Aflac Incorporated
Aflac Incorporated Fundamental Analysis
Aflac Incorporated (AFL) shows moderate financial fundamentals with a PE ratio of 16.57, profit margin of 21.00%, and ROE of 13.05%. The company generates $17.2B in annual revenue with weak year-over-year growth of 1.52%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 54.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze AFL's fundamental strength across five key dimensions:
Efficiency Score
WeakAFL struggles to generate sufficient returns from assets.
Valuation Score
ExcellentAFL trades at attractive valuation levels.
Growth Score
ModerateAFL shows steady but slowing expansion.
Financial Health Score
ModerateAFL shows balanced financial health with some risks.
Profitability Score
ModerateAFL maintains healthy but balanced margins.
Key Financial Metrics
Is AFL Expensive or Cheap?
P/E Ratio
AFL trades at 16.57 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, AFL's PEG of -1.52 indicates potential undervaluation.
Price to Book
The market values Aflac Incorporated at 2.05 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.42 times EBITDA. This signals the market has high growth expectations.
How Well Does AFL Make Money?
Net Profit Margin
For every $100 in sales, Aflac Incorporated keeps $21.00 as profit after all expenses.
Operating Margin
Core operations generate 26.28 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.05 in profit for every $100 of shareholder equity.
ROA
Aflac Incorporated generates $3.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Aflac Incorporated produces operating cash flow of $2.54B, showing steady but balanced cash generation.
Free Cash Flow
Aflac Incorporated generates strong free cash flow of $2.54B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.85 in free cash annually.
FCF Yield
AFL converts 4.32% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
16.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.52
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.44
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.00
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.13
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How AFL Stacks Against Its Sector Peers
| Metric | AFL Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 16.57 | 18.86 | Better (Cheaper) |
| ROE | 13.05% | 847.00% | Weak |
| Net Margin | 21.00% | 4202.00% | Weak |
| Debt/Equity | 0.29 | 0.91 | Strong (Low Leverage) |
| Current Ratio | 0.00 | 667.17 | Weak Liquidity |
| ROA | 3.13% | -21543.00% (disorted) | Weak |
AFL outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Aflac Incorporated's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
14.45%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
119.22%
Industry Style: Value, Dividend, Cyclical
High GrowthFCF CAGR
-33.96%
Industry Style: Value, Dividend, Cyclical
Declining