AFLAC INC (AFL) Fundamental Analysis & Valuation

NYSE:AFL • US0010551028

Current stock price

106.65 USD
+0.43 (+0.4%)
At close:
106.65 USD
0 (0%)
After Hours:

This AFL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. AFL Profitability Analysis

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.
AFL Yearly Net Income VS EBIT VS OCF VS FCFAFL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

1.2 Ratios

  • AFL's Return On Assets of 3.13% is fine compared to the rest of the industry. AFL outperforms 63.51% of its industry peers.
  • AFL's Return On Equity of 12.36% is fine compared to the rest of the industry. AFL outperforms 60.14% of its industry peers.
  • AFL has a Return On Invested Capital of 3.41%. This is comparable to the rest of the industry: AFL outperforms 58.78% of its industry peers.
  • AFL had an Average Return On Invested Capital over the past 3 years of 3.89%. This is significantly below the industry average of 9.34%.
Industry RankSector Rank
ROA 3.13%
ROE 12.36%
ROIC 3.41%
ROA(3y)3.81%
ROA(5y)3.47%
ROE(3y)18.14%
ROE(5y)17.66%
ROIC(3y)3.89%
ROIC(5y)3.55%
AFL Yearly ROA, ROE, ROICAFL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • AFL's Profit Margin of 21.24% is amongst the best of the industry. AFL outperforms 86.49% of its industry peers.
  • In the last couple of years the Profit Margin of AFL has remained more or less at the same level.
  • The Operating Margin of AFL (27.69%) is better than 89.19% of its industry peers.
  • In the last couple of years the Operating Margin of AFL has grown nicely.
Industry RankSector Rank
OM 27.69%
PM (TTM) 21.24%
GM N/A
OM growth 3Y3.66%
OM growth 5Y6.86%
PM growth 3Y-0.42%
PM growth 5Y-0.31%
GM growth 3YN/A
GM growth 5YN/A
AFL Yearly Profit, Operating, Gross MarginsAFL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30

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3

2. AFL Health Analysis

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 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.
AFL Yearly Shares OutstandingAFL Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
AFL Yearly Total Debt VS Total AssetsAFL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

2.2 Solvency

  • The Debt to FCF ratio of AFL is 3.26, which is a good value as it means it would take AFL, 3.26 years of fcf income to pay off all of its debts.
  • AFL has a Debt to FCF ratio of 3.26. This is comparable to the rest of the industry: AFL outperforms 41.89% of its industry peers.
  • A Debt/Equity ratio of 0.28 indicates that AFL is not too dependend on debt financing.
  • AFL has a Debt to Equity ratio of 0.28. This is comparable to the rest of the industry: AFL outperforms 56.08% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF 3.26
Altman-Z N/A
ROIC/WACC0.42
WACC8.16%
AFL Yearly LT Debt VS Equity VS FCFAFL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
AFL Yearly Current Assets VS Current LiabilitesAFL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. AFL Growth Analysis

3.1 Past

  • AFL shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.88%.
  • 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.
  • AFL shows a decrease in Revenue. In the last year, the revenue decreased by -9.31%.
  • The Revenue has been decreasing by -4.97% on average over the past years.
EPS 1Y (TTM)3.88%
EPS 3Y11.37%
EPS 5Y8.67%
EPS Q2Q%0%
Revenue 1Y (TTM)-9.31%
Revenue growth 3Y-4.21%
Revenue growth 5Y-4.97%
Sales Q2Q%0%

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 4.48% on average per year.
  • AFL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.57% yearly.
EPS Next Y-0.91%
EPS Next 2Y2.29%
EPS Next 3Y3.1%
EPS Next 5Y4.48%
Revenue Next Year-1.82%
Revenue Next 2Y-0.13%
Revenue Next 3Y0.02%
Revenue Next 5Y1.57%

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.
AFL Yearly Revenue VS EstimatesAFL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 5B 10B 15B 20B
AFL Yearly EPS VS EstimatesAFL Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8

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2

4. AFL Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 14.22, AFL is valued correctly.
  • Based on the Price/Earnings ratio, AFL is valued a bit more expensive than 64.19% of the companies in the same industry.
  • AFL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.54.
  • Based on the Price/Forward Earnings ratio of 13.59, the valuation of AFL can be described as correct.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of AFL indicates a slightly more expensive valuation: AFL is more expensive than 62.16% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.70, AFL is valued a bit cheaper.
Industry RankSector Rank
PE 14.22
Fwd PE 13.59
AFL Price Earnings VS Forward Price EarningsAFL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 69.59% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 21.55
EV/EBITDA 10.12
AFL Per share dataAFL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

  • The decent profitability rating of AFL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.64
EPS Next 2Y2.29%
EPS Next 3Y3.1%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. AFL Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 2.28%, AFL has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.84, AFL has a dividend in line with its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.89, AFL pays a bit more dividend than the S&P500 average.
Industry RankSector Rank
Dividend Yield 2.28%

5.2 History

  • On average, the dividend of AFL grows each year by 15.65%, 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)15.65%
Div Incr Years34
Div Non Decr Years34
AFL Yearly Dividends per shareAFL Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2

5.3 Sustainability

  • AFL pays out 32.86% 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.
DP32.86%
EPS Next 2Y2.29%
EPS Next 3Y3.1%
AFL Yearly Income VS Free CF VS DividendAFL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B
AFL Dividend Payout.AFL Dividend Payout, showing the Payout Ratio.AFL Dividend Payout.PayoutRetained Earnings

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AFL Fundamentals: All Metrics, Ratios and Statistics

AFLAC INC

NYSE:AFL (3/23/2026, 8:04:00 PM)

After market: 106.65 0 (0%)

106.65

+0.43 (+0.4%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-04
Earnings (Next)04-29
Inst Owners59.49%
Inst Owner Change-0.32%
Ins Owners0.83%
Ins Owner Change0.35%
Market Cap55.07B
Revenue(TTM)17.16B
Net Income(TTM)3.65B
Analysts55.24
Price Target114.5 (7.36%)
Short Float %1.8%
Short Ratio3.58
Dividend
Industry RankSector Rank
Dividend Yield 2.28%
Yearly Dividend2.24
Dividend Growth(5Y)15.65%
DP32.86%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-18
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)15.28%
Min EPS beat(2)-8.28%
Max EPS beat(2)38.84%
EPS beat(4)2
Avg EPS beat(4)8.12%
Min EPS beat(4)-8.28%
Max EPS beat(4)38.84%
EPS beat(8)5
Avg EPS beat(8)9.07%
EPS beat(12)8
Avg EPS beat(12)8.44%
EPS beat(16)11
Avg EPS beat(16)7.8%
Revenue beat(2)2
Avg Revenue beat(2)9.48%
Min Revenue beat(2)7.07%
Max Revenue beat(2)11.89%
Revenue beat(4)2
Avg Revenue beat(4)-1.8%
Min Revenue beat(4)-21.36%
Max Revenue beat(4)11.89%
Revenue beat(8)5
Avg Revenue beat(8)3.81%
Revenue beat(12)8
Avg Revenue beat(12)3.61%
Revenue beat(16)11
Avg Revenue beat(16)2.76%
PT rev (1m)0.97%
PT rev (3m)1.28%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)0.32%
EPS NY rev (1m)0.75%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)-0.12%
Revenue NQ rev (3m)-2.84%
Revenue NY rev (1m)0.32%
Revenue NY rev (3m)-3.07%
Valuation
Industry RankSector Rank
PE 14.22
Fwd PE 13.59
P/S 3.21
P/FCF 21.55
P/OCF 21.55
P/B 1.87
P/tB 1.88
EV/EBITDA 10.12
EPS(TTM)7.5
EY7.03%
EPS(NY)7.85
Fwd EY7.36%
FCF(TTM)4.95
FCFY4.64%
OCF(TTM)4.95
OCFY4.64%
SpS33.24
BVpS57.11
TBVpS56.61
PEG (NY)N/A
PEG (5Y)1.64
Graham Number98.17
Profitability
Industry RankSector Rank
ROA 3.13%
ROE 12.36%
ROCE 4.13%
ROIC 3.41%
ROICexc 3.61%
ROICexgc 3.7%
OM 27.69%
PM (TTM) 21.24%
GM N/A
FCFM 14.89%
ROA(3y)3.81%
ROA(5y)3.47%
ROE(3y)18.14%
ROE(5y)17.66%
ROIC(3y)3.89%
ROIC(5y)3.55%
ROICexc(3y)4.08%
ROICexc(5y)3.7%
ROICexgc(3y)4.18%
ROICexgc(5y)3.8%
ROCE(3y)4.7%
ROCE(5y)4.29%
ROICexgc growth 3Y4.26%
ROICexgc growth 5Y9.03%
ROICexc growth 3Y4.54%
ROICexc growth 5Y9.02%
OM growth 3Y3.66%
OM growth 5Y6.86%
PM growth 3Y-0.42%
PM growth 5Y-0.31%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.15
Health
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF 3.26
Debt/EBITDA 1.48
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 24.13
Cash Conversion 45.41%
Profit Quality 70.08%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score4
WACC8.16%
ROIC/WACC0.42
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)62.76%
Profit Quality(5y)79.48%
High Growth Momentum
Growth
EPS 1Y (TTM)3.88%
EPS 3Y11.37%
EPS 5Y8.67%
EPS Q2Q%0%
EPS Next Y-0.91%
EPS Next 2Y2.29%
EPS Next 3Y3.1%
EPS Next 5Y4.48%
Revenue 1Y (TTM)-9.31%
Revenue growth 3Y-4.21%
Revenue growth 5Y-4.97%
Sales Q2Q%0%
Revenue Next Year-1.82%
Revenue Next 2Y-0.13%
Revenue Next 3Y0.02%
Revenue Next 5Y1.57%
EBIT growth 1Y-28.13%
EBIT growth 3Y-0.71%
EBIT growth 5Y1.55%
EBIT Next Year3.07%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-5.62%
FCF growth 3Y-12.99%
FCF growth 5Y-15.58%
OCF growth 1Y-5.62%
OCF growth 3Y-12.99%
OCF growth 5Y-15.58%

AFLAC INC / AFL Fundamental Analysis 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 2 / 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 decline by -0.91% in the next year.