AFLAC INC (AFL) Stock Fundamental Analysis
USA - NYSE:AFL - US0010551028 - Common Stock
107.63 USD
-0.78 (-0.72%)
107.63 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to AFL. AFL was compared to 146 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.
AFL had a positive operating cash flow in the past year.
AFL had positive earnings in each of the past 5 years.
In the past 5 years AFL always reported a positive cash flow from operatings.
1.2 Ratios
AFL has a Return On Assets (1.95%) which is in line with its industry peers.
AFL has a Return On Equity (8.96%) which is comparable to the rest of the industry.
AFL has a Return On Invested Capital (2.38%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for AFL is in line with the industry average of 4.47%.
| 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
AFL's Profit Margin of 15.32% is amongst the best of the industry. AFL outperforms 82.19% of its industry peers.
In the last couple of years the Profit Margin of AFL has grown nicely.
AFL has a Operating Margin of 21.35%. This is amongst the best in the industry. AFL outperforms 84.25% 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
AFL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
AFL has less shares outstanding than it did 1 year ago.
The number of shares outstanding for AFL has been reduced compared to 5 years ago.
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.
AFL has a Debt to FCF ratio of 3.41. This is comparable to the rest of the industry: AFL outperforms 45.21% 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.
Looking at the Debt to Equity ratio, with a value of 0.32, AFL is in line with its industry, outperforming 47.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.32 | ||
| Debt/FCF | 3.41 | ||
| Altman-Z | N/A |
ROIC/WACC0.3
WACC7.95%
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.
The Earnings Per Share has been growing by 10.21% on average over the past years. This is quite good.
AFL shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -17.57%.
Measured over the past years, AFL shows a decrease in Revenue. The Revenue has been decreasing by -3.26% on average per year.
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.
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 Year3.6%
Revenue Next 2Y1.25%
Revenue Next 3Y1.47%
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 15.01.
AFL's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of AFL to the average of the S&P500 Index (27.20), we can say AFL is valued slightly cheaper.
With a Price/Forward Earnings ratio of 14.66, AFL is valued correctly.
Based on the Price/Forward Earnings ratio, AFL is valued a bit more expensive than 60.96% of the companies in the same industry.
AFL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.71.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.01 | ||
| Fwd PE | 14.66 |
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 the industry average as 63.01% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.22 | ||
| EV/EBITDA | 13.95 |
4.3 Compensation for Growth
The decent profitability rating of AFL may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)1.47
EPS Next 2Y0.84%
EPS Next 3Y2.35%
5. Dividend
5.1 Amount
AFL has a Yearly Dividend Yield of 2.13%.
AFL's Dividend Yield is comparable with the industry average which is at 3.43.
Compared to an average S&P500 Dividend Yield of 2.38, AFL has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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
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%
107.63
-0.78 (-0.72%)
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-0.49%
Market Cap57.56B
Analysts66.32
Price Target110.93 (3.07%)
Short Float %1.59%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
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)0.85%
PT rev (3m)2.35%
EPS NQ rev (1m)1.01%
EPS NQ rev (3m)2.38%
EPS NY rev (1m)1.81%
EPS NY rev (3m)1.68%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0.94%
Revenue NY rev (3m)2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.01 | ||
| Fwd PE | 14.66 | ||
| P/S | 3.62 | ||
| P/FCF | 22.22 | ||
| P/OCF | 22.22 | ||
| P/B | 2.12 | ||
| P/tB | 2.12 | ||
| EV/EBITDA | 13.95 |
EPS(TTM)7.17
EY6.66%
EPS(NY)7.34
Fwd EY6.82%
FCF(TTM)4.84
FCFY4.5%
OCF(TTM)4.84
OCFY4.5%
SpS29.75
BVpS50.86
TBVpS50.86
PEG (NY)N/A
PEG (5Y)1.47
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
WACC7.95%
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 Year3.6%
Revenue Next 2Y1.25%
Revenue Next 3Y1.47%
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%