AFLAC (AFL) AI Stock Analysis

• Market Cap: $55.63B
• Dividend Yield: 2.11%
• Average Volume (3M): 2.51M
• Price to Earnings (P/E): 16.1
• Beta (1Y): 0.40
• Revenue Growth: -12.66%
• EPS Growth: -29.30%
• Country: US
• Employees: 12,694
• Sector: Financial
• Sector Strength: 72
• Industry: Insurance - Life
• EPS (TTM): 1.66
• Shares Outstanding: 540,645,000
• 10 Day Avg. Volume: 2,111,849
• 30 Day Avg. Volume: 2,512,554
• PEG Ratio: -0.47
• Price to Book (P/B): 2.13
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.73
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 4.10
• Enterprise Value/Ebitda: 2.68
• 1Y Price Target: $104.73
• Price Target Upside: 2.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 63 Neutral
• Price Target: $110.00 ▲(7.37%Upside)

AFLAC's overall stock score reflects its solid financial performance and stable earnings, tempered by technical uncertainties and the recent cybersecurity incident. The company's robust operations and capital management strategies are positive, but potential risks from financial pressures and corporate events weigh on the score.

Positive Factors

Capital Position

AFL's capital position remains strong, with significant buybacks and liquid assets above targets.

Shareholder Benefits

Buybacks exceeded expectations, which could be seen as a positive signal for shareholders.

Underwriting Margins

The strength in underwriting margins benefited from favorable remeasurement gains.

Negative Factors

Earnings Performance

AFL's 1Q:25 operating EPS was below expectations, indicating potential pressure on the stock price.

Sales Growth

Sales growth in AFL Japan was significantly lower than expected, particularly due to weaker cancer product sales.

Valuation Concerns

Elevated price-to-earnings ratio might suggest the stock is overvalued, leading to potential downside.

AFLAC Business Overview & Revenue Model

Company Description

AFLAC Incorporated (AFL) is a leading provider of supplemental insurance products in the United States and Japan. Founded in 1955 and headquartered in Columbus, Georgia, AFLAC specializes in offering voluntary insurance policies that provide financial protection to policyholders in the event of illness or injury. The company's core products include accident, cancer, critical illness, hospital indemnity, dental, vision, and life insurance, aimed at both individual and corporate customers. AFLAC is renowned for its innovative approach to insurance and its distinctive marketing campaigns featuring the iconic AFLAC Duck.

How the Company Makes Money

AFLAC makes money primarily through the sale of supplemental insurance policies in the U.S. and Japan. Revenue is generated from policy premiums paid by individual and corporate customers who seek financial protection against unexpected health events and accidents. AFLAC earns a significant portion of its revenue from its operations in Japan, which is one of the largest insurance markets globally. The company also invests the premiums collected in a diversified portfolio of assets, generating investment income that contributes to its overall earnings. Key factors contributing to AFLAC's revenue include strategic partnerships with companies to offer employee benefits, widespread distribution networks, and strong brand recognition. Additionally, its focus on cost control and efficient claims processing helps maintain profitability.

AFLAC Financial Statement Overview

Summary

AFLAC exhibits a solid financial foundation with strong profitability and moderate leverage. However, challenges in sustaining revenue and free cash flow growth could affect future financial flexibility. Robust operating margins and efficient cash management provide a buffer against potential headwinds.

Income Statement

AFLAC's income statement shows strong gross and net profit margins, reflecting efficient operations and cost management. However, the revenue growth has been slightly inconsistent, with a decline in the most recent TTM period. EBIT and EBITDA margins remain robust, indicating healthy core business profitability.

Balance Sheet

The balance sheet indicates a solid equity position with a moderate debt-to-equity ratio, suggesting financial stability. However, there is a notable decline in total assets and equity over time, which could pose risks. The equity ratio is healthy, which enhances the company's financial resilience.

Cash Flow

Operating cash flow coverage of net income is strong, ensuring liquidity. However, there is a decline in free cash flow growth, reflecting potential challenges in maintaining cash generation. The cash flow from operations remains positive, supporting ongoing investments and dividends.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.13B	18.84B	19.15B	21.55B	22.26B
Gross Profit	19.13B	18.84B	19.15B	21.55B	22.26B
EBITDA	6.42B	5.26B	4.87B	5.21B	4.16B
Net Income	5.44B	4.66B	4.42B	4.23B	4.78B
Balance Sheet
Total Assets	117.57B	126.72B	131.74B	157.54B	165.09B
Cash, Cash Equivalents and Short-Term Investments	6.23B	28.22B	79.68B	103.75B	111.02B
Total Debt	7.50B	7.36B	7.44B	7.96B	7.90B
Total Liabilities	91.47B	104.74B	111.60B	7.96B	7.90B
Stockholders Equity	26.10B	21.98B	20.14B	33.25B	33.56B
Cash Flow
Free Cash Flow	2.71B	3.19B	3.88B	5.05B	5.96B
Operating Cash Flow	2.71B	3.19B	3.88B	5.05B	5.96B
Investing Cash Flow	2.78B	817.00M	-1.54B	-2.38B	-4.62B
Financing Cash Flow	-3.49B	-3.72B	-3.55B	-2.74B	-1.11B

AFLAC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 102.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AFL, the sentiment is Negative. The current price of 102.45 is below the 20-day moving average (MA) of 102.87, below the 50-day MA of 103.15, and below the 200-day MA of 105.48, indicating a bearish trend. The MACD of -0.39 indicates Negative momentum. The RSI at 48.83 is Neutral, neither overbought nor oversold. The STOCH value of 87.40 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AFL.

AFLAC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MET	77 Outperform	$52.66B	12.77	16.08%	2.83%	8.77%	110.90%
GL	74 Outperform	$10.30B	10.16	20.47%	0.78%	5.41%	16.60%
UNM	74 Outperform	$13.95B	9.52	14.68%	2.15%	1.69%	25.54%
Sector *	68 Neutral	$17.10B	11.44	9.70%	3.58%	11.11%	-4.78%
PRU	67 Neutral	$37.29B	16.67	8.04%	5.08%	2.47%	6.88%
LNC	65 Neutral	$5.93B	5.01	16.91%	5.18%	8.31%	-2.30%
AFL	63 Neutral	$55.63B	16.06	14.41%	2.11%	-12.66%	-29.30%

AFLAC Corporate Events

Aflac Investigates June 2025 Cybersecurity Breach

On June 12, 2025, Aflac Incorporated identified unauthorized access to its network, which was promptly contained. The company remains operational, with no ransomware affecting its systems, and continues to serve its policyholders. Aflac has engaged third-party cybersecurity experts to assist in reviewing potentially impacted files, which may include sensitive personal information. The company plans to notify regulators and affected individuals, offering free credit monitoring and identity theft protection services. The full impact of the incident is still unknown.

The most recent analyst rating on (AFL) stock is a Buy with a $112.00 price target. To see the full list of analyst forecasts on AFLAC stock, see the AFL Stock Forecast page.

Aflac Issues ¥74.9 Billion in Senior Notes

On May 29, 2025, Aflac Incorporated entered into a Note Purchase Agreement for a private placement of yen-denominated senior notes totaling ¥75.1 billion, intended for general corporate purposes. Subsequently, on June 5, 2025, the company issued registered senior notes amounting to ¥74.9 billion in a public offering, also aimed at general corporate purposes, reflecting Aflac’s strategic financial maneuvers to strengthen its capital structure.

The most recent analyst rating on (AFL) stock is a Hold with a $105.00 price target. To see the full list of analyst forecasts on AFLAC stock, see the AFL Stock Forecast page.

Aflac’s Annual Shareholders Meeting Highlights Key Decisions

On May 5, 2025, Aflac Incorporated held its Annual Meeting of Shareholders, where key decisions were made. Shareholders elected 11 members to the board of directors, approved a non-binding advisory proposal on executive compensation, and ratified the appointment of KPMG LLP as the independent registered public accounting firm for the year ending December 31, 2025. The meeting highlighted the significant voting power held by the J&A Alliance Trust, which represents 20% of the total voting power of the company’s common stock, and the voting restrictions in place due to a Shareholders Agreement established in 2019.