AFLAC INC (AFL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AFL - US0010551028 - Common Stock
95.36 EUR
-1.24 (-1.28%)
AFL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 47 industry peers in the Insurance industry. While AFL has a great profitability rating, there are quite some concerns on its financial health. AFL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AFL was profitable.
In the past year AFL had a positive cash flow from operations.
Each year in the past 5 years AFL has been profitable.
AFL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AFL's Return On Assets of 3.41% is amongst the best of the industry. AFL outperforms 87.23% of its industry peers.
The Return On Equity of AFL (14.53%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 3.81%, AFL belongs to the top of the industry, outperforming 89.36% 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 2.11%.
| 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
With an excellent Profit Margin value of 23.55%, AFL belongs to the best of the industry, outperforming 95.74% of the companies in the same industry.
In the last couple of years the Profit Margin of AFL has grown nicely.
The Operating Margin of AFL (29.97%) is better than 91.49% of its industry peers.
AFL's Operating Margin has improved in the last couple of years.
| 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.
The number of shares outstanding for AFL has been reduced compared to 1 year ago.
The number of shares outstanding for AFL has been reduced compared to 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 3.34. This is a good value and a sign of high solvency as AFL would need 3.34 years to pay back of all of its debts.
AFL's Debt to FCF ratio of 3.34 is in line compared to the rest of the industry. AFL outperforms 53.19% of its industry peers.
A Debt/Equity ratio of 0.30 indicates that AFL is not too dependend on debt financing.
AFL's Debt to Equity ratio of 0.30 is amongst the best of the industry. AFL outperforms 87.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | N/A |
ROIC/WACC0.48
WACC7.86%
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.
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.
The Revenue has been growing slightly by 2.32% in the past year.
AFL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.26% yearly.
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.
The Revenue is expected to grow by 2.42% on average over the next years.
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.
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
With a Price/Earnings ratio of 14.67, AFL is valued correctly.
AFL's Price/Earnings ratio is a bit more expensive when compared to the industry. AFL is more expensive than 61.70% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.98, AFL is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.85, the valuation of AFL can be described as correct.
72.34% of the companies in the same industry are cheaper than AFL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AFL to the average of the S&P500 Index (35.79), we can say AFL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.67 | ||
| Fwd PE | 14.85 |
4.2 Price Multiples
70.21% of the companies in the same industry are more expensive than AFL, based on the Enterprise Value to EBITDA ratio.
AFL's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AFL is more expensive than 61.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.88 | ||
| EV/EBITDA | 9.83 |
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)1.44
EPS Next 2Y1.32%
EPS Next 3Y2.63%
5. Dividend
5.1 Amount
AFL has a Yearly Dividend Yield of 2.21%.
Compared to an average industry Dividend Yield of 4.53, AFL's dividend is way lower than its industry peers. On top of this 85.11% of the companies listed in the same industry pay a better dividend than AFL!
Compared to an average S&P500 Dividend Yield of 2.41, AFL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.21% |
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 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 (11/24/2025, 7:00:00 PM)
95.36
-1.24 (-1.28%)
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 Cap51.00B
Revenue(TTM)17.70B
Net Income(TTM)4.17B
Analysts66.67
Price Target97.08 (1.8%)
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 | 14.67 | ||
| Fwd PE | 14.85 | ||
| P/S | 3.33 | ||
| P/FCF | 22.88 | ||
| P/OCF | 22.88 | ||
| P/B | 2.05 | ||
| P/tB | 2.05 | ||
| EV/EBITDA | 9.83 |
EPS(TTM)6.5
EY6.82%
EPS(NY)6.42
Fwd EY6.73%
FCF(TTM)4.17
FCFY4.37%
OCF(TTM)4.17
OCFY4.37%
SpS28.67
BVpS46.47
TBVpS46.47
PEG (NY)N/A
PEG (5Y)1.44
Graham Number82.44
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
WACC7.86%
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 14.67 and the Price/Book (PB) ratio is 2.05.
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.