Market Cap
US$26.8b
Last Updated
2020/08/13 00:14 UTC
Data Sources
Company Financials +
Executive Summary
Aflac Incorporated, through its subsidiaries, provides supplemental health and life insurance products.
Rewards
Risk Analysis
No risks detected for AFL from our risk checks.
Snowflake Analysis
Established dividend payer and good value.
Similar Companies
Share Price & News
How has Aflac's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: AFL has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
6.2%
AFL
1.9%
US Insurance
0.7%
US Market
1 Year Return
-27.8%
AFL
-9.6%
US Insurance
20.1%
US Market
Return vs Industry: AFL underperformed the US Insurance industry which returned -9.5% over the past year.
Return vs Market: AFL underperformed the US Market which returned 17.1% over the past year.
Shareholder returns
| AFL | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.2% | 1.9% | 0.7% |
| 30 Day | 5.5% | 6.6% | 6.4% |
| 90 Day | 14.0% | 21.7% | 20.1% |
| 1 Year | -26.0%-27.8% | -7.2%-9.6% | 22.6%20.1% |
| 3 Year | 0.9%-5.8% | 6.2%-1.8% | 45.1%35.7% |
| 5 Year | 37.3%22.8% | 38.3%21.0% | 79.7%60.3% |
Price Volatility Vs. Market
How volatile is Aflac's share price compared to the market and industry in the last 5 years?
Simply Wall St News
11 months ago | Simply Wall St
Be Sure To Check Out Aflac Incorporated (NYSE:AFL) Before It Goes Ex-Dividend1 year ago | Simply Wall St
Have Insiders Sold Aflac Incorporated (NYSE:AFL) Shares Recently?1 year ago | Simply Wall St
How Does Aflac Incorporated (NYSE:AFL) Stand Up To These Simple Dividend Safety Checks?Valuation
Is Aflac undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AFL ($37.62) is trading below our estimate of fair value ($81.2)
Significantly Below Fair Value: AFL is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: AFL is good value based on its PE Ratio (9.4x) compared to the US Insurance industry average (15.3x).
PE vs Market: AFL is good value based on its PE Ratio (9.4x) compared to the US market (19.1x).
Price to Earnings Growth Ratio
PEG Ratio: AFL is poor value based on its PEG Ratio (2x)
Price to Book Ratio
PB vs Industry: AFL's PB Ratio (0.9x) is in line with the US Insurance industry average.
Next Steps
Future Growth
How is Aflac forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
4.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AFL's forecast earnings growth (4.6% per year) is above the savings rate (2.2%).
Earnings vs Market: AFL's earnings (4.6% per year) are forecast to grow slower than the US market (24.1% per year).
High Growth Earnings: AFL's earnings are forecast to grow, but not significantly.
Revenue vs Market: AFL's revenue is expected to decline over the next 3 years (-2.2% per year).
High Growth Revenue: AFL's revenue is forecast to decline over the next 3 years (-2.2% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: AFL's Return on Equity is forecast to be low in 3 years time (11.7%).
Next Steps
Past Performance
How has Aflac performed over the past 5 years?
6.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AFL has high quality earnings.
Growing Profit Margin: AFL's current net profit margins (13.5%) are lower than last year (14.2%).
Past Earnings Growth Analysis
Earnings Trend: AFL's earnings have grown by 6% per year over the past 5 years.
Accelerating Growth: AFL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: AFL had negative earnings growth (-5.9%) over the past year, making it difficult to compare to the Insurance industry average (-4%).
Return on Equity
High ROE: AFL's Return on Equity (10%) is considered low.
Next Steps
Financial Health
How is Aflac's financial position?
Financial Position Analysis
Short Term Liabilities: AFL's short term assets ($9.4B) do not cover its short term liabilities ($16.8B).
Long Term Liabilities: AFL's short term assets ($9.4B) do not cover its long term liabilities ($110.9B).
Debt to Equity History and Analysis
Debt Level: AFL's debt to equity ratio (33.4%) is considered satisfactory.
Reducing Debt: AFL's debt to equity ratio has reduced from 37.7% to 33.4% over the past 5 years.
Debt Coverage: AFL's debt is well covered by operating cash flow (57.9%).
Interest Coverage: AFL's interest payments on its debt are well covered by EBIT (17.9x coverage).
Balance Sheet
Next Steps
Dividend
What is Aflac current dividend yield, its reliability and sustainability?
2.98%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: AFL's dividend (2.98%) is higher than the bottom 25% of dividend payers in the US market (1.6%).
High Dividend: AFL's dividend (2.98%) is low compared to the top 25% of dividend payers in the US market (4.3%).
Stability and Growth of Payments
Stable Dividend: AFL's dividends per share have been stable in the past 10 years.
Growing Dividend: AFL's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (27.4%), AFL's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AFL's dividends in 3 years are forecast to be well covered by earnings (26.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
3.1yrs
Average management tenure
CEO
Dan Amos (68 yo)
30.58yrs
Tenure
US$14,108,852
Compensation
Mr. Daniel Paul Amos, also known as Dan, has been the Chief Executive Officer of AFLAC Inc. since 1990 and served as its President since February 13, 2018 until 2020. He has been a Director of Aflac Incorp ...
CEO Compensation Analysis
Compensation vs Market: Dan's total compensation ($USD14.11M) is about average for companies of similar size in the US market ($USD11.36M).
Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 30.58yrs | US$14.11m | 0.46% $ 123.1m | |
| President & COO | 0.58yr | US$5.22m | 0.035% $ 9.3m | |
| Executive VP | 8.58yrs | US$4.39m | 0.036% $ 9.5m | |
| President of Aflac International & Chairman of Aflac Life Insurance Japan | 12.17yrs | US$3.96m | 0.022% $ 5.9m | |
| President | no data | US$3.60m | 0.0060% $ 1.6m | |
| Executive VP & CFO | 0.58yr | no data | 0.00056% $ 150.2k | |
| Senior VP of Financial Services & Chief Accounting Officer | 9.75yrs | no data | 0.011% $ 3.0m | |
| Senior VP and Chief Information & Technology Officer | 1.25yrs | no data | no data | |
| Vice President of Investor & Rating Agency Relations | no data | no data | no data | |
| Executive VP & General Counsel | 6.25yrs | US$4.37m | 0.020% $ 5.4m | |
| Senior VP and Chief Brand & Communications Officer | 2.83yrs | no data | no data | |
| Executive VP | 2.33yrs | no data | 0.0074% $ 2.0m |
3.1yrs
Average Tenure
56yo
Average Age
Experienced Management: AFL's management team is considered experienced (3.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 30.58yrs | US$14.11m | 0.46% $ 123.1m | |
| President of Aflac International & Chairman of Aflac Life Insurance Japan | 12.17yrs | US$3.96m | 0.022% $ 5.9m | |
| President | no data | US$3.60m | 0.0060% $ 1.6m | |
| Executive VP and Chief Transformation Officer of IT | 3.58yrs | no data | no data | |
| Independent Director | 25.58yrs | US$317.16k | 0.0043% $ 1.1m | |
| Independent Director | 8.25yrs | US$300.05k | 0.0058% $ 1.6m | |
| Independent Lead Non-Management Director | 1.25yrs | US$360.05k | 0.0053% $ 1.4m | |
| Independent Director | 5.5yrs | US$300.09k | 0.0041% $ 1.1m | |
| Independent Director | 2.75yrs | US$280.05k | 0.0018% $ 477.4k | |
| Independent Director | 4.25yrs | US$280.05k | 0.0022% $ 592.7k | |
| Independent Director | 3.58yrs | US$320.05k | 0.0046% $ 1.2m | |
| Independent Director | 5.25yrs | US$290.05k | 0.0024% $ 630.3k |
5.3yrs
Average Tenure
64yo
Average Age
Experienced Board: AFL's board of directors are considered experienced (5.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Aflac Incorporated's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Aflac Incorporated
- Ticker: AFL
- Exchange: NYSE
- Founded: 1955
- Industry: Life and Health Insurance
- Sector: Insurance
- Market Cap: US$26.820b
- Shares outstanding: 712.91m
- Website: https://www.aflac.com
Number of Employees
Location
- Aflac Incorporated
- 1932 Wynnton Road
- Columbus
- Georgia
- 31999
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| AFL | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Aug 1973 |
| AFL | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Aug 1973 |
| 0H68 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Aug 1973 |
| AFL * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Aug 1973 |
| A1FL34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH REPR 1 COM | BR | BRL | Dec 2019 |
Biography
Aflac Incorporated, through its subsidiaries, provides supplemental health and life insurance products. It operates through two segments, Aflac Japan and Aflac U.S. The Aflac Japan segment offers cancer, m ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/08/13 00:14 |
| End of Day Share Price | 2020/08/12 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.