AFLAC INC (AFL.DE) Stock Fundamental Analysis
FRA:AFL - Deutsche Boerse Ag - US0010551028 - Common Stock - Currency: EUR
AFL gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 37 industry peers in the Insurance industry. While AFL has a great profitability rating, there are quite some 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
AFL's Return On Assets of 2.99% is amongst the best of the industry. AFL outperforms 83.78% of its industry peers.
AFL's Return On Equity of 13.64% is in line compared to the rest of the industry. AFL outperforms 48.65% of its industry peers.
AFL has a better Return On Invested Capital (3.34%) than 86.49% 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 2.10%.
| 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 94.59% of the companies in the same industry.
In the last couple of years the Profit Margin of AFL has grown nicely.
AFL's Operating Margin of 27.18% is amongst the best of the industry. AFL outperforms 94.59% 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.
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 3.13. This is a good value and a sign of high solvency as AFL would need 3.13 years to pay back of all of its debts.
AFL's Debt to FCF ratio of 3.13 is in line compared to the rest of the industry. AFL outperforms 59.46% of its industry peers.
AFL has a Debt/Equity ratio of 0.29. This is a healthy value indicating a solid balance between debt and equity.
With an excellent Debt to Equity ratio value of 0.29, AFL belongs to the best of the industry, outperforming 81.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.29 | ||
| Debt/FCF | 3.13 | ||
| Altman-Z | N/A |
ROIC/WACC0.4
WACC8.24%
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.
AFL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.21% yearly.
AFL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.66%.
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
Based on estimates for the next years, AFL will show a small growth in Earnings Per Share. The EPS will grow by 3.65% on average per year.
The Revenue is expected to grow by 2.28% on average over the next years.
EPS Next Y-6.03%
EPS Next 2Y0.28%
EPS Next 3Y1.83%
EPS Next 5Y3.65%
Revenue Next Year-0.7%
Revenue Next 2Y0.54%
Revenue Next 3Y1.08%
Revenue Next 5Y2.28%
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
AFL is valuated correctly with a Price/Earnings ratio of 14.06.
Compared to the rest of the industry, the Price/Earnings ratio of AFL is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 26.25. AFL is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.98, which indicates a correct valuation of AFL.
Based on the Price/Forward Earnings ratio, AFL is valued a bit more expensive than the industry average as 72.97% of the companies are valued more cheaply.
The average S&P500 Price/Forward Earnings ratio is at 22.15. AFL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 13.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFL is valued a bit cheaper than 67.57% of the companies in the same industry.
70.27% of the companies in the same industry are cheaper than AFL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.42 | ||
| EV/EBITDA | 10.65 |
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 2Y0.28%
EPS Next 3Y1.83%
5. Dividend
5.1 Amount
AFL has a Yearly Dividend Yield of 2.26%. Purely for dividend investing, there may be better candidates out there.
With a Dividend Yield of 2.26, AFL pays less dividend than the industry average, which is at 4.50. 81.08% of the companies listed in the same industry pay a better dividend than AFL!
AFL's Dividend Yield is comparable with the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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.
AFL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.03%
EPS Next 2Y0.28%
EPS Next 3Y1.83%
FRA:AFL (5/29/2025, 7:00:00 PM)
89.96
-1.12 (-1.23%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners59.77%
Inst Owner ChangeN/A
Ins Owners0.79%
Ins Owner ChangeN/A
Market Cap48.64B
Analysts66.32
Price Target95.94 (6.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
Yearly Dividend1.7
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)-1.61%
PT rev (3m)-6.18%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)-1.67%
EPS NY rev (1m)-1.01%
EPS NY rev (3m)-1.63%
Revenue NQ rev (1m)-4.64%
Revenue NQ rev (3m)-5.24%
Revenue NY rev (1m)-1.26%
Revenue NY rev (3m)-4.57%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.06 | ||
| Fwd PE | 13.98 | ||
| P/S | 3.25 | ||
| P/FCF | 22.42 | ||
| P/OCF | 22.42 | ||
| P/B | 2.08 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 10.65 |
EPS(TTM)6.4
EY7.11%
EPS(NY)6.44
Fwd EY7.15%
FCF(TTM)4.01
FCFY4.46%
OCF(TTM)4.01
OCFY4.46%
SpS27.69
BVpS43.18
TBVpS42.76
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
WACC8.24%
ROIC/WACC0.4
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-6.03%
EPS Next 2Y0.28%
EPS Next 3Y1.83%
EPS Next 5Y3.65%
Revenue 1Y (TTM)-12.66%
Revenue growth 3Y-5.07%
Revenue growth 5Y-3.26%
Sales Q2Q%-37.49%
Revenue Next Year-0.7%
Revenue Next 2Y0.54%
Revenue Next 3Y1.08%
Revenue Next 5Y2.28%
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%