AFLAC INC (AFL) Stock Fundamental Analysis
USA - NYSE:AFL - US0010551028 - Common Stock
112.68 USD
-0.39 (-0.34%)
We assign a fundamental rating of 4 out of 10 to AFL. AFL was compared to 145 industry peers in the Insurance industry. While AFL is still in line with the averages on profitability rating, there are concerns on its financial health. 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.
In the past 5 years AFL has always been profitable.
AFL had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of AFL (1.95%) is comparable to the rest of the industry.
AFL has a Return On Equity of 8.96%. This is comparable to the rest of the industry: AFL outperforms 44.14% of its industry peers.
With a Return On Invested Capital value of 2.38%, AFL perfoms like the industry average, outperforming 49.66% 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 4.40%.
| 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
The Profit Margin of AFL (15.32%) is better than 82.07% of its industry peers.
AFL's Profit Margin has improved in the last couple of years.
AFL's Operating Margin of 21.35% is amongst the best of the industry. AFL outperforms 84.14% 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.
AFL has less shares outstanding than it did 1 year ago.
AFL has less shares outstanding than it did 5 years ago.
AFL has a worse debt/assets ratio than last year.
2.2 Solvency
The Debt to FCF ratio of AFL is 3.41, 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 46.21% of its industry peers.
AFL has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
AFL has a Debt to Equity ratio of 0.32. This is comparable to the rest of the industry: AFL outperforms 47.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | N/A |
ROIC/WACC0.3
WACC8.05%
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
The Earnings Per Share is expected to grow by 3.33% on average over the next years.
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-3.89%
EPS Next 2Y1.15%
EPS Next 3Y2.55%
EPS Next 5Y3.33%
Revenue Next Year3.6%
Revenue Next 2Y1.26%
Revenue Next 3Y1.48%
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.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 15.72, the valuation of AFL can be described as correct.
Based on the Price/Earnings ratio, AFL is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.90, AFL is valued a bit cheaper.
The Price/Forward Earnings ratio is 15.25, which indicates a correct valuation of AFL.
Compared to the rest of the industry, the Price/Forward Earnings ratio of AFL indicates a slightly more expensive valuation: AFL is more expensive than 62.76% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.36, AFL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.72 | ||
| Fwd PE | 15.25 |
4.2 Price Multiples
AFL's Enterprise Value to EBITDA is on the same level as 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 62.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.26 | ||
| EV/EBITDA | 14.64 |
4.3 Compensation for Growth
The decent profitability rating of AFL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.54
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 3.33, AFL has a dividend in line with its industry peers.
AFL's Dividend Yield is comparable with the S&P500 average which is at 2.44.
| 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%!
AFL has been paying a dividend for at least 10 years, so it has a reliable track record.
AFL has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.11%
Div Incr Years34
Div Non Decr Years34
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 2Y1.15%
EPS Next 3Y2.55%
NYSE:AFL (10/7/2025, 10:37:01 AM)
112.68
-0.39 (-0.34%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners59.68%
Inst Owner Change0%
Ins Owners0.8%
Ins Owner Change-0.5%
Market Cap60.26B
Analysts66.67
Price Target110.93 (-1.55%)
Short Float %1.61%
Short Ratio3
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.1% |
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)0.23%
PT rev (3m)2.35%
EPS NQ rev (1m)0.81%
EPS NQ rev (3m)2.47%
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 | 15.72 | ||
| Fwd PE | 15.25 | ||
| P/S | 3.79 | ||
| P/FCF | 23.26 | ||
| P/OCF | 23.26 | ||
| P/B | 2.22 | ||
| P/tB | 2.22 | ||
| EV/EBITDA | 14.64 |
EPS(TTM)7.17
EY6.36%
EPS(NY)7.39
Fwd EY6.56%
FCF(TTM)4.84
FCFY4.3%
OCF(TTM)4.84
OCFY4.3%
SpS29.75
BVpS50.86
TBVpS50.86
PEG (NY)N/A
PEG (5Y)1.54
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
WACC8.05%
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 2Y1.26%
Revenue Next 3Y1.48%
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%