NYSE:AFL

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

-8.1%

NYSE:AFL

-2.3%

US Insurance

-1.6%

US Market


1 Year Return

3.6%

NYSE:AFL

5.6%

US Insurance

-3.0%

US Market

AFL underperformed the Insurance industry which returned 5.6% over the past year.

AFL outperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

AFLIndustryMarket
7 Day-8.1%-2.3%-1.6%
30 Day-10.1%-5.7%-5.8%
90 Day-7.0%-0.6%0.2%
1 Year5.9%3.6%8.1%5.6%-0.8%-3.0%
3 Year42.2%32.9%40.7%30.0%38.0%29.1%
5 Year77.7%57.9%60.6%41.5%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

44%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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, and at a substantial discount (> 40%).


Price Based on Earnings

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

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

Aflac is overvalued based on assets compared to the US Insurance industry average.


Next Steps

Future Growth

How is Aflac expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

-1.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Aflac's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Aflac's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Aflac's revenues are expected to decrease over the next 1-3 years, this is below the United States of America market average.

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 earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Aflac is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Aflac performed over the past 5 years?

8.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Aflac's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

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.


Return on Equity

Aflac has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Aflac used its assets less efficiently than the US Insurance industry average last year based on Return on Assets.


Return on Capital Employed

Aflac's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Aflac's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

Aflac's level of debt (27.1%) 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 (45.6% vs 27.1% today).

Debt is well covered by operating cash flow (72.7%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 19.7x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.9x debt.


Next Steps

Dividend

What is Aflac's current dividend yield, its reliability and sustainability?

2.36%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Aflac's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.52%).

Aflac's dividend is below the markets top 25% of dividend payers in United States of America (3.93%).

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

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 (3.9x coverage).


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Dan Amos (67yo)

29.6yrs

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. Mr. Amos serves as the Chief Executive Officer of ...


CEO Compensation Analysis

Dan's remuneration is higher than average for companies of similar size in United States of America.

Dan's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

5.6yrs

Average Tenure

55yo

Average Age

The average tenure for the Aflac management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

9.2yrs

Average Tenure

64.5yo

Average Age

The tenure for the Aflac board of directors is about average.


Insider Trading

Aflac individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$82,19830 Jul 19
James Daniels
EntityIndividual
Shares1,552
Max PriceUS$52.96
SellUS$3,325,29729 May 19
Koji Ariyoshi
EntityIndividual
Role
Unit Board Member
Executive VP
Shares63,703
Max PriceUS$52.20
SellUS$143,05528 May 19
Joseph Moskowitz
EntityIndividual
Shares2,750
Max PriceUS$52.02
SellUS$937,68520 May 19
Charles Lake
EntityIndividual
Role
Unit Chairman
President of Aflac International & Chairman of Aflac Life Insurance Japan
Shares18,000
Max PriceUS$52.09
SellUS$76,50017 May 19
Toshihiko Fukuzawa
EntityIndividual
Shares1,500
Max PriceUS$51.00
SellUS$683,68627 Mar 19
Masatoshi Koide
EntityIndividual
Role
Unit Board Member
President
Shares13,741
Max PriceUS$49.76
BuyUS$99,65926 Mar 19
Karole Lloyd
EntityIndividual
Shares2,000
Max PriceUS$49.83
SellUS$147,71113 Mar 19
Douglas Johnson
EntityIndividual
Shares3,000
Max PriceUS$49.24
SellUS$102,29025 Feb 19
Audrey Tillman
EntityIndividual
Role
Chief Legal Officer
Executive VP & General Counsel
Shares2,100
Max PriceUS$48.71
SellUS$605,30219 Feb 19
Teresa White
EntityIndividual
Shares12,338
Max PriceUS$49.06
SellUS$117,11321 Dec 18
James Daniels
EntityIndividual
Shares2,653
Max PriceUS$44.14
SellUS$49,64721 Dec 18
Richard Williams
EntityIndividual
Shares1,129
Max PriceUS$43.97
SellUS$93,03013 Sep 18
Douglas Johnson
EntityIndividual
Shares2,000
Max PriceUS$46.52
SellUS$69,57412 Sep 18
Joseph Moskowitz
EntityIndividual
Shares1,500
Max PriceUS$46.39

Ownership Breakdown


Management Team

  • Dan Amos (67yo)

    Chairman

    • Tenure: 29.6yrs
    • Compensation: US$17.54m
  • Charles Lake (57yo)

    President of Aflac International & Chairman of Aflac Life Insurance Japan

    • Tenure: 11.2yrs
    • Compensation: US$3.83m
  • Eric Kirsch (58yo)

    Executive VP

    • Tenure: 7.6yrs
    • Compensation: US$5.04m
  • Fred Crawford (55yo)

    Executive VP & CFO

    • Tenure: 4.2yrs
    • Compensation: US$7.39m
  • Audrey Tillman (54yo)

    Executive VP & General Counsel

    • Tenure: 5.3yrs
    • Compensation: US$4.37m
  • Drew Niziak

    Senior Vice President of Broker Sales

    • Tenure: 6.6yrs
  • June Howard (52yo)

    Senior VP of Financial Services & Chief Accounting Officer

    • Tenure: 8.8yrs
  • Pete Kelso

    Senior VP and Chief Information & Technology Officer

    • Tenure: 0.3yrs
  • David Young

    Vice President of Investor & Rating Agency Relations

    • Tenure: 0.0yrs
  • Virgil Miller (50yo)

    Executive VP

    • Tenure: 1.6yrs

Board Members

  • Dan Amos (67yo)

    Chairman

    • Tenure: 29.6yrs
    • Compensation: US$17.54m
  • Barbara Rimer (70yo)

    Director

    • Tenure: 24.6yrs
    • Compensation: US$305.04k
  • Mel Stith (72yo)

    Director

    • Tenure: 7.3yrs
    • Compensation: US$306.22k
  • Charles Lake (57yo)

    President of Aflac International & Chairman of Aflac Life Insurance Japan

    • Tenure: 11.2yrs
    • Compensation: US$3.83m
  • Bob Johnson (74yo)

    Director

    • Tenure: 17.6yrs
    • Compensation: US$290.04k
  • William Bowers (63yo)

    Lead Non-Management Director

    • Tenure: 0.3yrs
    • Compensation: US$300.04k
  • John Moorefield (57yo)

    Executive VP and Chief Transformation Officer of IT

    • Tenure: 2.6yrs
  • Tom Kenny (56yo)

    Director

    • Tenure: 4.5yrs
    • Compensation: US$290.06k
  • Koji Ariyoshi (66yo)

    Executive VP

    • Tenure: 0.0yrs
  • Masatoshi Koide (58yo)

    President

    • Tenure: 0.0yrs

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$35.805b
  • Shares outstanding: 740.38m
  • 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
8686TSE (The Tokyo Stock Exchange)YesCommon StockJPJPYAug 1973
AFLDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1973
0H68LSE (London Stock Exchange)YesCommon StockGBUSDAug 1973

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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/24 23:30
End of Day Share Price2019/08/23 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.