AFLAC INC (AFL.DE) Stock Fundamental Analysis
Europe - FRA:AFL - US0010551028 - Common Stock
94.9 EUR
-0.1 (-0.11%)
Overall AFL gets a fundamental rating of 4 out of 10. We evaluated AFL against 40 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
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 has a better Return On Assets (1.95%) than 80.00% of its industry peers.
The Return On Equity of AFL (8.96%) is worse than 72.50% of its industry peers.
AFL has a Return On Invested Capital of 2.38%. This is in the better half of the industry: AFL outperforms 70.00% of its industry peers.
AFL had an Average Return On Invested Capital over the past 3 years of 3.95%. This is in line with the industry average of 2.35%.
| 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
With an excellent Profit Margin value of 15.32%, AFL belongs to the best of the industry, outperforming 85.00% of the companies in the same industry.
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 85.00% 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.
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 3.41. 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 of 3.41. This is comparable to the rest of the industry: AFL outperforms 52.50% of its industry peers.
A Debt/Equity ratio of 0.32 indicates that AFL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.32, AFL belongs to the top of the industry, outperforming 82.50% 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
WACC7.93%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 8.97% over the past year.
The Earnings Per Share has been growing by 10.21% on average over the past years. This is quite good.
Looking at the last year, AFL shows a very negative growth in Revenue. The Revenue has decreased by -17.57% in the last year.
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
AFL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.33% yearly.
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 2Y1.25%
Revenue Next 3Y1.47%
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.
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
A Price/Earnings ratio of 15.56 indicates a correct valuation of AFL.
Compared to the rest of the industry, the Price/Earnings ratio of AFL indicates a slightly more expensive valuation: AFL is more expensive than 70.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.86. AFL is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 15.10, the valuation of AFL can be described as correct.
80.00% of the companies in the same industry are cheaper than AFL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AFL to the average of the S&P500 Index (23.32), we can say AFL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 15.1 |
4.2 Price Multiples
AFL's Enterprise Value to EBITDA ratio is in line with the industry average.
AFL's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AFL is more expensive than 70.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.03 | ||
| EV/EBITDA | 14.44 |
4.3 Compensation for Growth
The decent profitability rating of AFL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.52
EPS Next 2Y1.15%
EPS Next 3Y2.55%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.10%, AFL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.62, AFL's dividend is way lower than its industry peers. On top of this 85.00% of the companies listed in the same industry pay a better dividend than AFL!
Compared to an average S&P500 Dividend Yield of 2.41, AFL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
5.2 History
The dividend of AFL is nicely growing with an annual growth rate of 13.11%!
Dividend Growth(5Y)13.11%
Div Incr Years3
Div Non Decr Years3
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.
The dividend of AFL is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP46.94%
EPS Next 2Y1.15%
EPS Next 3Y2.55%
FRA:AFL (10/1/2025, 7:00:00 PM)
94.9
-0.1 (-0.11%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners59.68%
Inst Owner ChangeN/A
Ins Owners0.8%
Ins Owner ChangeN/A
Market Cap50.76B
Analysts66.67
Price Target94.45 (-0.47%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
Yearly Dividend1.64
Dividend Growth(5Y)13.11%
DP46.94%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
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)-0.18%
PT rev (3m)0.23%
EPS NQ rev (1m)0.81%
EPS NQ rev (3m)2.38%
EPS NY rev (1m)0.59%
EPS NY rev (3m)2.24%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0.45%
Revenue NY rev (3m)2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.56 | ||
| Fwd PE | 15.1 | ||
| P/S | 3.75 | ||
| P/FCF | 23.03 | ||
| P/OCF | 23.03 | ||
| P/B | 2.19 | ||
| P/tB | 2.19 | ||
| EV/EBITDA | 14.44 |
EPS(TTM)6.1
EY6.43%
EPS(NY)6.28
Fwd EY6.62%
FCF(TTM)4.12
FCFY4.34%
OCF(TTM)4.12
OCFY4.34%
SpS25.31
BVpS43.27
TBVpS43.27
PEG (NY)N/A
PEG (5Y)1.52
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
WACC7.93%
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 2Y1.25%
Revenue Next 3Y1.47%
Revenue Next 5Y2.23%
EBIT growth 1Y-47.57%
EBIT growth 3Y5.83%
EBIT growth 5Y7.05%
EBIT Next Year-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%