AFLAC INC (AFL) Stock Fundamental Analysis
NYSE:AFL - US0010551028 - Common Stock
108.46 USD
+0.27 (+0.25%)
108.46 USD
0 (0%)
Taking everything into account, AFL scores 4 out of 10 in our fundamental rating. AFL was compared to 143 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
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.
In the past 5 years AFL always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.95%, AFL is in line with its industry, outperforming 51.75% of the companies in the same industry.
AFL's Return On Equity of 8.96% is in line compared to the rest of the industry. AFL outperforms 44.06% of its industry peers.
AFL has a Return On Invested Capital (2.38%) which 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 4.08%.
| 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
Looking at the Profit Margin, with a value of 15.32%, AFL belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
AFL's Profit Margin has improved in the last couple of years.
AFL has a better Operating Margin (21.35%) than 84.62% of its industry peers.
AFL's Operating Margin has improved in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so AFL is destroying value.
The number of shares outstanding for AFL has been reduced compared to 1 year ago.
The number of shares outstanding for AFL has been reduced compared to 5 years ago.
The debt/assets ratio for AFL is higher compared to a year ago.
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.
AFL's Debt to FCF ratio of 3.41 is in line compared to the rest of the industry. AFL outperforms 44.76% 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 is in line with its industry, outperforming 48.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | N/A |
ROIC/WACC0.29
WACC8.15%
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.
AFL shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.21% yearly.
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
Based on estimates for the next years, AFL will show a small growth in Earnings Per Share. The EPS will grow by 3.33% on average per year.
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 Year3.13%
Revenue Next 2Y1.39%
Revenue Next 3Y1.65%
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 15.13.
AFL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 27.24. AFL is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 14.77, AFL is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AFL is on the same level as its industry peers.
AFL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 35.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.13 | ||
| Fwd PE | 14.77 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as AFL.
Based on the Price/Free Cash Flow ratio, AFL is valued a bit more expensive than 64.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.39 | ||
| EV/EBITDA | 14.06 |
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)1.48
EPS Next 2Y0.84%
EPS Next 3Y2.35%
5. Dividend
5.1 Amount
AFL has a Yearly Dividend Yield of 2.14%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.42, AFL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, AFL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
5.2 History
On average, the dividend of AFL grows each year by 13.11%, which is quite nice.
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
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 2Y0.84%
EPS Next 3Y2.35%
108.46
+0.27 (+0.25%)
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-2.22%
Market Cap58.01B
Analysts66.32
Price Target110.67 (2.04%)
Short Float %1.52%
Short Ratio2.9
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.14% |
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)0.46%
PT rev (3m)2.28%
EPS NQ rev (1m)1.22%
EPS NQ rev (3m)0.01%
EPS NY rev (1m)1.81%
EPS NY rev (3m)1.68%
Revenue NQ rev (1m)1.01%
Revenue NQ rev (3m)-3.71%
Revenue NY rev (1m)2.09%
Revenue NY rev (3m)3.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.13 | ||
| Fwd PE | 14.77 | ||
| P/S | 3.65 | ||
| P/FCF | 22.39 | ||
| P/OCF | 22.39 | ||
| P/B | 2.13 | ||
| P/tB | 2.13 | ||
| EV/EBITDA | 14.06 |
EPS(TTM)7.17
EY6.61%
EPS(NY)7.34
Fwd EY6.77%
FCF(TTM)4.84
FCFY4.47%
OCF(TTM)4.84
OCFY4.47%
SpS29.75
BVpS50.86
TBVpS50.86
PEG (NY)N/A
PEG (5Y)1.48
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
WACC8.15%
ROIC/WACC0.29
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%