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AFLAC INC (AFL) Stock Fundamental Analysis

NYSE:AFL - New York Stock Exchange, Inc. - US0010551028 - Common Stock - Currency: USD

104.97  -2.47 (-2.3%)

After market: 104.97 0 (0%)

Fundamental Rating

5

Taking everything into account, AFL scores 5 out of 10 in our fundamental rating. AFL was compared to 143 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 valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

AFL had positive earnings in the past year.
AFL had a positive operating cash flow in the past year.
Each year in the past 5 years AFL has been profitable.
Each year in the past 5 years AFL had a positive operating cash flow.
AFL Yearly Net Income VS EBIT VS OCF VS FCFAFL Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

1.2 Ratios

AFL has a better Return On Assets (4.63%) than 82.52% of its industry peers.
AFL's Return On Equity of 20.86% is amongst the best of the industry. AFL outperforms 85.31% of its industry peers.
The Return On Invested Capital of AFL (4.91%) is better than 79.72% 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 4.47%.
The 3 year average ROIC (3.95%) for AFL is below the current ROIC(4.91%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 4.63%
ROE 20.86%
ROIC 4.91%
ROA(3y)3.83%
ROA(5y)3.43%
ROE(3y)20.97%
ROE(5y)18.03%
ROIC(3y)3.95%
ROIC(5y)3.48%
AFL Yearly ROA, ROE, ROICAFL Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

AFL has a Profit Margin of 28.76%. This is amongst the best in the industry. AFL outperforms 95.80% of its industry peers.
In the last couple of years the Profit Margin of AFL has grown nicely.
The Operating Margin of AFL (34.94%) is better than 95.10% of its industry peers.
In the last couple of years the Operating Margin of AFL has grown nicely.
Industry RankSector Rank
OM 34.94%
PM (TTM) 28.76%
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
AFL Yearly Profit, Operating, Gross MarginsAFL Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

3

2. Health

2.1 Basic Checks

AFL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for AFL has been reduced compared to 1 year ago.
AFL has less shares outstanding than it did 5 years ago.
The debt/assets ratio for AFL is higher compared to a year ago.
AFL Yearly Shares OutstandingAFL Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
AFL Yearly Total Debt VS Total AssetsAFL Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50B 100B 150B

2.2 Solvency

AFL has a debt to FCF ratio of 2.74. This is a good value and a sign of high solvency as AFL would need 2.74 years to pay back of all of its debts.
AFL's Debt to FCF ratio of 2.74 is in line compared to the rest of the industry. AFL outperforms 41.26% of its industry peers.
A Debt/Equity ratio of 0.28 indicates that AFL is not too dependend on debt financing.
AFL has a better Debt to Equity ratio (0.28) than 61.54% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF 2.74
Altman-Z N/A
ROIC/WACC0.6
WACC8.2%
AFL Yearly LT Debt VS Equity VS FCFAFL Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
AFL Yearly Current Assets VS Current LiabilitesAFL Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

4

3. Growth

3.1 Past

The Earnings Per Share has grown by an nice 15.34% 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.
AFL shows a small growth in Revenue. In the last year, the Revenue has grown by 1.21%.
The Revenue has been decreasing by -3.26% on average over the past years.
EPS 1Y (TTM)15.34%
EPS 3Y6.78%
EPS 5Y10.21%
EPS Q2Q%25.6%
Revenue 1Y (TTM)1.21%
Revenue growth 3Y-5.07%
Revenue growth 5Y-3.26%
Sales Q2Q%43.05%

3.2 Future

AFL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 3.65% yearly.
The Revenue is expected to grow by 2.28% on average over the next years.
EPS Next Y-5.07%
EPS Next 2Y0.34%
EPS Next 3Y1.53%
EPS Next 5Y3.65%
Revenue Next Year4.47%
Revenue Next 2Y2.99%
Revenue Next 3Y1.09%
Revenue Next 5Y2.28%

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.
AFL Yearly Revenue VS EstimatesAFL Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 5B 10B 15B 20B
AFL Yearly EPS VS EstimatesAFL Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8

3

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 14.54, the valuation of AFL can be described as correct.
AFL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. AFL is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 15.31, which indicates a correct valuation of AFL.
60.14% of the companies in the same industry are cheaper than AFL, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of AFL to the average of the S&P500 Index (21.32), we can say AFL is valued slightly cheaper.
Industry RankSector Rank
PE 14.54
Fwd PE 15.31
AFL Price Earnings VS Forward Price EarningsAFL Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

62.24% of the companies in the same industry are more expensive than AFL, based on the Enterprise Value to EBITDA ratio.
AFL's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. AFL is more expensive than 62.94% of the companies in the same industry.
Industry RankSector Rank
P/FCF 21.17
EV/EBITDA 8.01
AFL Per share dataAFL EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

AFL has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.42
EPS Next 2Y0.34%
EPS Next 3Y1.53%

6

5. Dividend

5.1 Amount

AFL has a Yearly Dividend Yield of 2.16%.
Compared to an average industry Dividend Yield of 3.28, AFL has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.51, AFL has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.16%

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 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
AFL Yearly Dividends per shareAFL Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5

5.3 Sustainability

AFL pays out 19.97% 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.
DP19.97%
EPS Next 2Y0.34%
EPS Next 3Y1.53%
AFL Yearly Income VS Free CF VS DividendAFL Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B
AFL Dividend Payout.AFL Dividend Payout, showing the Payout Ratio.AFL Dividend Payout.PayoutRetained Earnings

AFLAC INC

NYSE:AFL (4/21/2025, 4:37:35 PM)

After market: 104.97 0 (0%)

104.97

-2.47 (-2.3%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)02-05 2025-02-05/amc
Earnings (Next)04-30 2025-04-30/amc
Inst Owners59.77%
Inst Owner Change0.44%
Ins Owners0.79%
Ins Owner Change3.69%
Market Cap57.29B
Analysts66
Price Target108.04 (2.92%)
Short Float %1.87%
Short Ratio4.81
Dividend
Industry RankSector Rank
Dividend Yield 2.16%
Yearly Dividend1.93
Dividend Growth(5Y)13.11%
DP19.97%
Div Incr Years34
Div Non Decr Years34
Ex-Date02-19 2025-02-19 (0.58)
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)11.44%
Min EPS beat(2)-4.02%
Max EPS beat(2)26.91%
EPS beat(4)3
Avg EPS beat(4)10.02%
Min EPS beat(4)-4.02%
Max EPS beat(4)26.91%
EPS beat(8)6
Avg EPS beat(8)8.6%
EPS beat(12)9
Avg EPS beat(12)7.69%
EPS beat(16)12
Avg EPS beat(16)9.72%
Revenue beat(2)1
Avg Revenue beat(2)-2.77%
Min Revenue beat(2)-34%
Max Revenue beat(2)28.46%
Revenue beat(4)3
Avg Revenue beat(4)9.42%
Min Revenue beat(4)-34%
Max Revenue beat(4)28.46%
Revenue beat(8)6
Avg Revenue beat(8)6.31%
Revenue beat(12)9
Avg Revenue beat(12)4.28%
Revenue beat(16)12
Avg Revenue beat(16)3.7%
PT rev (1m)0.51%
PT rev (3m)0.15%
EPS NQ rev (1m)-0.04%
EPS NQ rev (3m)-6.89%
EPS NY rev (1m)-0.62%
EPS NY rev (3m)-3.55%
Revenue NQ rev (1m)-5.53%
Revenue NQ rev (3m)-2.7%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)2.45%
Valuation
Industry RankSector Rank
PE 14.54
Fwd PE 15.31
P/S 3.03
P/FCF 21.17
P/OCF 21.17
P/B 2.2
P/tB 2.2
EV/EBITDA 8.01
EPS(TTM)7.22
EY6.88%
EPS(NY)6.85
Fwd EY6.53%
FCF(TTM)4.96
FCFY4.72%
OCF(TTM)4.96
OCFY4.72%
SpS34.68
BVpS47.82
TBVpS47.82
PEG (NY)N/A
PEG (5Y)1.42
Profitability
Industry RankSector Rank
ROA 4.63%
ROE 20.86%
ROCE 5.66%
ROIC 4.91%
ROICexc 5.18%
ROICexgc 5.31%
OM 34.94%
PM (TTM) 28.76%
GM N/A
FCFM 14.3%
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-Score7
Asset Turnover0.16
Health
Industry RankSector Rank
Debt/Equity 0.28
Debt/FCF 2.74
Debt/EBITDA 0.98
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 36.74
Cash Conversion 36.27%
Profit Quality 49.73%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score7
WACC8.2%
ROIC/WACC0.6
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)15.34%
EPS 3Y6.78%
EPS 5Y10.21%
EPS Q2Q%25.6%
EPS Next Y-5.07%
EPS Next 2Y0.34%
EPS Next 3Y1.53%
EPS Next 5Y3.65%
Revenue 1Y (TTM)1.21%
Revenue growth 3Y-5.07%
Revenue growth 5Y-3.26%
Sales Q2Q%43.05%
Revenue Next Year4.47%
Revenue Next 2Y2.99%
Revenue Next 3Y1.09%
Revenue Next 5Y2.28%
EBIT growth 1Y21.18%
EBIT growth 3Y5.83%
EBIT growth 5Y7.05%
EBIT Next Year86.7%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-15.14%
FCF growth 3Y-18.77%
FCF growth 5Y-13.08%
OCF growth 1Y-15.14%
OCF growth 3Y-18.77%
OCF growth 5Y-13.08%