AFLAC INC (AFL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AFL - US0010551028 - Common Stock
108.3 USD
-0.26 (-0.24%)
108.3 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AFL. AFL was compared to 149 industry peers in the Insurance industry. AFL has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
- In the past 5 years AFL has always been profitable.
- Each year in the past 5 years AFL had a positive operating cash flow.
1.2 Ratios
- AFL's Return On Assets of 3.41% is fine compared to the rest of the industry. AFL outperforms 69.13% of its industry peers.
- AFL has a Return On Equity of 14.53%. This is in the better half of the industry: AFL outperforms 68.46% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 3.81%, AFL is in the better half of the industry, outperforming 65.10% 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 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
- AFL has a Profit Margin of 23.55%. This is amongst the best in the industry. AFL outperforms 94.63% of its industry peers.
- In the last couple of years the Profit Margin of AFL has grown nicely.
- The Operating Margin of AFL (29.97%) is better than 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
- 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
- The number of shares outstanding for AFL has been reduced compared to 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.
- AFL has a Debt to FCF ratio (3.34) which is in line with 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.
- 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
WACC8.13%
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.
- 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
- The Earnings Per Share is expected to grow by 4.12% on average over the next years.
- The Revenue is expected to grow by 1.93% on average over the next years.
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
- 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.
- 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 14.44, AFL is valued correctly.
- The rest of the industry has a similar Price/Earnings ratio as AFL.
- When comparing the Price/Earnings ratio of AFL to the average of the S&P500 Index (27.32), we can say AFL is valued slightly cheaper.
- AFL is valuated correctly with a Price/Forward Earnings ratio of 14.54.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of AFL is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.32, AFL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 14.54 |
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 the industry average as 65.10% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.06 | ||
| EV/EBITDA | 9.51 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- AFL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.76
PEG (5Y)1.41
EPS Next 2Y1.56%
EPS Next 3Y3.01%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 2.23%, AFL has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 2.53, AFL has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.83, AFL pays a bit more dividend than the S&P500 average.
| 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 been paying a dividend for at least 10 years, so it has 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 2Y1.56%
EPS Next 3Y3.01%
108.3
-0.26 (-0.24%)
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 Cap56.76B
Revenue(TTM)17.70B
Net Income(TTM)4.17B
Analysts55.24
Price Target113.39 (4.7%)
Short Float %1.53%
Short Ratio2.96
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 | 14.44 | ||
| Fwd PE | 14.54 | ||
| P/S | 3.21 | ||
| P/FCF | 22.06 | ||
| P/OCF | 22.06 | ||
| P/B | 1.98 | ||
| P/tB | 1.98 | ||
| EV/EBITDA | 9.51 |
EPS(TTM)7.5
EY6.93%
EPS(NY)7.45
Fwd EY6.88%
FCF(TTM)4.91
FCFY4.53%
OCF(TTM)4.91
OCFY4.53%
SpS33.77
BVpS54.74
TBVpS54.74
PEG (NY)2.76
PEG (5Y)1.41
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
WACC8.13%
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.