AFLAC (AFL) AI Stock Analysis

• Market Cap: $57.42B
• Dividend Yield: 2.06%
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.37
• Revenue Growth: 2.31%
• EPS Growth: 15.46%
• Country: US
• Employees: 12,694
• Sector: Financial
• Sector Strength: 70
• Industry: Insurance - Life
• EPS (TTM): 2.49
• Shares Outstanding: 524,113,900
• 10 Day Avg. Volume: 2,396,209
• 30 Day Avg. Volume: 2,135,485
• PEG Ratio: 0.44
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 3.02
• P/FCF Ratio: 21.32
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 3.79
• Enterprise Value/Gross Profit: 10.80
• Enterprise Value/Ebitda: 11.73
• 1Y Price Target: $112.80
• Price Target Upside: 2.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $130.00 ▲(18.67% Upside)

AFLAC's overall stock score reflects strong financial performance and positive technical indicators, supported by a favorable earnings call. The company's robust profitability and strategic initiatives in Japan are significant strengths. However, challenges in cost management and U.S. sales, along with a reliance on debt, present areas for improvement.

Positive Factors

Strong Revenue Growth in Japan

The significant sales growth in Japan, particularly in cancer insurance, highlights Aflac's successful product offerings and market penetration, strengthening its competitive position in a key market.

Capital Deployment and Shareholder Returns

Aflac's robust capital deployment strategy, including share buybacks and dividend payments, demonstrates strong cash generation and commitment to enhancing shareholder value over the long term.

Consistent Dividend Growth

Aflac's consistent dividend growth reflects its stable cash flow and financial health, providing a reliable income stream for investors and reinforcing confidence in its long-term business sustainability.

Negative Factors

Rising Expense Ratios

Increased expense ratios due to one-time fees and advertising costs suggest challenges in cost management, which could pressure margins and impact profitability if not addressed.

Decline in Japan Premiums

The decline in premiums in Japan may indicate market saturation or competitive pressures, potentially affecting revenue growth and necessitating strategic adjustments to sustain market share.

Reliance on Debt

Aflac's increased reliance on debt could pose risks, especially in rising interest rate environments, potentially limiting financial flexibility and increasing vulnerability to economic downturns.

AFLAC Business Overview & Revenue Model

Company Description

AFLAC Incorporated (AFL) is a leading provider of supplemental insurance in the United States and Japan, specializing in products that help policyholders with expenses not covered by traditional health insurance. The company operates primarily in the life and health insurance sectors, offering a range of services including accident, cancer, critical illness, and disability insurance. AFLAC is well-known for its innovative approach to insurance, utilizing a direct sales model and a strong brand presence to reach consumers and businesses alike.

How the Company Makes Money

AFLAC generates revenue primarily through the sale of supplemental insurance policies, which provide coverage for various health-related expenses. The company's revenue model is built on premiums collected from policyholders, which are paid monthly or annually. Additionally, AFLAC earns investment income from the premiums it receives before they are paid out as claims. The company has established significant partnerships with employers, offering group policies that enhance employee benefits packages. AFLAC's strong brand recognition, effective marketing strategies, and customer-centric approach contribute to its ability to attract and retain policyholders, thereby driving its revenue growth.

AFLAC Financial Statement Overview

Summary

AFLAC's financial performance is mixed. While the company maintains strong profitability and a stable balance sheet, the decline in revenue and profitability margins in the TTM period raises concerns about future growth. The robust cash flow performance provides a cushion and indicates efficient cash management. Overall, AFLAC is financially stable but faces challenges in reversing the declining revenue trend.

Income Statement

AFLAC's income statement shows a mixed performance. The TTM data indicates a decline in revenue growth rate by 5.48%, which is concerning. However, the company maintains a healthy gross profit margin of 55.88% and a net profit margin of 15.09% in the TTM period, although both have decreased compared to the previous year. The EBIT and EBITDA margins have also declined, reflecting reduced operational efficiency. Overall, while profitability remains strong, the declining revenue and margins suggest potential challenges ahead.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.33 in the TTM period, indicating conservative leverage. Return on equity has decreased to 9.33%, which is a decline from previous years, suggesting reduced profitability relative to shareholder equity. The equity ratio remains strong, indicating a solid capital structure. Despite the decline in ROE, the company's balance sheet remains robust with manageable debt levels.

Cash Flow

AFLAC's cash flow statement shows positive trends with a 5.89% growth in free cash flow in the TTM period, indicating improved cash generation capabilities. The operating cash flow to net income ratio is strong at 3.78, highlighting efficient cash conversion. The free cash flow to net income ratio remains stable at 1.0, demonstrating consistent cash flow relative to earnings. Overall, the cash flow position is strong, supporting the company's operations and potential investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	17.96B	19.13B	18.84B	19.15B	21.55B	22.26B
Gross Profit	6.30B	6.82B	18.84B	19.15B	21.55B	22.26B
EBITDA	5.81B	6.42B	5.26B	4.87B	5.21B	4.16B
Net Income	4.17B	5.44B	4.66B	4.42B	4.23B	4.78B
Balance Sheet
Total Assets	122.31B	117.57B	126.72B	131.74B	157.54B	165.09B
Cash, Cash Equivalents and Short-Term Investments	76.42B	71.50B	77.60B	79.68B	103.75B	111.02B
Total Debt	8.69B	7.50B	7.36B	7.44B	7.96B	7.90B
Total Liabilities	93.62B	91.47B	104.74B	111.60B	124.29B	131.53B
Stockholders Equity	28.69B	26.10B	21.98B	20.14B	33.25B	33.56B
Cash Flow
Free Cash Flow	2.57B	2.71B	3.19B	3.88B	5.05B	5.96B
Operating Cash Flow	2.57B	2.71B	3.19B	3.88B	5.05B	5.96B
Investing Cash Flow	2.72B	2.78B	817.00M	-1.54B	-2.38B	-4.62B
Financing Cash Flow	-3.97B	-3.49B	-3.72B	-3.55B	-2.74B	-1.11B

AFLAC Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 109.55
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AFL, the sentiment is Neutral. The current price of 109.55 is below the 20-day moving average (MA) of 111.33, below the 50-day MA of 109.83, and above the 200-day MA of 105.46, indicating a neutral trend. The MACD of 0.30 indicates Positive momentum. The RSI at 46.38 is Neutral, neither overbought nor oversold. The STOCH value of 30.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AFL.

AFLAC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AFL	77 Outperform	$57.42B	14.28	15.58%	2.06%	2.31%	15.46%
PRU	76 Outperform	$37.89B	14.84	8.36%	4.99%	-19.35%	-35.23%
PUK	73 Outperform	$36.60B	11.18	20.19%	1.66%	42.45%	304.26%
UNM	72 Outperform	$12.58B	14.65	8.35%	2.34%	1.80%	-44.44%
GL	71 Outperform	$10.55B	9.60	22.28%	0.79%	3.73%	17.47%
MET	69 Neutral	$50.28B	14.37	12.84%	2.95%	0.82%	7.18%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%

AFLAC Corporate Events

Aflac Reports Strong Q3 Earnings and Dividend Increase

Aflac Incorporated, a Fortune 500 company, is a leading provider of supplemental health insurance in the U.S. and cancer and medical insurance in Japan, known for its ethical business practices and commitment to sustainability. In its third quarter of 2025, Aflac reported a significant turnaround with net earnings of $1.6 billion, compared to a net loss in the previous year, driven by net investment gains and a stronger yen/dollar exchange rate. Total revenues surged to $4.7 billion, reflecting a substantial increase from the previous year’s $2.9 billion. Key financial highlights include a 9.6% increase in adjusted earnings to $1.3 billion and a 15.3% rise in adjusted earnings per diluted share. Aflac’s U.S. segment saw a 2.5% increase in net earned premiums, while Aflac Japan experienced an 11.8% rise in sales, primarily due to its new cancer insurance product. The company also declared a fourth-quarter dividend and repurchased $1.0 billion in shares. Looking ahead, Aflac remains focused on executing its strategy to create long-term value for shareholders, with a continued emphasis on profitable growth and maintaining strong capital management practices.

Aflac’s Q3 2025 Earnings Call: Strong Growth Amid Challenges

Aflac Incorporated’s recent earnings call conveyed a predominantly positive sentiment, highlighting strong financial performance across its U.S. and Japan segments. The company showcased robust capital deployment and significant sales growth in Japan’s cancer insurance sector. However, challenges were noted in the U.S. market, particularly concerning the shift away from individual products and issues related to expense management.

Aflac Reports Strong Q3 Earnings and Sales Growth

On November 4, 2025, Aflac Incorporated announced its third quarter financial results, reporting a substantial increase in net earnings to $1.6 billion compared to a net loss in the previous year. This improvement was driven by net investment gains and a favorable yen/dollar exchange rate. The company also declared a fourth quarter dividend and continued its share repurchase program. Aflac Japan saw a notable increase in sales due to strong performance of its cancer insurance product, while Aflac U.S. experienced growth in net earned premiums and sales, particularly in group life and disability products.

The most recent analyst rating on (AFL) stock is a Hold with a $118.00 price target. To see the full list of analyst forecasts on AFLAC stock, see the AFL Stock Forecast page.

Aflac Completes $2 Billion Financial Transaction

On August 27, 2025, Aflac Incorporated completed a significant financial transaction involving the issuance and sale of Pre-Capitalized Trust Securities through two Delaware statutory trusts, raising a total of $2 billion. This arrangement allows Aflac to issue Senior Notes over a ten and thirty-year period, providing flexibility in funding and potentially impacting its financial strategy and market positioning.

The most recent analyst rating on (AFL) stock is a Buy with a $117.00 price target. To see the full list of analyst forecasts on AFLAC stock, see the AFL Stock Forecast page.