AFLAC INC (AFL) Stock Fundamental Analysis
NYSE:AFL - New York Stock Exchange, Inc. - US0010551028 - Common Stock - Currency: USD
AFL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 143 industry peers in the Insurance industry. There are concerns on the financial health of AFL while its profitability can be described as average. AFL has a decent growth rate and is not valued too expensively.
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.
AFL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
AFL has a Return On Assets of 2.97%. This is in the better half of the industry: AFL outperforms 63.12% of its industry peers.
AFL has a Return On Equity of 15.34%. This is in the better half of the industry: AFL outperforms 65.25% of its industry peers.
With a decent Return On Invested Capital value of 3.23%, AFL is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 15.34% | ||
| ROIC | 3.23% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 22.02%, AFL belongs to the best of the industry, outperforming 86.52% of the companies in the same industry.
In the last couple of years the Profit Margin of AFL has grown nicely.
AFL's Operating Margin of 27.54% is amongst the best of the industry. AFL outperforms 91.49% 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 3Y10.37%
OM growth 5Y9.99%
PM growth 3Y13.73%
PM growth 5Y14.22%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
AFL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AFL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
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.
The Debt to Equity ratio of AFL (0.32) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 2.45 | ||
| Altman-Z | N/A |
ROIC/WACC0.39
WACC8.28%
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 15.34%, which is quite good.
AFL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.21% yearly.
The Revenue has been growing slightly by 1.21% in the past year.
AFL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -3.26% yearly.
EPS 1Y (TTM)15.34%
EPS 3Y6.78%
EPS 5Y10.21%
EPS Q2Q%25.6%
Revenue 1Y (TTM)1.21%
Revenue growth 3Y-5.07%
Revenue growth 5Y-3.26%
Sales Q2Q%43.05%
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 1.13% on average per year.
AFL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.55% yearly.
EPS Next Y-3.83%
EPS Next 2Y0.67%
EPS Next 3Y1.13%
EPS Next 5YN/A
Revenue Next Year0.02%
Revenue Next 2Y0.51%
Revenue Next 3Y2.55%
Revenue Next 5YN/A
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
AFL is valuated correctly with a Price/Earnings ratio of 14.15.
Compared to the rest of the industry, the Price/Earnings ratio of AFL is on the same level as its industry peers.
AFL's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 29.63.
Based on the Price/Forward Earnings ratio of 14.71, the valuation of AFL can be described as correct.
60.99% of the companies in the same industry are cheaper than AFL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.68. AFL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 14.71 |
4.2 Price Multiples
AFL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. AFL is cheaper than 60.28% of the companies in the same industry.
AFL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.52 | ||
| EV/EBITDA | 10.62 |
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)1.39
EPS Next 2Y0.67%
EPS Next 3Y1.13%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.23%, AFL has a reasonable but not impressive dividend return.
AFL's Dividend Yield is a higher than the industry average which is at 3.09.
AFL's Dividend Yield is comparable with the S&P500 average which is at 2.29.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
5.2 History
The dividend of AFL is nicely growing with an annual growth rate of 9.41%!
AFL has been paying a dividend for at least 10 years, so it has 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.
AFL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP27.72%
EPS Next 2Y0.67%
EPS Next 3Y1.13%
102.16
-2.12 (-2.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners61.92%
Inst Owner Change-1.29%
Ins Owners0.73%
Ins Owner Change4.34%
Market Cap56.18B
Analysts66
Price Target108.91 (6.61%)
Short Float %1.63%
Short Ratio4.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.23% |
Yearly Dividend1.62
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)0.95%
PT rev (3m)4.02%
EPS NQ rev (1m)-0.83%
EPS NQ rev (3m)-0.96%
EPS NY rev (1m)-2.3%
EPS NY rev (3m)-4.21%
Revenue NQ rev (1m)-0.36%
Revenue NQ rev (3m)-0.43%
Revenue NY rev (1m)-1.92%
Revenue NY rev (3m)-2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.15 | ||
| Fwd PE | 14.71 | ||
| P/S | 3.25 | ||
| P/FCF | 17.52 | ||
| P/OCF | 17.52 | ||
| P/B | 2.26 | ||
| P/tB | 2.26 | ||
| EV/EBITDA | 10.62 |
EPS(TTM)7.22
EY7.07%
EPS(NY)6.94
Fwd EY6.8%
FCF(TTM)5.83
FCFY5.71%
OCF(TTM)5.83
OCFY5.71%
SpS31.46
BVpS45.15
TBVpS45.15
PEG (NY)N/A
PEG (5Y)1.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.97% | ||
| ROE | 15.34% | ||
| ROCE | 3.73% | ||
| ROIC | 3.23% | ||
| ROICexc | 3.38% | ||
| ROICexgc | 3.44% | ||
| OM | 27.54% | ||
| PM (TTM) | 22.02% | ||
| GM | N/A | ||
| FCFM | 18.54% |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y10.37%
OM growth 5Y9.99%
PM growth 3Y13.73%
PM growth 5Y14.22%
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
WACC8.28%
ROIC/WACC0.39
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.34%
EPS 3Y6.78%
EPS 5Y10.21%
EPS Q2Q%25.6%
EPS Next Y-3.83%
EPS Next 2Y0.67%
EPS Next 3Y1.13%
EPS Next 5YN/A
Revenue 1Y (TTM)1.21%
Revenue growth 3Y-5.07%
Revenue growth 5Y-3.26%
Sales Q2Q%43.05%
Revenue Next Year0.02%
Revenue Next 2Y0.51%
Revenue Next 3Y2.55%
Revenue Next 5YN/A
EBIT growth 1Y-16.45%
EBIT growth 3Y4.77%
EBIT growth 5Y6.41%
EBIT Next Year86.7%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-5.4%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-5.4%
OCF growth 3YN/A
OCF growth 5YN/A