AFLAC INC (AFL) Stock Fundamental Analysis
USA - NYSE:AFL - US0010551028 - Common Stock
107.7 USD
-0.71 (-0.65%)
Taking everything into account, AFL scores 4 out of 10 in our fundamental rating. AFL was compared to 146 industry peers in the Insurance industry. There are concerns on the financial health of AFL while its profitability can be described as average. AFL has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
AFL had positive earnings in the past year.
In the past year AFL had a positive cash flow from operations.
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
With a Return On Assets value of 1.95%, AFL perfoms like the industry average, outperforming 51.37% of the companies in the same industry.
The Return On Equity of AFL (8.96%) is comparable to the rest of the industry.
The Return On Invested Capital of AFL (2.38%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for AFL is in line with the industry average of 4.47%.
| 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
AFL has a Profit Margin of 15.32%. This is amongst the best in the industry. AFL outperforms 82.19% 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 84.25% 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
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
AFL has less shares outstanding than it did 5 years ago.
AFL has a worse debt/assets ratio than last year.
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 has a Debt to FCF ratio (3.41) which is in line with 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.
AFL has a Debt to Equity ratio (0.32) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | N/A |
ROIC/WACC0.3
WACC7.96%
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.
The Earnings Per Share has been growing by 10.21% on average over the past years. This is quite good.
The Revenue for AFL has decreased by -17.57% in the past year. This is quite bad
The Revenue has been decreasing by -3.26% on average over the past years.
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
The Earnings Per Share is expected to grow by 3.33% on average over the next years.
Based on estimates for the next years, AFL will show a small growth in Revenue. The Revenue will grow by 2.23% on average per year.
EPS Next Y-4.46%
EPS Next 2Y0.84%
EPS Next 3Y2.35%
EPS Next 5Y3.33%
Revenue Next Year3.6%
Revenue Next 2Y1.25%
Revenue Next 3Y1.47%
Revenue Next 5Y2.23%
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. Valuation
4.1 Price/Earnings Ratio
AFL is valuated correctly with a Price/Earnings ratio of 15.02.
Compared to the rest of the industry, the Price/Earnings ratio of AFL is on the same level as its industry peers.
AFL is valuated rather cheaply when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 14.67, the valuation of AFL can be described as correct.
AFL's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. AFL is more expensive than 60.96% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.77, AFL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 14.67 |
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 63.01% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.23 | ||
| EV/EBITDA | 14.05 |
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)1.47
EPS Next 2Y0.84%
EPS Next 3Y2.35%
5. Dividend
5.1 Amount
AFL has a Yearly Dividend Yield of 2.13%.
Compared to an average industry Dividend Yield of 3.43, AFL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, AFL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
The dividend of AFL is nicely growing with an annual growth rate of 13.11%!
AFL has paid a dividend for at least 10 years, which is 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
46.94% of the earnings are spent on dividend by AFL. This is a bit on the high side, but may be sustainable.
The dividend of AFL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP46.94%
EPS Next 2Y0.84%
EPS Next 3Y2.35%
NYSE:AFL (9/16/2025, 2:31:02 PM)
107.7
-0.71 (-0.65%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners59.71%
Inst Owner Change-1.52%
Ins Owners0.79%
Ins Owner Change-0.49%
Market Cap57.60B
Analysts66.32
Price Target110.93 (3%)
Short Float %1.59%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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)0.85%
PT rev (3m)2.35%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)2.38%
EPS NY rev (1m)1.81%
EPS NY rev (3m)1.68%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0.94%
Revenue NY rev (3m)2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.02 | ||
| Fwd PE | 14.67 | ||
| P/S | 3.62 | ||
| P/FCF | 22.23 | ||
| P/OCF | 22.23 | ||
| P/B | 2.12 | ||
| P/tB | 2.12 | ||
| EV/EBITDA | 14.05 |
EPS(TTM)7.17
EY6.66%
EPS(NY)7.34
Fwd EY6.82%
FCF(TTM)4.84
FCFY4.5%
OCF(TTM)4.84
OCFY4.5%
SpS29.75
BVpS50.86
TBVpS50.86
PEG (NY)N/A
PEG (5Y)1.47
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
WACC7.96%
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-4.46%
EPS Next 2Y0.84%
EPS Next 3Y2.35%
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 2Y1.25%
Revenue Next 3Y1.47%
Revenue Next 5Y2.23%
EBIT growth 1Y-47.57%
EBIT growth 3Y5.83%
EBIT growth 5Y7.05%
EBIT Next Year-8.82%
EBIT Next 3Y-2.67%
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%