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 fair 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

0.9%

AFL

-0.01%

US Insurance

1.0%

US Market


1 Year Return

19.7%

AFL

15.1%

US Insurance

6.7%

US Market

Return vs Industry: AFL exceeded the US Insurance industry which returned 15.1% over the past year.

Return vs Market: AFL exceeded the US Market which returned 6.7% over the past year.


Share holder returns

AFLIndustryMarket
7 Day0.9%-0.01%1.0%
30 Day1.3%-1.6%-1.8%
90 Day-6.5%-3.5%-1.8%
1 Year22.3%19.7%17.9%15.1%9.1%6.7%
3 Year58.9%48.5%42.0%31.1%46.1%36.6%
5 Year106.2%83.3%74.5%53.7%66.9%48.6%

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?

39%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: AFL ($52.44) is trading below our estimate of fair value ($85.6)

Significantly Undervalued: AFL is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: AFL is good value based on its PE Ratio (12.7x) compared to the Insurance industry average (15.6x).

PE vs Market: AFL is good value based on its PE Ratio (12.7x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: AFL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price Based on Value of Assets

PB vs Industry: AFL is overvalued based on its PB Ratio (1.4x) compared to the US Insurance industry average (1.2x).


Next Steps

Future Growth

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

-1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: AFL's earnings are forecast to decline over the next 3 years (-1.2% per year).

Earnings vs Market: AFL's earnings are forecast to decline over the next 3 years (-1.2% 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 (-0.4% per year).

High Growth Revenue: AFL's revenue is forecast to decline over the next 3 years (-0.4%).


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: AFL's Return on Equity is forecast to be low in 3 years time (12.9%).


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

Earnings Trend: AFL's earnings have grown by 8.5% per year over the past 5 years.

Accelerating Growth: AFL's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AFL had negative earnings growth (-35.8%) over the past year, making it difficult to compare to the Insurance industry average (3.1%).


Return on Equity

High ROE: AFL's Return on Equity (11%) is considered low.


Return on Assets

ROA vs Industry: AFL's Return on Assets is below or equal to the Insurance industry average last year.


Return on Capital Employed

ROCE Improving: AFL's Return on Capital Employed has declined over the past 3 years.


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 not covered by short term assets (assets are 0.9x 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?

2.20%

Expected Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.5%markettop25%3.8%industryaverage2.2%forecastin3Years2.2%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: AFL's dividend (2.06%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: AFL's dividend (2.06%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 reasonably low payout ratio (25.7%), 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 (26.2% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Dan Amos (67yo)

29.8yrs

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 Chief Executive Officer and Ch ...


CEO Compensation Analysis

Compensation vs. Market: Dan's total compensation ($USD17.54M) is about average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.8yrs

Average Tenure

55yo

Average Age

Experienced Management: AFL's management team is seasoned and experienced (5.8 years average tenure).


Board Age and Tenure

7.4yrs

Average Tenure

61.5yo

Average Age

Experienced Board: AFL's board of directors are considered experienced (7.4 years average tenure).


Insider Trading

Insider Buying: AFL insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$78,00001 Oct 19
Toshihiko Fukuzawa
EntityIndividual
Shares1,500
Max PriceUS$52.00
SellUS$82,19830 Jul 19
James Daniels
EntityIndividual
Role
Senior Key Executive
Executive VP
Shares1,552
Max PriceUS$52.96
SellUS$3,325,29729 May 19
Koji Ariyoshi
EntityIndividual
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
Role
Member of the Board of Directors
Director
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
Role
Senior Key Executive
Executive VP
Shares2,653
Max PriceUS$44.14
SellUS$49,64721 Dec 18
Richard Williams
EntityIndividual
Shares1,129
Max PriceUS$43.97

Ownership Breakdown


Management Team

  • Dan Amos (67yo)

    Chairman

    • Tenure: 29.8yrs
    • Compensation: US$17.54m
  • Charles Lake (57yo)

    President of Aflac International & Chairman of Aflac Life Insurance Japan

    • Tenure: 11.3yrs
    • Compensation: US$3.83m
  • Eric Kirsch (58yo)

    Executive VP

    • Tenure: 7.8yrs
    • Compensation: US$5.04m
  • Fred Crawford (55yo)

    Executive VP & CFO

    • Tenure: 4.3yrs
    • Compensation: US$7.39m
  • Audrey Tillman (54yo)

    Executive VP & General Counsel

    • Tenure: 5.4yrs
    • Compensation: US$4.37m
  • Drew Niziak

    Senior Vice President of Broker Sales

    • Tenure: 6.8yrs
  • June Howard (52yo)

    Senior VP of Financial Services & Chief Accounting Officer

    • Tenure: 8.9yrs
  • Pete Kelso

    Senior VP and Chief Information & Technology Officer

    • Tenure: 0.4yrs
  • James Daniels (48yo)

    Executive VP

    • Tenure: 1.5yrs
  • David Young

    Vice President of Investor & Rating Agency Relations

    • Tenure: 0yrs

Board Members

  • Dan Amos (67yo)

    Chairman

    • Tenure: 29.8yrs
    • Compensation: US$17.54m
  • Barbara Rimer (70yo)

    Director

    • Tenure: 24.8yrs
    • Compensation: US$305.04k
  • Mel Stith (72yo)

    Director

    • Tenure: 7.4yrs
    • Compensation: US$306.22k
  • Charles Lake (57yo)

    President of Aflac International & Chairman of Aflac Life Insurance Japan

    • Tenure: 11.3yrs
    • Compensation: US$3.83m
  • Bob Johnson (74yo)

    Director

    • Tenure: 17.8yrs
    • Compensation: US$290.04k
  • William Bowers (63yo)

    Lead Non-Management Director

    • Tenure: 0.4yrs
    • Compensation: US$300.04k
  • John Moorefield (57yo)

    Executive VP and Chief Transformation Officer of IT

    • Tenure: 2.8yrs
  • Tom Kenny (56yo)

    Director

    • Tenure: 4.7yrs
    • Compensation: US$290.06k
  • Karole Lloyd (60yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$297.68k
  • Masatoshi Koide (58yo)

    President

    • Tenure: 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$38.826b
  • 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
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 Analysis2019/10/14 00:57
End of Day Share Price2019/10/11 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.

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