AFLAC INC (AFL.DE) Stock Fundamental Analysis
Europe - FRA:AFL - US0010551028 - Common Stock
96.92 EUR
-0.96 (-0.98%)
Taking everything into account, AFL scores 4 out of 10 in our fundamental rating. AFL was compared to 40 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
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
AFL has a Return On Assets of 3.41%. This is amongst the best in the industry. AFL outperforms 87.50% of its industry peers.
AFL has a Return On Equity of 14.53%. This is comparable to the rest of the industry: AFL outperforms 55.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.81%, AFL belongs to the top of the industry, outperforming 87.50% 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 2.35%.
| 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
The Profit Margin of AFL (23.55%) is better than 95.00% of its industry peers.
In the last couple of years the Profit Margin of AFL has grown nicely.
With an excellent Operating Margin value of 29.97%, AFL belongs to the best of the industry, outperforming 90.00% of the companies in the same industry.
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
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.
AFL has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, AFL has a worse debt to assets ratio.
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 Debt to Equity ratio of 0.30. This is amongst the best in the industry. AFL outperforms 85.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | N/A |
ROIC/WACC0.48
WACC7.95%
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.
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 2.32%.
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
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
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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 14.98, AFL is valued correctly.
AFL's Price/Earnings is on the same level as the industry average.
AFL is valuated rather cheaply when we compare the Price/Earnings ratio to 25.51, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 15.16, AFL is valued correctly.
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.
When comparing the Price/Forward Earnings ratio of AFL to the average of the S&P500 Index (34.98), we can say AFL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.98 | ||
| Fwd PE | 15.16 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFL is valued a bit cheaper than the industry average as 62.50% of the companies are valued more expensively.
65.00% of the companies in the same industry are cheaper than AFL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.35 | ||
| EV/EBITDA | 10.03 |
4.3 Compensation for Growth
The decent profitability rating of AFL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.47
EPS Next 2Y1.32%
EPS Next 3Y2.63%
5. Dividend
5.1 Amount
AFL has a Yearly Dividend Yield of 2.12%.
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!
Compared to an average S&P500 Dividend Yield of 2.44, AFL has a dividend comparable with the average S&P500 company.
| 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 (11/18/2025, 7:00:00 PM)
96.92
-0.96 (-0.98%)
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 Cap51.84B
Revenue(TTM)17.70B
Net Income(TTM)4.17B
Analysts66.67
Price Target97.41 (0.51%)
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 | 14.98 | ||
| Fwd PE | 15.16 | ||
| P/S | 3.39 | ||
| P/FCF | 23.35 | ||
| P/OCF | 23.35 | ||
| P/B | 2.09 | ||
| P/tB | 2.09 | ||
| EV/EBITDA | 10.03 |
EPS(TTM)6.47
EY6.68%
EPS(NY)6.39
Fwd EY6.6%
FCF(TTM)4.15
FCFY4.28%
OCF(TTM)4.15
OCFY4.28%
SpS28.56
BVpS46.28
TBVpS46.28
PEG (NY)N/A
PEG (5Y)1.47
Graham Number82.08
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
WACC7.95%
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 14.98 and the Price/Book (PB) ratio is 2.09.
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.