AFLAC INC (AFL.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:AFL - US0010551028 - Common Stock
93.42 EUR
-0.08 (-0.09%)
Taking everything into account, AFL scores 4 out of 10 in our fundamental rating. AFL was compared to 50 industry peers in the Insurance industry. While AFL has a great profitability rating, there are quite some 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.
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
Looking at the Return On Assets, with a value of 3.41%, AFL is in the better half of the industry, outperforming 80.00% 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 50.00% of the companies in the same industry.
AFL has a better Return On Invested Capital (3.81%) than 84.00% 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 2.66%.
| 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
The Profit Margin of AFL (23.55%) is better than 94.00% of its industry peers.
In the last couple of years the Profit Margin of AFL has grown nicely.
AFL's Operating Margin of 29.97% is amongst the best of the industry. AFL outperforms 92.00% 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.
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.
AFL has a better Debt to Equity ratio (0.30) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | N/A |
ROIC/WACC0.48
WACC7.91%
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.
The Earnings Per Share has been growing by 10.21% on average over the past years. This is quite good.
Looking at the last year, AFL shows a small growth in Revenue. The Revenue has grown by 2.32% in the last 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 4.12% yearly.
Based on estimates for the next years, AFL will show a small growth in Revenue. The Revenue will grow by 1.93% on average per year.
EPS Next Y5.15%
EPS Next 2Y1.48%
EPS Next 3Y2.89%
EPS Next 5Y4.12%
Revenue Next Year0.58%
Revenue Next 2Y0.75%
Revenue Next 3Y0.94%
Revenue Next 5Y1.93%
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.
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 14.51.
AFL's Price/Earnings ratio is a bit more expensive when compared to the industry. AFL is more expensive than 60.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.34, AFL is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 14.64, the valuation of AFL can be described as correct.
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 70.00% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of AFL to the average of the S&P500 Index (23.56), we can say AFL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 14.64 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFL is valued a bit cheaper than the industry average as 70.00% 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 68.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.18 | ||
| EV/EBITDA | 9.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of AFL may justify a higher PE ratio.
PEG (NY)2.82
PEG (5Y)1.42
EPS Next 2Y1.48%
EPS Next 3Y2.89%
5. Dividend
5.1 Amount
AFL has a Yearly Dividend Yield of 2.23%.
Compared to an average industry Dividend Yield of 4.38, AFL's dividend is way lower than its industry peers. On top of this 82.00% of the companies listed in the same industry pay a better dividend than AFL!
Compared to an average S&P500 Dividend Yield of 2.31, AFL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
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.
The dividend of AFL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP28.14%
EPS Next 2Y1.48%
EPS Next 3Y2.89%
FRA:AFL (12/8/2025, 7:00:00 PM)
93.42
-0.08 (-0.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners58.96%
Inst Owner ChangeN/A
Ins Owners0.81%
Ins Owner ChangeN/A
Market Cap48.96B
Revenue(TTM)17.70B
Net Income(TTM)4.17B
Analysts66.67
Price Target97.4 (4.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
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)0.49%
PT rev (3m)2.64%
EPS NQ rev (1m)0.37%
EPS NQ rev (3m)1.51%
EPS NY rev (1m)9.02%
EPS NY rev (3m)10.05%
Revenue NQ rev (1m)-1.34%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)-2.67%
Revenue NY rev (3m)-2.47%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 14.64 | ||
| P/S | 3.22 | ||
| P/FCF | 22.18 | ||
| P/OCF | 22.18 | ||
| P/B | 1.99 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 9.54 |
EPS(TTM)6.44
EY6.89%
EPS(NY)6.38
Fwd EY6.83%
FCF(TTM)4.21
FCFY4.51%
OCF(TTM)4.21
OCFY4.51%
SpS28.98
BVpS46.96
TBVpS46.96
PEG (NY)2.82
PEG (5Y)1.42
Graham Number82.49
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
WACC7.91%
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 Y5.15%
EPS Next 2Y1.48%
EPS Next 3Y2.89%
EPS Next 5Y4.12%
Revenue 1Y (TTM)2.32%
Revenue growth 3Y-5.07%
Revenue growth 5Y-3.26%
Sales Q2Q%60.73%
Revenue Next Year0.58%
Revenue Next 2Y0.75%
Revenue Next 3Y0.94%
Revenue Next 5Y1.93%
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 1.99.
What is the earnings growth outlook for AFLAC INC?
The Earnings per Share (EPS) of AFLAC INC (AFL.DE) is expected to grow by 5.15% in the next year.