AFLAC INC (AFL.DE) Stock Fundamental Analysis
FRA:AFL - Deutsche Boerse Ag - US0010551028 - Common Stock - Currency: EUR
Taking everything into account, AFL scores 5 out of 10 in our fundamental rating. AFL was compared to 34 industry peers in the Insurance industry. AFL scores excellent on profitability, but there are 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.
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
Looking at the Return On Assets, with a value of 4.63%, AFL belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.
Looking at the Return On Equity, with a value of 20.86%, AFL belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
AFL has a Return On Invested Capital of 4.91%. This is amongst the best in the industry. AFL outperforms 91.18% 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 2.22%.
The last Return On Invested Capital (4.91%) for AFL is above the 3 year average (3.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 20.86% | ||
| ROIC | 4.91% |
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 94.12% 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 (34.94%) than 94.12% of its industry peers.
In the last couple of years the Operating Margin of AFL has grown nicely.
| 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
Compared to 5 years ago, AFL has less shares outstanding
The debt/assets ratio for AFL is higher compared to a year ago.
2.2 Solvency
The Debt to FCF ratio of AFL is 2.74, which is a good value as it means it would take AFL, 2.74 years of fcf income to pay off all of its debts.
AFL's Debt to FCF ratio of 2.74 is in line compared to the rest of the industry. AFL outperforms 50.00% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that AFL is not too dependend on debt financing.
AFL has a better Debt to Equity ratio (0.28) than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.74 | ||
| Altman-Z | N/A |
ROIC/WACC0.6
WACC8.17%
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 15.34% over the past year.
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 3.65% yearly.
Based on estimates for the next years, AFL will show a small growth in Revenue. The Revenue will grow by 2.28% on average per year.
EPS Next Y-5.07%
EPS Next 2Y0.34%
EPS Next 3Y1.53%
EPS Next 5Y3.65%
Revenue Next Year4.47%
Revenue Next 2Y2.99%
Revenue Next 3Y1.09%
Revenue Next 5Y2.28%
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
AFL is valuated correctly with a Price/Earnings ratio of 14.86.
Based on the Price/Earnings ratio, AFL is valued a bit more expensive than the industry average as 64.71% of the companies are valued more cheaply.
The average S&P500 Price/Earnings ratio is at 28.79. AFL is valued slightly cheaper when compared to this.
AFL is valuated correctly with a Price/Forward Earnings ratio of 15.66.
AFL's Price/Forward Earnings ratio is rather expensive when compared to the industry. AFL is more expensive than 82.35% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AFL to the average of the S&P500 Index (21.38), we can say AFL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 15.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFL is valued a bit cheaper than 73.53% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as AFL.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.65 | ||
| EV/EBITDA | 8.11 |
4.3 Compensation for Growth
AFL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.46
EPS Next 2Y0.34%
EPS Next 3Y1.53%
5. Dividend
5.1 Amount
AFL has a Yearly Dividend Yield of 2.13%.
Compared to an average industry Dividend Yield of 4.70, AFL is paying slightly less dividend.
AFL's Dividend Yield is comparable with the S&P500 average which is at 2.47.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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 19.97% 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.
DP19.97%
EPS Next 2Y0.34%
EPS Next 3Y1.53%
FRA:AFL (4/25/2025, 7:00:00 PM)
94.38
-1.22 (-1.28%)
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 Cap51.51B
Analysts66
Price Target93.87 (-0.54%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Yearly Dividend1.7
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)-4.7%
PT rev (3m)-5.89%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-6.89%
EPS NY rev (1m)-0.62%
EPS NY rev (3m)-3.55%
Revenue NQ rev (1m)-5.53%
Revenue NQ rev (3m)-2.7%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)2.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.86 | ||
| Fwd PE | 15.66 | ||
| P/S | 3.1 | ||
| P/FCF | 21.65 | ||
| P/OCF | 21.65 | ||
| P/B | 2.25 | ||
| P/tB | 2.25 | ||
| EV/EBITDA | 8.11 |
EPS(TTM)6.35
EY6.73%
EPS(NY)6.03
Fwd EY6.38%
FCF(TTM)4.36
FCFY4.62%
OCF(TTM)4.36
OCFY4.62%
SpS30.48
BVpS42.03
TBVpS42.03
PEG (NY)N/A
PEG (5Y)1.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.63% | ||
| ROE | 20.86% | ||
| ROCE | 5.66% | ||
| ROIC | 4.91% | ||
| ROICexc | 5.18% | ||
| ROICexgc | 5.31% | ||
| 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)4.02%
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-Score7
Asset Turnover0.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 2.74 | ||
| Debt/EBITDA | 0.98 | ||
| 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
WACC8.17%
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-5.07%
EPS Next 2Y0.34%
EPS Next 3Y1.53%
EPS Next 5Y3.65%
Revenue 1Y (TTM)1.21%
Revenue growth 3Y-5.07%
Revenue growth 5Y-3.26%
Sales Q2Q%43.05%
Revenue Next Year4.47%
Revenue Next 2Y2.99%
Revenue Next 3Y1.09%
Revenue Next 5Y2.28%
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%