AFLAC INC (AFL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AFL - US0010551028 - Common Stock
109.51 USD
-0.1 (-0.09%)
109.51 USD
0 (0%)
Taking everything into account, AFL scores 4 out of 10 in our fundamental rating. AFL was compared to 149 industry peers in the Insurance industry. There are concerns on the financial health of AFL while its profitability can be described as average. AFL is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year AFL was profitable.
- In the past year AFL had a positive cash flow from operations.
- 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
- Looking at the Return On Assets, with a value of 3.41%, AFL is in the better half of the industry, outperforming 69.13% of the companies in the same industry.
- The Return On Equity of AFL (14.53%) is better than 68.46% of its industry peers.
- AFL's Return On Invested Capital of 3.81% is fine compared to the rest of the industry. AFL outperforms 65.10% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for AFL is significantly below the industry average of 14.92%.
| 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
- Looking at the Profit Margin, with a value of 23.55%, AFL belongs to the top of the industry, outperforming 94.63% of the companies in the same industry.
- AFL's Profit Margin has improved in the last couple of years.
- AFL has a Operating Margin of 29.97%. This is amongst the best in the industry. AFL outperforms 91.95% 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AFL is destroying value.
- AFL has less shares outstanding than it did 1 year ago.
- AFL has less shares outstanding than it did 5 years ago.
- 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.
- With a Debt to Equity ratio value of 0.30, AFL perfoms like the industry average, outperforming 54.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | N/A |
ROIC/WACC0.47
WACC8.12%
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.
- The Earnings Per Share has been growing by 10.21% on average over the past years. This is quite good.
- The Revenue has been growing slightly by 2.32% in the past year.
- Measured over the past years, AFL shows a decrease in Revenue. The Revenue has been decreasing by -3.26% on average per year.
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 Y5.24%
EPS Next 2Y1.56%
EPS Next 3Y3.01%
EPS Next 5Y4.12%
Revenue Next Year0.2%
Revenue Next 2Y0.17%
Revenue Next 3Y0.59%
Revenue Next 5Y1.93%
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
- The Price/Earnings ratio is 14.60, which indicates a correct valuation of AFL.
- The rest of the industry has a similar Price/Earnings ratio as AFL.
- The average S&P500 Price/Earnings ratio is at 27.38. AFL is valued slightly cheaper when compared to this.
- With a Price/Forward Earnings ratio of 14.71, AFL is valued correctly.
- Based on the Price/Forward Earnings ratio, AFL is valued a bit more expensive than the industry average as 61.07% of the companies are valued more cheaply.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. AFL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 14.71 |
4.2 Price Multiples
- AFL's Enterprise Value to EBITDA is on the same level as the industry average.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of AFL indicates a slightly more expensive valuation: AFL is more expensive than 65.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.31 | ||
| EV/EBITDA | 9.59 |
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)2.79
PEG (5Y)1.43
EPS Next 2Y1.56%
EPS Next 3Y3.01%
5. Dividend
5.1 Amount
- AFL has a Yearly Dividend Yield of 2.23%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.53, AFL has a dividend in line with its industry peers.
- AFL's Dividend Yield is a higher than the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
- On average, the dividend of AFL grows each year by 13.11%, which is quite nice.
- 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.
- AFL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.14%
EPS Next 2Y1.56%
EPS Next 3Y3.01%
109.51
-0.1 (-0.09%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)11-04 2025-11-04/amc
Earnings (Next)02-04 2026-02-04/amc
Inst Owners58.94%
Inst Owner Change0.17%
Ins Owners0.78%
Ins Owner Change-4.7%
Market Cap57.40B
Revenue(TTM)17.70B
Net Income(TTM)4.17B
Analysts55.24
Price Target113.39 (3.54%)
Short Float %1.38%
Short Ratio2.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend1.93
Dividend Growth(5Y)13.11%
DP28.14%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-18 2026-02-18 (0.61)
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)0.3%
PT rev (3m)2.22%
EPS NQ rev (1m)-1.03%
EPS NQ rev (3m)-0.36%
EPS NY rev (1m)0.08%
EPS NY rev (3m)9.49%
Revenue NQ rev (1m)-0.14%
Revenue NQ rev (3m)-1.72%
Revenue NY rev (1m)-0.38%
Revenue NY rev (3m)-3.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.6 | ||
| Fwd PE | 14.71 | ||
| P/S | 3.24 | ||
| P/FCF | 22.31 | ||
| P/OCF | 22.31 | ||
| P/B | 2 | ||
| P/tB | 2 | ||
| EV/EBITDA | 9.59 |
EPS(TTM)7.5
EY6.85%
EPS(NY)7.45
Fwd EY6.8%
FCF(TTM)4.91
FCFY4.48%
OCF(TTM)4.91
OCFY4.48%
SpS33.77
BVpS54.74
TBVpS54.74
PEG (NY)2.79
PEG (5Y)1.43
Graham Number96.11
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
WACC8.12%
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 Y5.24%
EPS Next 2Y1.56%
EPS Next 3Y3.01%
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 Year0.2%
Revenue Next 2Y0.17%
Revenue Next 3Y0.59%
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 FAQ
What is the ChartMill fundamental rating of AFLAC INC (AFL) stock?
ChartMill assigns a fundamental rating of 4 / 10 to AFL.
Can you provide the valuation status for AFLAC INC?
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 6 / 10.
Can you provide the financial health for AFL stock?
The financial health rating of AFLAC INC (AFL) is 3 / 10.
Can you provide the expected EPS growth for AFL stock?
The Earnings per Share (EPS) of AFLAC INC (AFL) is expected to grow by 5.24% in the next year.