AFLAC INC (AFL) Stock Fundamental Analysis
USA - NYSE:AFL - US0010551028 - Common Stock
108.795 USD
+1.09 (+1.01%)
AFL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 147 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 valued expensive and it does not seem to be growing.
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.
Each year in the past 5 years AFL has been profitable.
Each year in the past 5 years AFL had a positive operating cash flow.
1.2 Ratios
AFL has a Return On Assets of 1.95%. This is comparable to the rest of the industry: AFL outperforms 48.98% of its industry peers.
The Return On Equity of AFL (8.96%) is comparable to the rest of the industry.
With a Return On Invested Capital value of 2.38%, AFL perfoms like the industry average, outperforming 49.66% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for AFL is in line with the industry average of 4.46%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 8.96% | ||
| ROIC | 2.38% |
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
The Profit Margin of AFL (15.32%) is better than 81.63% 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 21.35%, AFL belongs to the top of the industry, outperforming 84.35% of the companies in the same industry.
In the last couple of years the Operating Margin of AFL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 21.35% | ||
| PM (TTM) | 15.32% | ||
| 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.
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
Compared to 1 year ago, AFL has a worse debt to assets ratio.
2.2 Solvency
AFL has a debt to FCF ratio of 3.41. This is a good value and a sign of high solvency as AFL would need 3.41 years to pay back of all of its debts.
AFL's Debt to FCF ratio of 3.41 is in line compared to the rest of the industry. AFL outperforms 46.94% of its industry peers.
AFL has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.32, AFL is in line with its industry, outperforming 48.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | N/A |
ROIC/WACC0.3
WACC7.92%
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 8.97%, 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.
AFL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.57%.
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)8.97%
EPS 3Y6.78%
EPS 5Y10.21%
EPS Q2Q%-2.73%
Revenue 1Y (TTM)-17.57%
Revenue growth 3Y-5.07%
Revenue growth 5Y-3.26%
Sales Q2Q%-19.03%
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 3.33% on average per year.
AFL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.23% yearly.
EPS Next Y-3.89%
EPS Next 2Y1.15%
EPS Next 3Y2.55%
EPS Next 5Y3.33%
Revenue Next Year3.6%
Revenue Next 2Y1.26%
Revenue Next 3Y1.48%
Revenue Next 5Y2.23%
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 15.17, AFL is valued correctly.
AFL's Price/Earnings ratio is a bit more expensive when compared to the industry. AFL is more expensive than 60.54% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.42. AFL is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 14.73, which indicates a correct valuation of AFL.
AFL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AFL is more expensive than 61.90% of the companies in the same industry.
AFL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.94, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.17 | ||
| Fwd PE | 14.73 |
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 the industry average as 61.22% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.46 | ||
| EV/EBITDA | 13.96 |
4.3 Compensation for Growth
The decent profitability rating of AFL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.49
EPS Next 2Y1.15%
EPS Next 3Y2.55%
5. Dividend
5.1 Amount
AFL has a Yearly Dividend Yield of 2.17%.
AFL's Dividend Yield is comparable with the industry average which is at 3.31.
AFL's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
5.2 History
On average, the dividend of AFL grows each year by 13.11%, which is quite nice.
AFL has paid a dividend for at least 10 years, which is 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 46.94% of its income as dividend. This is a bit on the high side, but may be sustainable.
AFL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP46.94%
EPS Next 2Y1.15%
EPS Next 3Y2.55%
NYSE:AFL (10/20/2025, 1:39:34 PM)
108.795
+1.09 (+1.01%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners59.68%
Inst Owner Change-0.04%
Ins Owners0.8%
Ins Owner Change-0.5%
Market Cap58.19B
Analysts66.67
Price Target110.93 (1.96%)
Short Float %1.61%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.17% |
Yearly Dividend1.93
Dividend Growth(5Y)13.11%
DP46.94%
Div Incr Years34
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.95%
Min EPS beat(2)-1.8%
Max EPS beat(2)3.7%
EPS beat(4)2
Avg EPS beat(4)6.2%
Min EPS beat(4)-4.02%
Max EPS beat(4)26.91%
EPS beat(8)5
Avg EPS beat(8)6.14%
EPS beat(12)8
Avg EPS beat(12)6.57%
EPS beat(16)11
Avg EPS beat(16)6.81%
Revenue beat(2)0
Avg Revenue beat(2)-13.08%
Min Revenue beat(2)-21.36%
Max Revenue beat(2)-4.81%
Revenue beat(4)1
Avg Revenue beat(4)-7.93%
Min Revenue beat(4)-34%
Max Revenue beat(4)28.46%
Revenue beat(8)4
Avg Revenue beat(8)0.84%
Revenue beat(12)7
Avg Revenue beat(12)1.24%
Revenue beat(16)10
Avg Revenue beat(16)1.59%
PT rev (1m)0%
PT rev (3m)0.69%
EPS NQ rev (1m)1.33%
EPS NQ rev (3m)3.86%
EPS NY rev (1m)0.59%
EPS NY rev (3m)2.42%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.17 | ||
| Fwd PE | 14.73 | ||
| P/S | 3.66 | ||
| P/FCF | 22.46 | ||
| P/OCF | 22.46 | ||
| P/B | 2.14 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 13.96 |
EPS(TTM)7.17
EY6.59%
EPS(NY)7.39
Fwd EY6.79%
FCF(TTM)4.84
FCFY4.45%
OCF(TTM)4.84
OCFY4.45%
SpS29.75
BVpS50.86
TBVpS50.86
PEG (NY)N/A
PEG (5Y)1.49
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.95% | ||
| ROE | 8.96% | ||
| ROCE | 2.74% | ||
| ROIC | 2.38% | ||
| ROICexc | 2.52% | ||
| ROICexgc | 2.57% | ||
| OM | 21.35% | ||
| PM (TTM) | 15.32% | ||
| GM | N/A | ||
| FCFM | 16.29% |
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%
ROICexcg growth 3Y16.53%
ROICexcg 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-Score5
Asset Turnover0.13
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.41 | ||
| Debt/EBITDA | 2.06 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 18.36 | ||
| Cash Conversion | 60.82% | ||
| Profit Quality | 106.32% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score5
WACC7.92%
ROIC/WACC0.3
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)8.97%
EPS 3Y6.78%
EPS 5Y10.21%
EPS Q2Q%-2.73%
EPS Next Y-3.89%
EPS Next 2Y1.15%
EPS Next 3Y2.55%
EPS Next 5Y3.33%
Revenue 1Y (TTM)-17.57%
Revenue growth 3Y-5.07%
Revenue growth 5Y-3.26%
Sales Q2Q%-19.03%
Revenue Next Year3.6%
Revenue Next 2Y1.26%
Revenue Next 3Y1.48%
Revenue Next 5Y2.23%
EBIT growth 1Y-47.57%
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-18.93%
FCF growth 3Y-18.77%
FCF growth 5Y-13.08%
OCF growth 1Y-18.93%
OCF growth 3Y-18.77%
OCF growth 5Y-13.08%