AFLAC INC (AFL)
US0010551028 - Common Stock
AFL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 141 industry peers in the Insurance industry. AFL scores excellent on profitability, but there are concerns on its financial health. AFL has a valuation in line with the averages, but it does not seem to be growing.
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.
AFL had positive earnings in each of the past 5 years.
In the past 5 years AFL always reported a positive cash flow from operatings.
1.2 Ratios
AFL has a better Return On Assets (2.97%) than 63.57% of its industry peers.
The Return On Equity of AFL (15.34%) is better than 65.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.35%, AFL is in the better half of the industry, outperforming 68.57% of the companies in the same industry.
AFL had an Average Return On Invested Capital over the past 3 years of 3.50%. This is in line with the industry average of 4.38%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 15.34% | ||
| ROIC | 3.35% |
ROA(3y)3.2%
ROA(5y)2.93%
ROE(3y)18.35%
ROE(5y)16.14%
ROIC(3y)3.5%
ROIC(5y)3.17%
1.3 Margins
With an excellent Profit Margin value of 22.02%, AFL belongs to the best of the industry, outperforming 85.71% 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 27.54%. This is amongst the best in the industry. AFL outperforms 91.43% of its industry peers.
In the last couple of years the Operating Margin of AFL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.54% | ||
| PM (TTM) | 22.02% | ||
| GM | N/A |
OM growth 3Y13.66%
OM growth 5Y8.26%
PM growth 3Y4.91%
PM growth 5Y13.25%
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.
Compared to 1 year ago, AFL has less shares outstanding
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
The Debt to FCF ratio of AFL is 2.45, which is a good value as it means it would take AFL, 2.45 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of AFL (2.45) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.32 indicates that AFL is not too dependend on debt financing.
AFL has a Debt to Equity ratio of 0.32. This is comparable to the rest of the industry: AFL outperforms 47.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.45 | ||
| Altman-Z | N/A |
ROIC/WACC0.4
WACC8.43%
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 been growing slightly by 7.64% 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 8.67% on average per year.
The Revenue has decreased by -8.64% in the past year.
AFL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.05% yearly.
EPS 1Y (TTM)7.64%
EPS 3Y8.14%
EPS 5Y8.67%
EPS Q2Q%17.39%
Revenue 1Y (TTM)-8.64%
Revenue growth 3Y-5.48%
Revenue growth 5Y-3.05%
Sales Q2Q%-40.42%
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 5.64% on average per year.
AFL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.29% yearly.
EPS Next Y17.36%
EPS Next 2Y6.55%
EPS Next 3Y5.62%
EPS Next 5Y5.64%
Revenue Next Year-5.65%
Revenue Next 2Y-2%
Revenue Next 3Y-0.89%
Revenue Next 5Y0.29%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
Based on the Price/Earnings ratio of 14.88, the valuation of AFL can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as AFL.
Compared to an average S&P500 Price/Earnings ratio of 27.20, AFL is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.45, AFL is valued correctly.
60.00% of the companies in the same industry are cheaper than AFL, based on the Price/Forward Earnings ratio.
AFL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 14.45 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AFL.
Based on the Price/Free Cash Flow ratio, AFL is valued a bit more expensive than 61.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.79 | ||
| EV/EBITDA | 10.57 |
4.3 Compensation for Growth
AFL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
AFL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)0.86
PEG (5Y)1.72
EPS Next 2Y6.55%
EPS Next 3Y5.62%
5. Dividend
5.1 Amount
AFL has a Yearly Dividend Yield of 2.29%. Purely for dividend investing, there may be better candidates out there.
AFL's Dividend Yield is a higher than the industry average which is at 4.35.
AFL's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
5.2 History
The dividend of AFL is nicely growing with an annual growth rate of 9.41%!
AFL has paid a dividend for at least 10 years, which is a reliable track record.
AFL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)9.41%
Div Incr Years34
Div Non Decr Years34
5.3 Sustainability
AFL pays out 27.72% 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.
DP27.72%
EPS Next 2Y6.55%
EPS Next 3Y5.62%
AFLAC INC
NYSE:AFL (12/20/2024, 8:04:00 PM)
After market: 102.69 0 (0%)102.69
+1.44 (+1.42%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners61.92%
Inst Owner Change-1.73%
Ins Owners0.73%
Ins Owner Change-2.98%
Market Cap57.05B
Analysts66.32
Price Target107.89 (5.06%)
Short Float %1.58%
Short Ratio3.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.29% |
Dividend Growth(5Y)9.41%
DP27.72%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)20.11%
Min EPS beat(2)13.31%
Max EPS beat(2)26.91%
EPS beat(4)3
Avg EPS beat(4)7.29%
Min EPS beat(4)-14.93%
Max EPS beat(4)26.91%
EPS beat(8)7
Avg EPS beat(8)10.9%
EPS beat(12)9
Avg EPS beat(12)8.03%
EPS beat(16)13
Avg EPS beat(16)10.05%
Revenue beat(2)1
Avg Revenue beat(2)-8.04%
Min Revenue beat(2)-34%
Max Revenue beat(2)17.93%
Revenue beat(4)2
Avg Revenue beat(4)-1.47%
Min Revenue beat(4)-34%
Max Revenue beat(4)25.28%
Revenue beat(8)5
Avg Revenue beat(8)1.32%
Revenue beat(12)9
Avg Revenue beat(12)2.17%
Revenue beat(16)12
Avg Revenue beat(16)2.36%
PT rev (1m)3.05%
PT rev (3m)8.33%
EPS NQ rev (1m)0.08%
EPS NQ rev (3m)3.7%
EPS NY rev (1m)2.09%
EPS NY rev (3m)7.67%
Revenue NQ rev (1m)-0.07%
Revenue NQ rev (3m)-3.92%
Revenue NY rev (1m)-0.26%
Revenue NY rev (3m)-4.54%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.88 | ||
| Fwd PE | 14.45 | ||
| P/S | 3.3 | ||
| P/FCF | 17.79 | ||
| P/OCF | 17.79 | ||
| P/B | 2.3 | ||
| P/tB | 2.3 | ||
| EV/EBITDA | 10.57 |
EPS(TTM)6.9
EY6.72%
EPS(NY)7.11
Fwd EY6.92%
FCF(TTM)5.77
FCFY5.62%
OCF(TTM)5.77
OCFY5.62%
SpS31.14
BVpS44.7
TBVpS44.7
PEG (NY)0.86
PEG (5Y)1.72
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 15.34% | ||
| ROCE | 3.73% | ||
| ROIC | 3.35% | ||
| ROICexc | 3.5% | ||
| ROICexgc | 3.57% | ||
| OM | 27.54% | ||
| PM (TTM) | 22.02% | ||
| GM | N/A | ||
| FCFM | 18.54% |
ROA(3y)3.2%
ROA(5y)2.93%
ROE(3y)18.35%
ROE(5y)16.14%
ROIC(3y)3.5%
ROIC(5y)3.17%
ROICexc(3y)3.61%
ROICexc(5y)3.27%
ROICexgc(3y)3.71%
ROICexgc(5y)3.36%
ROCE(3y)3.89%
ROCE(5y)3.52%
ROICexcg growth 3Y16.34%
ROICexcg growth 5Y6.59%
ROICexc growth 3Y16.35%
ROICexc growth 5Y6.6%
OM growth 3Y13.66%
OM growth 5Y8.26%
PM growth 3Y4.91%
PM growth 5Y13.25%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.45 | ||
| Debt/EBITDA | 1.4 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 26.47 | ||
| Cash Conversion | 57.16% | ||
| Profit Quality | 84.2% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC8.43%
ROIC/WACC0.4
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)92.53%
Profit Quality(5y)113.48%
High Growth Momentum
Growth
EPS 1Y (TTM)7.64%
EPS 3Y8.14%
EPS 5Y8.67%
EPS Q2Q%17.39%
EPS Next Y17.36%
EPS Next 2Y6.55%
EPS Next 3Y5.62%
EPS Next 5Y5.64%
Revenue 1Y (TTM)-8.64%
Revenue growth 3Y-5.48%
Revenue growth 5Y-3.05%
Sales Q2Q%-40.42%
Revenue Next Year-5.65%
Revenue Next 2Y-2%
Revenue Next 3Y-0.89%
Revenue Next 5Y0.29%
EBIT growth 1Y-16.45%
EBIT growth 3Y7.43%
EBIT growth 5Y4.95%
EBIT Next Year7.74%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-13.7%
FCF growth 3Y-18.8%
FCF growth 5Y-11.91%
OCF growth 1Y-13.7%
OCF growth 3Y-18.8%
OCF growth 5Y-11.91%