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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


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

AFLIndustryMarket
7 Day4.4%3.2%0.2%
30 Day8.7%7.5%1.5%
90 Day21.2%16.8%3.3%
1 Year59.3%54.7%59.8%55.8%52.4%49.9%
3 Year33.4%24.1%43.9%33.2%63.7%53.4%
5 Year83.4%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

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

TodayMay 10 2021Ex Dividend DateMay 18 2021Dividend Pay DateJun 01 202114 days from Ex DividendBuy in the next 8 days to receive the upcoming dividend

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/09 23:25
End of Day Share Price2021/05/07 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.