) Stock Fundamental Analysis
Europe - FRA:AFL - US0010551028 - Common Stock
92.26 EUR
+1.48 (+1.63%)
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. There are concerns on the financial health of AFL while its profitability can be described as average. AFL does not seem to be growing, but still is valued expensively.
1. Profitability
1.1 Basic Checks
AFL had positive earnings in the past year.
AFL had a positive operating cash flow in the past year.
Each year in the past 5 years AFL has been profitable.
Each year in the past 5 years AFL had a positive operating cash flow.
1.2 Ratios
AFL's Return On Assets of 1.95% is fine compared to the rest of the industry. AFL outperforms 79.07% of its industry peers.
AFL has a worse Return On Equity (8.96%) than 74.42% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.38%, AFL is in the better half of the industry, outperforming 72.09% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AFL is in line with the industry average of 2.26%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 8.96% | ||
| ROIC | 2.38% |
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 15.32%, AFL belongs to the top of the industry, outperforming 86.05% of the companies in the same industry.
In the last couple of years the Profit Margin of AFL has grown nicely.
AFL's Operating Margin of 21.35% is amongst the best of the industry. AFL outperforms 86.05% of its industry peers.
AFL's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.35% | ||
| PM (TTM) | 15.32% | ||
| 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
AFL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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 3.41. This is a good value and a sign of high solvency as AFL would need 3.41 years to pay back of all of its debts.
AFL has a Debt to FCF ratio (3.41) which is in line with 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.
AFL's Debt to Equity ratio of 0.32 is amongst the best of the industry. AFL outperforms 83.72% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | N/A |
ROIC/WACC0.3
WACC7.85%
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 8.97%, 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 very negative growth in Revenue. In the last year, the Revenue has decreased by -17.57%.
Measured over the past years, AFL shows a decrease in Revenue. The Revenue has been decreasing by -3.26% on average per year.
EPS 1Y (TTM)8.97%
EPS 3Y6.78%
EPS 5Y10.21%
EPS Q2Q%-2.73%
Revenue 1Y (TTM)-17.57%
Revenue growth 3Y-5.07%
Revenue growth 5Y-3.26%
Sales Q2Q%-19.03%
3.2 Future
AFL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.33% yearly.
Based on estimates for the next years, AFL will show a small growth in Revenue. The Revenue will grow by 2.23% on average per year.
EPS Next Y-4.46%
EPS Next 2Y0.84%
EPS Next 3Y2.35%
EPS Next 5Y3.33%
Revenue Next Year3.6%
Revenue Next 2Y1.25%
Revenue Next 3Y1.47%
Revenue Next 5Y2.23%
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
With a Price/Earnings ratio of 15.15, AFL is valued correctly.
67.44% of the companies in the same industry are cheaper than AFL, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 27.27, AFL is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.79, AFL is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AFL indicates a slightly more expensive valuation: AFL is more expensive than 72.09% of the companies listed in the same industry.
AFL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.77.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 14.79 |
4.2 Price Multiples
AFL's Enterprise Value to EBITDA ratio is in line with the industry average.
69.77% 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 | 22.41 | ||
| EV/EBITDA | 14.07 |
4.3 Compensation for Growth
AFL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.48
EPS Next 2Y0.84%
EPS Next 3Y2.35%
5. Dividend
5.1 Amount
AFL has a Yearly Dividend Yield of 2.13%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.13, AFL pays less dividend than the industry average, which is at 4.56. 81.40% of the companies listed in the same industry pay a better dividend than AFL!
Compared to an average S&P500 Dividend Yield of 2.38, AFL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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
46.94% of the earnings are spent on dividend by AFL. This is a bit on the high side, but may be sustainable.
The dividend of AFL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP46.94%
EPS Next 2Y0.84%
EPS Next 3Y2.35%
FRA:AFL (9/15/2025, 7:00:00 PM)
92.26
+1.48 (+1.63%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners59.71%
Inst Owner ChangeN/A
Ins Owners0.79%
Ins Owner ChangeN/A
Market Cap49.34B
Analysts66.32
Price Target94.73 (2.68%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend1.64
Dividend Growth(5Y)13.11%
DP46.94%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.95%
Min EPS beat(2)-1.8%
Max EPS beat(2)3.7%
EPS beat(4)2
Avg EPS beat(4)6.2%
Min EPS beat(4)-4.02%
Max EPS beat(4)26.91%
EPS beat(8)5
Avg EPS beat(8)6.14%
EPS beat(12)8
Avg EPS beat(12)6.57%
EPS beat(16)11
Avg EPS beat(16)6.81%
Revenue beat(2)0
Avg Revenue beat(2)-13.08%
Min Revenue beat(2)-21.36%
Max Revenue beat(2)-4.81%
Revenue beat(4)1
Avg Revenue beat(4)-7.93%
Min Revenue beat(4)-34%
Max Revenue beat(4)28.46%
Revenue beat(8)4
Avg Revenue beat(8)0.84%
Revenue beat(12)7
Avg Revenue beat(12)1.24%
Revenue beat(16)10
Avg Revenue beat(16)1.59%
PT rev (1m)-0.02%
PT rev (3m)-0.68%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)2.38%
EPS NY rev (1m)1.81%
EPS NY rev (3m)1.68%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0.94%
Revenue NY rev (3m)2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.15 | ||
| Fwd PE | 14.79 | ||
| P/S | 3.65 | ||
| P/FCF | 22.41 | ||
| P/OCF | 22.41 | ||
| P/B | 2.13 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 14.07 |
EPS(TTM)6.09
EY6.6%
EPS(NY)6.24
Fwd EY6.76%
FCF(TTM)4.12
FCFY4.46%
OCF(TTM)4.12
OCFY4.46%
SpS25.28
BVpS43.22
TBVpS43.22
PEG (NY)N/A
PEG (5Y)1.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 8.96% | ||
| ROCE | 2.74% | ||
| ROIC | 2.38% | ||
| ROICexc | 2.52% | ||
| ROICexgc | 2.57% | ||
| OM | 21.35% | ||
| PM (TTM) | 15.32% | ||
| GM | N/A | ||
| FCFM | 16.29% |
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%
ROICexcg growth 3Y16.53%
ROICexcg 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-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.41 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 18.36 | ||
| Cash Conversion | 60.82% | ||
| Profit Quality | 106.32% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC7.85%
ROIC/WACC0.3
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)8.97%
EPS 3Y6.78%
EPS 5Y10.21%
EPS Q2Q%-2.73%
EPS Next Y-4.46%
EPS Next 2Y0.84%
EPS Next 3Y2.35%
EPS Next 5Y3.33%
Revenue 1Y (TTM)-17.57%
Revenue growth 3Y-5.07%
Revenue growth 5Y-3.26%
Sales Q2Q%-19.03%
Revenue Next Year3.6%
Revenue Next 2Y1.25%
Revenue Next 3Y1.47%
Revenue Next 5Y2.23%
EBIT growth 1Y-47.57%
EBIT growth 3Y5.83%
EBIT growth 5Y7.05%
EBIT Next Year-8.82%
EBIT Next 3Y-2.67%
EBIT Next 5YN/A
FCF growth 1Y-18.93%
FCF growth 3Y-18.77%
FCF growth 5Y-13.08%
OCF growth 1Y-18.93%
OCF growth 3Y-18.77%
OCF growth 5Y-13.08%