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. AFL is a financially-robust , dividend-paying company with a a great history of performance. In the following section, I expand a bit more on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Aflac here.
Solid track record established dividend payer
In the previous year, AFL has ramped up its bottom line by 80%, with its latest earnings level surpassing its average level over the last five years. This strong performance generated a robust double-digit return on equity of 21%, which is an notable feat for the company. AFL’s debt-to-equity ratio stands at 31%, which means its debt level is reasonable. This means that AFL’s capital structure strikes a good balance between low-cost debt funding and maintaining financial flexibility without overly restrictive terms of debt. AFL seems to have put its debt to good use, generating operating cash levels of 0.85x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
Income investors would also be happy to know that AFL is a great dividend company, with a current yield standing at 2.2%. AFL has also been regularly increasing its dividend payments to shareholders over the past decade.
For Aflac, there are three important aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for AFL’s future growth? Take a look at our free research report of analyst consensus for AFL’s outlook.
- Valuation: What is AFL worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether AFL is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of AFL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.