AFLAC INC (AFL) Fundamental Analysis & Valuation
NYSE:AFL • US0010551028
110.18 USD
-1.11 (-1%)
At close: Mar 9, 2026
110.18 USD
0 (0%)
After Hours: 3/9/2026, 8:04:00 PM
This AFL fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
Overall AFL gets a fundamental rating of 4 out of 10. We evaluated AFL against 149 industry peers in the Insurance industry. While AFL is still in line with the averages on profitability rating, there are concerns on its financial health. AFL does not seem to be growing, but still is valued expensively.
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.
- In the past 5 years AFL has always been profitable.
- In the past 5 years AFL always reported a positive cash flow from operatings.
1.2 Ratios
- Looking at the Return On Assets, with a value of 3.13%, AFL is in the better half of the industry, outperforming 65.10% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 12.36%, AFL is in the better half of the industry, outperforming 61.07% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 3.41%, AFL is in the better half of the industry, outperforming 61.07% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for AFL is significantly below the industry average of 15.25%.
| Industry Rank | Sector 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%
1.3 Margins
- AFL has a better Profit Margin (21.24%) than 87.92% of its industry peers.
- AFL's Profit Margin has been stable in the last couple of years.
- AFL has a Operating Margin of 27.69%. This is amongst the best in the industry. AFL outperforms 88.59% of its industry peers.
- In the last couple of years the Operating Margin of AFL has grown nicely.
| Industry Rank | Sector 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
2. AFL Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AFL is destroying value.
- The number of shares outstanding for AFL has been reduced compared to 1 year ago.
- Compared to 5 years ago, AFL has less shares outstanding
- The debt/assets ratio for AFL is higher compared to a year ago.
2.2 Solvency
- AFL has a debt to FCF ratio of 3.26. This is a good value and a sign of high solvency as AFL would need 3.26 years to pay back of 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 45.64% of its industry peers.
- AFL has a Debt/Equity ratio of 0.28. This is a healthy value indicating a solid balance between debt and equity.
- AFL has a Debt to Equity ratio (0.28) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.28 | ||
| Debt/FCF | 3.26 | ||
| Altman-Z | N/A |
ROIC/WACC0.43
WACC7.97%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
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%.
- AFL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -4.97% yearly.
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.
- 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. AFL Valuation Analysis
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.69, which indicates a correct valuation of AFL.
- AFL's Price/Earnings ratio is a bit more expensive when compared to the industry. AFL is more expensive than 61.74% 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 26.46.
- With a Price/Forward Earnings ratio of 14.04, AFL is valued correctly.
- AFL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AFL is more expensive than 60.40% of the companies in the same industry.
- AFL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 24.65.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 14.04 |
4.2 Price Multiples
- AFL's Enterprise Value to EBITDA is on the same level as the industry average.
- Based on the Price/Free Cash Flow ratio, AFL is valued a bit more expensive than 67.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.27 | ||
| EV/EBITDA | 10.58 |
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)1.7
EPS Next 2Y2.29%
EPS Next 3Y3.1%
5. AFL Dividend Analysis
5.1 Amount
- AFL has a Yearly Dividend Yield of 2.20%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.89, AFL has a dividend in line with its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.82, AFL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)15.65%
Div Incr Years34
Div Non Decr Years34
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 Fundamentals: All Metrics, Ratios and Statistics
110.18
-1.11 (-1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-04 2026-02-04/amc
Earnings (Next)04-29 2026-04-29/amc
Inst Owners59.49%
Inst Owner Change-0.32%
Ins Owners0.83%
Ins Owner Change1.1%
Market Cap56.89B
Revenue(TTM)17.16B
Net Income(TTM)3.65B
Analysts55.24
Price Target114.5 (3.92%)
Short Float %1.59%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.2% |
Yearly Dividend2.24
Dividend Growth(5Y)15.65%
DP32.86%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-18 2026-02-18 (0.61)
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)1.98%
EPS NQ rev (3m)0.32%
EPS NY rev (1m)0.75%
EPS NY rev (3m)-0.04%
Revenue NQ rev (1m)-1.59%
Revenue NQ rev (3m)-2.84%
Revenue NY rev (1m)-1.51%
Revenue NY rev (3m)-3.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.69 | ||
| Fwd PE | 14.04 | ||
| P/S | 3.31 | ||
| P/FCF | 22.27 | ||
| P/OCF | 22.27 | ||
| P/B | 1.93 | ||
| P/tB | 1.95 | ||
| EV/EBITDA | 10.58 |
EPS(TTM)7.5
EY6.81%
EPS(NY)7.85
Fwd EY7.12%
FCF(TTM)4.95
FCFY4.49%
OCF(TTM)4.95
OCFY4.49%
SpS33.24
BVpS57.11
TBVpS56.61
PEG (NY)N/A
PEG (5Y)1.7
Graham Number98.17
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC7.97%
ROIC/WACC0.43
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 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.