AFLAC INC (AFL.DE) Stock Fundamental Analysis
Europe - FRA:AFL - US0010551028 - Common Stock
94 EUR
-2.92 (-3.01%)
AFL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 40 industry peers in the Insurance industry. AFL scores excellent on profitability, but there are concerns on its financial health. AFL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year AFL was profitable.
AFL had a positive operating cash flow in the past year.
AFL had positive earnings in each of the past 5 years.
Each year in the past 5 years AFL had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 3.41%, AFL belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
Looking at the Return On Equity, with a value of 14.53%, AFL is in line with its industry, outperforming 55.00% of the companies in the same industry.
AFL has a Return On Invested Capital of 3.81%. This is amongst the best in the industry. AFL outperforms 87.50% 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 2.35%.
| 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
AFL has a Profit Margin of 23.55%. This is amongst the best in the industry. AFL outperforms 95.00% of its industry peers.
In the last couple of years the Profit Margin of AFL has grown nicely.
AFL has a better Operating Margin (29.97%) than 90.00% of its industry peers.
In the last couple of years the Operating Margin of AFL has grown nicely.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AFL is destroying value.
The number of shares outstanding for AFL has been reduced compared to 1 year ago.
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 3.34, which is a good value as it means it would take AFL, 3.34 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AFL (3.34) is comparable to the rest of the industry.
AFL has a Debt/Equity ratio of 0.30. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.30, AFL belongs to the top of the industry, outperforming 85.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | N/A |
ROIC/WACC0.48
WACC7.92%
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 8.70% over the past year.
AFL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.21% yearly.
AFL shows a small growth in Revenue. In the last year, the Revenue has grown by 2.32%.
The Revenue has been decreasing by -3.26% on average over the past years.
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
Based on estimates for the next years, AFL will show a small growth in Earnings Per Share. The EPS will grow by 3.96% on average per year.
AFL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.42% yearly.
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
Based on the Price/Earnings ratio of 14.51, the valuation of AFL can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as AFL.
AFL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.47.
AFL is valuated correctly with a Price/Forward Earnings ratio of 14.69.
Based on the Price/Forward Earnings ratio, AFL is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
AFL is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.42, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 14.69 |
4.2 Price Multiples
62.50% of the companies in the same industry are more expensive than AFL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, AFL is valued a bit more expensive than the industry average as 65.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.63 | ||
| EV/EBITDA | 9.73 |
4.3 Compensation for Growth
The decent profitability rating of AFL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.42
EPS Next 2Y1.32%
EPS Next 3Y2.63%
5. Dividend
5.1 Amount
AFL has a Yearly Dividend Yield of 2.12%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.12, AFL pays less dividend than the industry average, which is at 4.50. 82.50% 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 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
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 28.14% 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.
DP28.14%
EPS Next 2Y1.32%
EPS Next 3Y2.63%
FRA:AFL (11/19/2025, 7:00:00 PM)
94
-2.92 (-3.01%)
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 Cap50.27B
Revenue(TTM)17.70B
Net Income(TTM)4.17B
Analysts66.67
Price Target97.41 (3.63%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Yearly Dividend1.65
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)3.13%
PT rev (3m)2.81%
EPS NQ rev (1m)0.3%
EPS NQ rev (3m)2.14%
EPS NY rev (1m)0.35%
EPS NY rev (3m)2.77%
Revenue NQ rev (1m)-0.25%
Revenue NQ rev (3m)-0.09%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 14.69 | ||
| P/S | 3.29 | ||
| P/FCF | 22.63 | ||
| P/OCF | 22.63 | ||
| P/B | 2.03 | ||
| P/tB | 2.03 | ||
| EV/EBITDA | 9.73 |
EPS(TTM)6.48
EY6.89%
EPS(NY)6.4
Fwd EY6.81%
FCF(TTM)4.15
FCFY4.42%
OCF(TTM)4.15
OCFY4.42%
SpS28.57
BVpS46.31
TBVpS46.31
PEG (NY)N/A
PEG (5Y)1.42
Graham Number82.17
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
WACC7.92%
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 14.51 and the Price/Book (PB) ratio is 2.03.
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.