NYSE:AFL

Stock Analysis Report

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Executive Summary

Aflac Incorporated, through its subsidiaries, provides supplemental health and life insurance products. More Details


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

1.7%

AFL

2.0%

US Insurance

-0.4%

US Market


1 Year Return

-28.9%

AFL

-9.5%

US Insurance

18.3%

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 18.3% over the past year.


Shareholder returns

AFLIndustryMarket
7 Day1.7%2.0%-0.4%
30 Day5.9%8.7%8.0%
90 Day3.9%2.0%9.4%
1 Year-27.1%-28.9%-7.0%-9.5%21.0%18.3%
3 Year-3.3%-9.8%2.7%-4.7%42.1%32.7%
5 Year33.7%18.7%40.5%22.7%85.6%64.7%

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

Valuation

Is Aflac undervalued compared to its fair value and its price relative to the market?

47.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AFL ($37.85) is trading below our estimate of fair value ($71.81)

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 (14.3x).

PE vs Market: AFL is good value based on its PE Ratio (9.4x) compared to the US market (19.2x).


Price to Earnings Growth Ratio

PEG Ratio: AFL is poor value based on its PEG Ratio (2.4x)


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?

3.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFL's forecast earnings growth (3.8% per year) is above the savings rate (2.2%).

Earnings vs Market: AFL's earnings (3.8% per year) are forecast to grow slower than the US market (22.1% 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 (-1.8% per year).

High Growth Revenue: AFL's revenue is forecast to decline over the next 3 years (-1.8% 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 (10.2%).


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 (-3.4%).


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?

2.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AFL's dividend (2.96%) is higher than the bottom 25% of dividend payers in the US market (1.63%).

High Dividend: AFL's dividend (2.96%) is low compared to the top 25% of dividend payers in the US market (4.56%).


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 (26.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Dan Amos (68 yo)

30.75yrs

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 ($USD14.11M) is about average for companies of similar size in the US market ($USD11.16M).

Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Amos
Chairman & CEO30.75yrsUS$14.11m0.46%
$ 123.9m
Frederick John Crawford
President & COO0.75yrUS$5.22m0.033%
$ 9.0m
Eric Kirsch
Executive VP8.75yrsUS$4.39m0.036%
$ 9.6m
Charles Lake
President of Aflac International & Chairman of Aflac Life Insurance Japan12.33yrsUS$3.96m0.012%
$ 3.2m
Masatoshi Koide
Presidentno dataUS$3.60m0.0060%
$ 1.6m
Max Kristian Brodén
Executive VP & CFO0.75yrno data0.00056%
$ 151.1k
June Howard
Senior VP of Financial Services & Chief Accounting Officer9.92yrsno data0.011%
$ 3.0m
J. Kelso
Senior VP and Chief Information & Technology Officer1.42yrsno datano data
David Young
Vice President of Investor & Rating Agency Relationsno datano datano data
Audrey Tillman
Executive VP & General Counsel6.42yrsUS$4.37m0.020%
$ 5.3m
Catherine Hernandez-Blades
Senior VP and Chief Brand & Communications Officer3yrsno datano data
James Daniels
Executive VP2.5yrsno data0.0074%
$ 2.0m

3.3yrs

Average Tenure

56yo

Average Age

Experienced Management: AFL's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Daniel Amos
Chairman & CEO30.75yrsUS$14.11m0.46%
$ 123.9m
Charles Lake
President of Aflac International & Chairman of Aflac Life Insurance Japan12.33yrsUS$3.96m0.012%
$ 3.2m
Masatoshi Koide
Presidentno dataUS$3.60m0.0060%
$ 1.6m
John Moorefield
Executive VP and Chief Transformation Officer of IT3.75yrsno datano data
Barbara Rimer
Independent Director25.75yrsUS$317.16k0.0043%
$ 1.1m
Melvin Stith
Independent Director8.42yrsUS$300.05k0.0058%
$ 1.6m
William Bowers
Independent Lead Non-Management Director1.42yrsUS$360.05k0.0053%
$ 1.4m
Thomas Kenny
Independent Director5.67yrsUS$300.09k0.0041%
$ 1.1m
Katherine Rohrer
Independent Director2.92yrsUS$280.05k0.0018%
$ 480.3k
Toshihiko Fukuzawa
Independent Director4.42yrsUS$280.05k0.0022%
$ 596.3k
Karole Lloyd
Independent Director3.75yrsUS$320.05k0.0047%
$ 1.3m
Joseph Moskowitz
Independent Director5.42yrsUS$290.05k0.0024%
$ 634.1k

5.4yrs

Average Tenure

64yo

Average Age

Experienced Board: AFL's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AFL insiders have sold more shares than they have bought 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$26.984b
  • Shares outstanding: 712.91m
  • Website: https://www.aflac.com

Number of Employees


Location

  • Aflac Incorporated
  • 1932 Wynnton Road
  • Columbus
  • Georgia
  • 31999
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFLNYSE (New York Stock Exchange)YesCommon StockUSUSDAug 1973
AFLDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1973
0H68LSE (London Stock Exchange)YesCommon StockGBUSDAug 1973
AFL *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNAug 1973
A1FL34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH REPR 1 COMBRBRLDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/25 00:20
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.