AFLAC INC (AFL)

US0010551028 - Common Stock

86.1  +0.48 (+0.56%)

Fundamental Rating

5

AFL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 140 industry peers in the Insurance industry. AFL has an excellent profitability rating, but there are concerns on its financial health. AFL has a valuation in line with the averages, but on the other hand it scores bad on growth.



7

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.
AFL had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 3.68%, AFL is in the better half of the industry, outperforming 72.66% of the companies in the same industry.
The Return On Equity of AFL (21.19%) is better than 86.33% of its industry peers.
With a decent Return On Invested Capital value of 3.88%, AFL is doing good in the industry, outperforming 78.42% of the companies in the same industry.
AFL had an Average Return On Invested Capital over the past 3 years of 3.50%. This is in line with the industry average of 4.02%.
The last Return On Invested Capital (3.88%) for AFL is above the 3 year average (3.50%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.68%
ROE 21.19%
ROIC 3.88%
ROA(3y)3.2%
ROA(5y)2.93%
ROE(3y)18.35%
ROE(5y)16.14%
ROIC(3y)3.5%
ROIC(5y)3.17%

1.3 Margins

The Profit Margin of AFL (24.92%) is better than 90.65% of its industry peers.
AFL's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 29.18%, AFL belongs to the best of the industry, outperforming 92.09% of the companies in the same industry.
In the last couple of years the Operating Margin of AFL has grown nicely.
Industry RankSector Rank
OM 29.18%
PM (TTM) 24.92%
GM N/A
OM growth 3Y13.66%
OM growth 5Y8.26%
PM growth 3Y4.91%
PM growth 5Y13.25%
GM growth 3YN/A
GM growth 5YN/A

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.
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

AFL has a debt to FCF ratio of 2.27. This is a good value and a sign of high solvency as AFL would need 2.27 years to pay back of all of its debts.
The Debt to FCF ratio of AFL (2.27) is comparable to the rest of the industry.
AFL has a Debt/Equity ratio of 0.33. This is a healthy value indicating a solid balance between debt and equity.
AFL has a Debt to Equity ratio of 0.33. This is comparable to the rest of the industry: AFL outperforms 59.71% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF 2.27
Altman-Z N/A
ROIC/WACC0.48
WACC8.03%

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A

3

3. Growth

3.1 Past

AFL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 15.29%, 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 8.67% yearly.
AFL shows a decrease in Revenue. In the last year, the revenue decreased by -2.75%.
The Revenue has been decreasing by -3.05% on average over the past years.
EPS 1Y (TTM)15.29%
EPS 3Y8.14%
EPS 5Y8.67%
EPS growth Q2Q-10.71%
Revenue 1Y (TTM)-2.75%
Revenue growth 3Y-5.48%
Revenue growth 5Y-3.05%
Revenue growth Q2Q-5.9%

3.2 Future

AFL is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 5.67% yearly.
AFL is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -0.24% yearly.
EPS Next Y4.29%
EPS Next 2Y5.68%
EPS Next 3Y5.67%
EPS Next 5YN/A
Revenue Next Year-5.56%
Revenue Next 2Y-2.05%
Revenue Next 3Y-0.24%
Revenue Next 5YN/A

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

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 13.75, the valuation of AFL can be described as correct.
The rest of the industry has a similar Price/Earnings ratio as AFL.
The average S&P500 Price/Earnings ratio is at 26.42. AFL is valued slightly cheaper when compared to this.
Based on the Price/Forward Earnings ratio of 13.19, the valuation of AFL can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as AFL.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.74, AFL is valued a bit cheaper.
Industry RankSector Rank
PE 13.75
Fwd PE 13.19

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, AFL is valued a bit cheaper than the industry average as 69.06% of the companies are valued more expensively.
AFL's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 15.57
EV/EBITDA 8.34

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates AFL does not grow enough to justify the current Price/Earnings ratio.
AFL has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)3.2
PEG (5Y)1.59
EPS Next 2Y5.68%
EPS Next 3Y5.67%

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.35%, AFL has a reasonable but not impressive dividend return.
AFL's Dividend Yield is a higher than the industry average which is at 4.13.
AFL's Dividend Yield is comparable with the S&P500 average which is at 2.34.
Industry RankSector Rank
Dividend Yield 2.35%

5.2 History

The dividend of AFL is nicely growing with an annual growth rate of 9.41%!
AFL has paid a dividend for at least 10 years, which is a reliable track record.
As AFL did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)9.41%
Div Incr Years5
Div Non Decr Years5

5.3 Sustainability

20.73% of the earnings are spent on dividend by AFL. This is a low number and sustainable payout ratio.
AFL's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP20.73%
EPS Next 2Y5.68%
EPS Next 3Y5.67%

AFLAC INC

NYSE:AFL (3/28/2024, 2:07:43 PM)

86.1

+0.48 (+0.56%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap49.68B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield 2.35%
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 13.75
Fwd PE 13.19
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.2
PEG (5Y)1.59
Profitability
Industry RankSector Rank
ROA 3.68%
ROE 21.19%
ROCE
ROIC
ROICexc
ROICexgc
OM 29.18%
PM (TTM) 24.92%
GM N/A
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.15
Health
Industry RankSector Rank
Debt/Equity 0.33
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio N/A
Quick Ratio N/A
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)15.29%
EPS 3Y8.14%
EPS 5Y
EPS growth Q2Q
EPS Next Y4.29%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-2.75%
Revenue growth 3Y-5.48%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y