Market Cap
US$37.5b
Last Updated
2020/02/23 00:06 UTC
Data Sources
Company Financials +
Executive Summary
Aflac Incorporated, through its subsidiaries, provides voluntary supplemental health and life insurance products.
Rewards
Risk Analysis
Earnings are forecast to decline by an average of -2% per year for the next 3 years
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
-2.4%
AFL
-1.5%
US Insurance
-1.1%
US Market
1 Year Return
5.7%
AFL
16.3%
US Insurance
17.9%
US Market
Return vs Industry: AFL underperformed the US Insurance industry which returned 16.3% over the past year.
Return vs Market: AFL underperformed the US Market which returned 17.9% over the past year.
Shareholder returns
| AFL | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.4% | -1.5% | -1.1% |
| 30 Day | -1.6% | 3.0% | 1.4% |
| 90 Day | -5.1% | 5.2% | 6.9% |
| 1 Year | 7.9%5.7% | 19.1%16.3% | 20.3%17.9% |
| 3 Year | 53.5%43.7% | 34.4%24.0% | 47.8%38.3% |
| 5 Year | 85.8%65.6% | 72.0%51.3% | 71.9%53.0% |
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
6 months ago | Simply Wall St
Be Sure To Check Out Aflac Incorporated (NYSE:AFL) Before It Goes Ex-Dividend6 months ago | Simply Wall St
Have Insiders Sold Aflac Incorporated (NYSE:AFL) Shares Recently?6 months 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 ($51.53) is trading below our estimate of fair value ($103.67)
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 (11.6x) compared to the Insurance industry average (13.4x).
PE vs Market: AFL is good value based on its PE Ratio (11.6x) compared to the US market (18.2x).
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 is overvalued based on its PB Ratio (1.3x) compared to the US Insurance industry average (1.1x).
Next Steps
Future Growth
How is Aflac forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?
-2.0%
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 (-2% per year).
Earnings vs Market: AFL's earnings are forecast to decline over the next 3 years (-2% 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 (-1.2% per year).
High Growth Revenue: AFL's revenue is forecast to decline over the next 3 years (-1.2% 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 (10.5%).
Next Steps
Past Performance
How has Aflac performed over the past 5 years?
7.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: AFL has high quality earnings.
Growing Profit Margin: AFL's current net profit margins (14.8%) are higher than last year (13.4%).
Past Earnings Growth Analysis
Earnings Trend: AFL's earnings have grown by 7.7% per year over the past 5 years.
Accelerating Growth: AFL's earnings growth over the past year (13.2%) exceeds its 5-year average (7.7% per year).
Earnings vs Industry: AFL earnings growth over the past year (13.2%) underperformed the Insurance industry 32.1%.
Return on Equity
High ROE: AFL's Return on Equity (11.4%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Aflac's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Balance Sheet
Inventory Level: AFL has a low level of unsold assets or inventory.
Debt Coverage by Assets: AFL's debt is covered by short term assets (assets are 1.2x debt).
Financial Institutions Analysis
Asset Level: AFL's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if AFL has a sufficient allowance for bad loans.
Low Risk Liabilities: AFL reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if AFL has an acceptable proportion of non-loan assets held.
Low Risk Deposits: AFL has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if AFL has an appropriate level of bad loans.
Next Steps
Dividend
What is Aflac's current dividend yield, its reliability and sustainability?
2.17%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: AFL's dividend (2.17%) is higher than the bottom 25% of dividend payers in the US market (1.45%).
High Dividend: AFL's dividend (2.17%) is low compared to the top 25% of dividend payers in the US market (3.73%).
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 (24.3%), 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 (25.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.8yrs
Average management tenure
CEO
Dan Amos (67yo)
30.1yrs
Tenure
US$17,535,398
Compensation
Mr. Daniel Paul Amos, also known as Dan, has been the Chief Executive Officer of AFLAC Inc. since 1990 and served as its President since February 13, 2018. He has been a Director of Aflac Incorporated sinc ...
CEO Compensation Analysis
Compensation vs Market: Dan's total compensation ($USD17.54M) is above average for companies of similar size in the US market ($USD10.81M).
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 | 30.1yrs | US$17.54m | 0.46% $172.6m | |
| President & COO | 0.08yrs | US$7.39m | 0.031% $11.4m | |
| Executive VP | 8.1yrs | US$5.04m | 0.039% $14.8m | |
| Executive VP & General Counsel | 5.8yrs | US$4.37m | 0.020% $7.4m | |
| President of Aflac International & Chairman of Aflac Life Insurance Japan | 11.7yrs | US$3.83m | 0.014% $5.2m | |
| Executive VP & CFO | 0.08yrs | no data | 0.00060% $224.7k | |
| Senior VP of Financial Services & Chief Accounting Officer | 9.3yrs | no data | 0.011% $4.0m | |
| Senior VP and Chief Information & Technology Officer | 0.8yrs | no data | no data | |
| Vice President of Investor & Rating Agency Relations | 0yrs | no data | no data | |
| Senior VP and Chief Brand & Communications Officer | 2.3yrs | no data | no data |
5.8yrs
Average Tenure
55yo
Average Age
Experienced Management: AFL's management team is seasoned and experienced (5.8 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Chairman & CEO | 30.1yrs | US$17.54m | 0.46% $172.6m | |
| President of Aflac International & Chairman of Aflac Life Insurance Japan | 11.7yrs | US$3.83m | 0.014% $5.2m | |
| Executive VP and Chief Transformation Officer of IT | 3.1yrs | no data | no data | |
| President | 0yrs | no data | 0.0056% $2.1m | |
| Independent Director | 25.1yrs | US$305.04k | 0.0036% $1.3m | |
| Independent Director | 7.8yrs | US$306.22k | 0.0051% $1.9m | |
| Independent Director | 18.1yrs | US$290.04k | 0.0053% $2.0m | |
| Director | 5yrs | US$290.06k | 0.0040% $1.5m | |
| Independent Director | 3.1yrs | US$297.68k | 0.0039% $1.5m | |
| Vice Chairman of the Board | 0.08yrs | no data | no data |
7.8yrs
Average Tenure
60yo
Average Age
Experienced Board: AFL's board of directors are considered experienced (7.8 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$37.452b
- Shares outstanding: 726.79m
- 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 | ETLX (Eurotlx) | Yes | Common Stock | IT | EUR | 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 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.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/23 00:06 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| 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.