AFLAC INC (AFL) Stock Fundamental Analysis
USA - NYSE:AFL - US0010551028 - Common Stock
113.79 USD
+0.21 (+0.18%)
113.79 USD
0 (0%)
Overall AFL gets a fundamental rating of 5 out of 10. We evaluated AFL against 146 industry peers in the Insurance industry. While AFL belongs to the best of the industry regarding profitability, there are concerns on its financial health. While showing a medium growth rate, AFL is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
AFL had positive earnings in the past year.
In the past year AFL had a positive cash flow from operations.
Each year in the past 5 years AFL has been profitable.
In the past 5 years AFL always reported a positive cash flow from operatings.
1.2 Ratios
AFL has a better Return On Assets (3.41%) than 69.86% of its industry peers.
AFL has a Return On Equity of 14.53%. This is in the better half of the industry: AFL outperforms 67.81% of its industry peers.
AFL has a better Return On Invested Capital (3.81%) than 66.44% 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 4.51%.
| 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's Profit Margin of 23.55% is amongst the best of the industry. AFL outperforms 93.84% 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 95.89% of the companies in the same industry.
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.
AFL has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, AFL has less shares outstanding
Compared to 1 year ago, AFL has a worse debt to assets ratio.
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.
AFL has a Debt to FCF ratio of 3.34. This is comparable to the rest of the industry: AFL outperforms 47.95% of its industry peers.
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 (0.30) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | N/A |
ROIC/WACC0.47
WACC8.06%
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.
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
The Earnings Per Share is expected to grow by 3.96% on average over the next years.
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.
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
With a Price/Earnings ratio of 15.17, AFL is valued correctly.
The rest of the industry has a similar Price/Earnings ratio as AFL.
AFL is valuated rather cheaply when we compare the Price/Earnings ratio to 26.28, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 15.35, which indicates a correct valuation of AFL.
Based on the Price/Forward Earnings ratio, AFL is valued a bit more expensive than the industry average as 61.64% of the companies are valued more cheaply.
AFL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 33.61.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.17 | ||
| Fwd PE | 15.35 |
4.2 Price Multiples
AFL's Enterprise Value to EBITDA ratio is in line with the industry average.
AFL's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AFL is more expensive than 64.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.65 | ||
| EV/EBITDA | 10.14 |
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)1.49
EPS Next 2Y1.32%
EPS Next 3Y2.63%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.04%, AFL has a reasonable but not impressive dividend return.
AFL's Dividend Yield is comparable with the industry average which is at 3.45.
Compared to an average S&P500 Dividend Yield of 2.36, AFL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
5.2 History
The dividend of AFL is nicely growing with an annual growth rate of 13.11%!
AFL has paid a dividend for at least 10 years, which is a reliable track record.
AFL has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)13.11%
Div Incr Years34
Div Non Decr Years34
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%
113.79
+0.21 (+0.18%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners59.68%
Inst Owner Change-1.58%
Ins Owners0.8%
Ins Owner Change-0.73%
Market Cap60.86B
Revenue(TTM)17.70B
Net Income(TTM)4.17B
Analysts66.67
Price Target112.71 (-0.95%)
Short Float %1.32%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.04% |
Yearly Dividend1.93
Dividend Growth(5Y)13.11%
DP28.14%
Div Incr Years34
Div Non Decr Years34
Ex-Date
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)1.61%
PT rev (3m)2.47%
EPS NQ rev (1m)1.39%
EPS NQ rev (3m)3.35%
EPS NY rev (1m)0.35%
EPS NY rev (3m)2.77%
Revenue NQ rev (1m)0.29%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)-0.24%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.17 | ||
| Fwd PE | 15.35 | ||
| P/S | 3.44 | ||
| P/FCF | 23.65 | ||
| P/OCF | 23.65 | ||
| P/B | 2.12 | ||
| P/tB | 2.12 | ||
| EV/EBITDA | 10.14 |
EPS(TTM)7.5
EY6.59%
EPS(NY)7.41
Fwd EY6.51%
FCF(TTM)4.81
FCFY4.23%
OCF(TTM)4.81
OCFY4.23%
SpS33.1
BVpS53.64
TBVpS53.64
PEG (NY)N/A
PEG (5Y)1.49
Graham Number95.14
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
WACC8.06%
ROIC/WACC0.47
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 FAQ
What is the ChartMill fundamental rating of AFLAC INC (AFL) stock?
ChartMill assigns a fundamental rating of 5 / 10 to AFL.
What is the valuation status of AFLAC INC (AFL) stock?
ChartMill assigns a valuation rating of 3 / 10 to AFLAC INC (AFL). This can be considered as Overvalued.
What is the profitability of AFL stock?
AFLAC INC (AFL) has a profitability rating of 7 / 10.
What are the PE and PB ratios of AFLAC INC (AFL) stock?
The Price/Earnings (PE) ratio for AFLAC INC (AFL) is 15.17 and the Price/Book (PB) ratio is 2.12.
What is the earnings growth outlook for AFLAC INC?
The Earnings per Share (EPS) of AFLAC INC (AFL) is expected to decline by -3.55% in the next year.