NYSE:AFL

Stock Analysis Report

Executive Summary

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


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

AFLIndustryMarket
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 Year7.9%5.7%19.1%16.3%20.3%17.9%
3 Year53.5%43.7%34.4%24.0%47.8%38.3%
5 Year85.8%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

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

company2.2%marketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Years2.3%

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

NamePositionTenureCompensationOwnership
Daniel Amos
Chairman & CEO30.1yrsUS$17.54m0.46% $172.6m
Frederick Crawford
President & COO0.08yrsUS$7.39m0.031% $11.4m
Eric Kirsch
Executive VP8.1yrsUS$5.04m0.039% $14.8m
Audrey Tillman
Executive VP & General Counsel5.8yrsUS$4.37m0.020% $7.4m
Charles Lake
President of Aflac International & Chairman of Aflac Life Insurance Japan11.7yrsUS$3.83m0.014% $5.2m
Max Broden
Executive VP & CFO0.08yrsno data0.00060% $224.7k
June Howard
Senior VP of Financial Services & Chief Accounting Officer9.3yrsno data0.011% $4.0m
J. Kelso
Senior VP and Chief Information & Technology Officer0.8yrsno datano data
David Young
Vice President of Investor & Rating Agency Relations0yrsno datano data
Catherine Hernandez-Blades
Senior VP and Chief Brand & Communications Officer2.3yrsno datano 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

NamePositionTenureCompensationOwnership
Daniel Amos
Chairman & CEO30.1yrsUS$17.54m0.46% $172.6m
Charles Lake
President of Aflac International & Chairman of Aflac Life Insurance Japan11.7yrsUS$3.83m0.014% $5.2m
John Moorefield
Executive VP and Chief Transformation Officer of IT3.1yrsno datano data
Masatoshi Koide
President0yrsno data0.0056% $2.1m
Barbara Rimer
Independent Director25.1yrsUS$305.04k0.0036% $1.3m
Melvin Stith
Independent Director7.8yrsUS$306.22k0.0051% $1.9m
Robert Johnson
Independent Director18.1yrsUS$290.04k0.0053% $2.0m
Thomas Kenny
Director5yrsUS$290.06k0.0040% $1.5m
Karole Lloyd
Independent Director3.1yrsUS$297.68k0.0039% $1.5m
Shigehiro Kuwabara
Vice Chairman of the Board0.08yrsno datano 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

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
AFLETLX (Eurotlx)YesCommon StockITEURAug 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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:06
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.