AFLAC INC (AFL.DE) Stock Fundamental Analysis
FRA:AFL - US0010551028 - Common Stock
91.34 EUR
-1.02 (-1.1%)
We assign a fundamental rating of 4 out of 10 to AFL. AFL was compared to 36 industry peers in the Insurance industry. AFL has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year AFL had a positive cash flow from operations.
AFL had positive earnings in each of the past 5 years.
AFL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
AFL has a Return On Assets of 1.95%. This is in the better half of the industry: AFL outperforms 77.78% of its industry peers.
AFL's Return On Equity of 8.96% is on the low side compared to the rest of the industry. AFL is outperformed by 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.38%, AFL is in the better half of the industry, outperforming 69.44% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for AFL is in line with the industry average of 2.28%.
| 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 86.11% 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 21.35%. This is amongst the best in the industry. AFL outperforms 86.11% of its industry peers.
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
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
Compared to 1 year ago, AFL has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of AFL is 3.41, which is a good value as it means it would take AFL, 3.41 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.41, AFL is in line with its industry, outperforming 50.00% of the companies in the same industry.
A Debt/Equity ratio of 0.32 indicates that AFL is not too dependend on debt financing.
AFL has a Debt to Equity ratio of 0.32. This is amongst the best in the industry. AFL outperforms 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | N/A |
ROIC/WACC0.3
WACC7.88%
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.
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 -17.57% in the last year.
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.
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-4.46%
EPS Next 2Y0.84%
EPS Next 3Y2.35%
EPS Next 5Y3.33%
Revenue Next Year3.13%
Revenue Next 2Y1.39%
Revenue Next 3Y1.65%
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
The Price/Earnings ratio is 14.90, which indicates a correct valuation of AFL.
AFL's Price/Earnings ratio is a bit more expensive when compared to the industry. AFL is more expensive than 72.22% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.06, AFL is valued a bit cheaper.
The Price/Forward Earnings ratio is 14.55, which indicates a correct valuation of AFL.
72.22% of the companies in the same industry are cheaper than AFL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.69. AFL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.9 | ||
| Fwd PE | 14.55 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, AFL is valued a bit cheaper than the industry average as 63.89% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, AFL is valued a bit more expensive than 72.22% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.05 | ||
| EV/EBITDA | 13.85 |
4.3 Compensation for Growth
The decent profitability rating of AFL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.46
EPS Next 2Y0.84%
EPS Next 3Y2.35%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.14%, AFL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.53, AFL's dividend is way lower than its industry peers. On top of this 86.11% 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 | 2.14% |
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
46.94% of the earnings are spent on dividend by AFL. 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 2Y0.84%
EPS Next 3Y2.35%
FRA:AFL (9/5/2025, 7:00:00 PM)
91.34
-1.02 (-1.1%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners59.71%
Inst Owner ChangeN/A
Ins Owners0.79%
Ins Owner ChangeN/A
Market Cap48.85B
Analysts66.32
Price Target94.9 (3.9%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
Yearly Dividend1.65
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)-0.78%
PT rev (3m)-0.5%
EPS NQ rev (1m)1.12%
EPS NQ rev (3m)0.11%
EPS NY rev (1m)1.81%
EPS NY rev (3m)1.68%
Revenue NQ rev (1m)0.91%
Revenue NQ rev (3m)-3.79%
Revenue NY rev (1m)0.49%
Revenue NY rev (3m)2.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.9 | ||
| Fwd PE | 14.55 | ||
| P/S | 3.59 | ||
| P/FCF | 22.05 | ||
| P/OCF | 22.05 | ||
| P/B | 2.1 | ||
| P/tB | 2.1 | ||
| EV/EBITDA | 13.85 |
EPS(TTM)6.13
EY6.71%
EPS(NY)6.28
Fwd EY6.87%
FCF(TTM)4.14
FCFY4.53%
OCF(TTM)4.14
OCFY4.53%
SpS25.43
BVpS43.48
TBVpS43.48
PEG (NY)N/A
PEG (5Y)1.46
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
WACC7.88%
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 Year3.13%
Revenue Next 2Y1.39%
Revenue Next 3Y1.65%
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%