Market Cap
US$38.1b
Last Updated
2021/05/09 23:25 UTC
Data Sources
Company Financials +
Executive Summary
Aflac Incorporated, through its subsidiaries, provides supplemental health and life insurance products. More Details
Rewards
Risk Analysis
Earnings are forecast to decline by an average of 15% per year for the next 3 years
Snowflake Analysis
Solid track record established dividend payer.
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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: AFL's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
4.4%
AFL
3.2%
US Insurance
0.2%
US Market
1 Year Return
54.7%
AFL
55.8%
US Insurance
49.9%
US Market
Return vs Industry: AFL underperformed the US Insurance industry which returned 55.9% over the past year.
Return vs Market: AFL exceeded the US Market which returned 49.9% over the past year.
Shareholder returns
| AFL | Industry | Market | |
|---|---|---|---|
| 7 Day | 4.4% | 3.2% | 0.2% |
| 30 Day | 8.7% | 7.5% | 1.5% |
| 90 Day | 21.2% | 16.8% | 3.3% |
| 1 Year | 59.3%54.7% | 59.8%55.8% | 52.4%49.9% |
| 3 Year | 33.4%24.1% | 43.9%33.2% | 63.7%53.4% |
| 5 Year | 83.4%62.9% | 89.5%66.1% | 130.6%104.9% |
Long-Term 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
1 year 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?
48.5%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: AFL ($56.11) is trading below our estimate of fair value ($108.9)
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 (7.2x) compared to the US Insurance industry average (12.9x).
PE vs Market: AFL is good value based on its PE Ratio (7.2x) compared to the US market (20.2x).
Price to Earnings Growth Ratio
PEG Ratio: AFL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: AFL's PB Ratio (1.2x) is in line with the US Insurance industry average.
Future Growth
How is Aflac forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?
-15.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: AFL's earnings are forecast to decline over the next 3 years (-15% per year).
Earnings vs Market: AFL's earnings are forecast to decline over the next 3 years (-15% per year).
High Growth Earnings: AFL's earnings are forecast to decline over the next 3 years.
Revenue vs Market: AFL's revenue is expected to decline over the next 3 years (-2.3% per year).
High Growth Revenue: AFL's revenue is forecast to decline over the next 3 years (-2.3% 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 (10.6%).
Past Performance
How has Aflac performed over the past 5 years?
9.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AFL has high quality earnings.
Growing Profit Margin: AFL's current net profit margins (24.1%) are higher than last year (13.5%).
Past Earnings Growth Analysis
Earnings Trend: AFL's earnings have grown by 9.4% per year over the past 5 years.
Accelerating Growth: AFL's earnings growth over the past year (87.1%) exceeds its 5-year average (9.4% per year).
Earnings vs Industry: AFL earnings growth over the past year (87.1%) exceeded the Insurance industry 31.1%.
Return on Equity
High ROE: AFL's Return on Equity (17.1%) is considered low.
Financial Health
How is Aflac's financial position?
Financial Position Analysis
Short Term Liabilities: AFL's short term assets ($9.6B) do not cover its short term liabilities ($15.5B).
Long Term Liabilities: AFL's short term assets ($9.6B) do not cover its long term liabilities ($110.6B).
Debt to Equity History and Analysis
Debt Level: AFL's debt to equity ratio (30.5%) is considered satisfactory.
Reducing Debt: AFL's debt to equity ratio has increased from 28.9% to 30.5% over the past 5 years.
Debt Coverage: AFL's debt is well covered by operating cash flow (60.4%).
Interest Coverage: AFL's interest payments on its debt are well covered by EBIT (21.2x coverage).
Balance Sheet
Dividend
What is Aflac current dividend yield, its reliability and sustainability?
2.35%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: AFL's dividend (2.35%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: AFL's dividend (2.35%) is low compared to the top 25% of dividend payers in the US market (3.4%).
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 low payout ratio (15%), AFL's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: AFL's dividends in 3 years are forecast to be well covered by earnings (27.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
7.7yrs
Average management tenure
CEO
Dan Amos (68 yo)
31.33yrs
Tenure
US$22,613,727
Compensation
Mr. Daniel Paul Amos, also known as Dan, has been the Chief Executive Officer of Aflac Incorporated since 1990 and served as its President since February 13, 2018 until 2020. He has been a Director of Afla...
CEO Compensation Analysis
Compensation vs Market: Dan's total compensation ($USD22.61M) is above average for companies of similar size in the US market ($USD11.15M).
Compensation vs Earnings: Dan's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: AFL's management team is seasoned and experienced (7.7 years average tenure).
Board Members
Experienced Board: AFL's board of directors are considered experienced (6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: AFL insiders have only sold shares 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$38.136b
- Shares outstanding: 679.67m
- Website: https://www.aflac.com
Number of Employees
Location
- Aflac Incorporated
- 1932 Wynnton Road
- Columbus
- Georgia
- 31999
- United States
Listings
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 | 2021/05/09 23:25 |
| End of Day Share Price | 2021/05/07 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.