AFLAC INC (AFL.DE) Stock Fundamental Analysis
FRA:AFL - Deutsche Boerse Ag - US0010551028 - Common Stock - Currency: EUR
Overall AFL gets a fundamental rating of 4 out of 10. We evaluated AFL against 38 industry peers in the Insurance industry. While AFL belongs to the best of the industry regarding profitability, 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
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.
Each year in the past 5 years AFL had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.99%, AFL belongs to the top of the industry, outperforming 81.58% of the companies in the same industry.
AFL has a Return On Equity of 13.64%. This is comparable to the rest of the industry: AFL outperforms 47.37% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.34%, AFL belongs to the top of the industry, outperforming 86.84% of the companies in the same industry.
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 2.18%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | 13.64% | ||
| ROIC | 3.34% |
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 21.28%, AFL belongs to the best of the industry, outperforming 94.74% of the companies in the same industry.
AFL's Profit Margin has improved in the last couple of years.
AFL has a Operating Margin of 27.18%. This is amongst the best in the industry. AFL outperforms 94.74% of its industry peers.
In the last couple of years the Operating Margin of AFL has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.18% | ||
| PM (TTM) | 21.28% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), AFL is destroying value.
AFL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for AFL has been reduced compared to 5 years ago.
AFL has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of AFL is 3.13, which is a good value as it means it would take AFL, 3.13 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 3.13, AFL perfoms like the industry average, outperforming 55.26% of the companies in the same industry.
A Debt/Equity ratio of 0.29 indicates that AFL is not too dependend on debt financing.
The Debt to Equity ratio of AFL (0.29) is better than 78.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | N/A |
ROIC/WACC0.42
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 13.34%, 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.
Looking at the last year, AFL shows a very negative growth in Revenue. The Revenue has decreased by -12.66% in the last year.
The Revenue has been decreasing by -3.26% on average over the past years.
EPS 1Y (TTM)13.34%
EPS 3Y6.78%
EPS 5Y10.21%
EPS Q2Q%0%
Revenue 1Y (TTM)-12.66%
Revenue growth 3Y-5.07%
Revenue growth 5Y-3.26%
Sales Q2Q%-37.49%
3.2 Future
The Earnings Per Share is expected to grow by 3.33% on average over the next years.
AFL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.14% yearly.
EPS Next Y-6.16%
EPS Next 2Y0.05%
EPS Next 3Y1.74%
EPS Next 5Y3.33%
Revenue Next Year2.63%
Revenue Next 2Y1.14%
Revenue Next 3Y1.48%
Revenue Next 5Y2.14%
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
With a Price/Earnings ratio of 14.12, AFL is valued correctly.
AFL's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.54, AFL is valued a bit cheaper.
With a Price/Forward Earnings ratio of 14.11, AFL is valued correctly.
Based on the Price/Forward Earnings ratio, AFL is valued a bit more expensive than 71.05% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of AFL to the average of the S&P500 Index (35.28), we can say AFL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 14.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFL is valued a bit cheaper than the industry average as 68.42% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AFL is valued a bit more expensive than 68.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.52 | ||
| EV/EBITDA | 10.57 |
4.3 Compensation for Growth
The decent profitability rating of AFL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.38
EPS Next 2Y0.05%
EPS Next 3Y1.74%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.33%, AFL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.36, AFL is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.40, AFL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
5.2 History
On average, the dividend of AFL grows each year by 13.11%, which is quite nice.
Dividend Growth(5Y)13.11%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
AFL pays out 31.03% 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.
DP31.03%
EPS Next 2Y0.05%
EPS Next 3Y1.74%
FRA:AFL (8/7/2025, 7:00:00 PM)
87.56
-0.02 (-0.02%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners59.47%
Inst Owner ChangeN/A
Ins Owners0.79%
Ins Owner ChangeN/A
Market Cap47.34B
Analysts66.32
Price Target95.64 (9.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.33% |
Yearly Dividend1.69
Dividend Growth(5Y)13.11%
DP31.03%
Div Incr Years3
Div Non Decr Years3
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.91%
Min EPS beat(2)-4.02%
Max EPS beat(2)-1.8%
EPS beat(4)2
Avg EPS beat(4)8.6%
Min EPS beat(4)-4.02%
Max EPS beat(4)26.91%
EPS beat(8)5
Avg EPS beat(8)7.15%
EPS beat(12)8
Avg EPS beat(12)7.31%
EPS beat(16)11
Avg EPS beat(16)8.06%
Revenue beat(2)1
Avg Revenue beat(2)3.55%
Min Revenue beat(2)-21.36%
Max Revenue beat(2)28.46%
Revenue beat(4)2
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-34%
Max Revenue beat(4)28.46%
Revenue beat(8)5
Avg Revenue beat(8)3.26%
Revenue beat(12)8
Avg Revenue beat(12)2.49%
Revenue beat(16)11
Avg Revenue beat(16)2.06%
PT rev (1m)1.2%
PT rev (3m)1.89%
EPS NQ rev (1m)-0.54%
EPS NQ rev (3m)-1.28%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)-1.15%
Revenue NQ rev (1m)0.32%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)1.7%
Revenue NY rev (3m)2.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.12 | ||
| Fwd PE | 14.11 | ||
| P/S | 3.26 | ||
| P/FCF | 22.52 | ||
| P/OCF | 22.52 | ||
| P/B | 2.09 | ||
| P/tB | 2.11 | ||
| EV/EBITDA | 10.57 |
EPS(TTM)6.2
EY7.08%
EPS(NY)6.21
Fwd EY7.09%
FCF(TTM)3.89
FCFY4.44%
OCF(TTM)3.89
OCFY4.44%
SpS26.83
BVpS41.84
TBVpS41.43
PEG (NY)N/A
PEG (5Y)1.38
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.99% | ||
| ROE | 13.64% | ||
| ROCE | 3.85% | ||
| ROIC | 3.34% | ||
| ROICexc | 3.49% | ||
| ROICexgc | 3.57% | ||
| OM | 27.18% | ||
| PM (TTM) | 21.28% | ||
| GM | N/A | ||
| FCFM | 14.49% |
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-Score4
Asset Turnover0.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.13 | ||
| Debt/EBITDA | 1.39 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 24.68 | ||
| Cash Conversion | 44.96% | ||
| Profit Quality | 68.1% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score4
WACC7.96%
ROIC/WACC0.42
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)13.34%
EPS 3Y6.78%
EPS 5Y10.21%
EPS Q2Q%0%
EPS Next Y-6.16%
EPS Next 2Y0.05%
EPS Next 3Y1.74%
EPS Next 5Y3.33%
Revenue 1Y (TTM)-12.66%
Revenue growth 3Y-5.07%
Revenue growth 5Y-3.26%
Sales Q2Q%-37.49%
Revenue Next Year2.63%
Revenue Next 2Y1.14%
Revenue Next 3Y1.48%
Revenue Next 5Y2.14%
EBIT growth 1Y-26.94%
EBIT growth 3Y5.83%
EBIT growth 5Y7.05%
EBIT Next Year74.61%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-26.45%
FCF growth 3Y-18.77%
FCF growth 5Y-13.08%
OCF growth 1Y-26.45%
OCF growth 3Y-18.77%
OCF growth 5Y-13.08%