Aflac (AFL) Stock Analysis
Here is a fundamental analysis of Aflac (AFL), benchmarking its profitability, financial strength, dividend and valuation against its industry group peers.
Performance
Cumulative Growth
Trailing Returns
Performance at a Glance
| Metric | Current stock: AFL | Industry group median |
|---|---|---|
| 1-Year Return | 17.23% | 8.77% |
Risk
Drawdown
Risk at a Glance
| Metric | Current stock: AFL | Industry group median |
|---|---|---|
| 1-Year Volatility | 17.06% | 27.79% |
| Beta | 0.60 | 0.55 |
Company Profile
| Profile Item | AFL |
|---|---|
| Name | Aflac Inc. |
| Country/Region | United States |
| GICS Sector | Financials |
| GICS Industry Group | Insurance |
| GICS Industry | Insurance |
| GICS Sub-Industry | Life & Health Insurance |
| Market Capitalization | 59.96 billion USD |
| Currency | USD |
| Exchange | NYSE |
| Listing Date | March 17, 1980 |
| Security Type | Common Stock |
Valuation
Price-to-Earnings Ratio (TTM)
Aflac (AFL) trades at P/E ratio of 13.46, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.
AFL
Insurance industry group
13.46
Group distribution
- Max
- 25.24
- Q3
- 16.46
- AFL
- 13.46
- Median
- 12.28
- Q1
- 8.66
- Min
- 3.44
Largest peers
- MRSH
- 21.09
- AON
- 18.41
- MFC
- 16.19
- AFL
- 13.46
- CB
- 11.60
- PGR
- 10.33
- TRV
- 9.08
Price-to-Sales Ratio (TTM)
Aflac (AFL) trades at 3.31 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.
AFL
Insurance industry group
3.31
Group distribution
- Max
- 3.96
- AFL
- 3.31
- Q3
- 2.13
- Median
- 1.17
- Q1
- 0.82
- Min
- 0.13
Largest peers
- AON
- 4.10
- AFL
- 3.31
- MRSH
- 2.95
- MFC
- 2.10
- CB
- 2.09
- PGR
- 1.33
- TRV
- 1.32
Price-to-Book Ratio (MRQ)
Aflac (AFL) trades at 2.01 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.
AFL
Insurance industry group
2.01
Group distribution
- Max
- 3.70
- Q3
- 2.21
- AFL
- 2.01
- Median
- 1.61
- Q1
- 1.12
- Min
- -0.14
Largest peers
- AON
- 7.28
- MRSH
- 5.58
- PGR
- 3.70
- TRV
- 2.02
- AFL
- 2.01
- MFC
- 1.92
- CB
- 1.73
Valuation at a Glance
| Metric | Current stock: AFL | Industry group median |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 13.46 | 12.28 |
| Price-to-Sales Ratio (TTM) | 3.31 | 1.17 |
| Price-to-Book Ratio (MRQ) | 2.01 | 1.61 |
| Free Cash Flow Yield | -- | -- |
Profitability
Return on Equity (TTM)
Aflac (AFL) posts ROE of 16.47%, roughly around the peer group’s normal range. Shareholders’ equity is producing a return that looks broadly typical for the industry.
AFL
Insurance industry group
16.47%
Group distribution
- Max
- 38.88%
- Q3
- 22.34%
- AFL
- 16.47%
- Median
- 14.13%
- Q1
- 9.51%
- Min
- -6.23%
Largest peers
- AON
- 46.45%
- PGR
- 37.90%
- MRSH
- 27.57%
- TRV
- 25.27%
- AFL
- 16.47%
- CB
- 15.43%
- MFC
- 12.56%
Net Profit Margin (TTM)
Aflac (AFL) keeps 25.60% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.
AFL
Insurance industry group
25.60%
Group distribution
- Max
- 38.86%
- AFL
- 25.60%
- Q3
- 19.36%
- Median
- 11.07%
- Q1
- 5.09%
- Min
- -2.80%
Largest peers
- AFL
- 25.60%
- AON
- 22.54%
- MFC
- 20.04%
- CB
- 18.53%
- TRV
- 15.54%
- MRSH
- 14.26%
- PGR
- 12.93%
Operating Profit Margin (TTM)
operating margin is set aside for Aflac (AFL) in Insurance: the operating-income line is not a clean boundary for this business model, so net margin, ROE, FFO, or industry-specific measures may be more useful.
Profitability at a Glance
| Metric | Current stock: AFL | Industry group median |
|---|---|---|
| Return on Equity (TTM) | 16.47% | 14.13% |
| Return on Assets (TTM) | 3.09% | 2.66% |
| Net Profit Margin (TTM) | 25.60% | 11.07% |
| Operating Profit Margin (TTM) | -- | -- |
| Gross Profit Margin (TTM) | -- | -- |
Financial Strength
Current Ratio (MRQ)
current ratio is set aside for Aflac (AFL) in Insurance: these balance sheets are not best read through a current/non-current split, so regulatory, funding, or liquidity-coverage measures usually matter more.
Debt-to-Equity Ratio (MRQ)
debt-to-equity ratio is set aside for Aflac (AFL) in Insurance: leverage is part of the business model itself, so capital adequacy, funding mix, and regulatory measures are usually better risk gauges.
Financial Strength at a Glance
| Metric | Current stock: AFL | Industry group median |
|---|---|---|
| Current Ratio (MRQ) | -- | -- |
| Debt-to-Equity Ratio (MRQ) | -- | -- |
| Net Debt / EBITDA | -- | -- |
Dividends
Dividend Yield (TTM)
Aflac (AFL) has dividend yield of 2.07%, in the industry’s normal income range. It provides a meaningful dividend without the red flag of an unusually high headline yield.
AFL
Insurance industry group
2.07%
Group distribution
- Max
- 5.43%
- Q3
- 2.64%
- AFL
- 2.07%
- Median
- 1.35%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- PGR
- 6.84%
- MFC
- 3.33%
- MRSH
- 2.13%
- AFL
- 2.07%
- TRV
- 1.64%
- CB
- 1.24%
- AON
- 0.98%
Dividend Payout Ratio (TTM)
Aflac (AFL) has payout ratio of 26.86%, within the industry’s typical payout band. The dividend shares profits with investors while leaving earnings coverage that looks normal for the peer group.
AFL
Insurance industry group
26.86%
Group distribution
- Max
- 86.52%
- Q3
- 35.43%
- AFL
- 26.86%
- Median
- 14.92%
- Q1
- 0.00%
- Min
- 0.00%
Largest peers
- PGR
- 70.70%
- MFC
- 52.02%
- MRSH
- 43.94%
- AFL
- 26.86%
- AON
- 16.36%
- CB
- 13.72%
- TRV
- 13.13%
Dividends at a Glance
| Metric | Current stock: AFL | Industry group median |
|---|---|---|
| Dividend Yield (TTM) | 2.07% | 1.35% |
| Dividend Payout Ratio (TTM) | 26.86% | 14.92% |