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Aflac

NYSE:AFL
Snowflake Description

Established dividend payer with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
AFL
NYSE
$40B
Market Cap
  1. Home
  2. US
  3. Insurance
Company description

Aflac Incorporated, through its subsidiaries, provides voluntary supplemental health and life insurance products. The last earnings update was 61 days ago. More info.


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AFL Share Price and Events
7 Day Returns
-1.6%
NYSE:AFL
0.1%
US Insurance
-0.4%
US Market
1 Year Returns
24.9%
NYSE:AFL
15.4%
US Insurance
4.3%
US Market
AFL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Aflac (AFL) -1.6% 4.3% 9.1% 24.9% 54.8% 73.5%
US Insurance 0.1% 2.9% 10.8% 15.4% 42.8% 45.8%
US Market -0.4% 2.8% 2.7% 4.3% 40.9% 38.2%
1 Year Return vs Industry and Market
  • AFL outperformed the Insurance industry which returned 15.4% over the past year.
  • AFL outperformed the Market in United States of America which returned 4.3% over the past year.
Price Volatility
AFL
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Aflac.

NYSE:AFL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 9 analysts.
= Stable Book Value * Return on Equity
= $37.78 * 13.7%
$5.18
Book Value of Equity per Share Weighted future Book Value estimates from 8 analysts. $37.78
Discount Rate (Cost of Equity) See below 7.9%
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.

Calculation of Discount Rate/ Cost of Equity for NYSE:AFL
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 0.69
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.689 (1 + (1- 21%) (19.46%))
0.863
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.86
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.863 * 5.96%)
7.87%

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.

NYSE:AFL Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (13.7% – 7.87%) * $37.78)
$2.20
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= $2.20 / (7.87% - 2.73%)
$42.87
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= $37.78 + $42.87
$80.65
NYSE:AFL Discount to Share Price
Calculation Result
Value per share (USD) From above. $80.65
Current discount Discount to share price of $54.24
= -1 x ($54.24 - $80.65) / $80.65
32.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Aflac is available for.
Intrinsic value
33%
Share price is $54.24 vs Future cash flow value of $80.65
Current Discount Checks
For Aflac to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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?
Raw Data
NYSE:AFL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $4.10
NYSE:AFL Share Price ** NYSE (2019-06-26) in USD $54.24
United States of America Insurance Industry PE Ratio Median Figure of 90 Publicly-Listed Insurance Companies 17.69x
United States of America Market PE Ratio Median Figure of 3,094 Publicly-Listed Companies 17.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Aflac.

NYSE:AFL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:AFL Share Price ÷ EPS (both in USD)

= 54.24 ÷ 4.10

13.21x

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?
Raw Data
NYSE:AFL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 13.21x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
-2.2%per year
United States of America Insurance Industry PEG Ratio Median Figure of 66 Publicly-Listed Insurance Companies 1.53x
United States of America Market PEG Ratio Median Figure of 2,133 Publicly-Listed Companies 1.51x

*Line of best fit is calculated by linear regression .

NYSE:AFL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 13.21x ÷ -2.2%

-5.99x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aflac earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Aflac's assets?
Raw Data
NYSE:AFL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $34.90
NYSE:AFL Share Price * NYSE (2019-06-26) in USD $54.24
United States of America Insurance Industry PB Ratio Median Figure of 119 Publicly-Listed Insurance Companies 1.22x
United States of America Market PB Ratio Median Figure of 5,255 Publicly-Listed Companies 1.78x
NYSE:AFL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:AFL Share Price ÷ Book Value per Share (both in USD)

= 54.24 ÷ 34.90

1.55x

* 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.
X
Value checks
We assess Aflac's value by looking at:
  1. 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. )
  2. Is the PE ratio less than the market average, and/ or less than the Insurance industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Insurance industry average (and greater than 0)? (1 check)
  5. 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!
Annual Growth Rate
-2.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Aflac expected to grow at an attractive rate?
  • Aflac's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Aflac's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.
  • Aflac's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:AFL Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:AFL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts -2.2%
NYSE:AFL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts -0.5%
United States of America Insurance Industry Earnings Growth Rate Market Cap Weighted Average 9.5%
United States of America Insurance Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*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
Raw Data
NYSE:AFL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:AFL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 21,571 3,045 3
2020-12-31 21,766 3,125 6
2019-12-31 21,798 3,230 6
NYSE:AFL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 21,951 6,320 3,131
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 21,822 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

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Aflac's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Aflac's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:AFL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 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 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AFL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 4.32 4.32 4.32 1.00
2020-12-31 4.35 4.50 4.13 7.00
2019-12-31 4.34 4.41 4.26 7.00
NYSE:AFL Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 4.10
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

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Aflac is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Aflac's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
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
Below we compare Aflac's growth in the last year to its industry (Insurance).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Aflac's year on year earnings growth rate has been positive over the past 5 years.
  • 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
Aflac's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Aflac Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:AFL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 21,951.00 3,131.00 2,974.00
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 21,822.00 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 less 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).
X
Past performance checks
We assess Aflac's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Insurance industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Aflac has a total score of 1/6, 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.
Net Worth
  • 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
This treemap shows a more detailed breakdown of Aflac's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 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.
Raw Data

All data from Aflac Company Filings, last reported 2 months ago.

NYSE:AFL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 26,049.00 7,736.00 4,443.00
2018-12-31 23,462.00 6,818.00 4,492.00
2018-09-30 23,234.00 7,235.00 3,431.00
2018-06-30 23,800.00 9,011.00 3,848.00
2018-03-31 24,287.00 10,720.00 4,080.00
2017-12-31 24,598.00 5,895.00 3,548.00
2017-09-30 21,977.00 5,752.00 4,984.00
2017-06-30 21,503.00 5,897.00 4,402.00
2017-03-31 20,340.00 6,712.00 4,346.00
2016-12-31 20,482.00 5,865.00 4,948.00
2016-09-30 22,785.00 6,796.00 5,270.00
2016-06-30 22,550.00 5,813.00 3,700.00
2016-03-31 20,021.00 5,795.00 3,449.00
2015-12-31 17,708.00 5,892.00 4,350.00
2015-09-30 17,255.00 5,900.00 3,520.00
2015-06-30 17,018.00 6,435.00 3,103.00
2015-03-31 18,637.00 8,909.00 4,367.00
2014-12-31 18,347.00 7,621.00 4,658.00
2014-09-30 17,853.00 11,642.00 2,680.00
2014-06-30 17,558.00 7,967.00 2,263.00
2014-03-31 15,676.00 8,282.00 2,006.00
2013-12-31 14,620.00 10,743.00 2,564.00
2013-09-30 14,658.00 5,683.00 2,788.00
2013-06-30 13,696.00 6,446.00 2,410.00
2013-03-31 15,535.00 4,484.00 2,622.00
2012-12-31 15,978.00 10,623.00 2,073.00
2012-09-30 15,985.00 10,987.00 3,024.00
2012-06-30 14,179.00 3,859.00 2,161.00
  • Aflac's level of debt (29.7%) 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 (52.8% vs 29.7% today).
  • Debt is well covered by operating cash flow (81.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 19.9x coverage).
X
Financial health checks
We assess Aflac's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Aflac has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. 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
Dividend payments
1.99%
Current annual income from Aflac dividends. Estimated to be 2.1% next year.
If you bought $2,000 of Aflac shares you are expected to receive $40 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Aflac's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.44%).
  • Aflac's dividend is below the markets top 25% of dividend payers in United States of America (3.73%).
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.
Raw Data
NYSE:AFL Annualized Past and Future Dividends
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 80 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2012 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 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:AFL Future Dividends Estimate Data
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
NYSE:AFL Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-01-31 1.080 2.142
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
2008-10-23 0.560 4.259
2008-07-23 0.480 1.819

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 (3.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.8x coverage).
X
Income/ dividend checks
We assess Aflac's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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

 What is the CEO of Aflac's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dan Amos
COMPENSATION $17,535,398
AGE 66
TENURE AS CEO 29.4 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, both up more than 20%.
  • 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:

5.4
Average Tenure
54
Average Age
  • 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

TITLE
Chairman
COMPENSATION
$18M
AGE
66
TENURE
29.4 yrs

Fred Crawford

TITLE
Executive VP & CFO
COMPENSATION
$7M
AGE
54
TENURE
4 yrs

Eric Kirsch

TITLE
Executive VP
COMPENSATION
$5M
AGE
57
TENURE
7.4 yrs

Audrey Tillman

TITLE
Executive VP & General Counsel
COMPENSATION
$4M
AGE
53
TENURE
5.1 yrs

Charles Lake

TITLE
President of Aflac International & Chairman of Aflac Life Insurance Japan
COMPENSATION
$4M
AGE
56
TENURE
5.4 yrs

June Howard

TITLE
Senior VP of Financial Services & Chief Accounting Officer
AGE
51
TENURE
8.6 yrs

Pete Kelso

TITLE
Senior VP and Chief Information & Technology Officer
TENURE
0.1 yrs

David Young

TITLE
Vice President of Investor & Rating Agency Relations

Drew Niziak

TITLE
Senior Vice President of Broker Sales
TENURE
6.4 yrs

Virgil Miller

TITLE
Executive VP
AGE
49
TENURE
1.4 yrs
Board of Directors Tenure

Average tenure and age of the Aflac board of directors in years:

9
Average Tenure
63.5
Average Age
  • The tenure for the Aflac board of directors is about average.
Board of Directors

Dan Amos

TITLE
Chairman
COMPENSATION
$18M
AGE
66
TENURE
18.1 yrs

Charles Lake

TITLE
President of Aflac International & Chairman of Aflac Life Insurance Japan
COMPENSATION
$4M
AGE
56
TENURE
11 yrs

John Moorefield

TITLE
Executive VP and Chief Transformation Officer of IT
AGE
56
TENURE
2.4 yrs

Masatoshi Koide

TITLE
President
AGE
57

Koji Ariyoshi

TITLE
Executive VP
AGE
65

Barbara Rimer

TITLE
Director
COMPENSATION
$305K
AGE
69
TENURE
24.4 yrs

Bob Johnson

TITLE
Director
COMPENSATION
$290K
AGE
73
TENURE
17.4 yrs

Mel Stith

TITLE
Director
COMPENSATION
$306K
AGE
71
TENURE
7.1 yrs

William Bowers

TITLE
Lead Non-Management Director
COMPENSATION
$300K
AGE
62
TENURE
0.1 yrs

Tom Kenny

TITLE
Director
COMPENSATION
$290K
AGE
55
TENURE
4.3 yrs
Who owns this company?
Recent Insider Trading
  • Aflac individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
29. May 19 Sell Koji Ariyoshi Individual 29. May 19 29. May 19 -63,703 $52.20 $-3,325,297
28. May 19 Sell Joseph Moskowitz Individual 24. May 19 24. May 19 -2,750 $52.02 $-143,055
20. May 19 Sell Charles Lake Individual 16. May 19 16. May 19 -18,000 $52.09 $-937,685
17. May 19 Sell Toshihiko Fukuzawa Individual 15. May 19 15. May 19 -1,500 $51.00 $-76,500
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
X
Management checks
We assess Aflac's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. 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

Here's Why Aflac (NYSE:AFL) Has A Meaningful Debt Burden

What we care about is avoiding the permanent loss of capital.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. … Because it carries more debt than cash, we think it's worth watching Aflac's balance sheet over time. … For example, its interest cover and conversion of EBIT to free cash flow give us some confidence in its ability to manage its debt.

Simply Wall St -

Does Aflac (NYSE:AFL) Have A Healthy Balance Sheet?

Debt and other liabilities become risky for a business when it cannot easily fulfill those obligations, either with free cash flow or by raising capital at an attractive price. … You can click the graphic below for the historical numbers, but it shows that Aflac had US$7.75b of debt in March 2019, down from US$10.7b, one year before However, it does have US$4.44b in cash offsetting this, leading to net debt of about US$3.31b. … Either way, since Aflac does have more debt than cash, it's worth keeping an eye on its balance sheet.

Simply Wall St -

Aflac Incorporated (NYSE:AFL): Secrets For Long Term Investors

Aflac Incorporated is a financially healthy and robust stock with a proven track record of outperformance. … View our latest analysis for Aflac Aflac Incorporated, through its subsidiaries, provides voluntary supplemental health and life insurance products. … The intrinsic value infographic in our free research report helps visualize whether AFL is currently mispriced by the market.

Simply Wall St -

Aflac Incorporated (NYSE:AFL): Commentary On Fundamentals

Help shape the future of investing tools and you could win a $250 gift card! … I've been keeping an eye on Aflac Incorporated (NYSE:AFL) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe AFL has a lot to offer.

Simply Wall St -

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 -

Aflac 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 -

Does 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 -

Will 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 -

What 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 -

Aflac 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 -

AFL 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
$40,434,245,014
745,469,119
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
Staff numbers
11,390
Aflac employees.
Industry
Life and Health Insurance
Insurance
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 23:30
End of day share price update: 2019/06/26 00:00
Last estimates confirmation: 2019/06/18
Last earnings filing: 2019/04/26
Last earnings reported: 2019/03/31
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.