AFLAC INC (AFL) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:AFL - US0010551028 - Common Stock
109.26 USD
-0.25 (-0.23%)
109.26 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. While AFL is still in line with the averages on profitability rating, there are concerns on its financial health. AFL is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- In the past year AFL was profitable.
- AFL had a positive operating cash flow in the past year.
- 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
- 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 better Return On Equity (14.53%) than 68.46% of its industry peers.
- The Return On Invested Capital of AFL (3.81%) is better than 65.10% of its industry peers.
- 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.
- AFL's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 29.97%, AFL belongs to the top of the industry, outperforming 91.95% of the companies in the same industry.
- AFL's Operating Margin has improved in the last couple of years.
| 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
- AFL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- Compared to 1 year ago, AFL has less shares outstanding
- Compared to 5 years ago, AFL has less shares outstanding
- AFL has a worse debt/assets ratio than last year.
2.2 Solvency
- AFL has a debt to FCF ratio of 3.34. This is a good value and a sign of high solvency as AFL would need 3.34 years to pay back of all of its debts.
- AFL's Debt to FCF ratio of 3.34 is in line compared to the rest of the industry. AFL outperforms 46.31% of its industry peers.
- A Debt/Equity ratio of 0.30 indicates that AFL is not too dependend on debt financing.
- AFL's Debt to Equity ratio of 0.30 is in line compared to the rest of the industry. AFL outperforms 54.36% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.3 | ||
| Debt/FCF | 3.34 | ||
| Altman-Z | N/A |
ROIC/WACC0.47
WACC8.11%
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.
- The Revenue has been decreasing by -3.26% on average over the past years.
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
- AFL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 4.12% yearly.
- AFL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.93% yearly.
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
- 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
- Based on the Price/Earnings ratio of 14.57, the valuation of AFL can be described as correct.
- 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 (26.94), we can say AFL is valued slightly cheaper.
- AFL is valuated correctly with a Price/Forward Earnings ratio of 14.67.
- 61.07% of the companies in the same industry are cheaper than AFL, based on the Price/Forward Earnings ratio.
- AFL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.57 | ||
| Fwd PE | 14.67 |
4.2 Price Multiples
- AFL's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, AFL is valued a bit more expensive than 65.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.26 | ||
| EV/EBITDA | 9.59 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of AFL may justify a higher PE ratio.
PEG (NY)2.78
PEG (5Y)1.43
EPS Next 2Y1.56%
EPS Next 3Y3.01%
5. Dividend
5.1 Amount
- AFL has a Yearly Dividend Yield of 2.23%. Purely for dividend investing, there may be better candidates out there.
- 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
- The dividend of AFL is nicely growing with an annual growth rate of 13.11%!
- 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)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.
- AFL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP28.14%
EPS Next 2Y1.56%
EPS Next 3Y3.01%
109.26
-0.25 (-0.23%)
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 Cap57.26B
Revenue(TTM)17.70B
Net Income(TTM)4.17B
Analysts55.24
Price Target113.39 (3.78%)
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 | 14.57 | ||
| Fwd PE | 14.67 | ||
| P/S | 3.24 | ||
| P/FCF | 22.26 | ||
| P/OCF | 22.26 | ||
| P/B | 2 | ||
| P/tB | 2 | ||
| EV/EBITDA | 9.59 |
EPS(TTM)7.5
EY6.86%
EPS(NY)7.45
Fwd EY6.82%
FCF(TTM)4.91
FCFY4.49%
OCF(TTM)4.91
OCFY4.49%
SpS33.77
BVpS54.74
TBVpS54.74
PEG (NY)2.78
PEG (5Y)1.43
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
WACC8.11%
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.