Aflac
Aflac Incorporated, through its subsidiaries, provides voluntary supplemental health and life insurance products. The last earnings update was 53 days ago. More info.
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AFL Share Price and Events
7 Day Returns
1 Year Returns
AFL Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Aflac (AFL) | -1.2% | -1.1% | 2.6% | 8% | 44.1% | 58.2% |
| US Insurance | 1% | 3.1% | 7.1% | 2.5% | 31% | 42.7% |
| US Market | 0.2% | 2.1% | 8.5% | 6.3% | 37.9% | 45.7% |
1 Year Return vs Industry and Market
- AFL outperformed the Insurance industry which returned 2.5% over the past year.
- AFL outperformed the Market in United States of America which returned 6.3% over the past year.
AFL Value
Is Aflac undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Aflac
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Aflac.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | Excess Returns Model | |
| Stable EPS |
Weighted future Return on Equity estimates from 6 analysts.
= Stable Book Value * Return on Equity = $34.83 * 14% |
$4.87 |
| Book Value of Equity per Share | Weighted future Book Value estimates from 7 analysts. | $34.83 |
| Discount Rate (Cost of Equity) | See below | 8.1% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Insurance Unlevered Beta | Simply Wall St/ S&P Global | 0.74 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.738 (1 + (1- 21%) (18.65%)) |
0.897 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
0.9 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.897 * 5.96%) |
8.08% |
Discounted Cash Flow Calculation for NYSE:AFL using Excess Returns Model Model
The calculations below outline how an intrinsic value for Aflac is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
Note the calculations below are per share.
See our documentation to learn about this calculation.
| Calculation | Result | |
|---|---|---|
| Excess Returns |
= (Stable Return on equity – Cost of equity) (Book Value of
Equity per share)
= (14% – 8.08%) * $34.83) |
$2.06 |
| Terminal Value of Excess Returns |
= Excess Returns / (Cost of Equity -
Expected Growth Rate)
= $2.06 / (8.08% - 2.73%) |
$38.48 |
| Value of Equity |
= Book Value per share + Terminal Value of
Excess Returns
= $34.83 + $38.48 |
$73.32 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $73.32 |
| Current discount | Discount to share price of
$48.92
= -1 x ($48.92 - $73.32) / $73.32 |
33.3% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
Current Discount
Current Discount Checks
- Aflac's share price is below the future cash flow value, and at a moderate discount (> 20%).
- Aflac's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Aflac's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Aflac's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $3.79 |
| NYSE:AFL Share Price ** | NYSE (2019-04-18) in USD | $48.92 |
| United States of America Insurance Industry PE Ratio | Median Figure of 87 Publicly-Listed Insurance Companies | 18x |
| United States of America Market PE Ratio | Median Figure of 3,081 Publicly-Listed Companies | 18.15x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Aflac.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NYSE:AFL Share Price ÷ EPS (both in USD) = 48.92 ÷ 3.79 |
12.89x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Aflac is good value based on earnings compared to the US Insurance industry average.
- Aflac is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Aflac's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 12.89x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts |
2.3%per year |
| United States of America Insurance Industry PEG Ratio | Median Figure of 66 Publicly-Listed Insurance Companies | 1.25x |
| United States of America Market PEG Ratio | Median Figure of 2,109 Publicly-Listed Companies | 1.57x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 12.89x ÷ 2.3% |
5.64x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Aflac is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Aflac's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $31.06 |
| NYSE:AFL Share Price * | NYSE (2019-04-18) in USD | $48.92 |
| United States of America Insurance Industry PB Ratio | Median Figure of 118 Publicly-Listed Insurance Companies | 1.23x |
| United States of America Market PB Ratio | Median Figure of 5,178 Publicly-Listed Companies | 1.91x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NYSE:AFL Share Price ÷ Book Value per Share (both in USD) = 48.92 ÷ 31.06 |
1.57x |
* Primary Listing of Aflac.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Aflac is overvalued based on assets compared to the US Insurance industry average.
Value checks
We assess Aflac's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check) Aflac has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
AFL Future Performance
How is Aflac expected to perform in the next 1 to 3 years based on estimates from 11 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Aflac's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
- Aflac's earnings growth is positive but not above the United States of America market average.
- Aflac's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NYSE:AFL Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts | 2.3% |
| NYSE:AFL Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts | 0% |
| United States of America Insurance Industry Earnings Growth Rate | Market Cap Weighted Average | 16.8% |
| United States of America Insurance Industry Revenue Growth Rate | Market Cap Weighted Average | 3.1% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 13.3% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 11 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 21,716 | 3,038 | 3 | |
| 2020-12-31 | 21,833 | 3,103 | 6 | |
| 2019-12-31 | 21,789 | 3,094 | 6 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 21,758 | 6,014 | 2,920 |
| 2018-09-30 | 22,197 | 6,191 | 4,978 |
| 2018-06-30 | 22,125 | 5,770 | 4,849 |
| 2018-03-31 | 21,963 | 5,609 | 4,729 |
| 2017-12-31 | 21,667 | 6,128 | 4,604 |
| 2017-09-30 | 22,161 | 6,463 | 2,772 |
| 2017-06-30 | 22,391 | 6,298 | 2,685 |
| 2017-03-31 | 22,446 | 6,413 | 2,520 |
| 2016-12-31 | 22,559 | 5,987 | 2,659 |
| 2016-09-30 | 22,025 | 6,126 | 2,638 |
| 2016-06-30 | 21,331 | 6,527 | 2,576 |
| 2016-03-31 | 21,101 | 6,647 | 2,601 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (3 months ago) | See Below |
| Future Estimates | Average of up to 11 Analyst Estimates (S&P Global) | See Below |
All data from Aflac Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2021-12-31 | 4.33 | 4.33 | 4.33 | 1.00 |
| 2020-12-31 | 4.30 | 4.50 | 4.15 | 6.00 |
| 2019-12-31 | 4.14 | 4.25 | 4.04 | 6.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 3.79 |
| 2018-09-30 | 6.42 |
| 2018-06-30 | 6.21 |
| 2018-03-31 | 6.02 |
| 2017-12-31 | 5.81 |
| 2017-09-30 | 3.47 |
| 2017-06-30 | 3.33 |
| 2017-03-31 | 3.10 |
| 2016-12-31 | 3.23 |
| 2016-09-30 | 3.17 |
| 2016-06-30 | 3.06 |
| 2016-03-31 | 3.05 |
*GAAP earnings excluding extraordinary items.
Future performance checks
We assess Aflac's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Aflac has a total score of 0/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
AFL Past Performance
How has Aflac performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Aflac's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
- Aflac's 1-year earnings growth is negative, it can't be compared to the 5-year average.
- Aflac's 1-year earnings growth is negative, it can't be compared to the US Insurance industry average.
Earnings and Revenue History
All data from Aflac Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 21,758.00 | 2,920.00 | 2,988.00 | |
| 2018-09-30 | 22,197.00 | 4,978.00 | 2,948.00 | |
| 2018-06-30 | 22,125.00 | 4,849.00 | 2,904.00 | |
| 2018-03-31 | 21,963.00 | 4,729.00 | 2,838.00 | |
| 2017-12-31 | 21,667.00 | 4,604.00 | 2,780.00 | |
| 2017-09-30 | 22,161.00 | 2,772.00 | 2,873.00 | |
| 2017-06-30 | 22,391.00 | 2,685.00 | 2,862.00 | |
| 2017-03-31 | 22,446.00 | 2,520.00 | 2,908.00 | |
| 2016-12-31 | 22,559.00 | 2,659.00 | 2,796.00 | |
| 2016-09-30 | 22,025.00 | 2,638.00 | 2,528.00 | |
| 2016-06-30 | 21,331.00 | 2,576.00 | 2,407.00 | |
| 2016-03-31 | 21,101.00 | 2,601.00 | 2,247.00 | |
| 2015-12-31 | 20,918.00 | 2,533.00 | 2,606.00 | |
| 2015-09-30 | 20,999.00 | 2,506.00 | 2,258.00 | |
| 2015-06-30 | 21,658.00 | 2,645.00 | 2,270.00 | |
| 2015-03-31 | 22,221.00 | 2,882.00 | 2,257.00 | |
| 2014-12-31 | 22,610.00 | 2,951.00 | 2,261.00 | |
| 2014-09-30 | 22,874.00 | 2,923.00 | 2,228.00 | |
| 2014-06-30 | 23,027.00 | 2,919.00 | 2,230.00 | |
| 2014-03-31 | 23,153.00 | 2,998.00 | 2,222.00 | |
| 2013-12-31 | 23,619.00 | 3,158.00 | 2,222.00 | |
| 2013-09-30 | 24,263.00 | 3,064.00 | 2,301.00 | |
| 2013-06-30 | 25,185.00 | 3,379.00 | 2,328.00 | |
| 2013-03-31 | 25,203.00 | 2,973.00 | 2,385.00 | |
| 2012-12-31 | 25,263.00 | 2,866.00 | 2,415.00 | |
| 2012-09-30 | 24,889.00 | 2,823.00 | 2,403.00 | |
| 2012-06-30 | 24,251.00 | 2,542.00 | 2,388.00 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Aflac has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Aflac used its assets more efficiently than the US Insurance industry average last year based on Return on Assets.
- Aflac's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Aflac's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Aflac has a total score of 2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
AFL Health
How is Aflac's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Aflac's finances.
The net worth of a company is the difference between its assets and liabilities.
- Aflac's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
- Aflac's long term commitments exceed its cash and other short term assets.
Balance sheet
Assets
Liabilities and shares
- Low level of unsold assets.
- Debt is covered by short term assets, assets are 1.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Aflac Company Filings, last reported 3 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 23,462.00 | 6,831.00 | 4,492.00 |
| 2018-09-30 | 23,234.00 | 7,250.00 | 3,431.00 |
| 2018-06-30 | 23,800.00 | 9,027.00 | 3,848.00 |
| 2018-03-31 | 24,287.00 | 10,740.00 | 4,080.00 |
| 2017-12-31 | 24,598.00 | 5,895.00 | 3,548.00 |
| 2017-09-30 | 21,977.00 | 5,770.00 | 4,984.00 |
| 2017-06-30 | 21,503.00 | 5,915.00 | 4,402.00 |
| 2017-03-31 | 20,340.00 | 6,732.00 | 4,346.00 |
| 2016-12-31 | 20,482.00 | 5,886.00 | 4,948.00 |
| 2016-09-30 | 22,785.00 | 6,818.00 | 5,270.00 |
| 2016-06-30 | 22,550.00 | 5,835.00 | 3,700.00 |
| 2016-03-31 | 20,021.00 | 5,814.00 | 3,449.00 |
| 2015-12-31 | 17,708.00 | 5,912.00 | 4,350.00 |
| 2015-09-30 | 17,255.00 | 5,916.00 | 3,520.00 |
| 2015-06-30 | 17,018.00 | 6,448.00 | 3,103.00 |
| 2015-03-31 | 18,637.00 | 8,923.00 | 4,367.00 |
| 2014-12-31 | 18,347.00 | 7,635.00 | 4,658.00 |
| 2014-09-30 | 17,853.00 | 11,648.00 | 2,680.00 |
| 2014-06-30 | 17,558.00 | 7,974.00 | 2,263.00 |
| 2014-03-31 | 15,676.00 | 8,287.00 | 2,006.00 |
| 2013-12-31 | 14,620.00 | 10,749.00 | 2,564.00 |
| 2013-09-30 | 14,658.00 | 5,690.00 | 2,788.00 |
| 2013-06-30 | 13,696.00 | 6,453.00 | 2,410.00 |
| 2013-03-31 | 15,535.00 | 4,491.00 | 2,622.00 |
| 2012-12-31 | 15,978.00 | 10,632.00 | 2,073.00 |
| 2012-09-30 | 15,985.00 | 10,997.00 | 3,024.00 |
| 2012-06-30 | 14,179.00 | 3,868.00 | 2,161.00 |
- Aflac's level of debt (29.1%) compared to net worth is satisfactory (less than 40%).
- The level of debt compared to net worth has been reduced over the past 5 years (73.3% vs 29.1% today).
- Debt is well covered by operating cash flow (88%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 18.9x coverage).
Financial health checks
We assess Aflac's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Aflac has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
AFL Dividends
What is Aflac's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Aflac
shares you are expected to receive
$44
in your first year as a dividend.
Dividend Amount
- Aflac's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
- Aflac's dividend is below the markets top 25% of dividend payers in United States of America (3.62%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 11 Analyst Estimates (S&P Global) | See Below |
| United States of America Insurance Industry Average Dividend Yield | Market Cap Weighted Average of 79 Stocks | 2.4% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2009 Stocks | 2.4% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.8% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.4% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.6% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2021-12-31 | 1.20 | 4.00 |
| 2020-12-31 | 1.16 | 10.00 |
| 2019-12-31 | 1.09 | 10.00 |
| Date (Data in $) | Dividend per share (annual) | Avg. Yield (%) |
|---|---|---|
| 2019-01-31 | 1.080 | 2.200 |
| 2018-11-01 | 1.040 | 2.311 |
| 2018-10-24 | 1.040 | 2.444 |
| 2018-08-03 | 1.040 | 2.243 |
| 2018-07-26 | 1.040 | 2.253 |
| 2018-05-04 | 1.040 | 2.341 |
| 2018-04-25 | 1.040 | 2.297 |
| 2018-02-23 | 1.040 | 2.335 |
| 2018-01-31 | 1.040 | 2.382 |
| 2017-11-02 | 0.900 | 2.066 |
| 2017-10-25 | 0.900 | 2.143 |
| 2017-08-03 | 0.860 | 2.091 |
| 2017-07-27 | 0.860 | 2.154 |
| 2017-05-03 | 0.860 | 2.252 |
| 2017-04-27 | 0.860 | 2.299 |
| 2017-02-24 | 0.860 | 2.365 |
| 2017-01-31 | 0.860 | 2.453 |
| 2016-11-04 | 0.860 | 2.448 |
| 2016-10-27 | 0.860 | 2.499 |
| 2016-08-05 | 0.820 | 2.273 |
| 2016-07-28 | 0.820 | 2.270 |
| 2016-05-04 | 0.820 | 2.330 |
| 2016-04-26 | 0.820 | 2.383 |
| 2016-02-25 | 0.820 | 2.585 |
| 2016-02-01 | 0.820 | 2.817 |
| 2015-11-03 | 0.820 | 2.699 |
| 2015-10-27 | 0.820 | 2.564 |
| 2015-07-28 | 0.780 | 2.593 |
| 2015-05-01 | 0.780 | 2.496 |
| 2015-04-28 | 0.780 | 2.453 |
| 2014-10-28 | 0.780 | 2.558 |
| 2014-07-29 | 0.740 | 2.505 |
| 2014-04-29 | 0.740 | 2.363 |
| 2013-10-29 | 0.740 | 2.304 |
| 2013-07-30 | 0.700 | 2.261 |
| 2013-04-24 | 0.700 | 2.471 |
| 2013-02-05 | 0.700 | 2.776 |
| 2012-10-23 | 0.700 | 2.681 |
| 2012-07-24 | 0.660 | 2.821 |
| 2012-04-24 | 0.660 | 3.152 |
| 2012-01-31 | 0.660 | 2.864 |
| 2011-10-26 | 0.660 | 3.009 |
| 2011-07-27 | 0.600 | 3.203 |
| 2011-04-27 | 0.600 | 2.499 |
| 2011-02-01 | 0.600 | 2.187 |
| 2010-08-10 | 0.600 | 2.239 |
| 2010-08-02 | 0.560 | 2.201 |
| 2010-07-27 | 0.560 | 2.239 |
| 2010-02-02 | 0.560 | 2.315 |
| 2009-10-28 | 0.560 | 2.414 |
| 2009-07-29 | 0.560 | 2.694 |
| 2009-04-29 | 0.560 | 3.449 |
| 2009-04-20 | 0.560 | 4.011 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Dividends per share have been stable in the past 10 years.
- Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of
Aflac's earnings are
paid
to the shareholders as a dividend.
- Dividends paid are well covered by earnings (3.6x coverage).
- Dividends after 3 years are expected to be well covered by earnings (3.9x coverage).
Income/ dividend checks
We assess Aflac's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Aflac afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Aflac has a total score of 5/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
AFL Management
CEO
| COMPENSATION | $17,535,398 |
| AGE | 66 |
| TENURE AS CEO | 29.3 years |
CEO Bio
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. Mr. Amos serves as the Chief Executive Officer of American Family Life Assurance Company of New York, principal subsidiary of AFLAC since August 1990. He serves as President of Aflac Life Insurance Japan Ltd. since July 1, 2017. He has been the Executive Chairman and Chief Executive Officer of Aflac Incorporated since May 2001 and 1990 respectively. He has been the President of Aflac Incorporated since 2019. He has been with Aflac Incorporated full time since 1973. He serves as the Chief Executive Officer of Aflac Life Insurance Japan Ltd. Mr. Amos served as President of AFLAC until May 2001. Mr. Amos serves as Chairman of American Family Life Assurance Company of New York since May 2001 and Aflac Life Insurance Japan Ltd. Mr. Amos has been the Chairman of AFLAC since May 2001 and its Director since 1983. He has been a Director of Aflac Incorporated since 1983. He serves as a Director of American Family Life Assurance Company of New York. He served as Director of Synovus Financial Corp., since 2001 and previously served as its Director from 1991 to 1998. He served as a Director of Southern Co. from 2000 to February 2006. He served as a Director of CIT Group Inc., since January 1998 and Georgia Power Co. since May 1997. He was Chairman of the board of The Japan America Society of Georgia and was the Chairman of the University of Georgia Foundation. He is a Member of the Board of Trustees of Children's Healthcare of Atlanta and House of Mercy of Columbus. Mr. Amos has received the Dr. Martin Luther King Jr. Unity Award and the Anti-Defamation League's Torch of Liberty Award. In January 2005, Mr. Amos was named as one of the Best CEOs within the insurance/life category by Institutional Investor Magazine for the third consecutive year. Mr. Amos holds a Bachelor's Degree from University of Georgia in Risk Management and Insurance.
CEO Compensation
- Dan's compensation has been consistent with company performance over the past year.
- Dan's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Aflac management team in years:
- The average tenure for the Aflac management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team
Dan Amos
Chairman
$18M
66
29.3 yrs
Fred Crawford
Executive VP & CFO
$7M
54
3.8 yrs
Eric Kirsch
Executive VP
$5M
57
7.3 yrs
Audrey Tillman
Executive VP & General Counsel
$4M
53
4.9 yrs
Charles Lake
President of Aflac International & Chairman of Aflac Life Insurance Japan
$4M
56
5.3 yrs
June Howard
Senior VP of Financial Services & Chief Accounting Officer
51
8.4 yrs
Julia Davis
Senior VP & Chief Information Officer
5.8 yrs
David Young
Vice President of Investor & Rating Agency Relations
Drew Niziak
Senior Vice President of Broker Sales
6.3 yrs
Virgil Miller
Executive VP
49
1.3 yrs
Board of Directors Tenure
Average tenure and age of the Aflac board of directors in years:
- The average tenure for the Aflac board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors
Dan Amos
Chairman
$18M
66
17.9 yrs
Charles Lake
President of Aflac International & Chairman of Aflac Life Insurance Japan
$4M
56
10.8 yrs
John Moorefield
Chief Transformation Officer of IT
56
2.3 yrs
Masatoshi Koide
President
57
Koji Ariyoshi
Executive VP
65
Barbara Rimer
Director
$305K
69
24.3 yrs
Bob Johnson
Director
$290K
73
17.3 yrs
Douglas Johnson
Lead Non-Management Director
$603K
74
Mel Stith
Director
$306K
71
6.9 yrs
William Bowers
Director
$300K
62
5.9 yrs
Who owns this company?
Recent Insider Trading
- Aflac insiders have sold more shares than they have bought in the past 3 months.
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 27. Mar 19 | Sell | Masatoshi Koide | Individual | 26. Mar 19 | 26. Mar 19 | -13,741 | $49.76 | $-683,686 | ||
| 26. Mar 19 | Buy | Karole Lloyd | Individual | 22. Mar 19 | 22. Mar 19 | 2,000 | $49.83 | $99,659 | ||
| 13. Mar 19 | Sell | Douglas Johnson | Individual | 12. Mar 19 | 12. Mar 19 | -3,000 | $49.24 | $-147,711 | ||
| 25. Feb 19 | Sell | Audrey Tillman | Individual | 22. Feb 19 | 22. Feb 19 | -2,100 | $48.71 | $-102,290 | ||
| 19. Feb 19 | Sell | Teresa White | Individual | 13. Feb 19 | 13. Feb 19 | -12,338 | $49.06 | $-605,302 | ||
| 21. Dec 18 | Sell | James Daniels | Individual | 21. Dec 18 | 21. Dec 18 | -2,653 | $44.14 | $-117,113 | ||
| 21. Dec 18 | Sell | Richard Williams | Individual | 20. Dec 18 | 20. Dec 18 | -1,129 | $43.97 | $-49,647 | ||
| 13. Sep 18 | Sell | Douglas Johnson | Individual | 13. Sep 18 | 13. Sep 18 | -2,000 | $46.52 | $-93,030 | ||
| 12. Sep 18 | Sell | Joseph Moskowitz | Individual | 11. Sep 18 | 11. Sep 18 | -1,500 | $46.39 | $-69,574 | ||
Management checks
We assess Aflac's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Aflac has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
AFL News
Simply Wall St News
Are You An Income Investor? Don't Miss Out On Aflac Incorporated (NYSE:AFL)
Could Aflac Incorporated (NYSE:AFL) be an attractive dividend share to own for the long haul? Investors are often drawn to a company for its dividend.. … Yet sometimes, investors buy a stock for its dividend and lose money because the share price falls by more than they earned in dividend payments.. … Before you buy any stock for its dividend however, you should always remember Warren Buffett's two rules: 1) Don't lose money, and 2) Remember rule #1
Simply Wall St - – Full articleAflac Incorporated (NYSE:AFL) Delivered A Better ROE Than Its Industry
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Aflac has a return on equity of 12% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleDoes Aflac Incorporated (NYSE:AFL) Have A Good P/E Ratio?
We'll look at Aflac Incorporated's (NYSE:AFL) P/E ratio and reflect on what it tells us about the company's share price. … How Do I Calculate Aflac's Price To Earnings Ratio … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleWill Aflac Incorporated's (NYSE:AFL) Earnings Grow In The Next 12 Months?
Based on Aflac Incorporated's (NYSE:AFL) earnings update on 31 December 2018, … as a 5.2% rise in profits is expected in the upcoming year, … the higher past 5-year average growth rate of 8.8%.
Simply Wall St - – Full articleWhat Kind Of Shareholders Own Aflac Incorporated (NYSE:AFL)?
The big shareholder groups in Aflac Incorporated (NYSE:AFL) have power over the company. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … We'd expect to see both institutions and retail investors owning a portion of the company.
Simply Wall St - – Full articleAflac Incorporated (NYSE:AFL): 2 Days To Buy Before The Ex-Dividend Date
Have you been keeping an eye on Aflac Incorporated's (NYSE:AFL) upcoming dividend of US$0.27 per share payable on the 01 March 2019? … Below, I will explain how holding Aflac can impact your portfolio income stream, by analysing the stock's most recent financial data and dividend attributes. … Has it increased its dividend per share amount over the past
Simply Wall St - – Full articleWill Aflac Incorporated's (NYSE:AFL) Earnings Grow In The Years Ahead?
Want to participate in a short research study? … Help shape the future of investing tools and you could win a $250 gift card! … The latest earnings update Aflac Incorporated (NYSE:AFL) released in December 2018
Simply Wall St - – Full articleWhy We Think Aflac Incorporated (NYSE:AFL) Could Be Worth Looking At
Building up an investment case requires looking at a stock holistically. … Today I've chosen to put the spotlight on Aflac Incorporated (NYSE:AFL) due to its excellent fundamentals in more than one area.
Simply Wall St - – Full articleDoes Aflac Incorporated's (NYSE:AFL) CEO Pay Reflect Performance?
How Does Dan Amos's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Aflac Incorporated has a market cap of US$34b, and is paying total annual CEO compensation of US$23m. … We took a group of companies with market capitalizations over US$8.0b, and calculated the median CEO compensation to be US$11m
Simply Wall St - – Full articleIs There An Opportunity With Aflac Incorporated's (NYSE:AFL) Mispricing?
One of the most difficult industry to value is insurance, given that they adhere to different rules compared to other companies. … Industry-specific factors, such as gross written premiums are crucial in understanding how insurance companies make money.
Simply Wall St - – Full articleAFL Company Info
Description
Aflac Incorporated, through its subsidiaries, provides voluntary supplemental health and life insurance products. It operates through two segments, Aflac Japan and Aflac U.S. The Aflac Japan segment offers voluntary supplemental insurance products, including cancer plans, general medical indemnity plans, medical/sickness riders, care plans, living benefit life plans, ordinary life insurance plans, and annuities in Japan. The Aflac U.S. segment provides products designed to protect individuals from depletion of assets comprising accident, cancer, critical illness/care, hospital indemnity, fixed-benefit dental, and vision care plans; and loss-of-income products, such as life and short-term disability plans in the United States. The company sells its products through sales associates and brokers, independent corporate agencies, individual agencies, and affiliated corporate agencies. Aflac Incorporated was founded in 1955 and is headquartered in Columbus, Georgia.
Details
| Name: | Aflac Incorporated |
| AFL | |
| Exchange: | NYSE |
| Founded: | 1955 |
| $36,633,733,830 | |
| 748,849,833 | |
| Website: | http://www.aflac.com |
| Address: |
Aflac Incorporated 1932 Wynnton Road, Columbus, Georgia, 31999, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NYSE | AFL | Common Stock | New York Stock Exchange | US | USD | 23. Aug 1973 | |
| DB | AFL | Common Stock | Deutsche Boerse AG | DE | EUR | 23. Aug 1973 | |
| LSE | 0H68 | Common Stock | London Stock Exchange | GB | USD | 23. Aug 1973 | |
| TSE | 8686 | Common Stock | The Tokyo Stock Exchange | JP | JPY | 23. Aug 1973 |
Number of employees
Current staff
Industry
| Life and Health Insurance | |
| Insurance |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/04/19 23:31 |
| End of day share price update: | 2019/04/18 00:00 |
| Last estimates confirmation: | 2019/04/18 |
| Last earnings filing: | 2019/02/25 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.
