AFLAC INC (AFL.DE) Stock Fundamental Analysis
FRA:AFL - Deutsche Boerse Ag - US0010551028 - Common Stock - Currency: EUR
AFL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 38 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 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
Looking at the Return On Assets, with a value of 2.99%, AFL belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
AFL has a Return On Equity (13.64%) which is in line with its industry peers.
Looking at the Return On Invested Capital, with a value of 3.34%, AFL belongs to the top of the industry, outperforming 87.18% 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 2.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | 13.64% | ||
| ROIC | 3.34% |
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 21.28%, AFL belongs to the top of the industry, outperforming 94.87% of the companies in the same industry.
In the last couple of years the Profit Margin of AFL has grown nicely.
AFL has a better Operating Margin (27.18%) than 94.87% of its industry peers.
AFL's Operating Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.18% | ||
| PM (TTM) | 21.28% | ||
| 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.
Compared to 1 year ago, AFL has less shares outstanding
AFL has less shares outstanding than it did 5 years ago.
AFL has a worse debt/assets ratio than last year.
2.2 Solvency
AFL has a debt to FCF ratio of 3.13. This is a good value and a sign of high solvency as AFL would need 3.13 years to pay back of all of its debts.
AFL has a Debt to FCF ratio of 3.13. This is comparable to the rest of the industry: AFL outperforms 58.97% of its industry peers.
A Debt/Equity ratio of 0.29 indicates that AFL is not too dependend on debt financing.
AFL's Debt to Equity ratio of 0.29 is fine compared to the rest of the industry. AFL outperforms 79.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | N/A |
ROIC/WACC0.41
WACC8.13%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 13.34% over the past year.
The Earnings Per Share has been growing by 10.21% on average over the past years. This is quite good.
The Revenue for AFL has decreased by -12.66% in the past year. This is quite bad
The Revenue has been decreasing by -3.26% on average over the past years.
EPS 1Y (TTM)13.34%
EPS 3Y6.78%
EPS 5Y10.21%
EPS Q2Q%0%
Revenue 1Y (TTM)-12.66%
Revenue growth 3Y-5.07%
Revenue growth 5Y-3.26%
Sales Q2Q%-37.49%
3.2 Future
The Earnings Per Share is expected to grow by 3.33% 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 2.14% on average per year.
EPS Next Y-6.16%
EPS Next 2Y0.05%
EPS Next 3Y1.74%
EPS Next 5Y3.33%
Revenue Next Year1.02%
Revenue Next 2Y0.95%
Revenue Next 3Y1.32%
Revenue Next 5Y2.14%
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.
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
The Price/Earnings ratio is 14.07, which indicates a correct valuation of AFL.
The rest of the industry has a similar Price/Earnings ratio as AFL.
The average S&P500 Price/Earnings ratio is at 27.30. AFL is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.05, which indicates a correct valuation of AFL.
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 74.36% 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 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.07 | ||
| Fwd PE | 14.05 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFL is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
AFL's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AFL is more expensive than 69.23% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.44 | ||
| EV/EBITDA | 10.53 |
4.3 Compensation for Growth
The decent profitability rating of AFL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.38
EPS Next 2Y0.05%
EPS Next 3Y1.74%
5. Dividend
5.1 Amount
AFL has a Yearly Dividend Yield of 2.27%.
Compared to an average industry Dividend Yield of 4.56, AFL's dividend is way lower than its industry peers. On top of this 84.62% 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 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
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 31.03% of its income as dividend. This is a sustainable payout ratio.
The dividend of AFL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.03%
EPS Next 2Y0.05%
EPS Next 3Y1.74%
FRA:AFL (7/11/2025, 7:00:00 PM)
86.94
-0.32 (-0.37%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners59.47%
Inst Owner ChangeN/A
Ins Owners0.79%
Ins Owner ChangeN/A
Market Cap47.00B
Analysts66.32
Price Target94.51 (8.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.27% |
Yearly Dividend1.65
Dividend Growth(5Y)13.11%
DP31.03%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.91%
Min EPS beat(2)-4.02%
Max EPS beat(2)-1.8%
EPS beat(4)2
Avg EPS beat(4)8.6%
Min EPS beat(4)-4.02%
Max EPS beat(4)26.91%
EPS beat(8)5
Avg EPS beat(8)7.15%
EPS beat(12)8
Avg EPS beat(12)7.31%
EPS beat(16)11
Avg EPS beat(16)8.06%
Revenue beat(2)1
Avg Revenue beat(2)3.55%
Min Revenue beat(2)-21.36%
Max Revenue beat(2)28.46%
Revenue beat(4)2
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-34%
Max Revenue beat(4)28.46%
Revenue beat(8)5
Avg Revenue beat(8)3.26%
Revenue beat(12)8
Avg Revenue beat(12)2.49%
Revenue beat(16)11
Avg Revenue beat(16)2.06%
PT rev (1m)-0.91%
PT rev (3m)-3.08%
EPS NQ rev (1m)-0.41%
EPS NQ rev (3m)-1.22%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-1.06%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)-4.31%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)-3.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.07 | ||
| Fwd PE | 14.05 | ||
| P/S | 3.25 | ||
| P/FCF | 22.44 | ||
| P/OCF | 22.44 | ||
| P/B | 2.09 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 10.53 |
EPS(TTM)6.18
EY7.11%
EPS(NY)6.19
Fwd EY7.12%
FCF(TTM)3.87
FCFY4.46%
OCF(TTM)3.87
OCFY4.46%
SpS26.74
BVpS41.7
TBVpS41.29
PEG (NY)N/A
PEG (5Y)1.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | 13.64% | ||
| ROCE | 3.85% | ||
| ROIC | 3.34% | ||
| ROICexc | 3.49% | ||
| ROICexgc | 3.57% | ||
| OM | 27.18% | ||
| PM (TTM) | 21.28% | ||
| GM | N/A | ||
| FCFM | 14.49% |
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-Score4
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.13 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 24.68 | ||
| Cash Conversion | 44.96% | ||
| Profit Quality | 68.1% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC8.13%
ROIC/WACC0.41
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)13.34%
EPS 3Y6.78%
EPS 5Y10.21%
EPS Q2Q%0%
EPS Next Y-6.16%
EPS Next 2Y0.05%
EPS Next 3Y1.74%
EPS Next 5Y3.33%
Revenue 1Y (TTM)-12.66%
Revenue growth 3Y-5.07%
Revenue growth 5Y-3.26%
Sales Q2Q%-37.49%
Revenue Next Year1.02%
Revenue Next 2Y0.95%
Revenue Next 3Y1.32%
Revenue Next 5Y2.14%
EBIT growth 1Y-26.94%
EBIT growth 3Y5.83%
EBIT growth 5Y7.05%
EBIT Next Year74.61%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-26.45%
FCF growth 3Y-18.77%
FCF growth 5Y-13.08%
OCF growth 1Y-26.45%
OCF growth 3Y-18.77%
OCF growth 5Y-13.08%