AFLAC (AFL) AI Stock Analysis

• Market Cap: $57.84B
• Dividend Yield: 2.11%
• Average Volume (3M): 2.60M
• Price to Earnings (P/E): 14.4
• Beta (1Y): 0.38
• 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: 3,341,369
• 30 Day Avg. Volume: 2,596,432
• 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: 1.18
• Enterprise Value/Revenue: 3.79
• Enterprise Value/Gross Profit: 10.80
• Enterprise Value/Ebitda: 11.73
• 1Y Price Target: $111.45
• Price Target Upside: 1.27% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 11
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $118.00 ▲(7.22% Upside)

AFLAC's overall stock score reflects strong financial performance and positive earnings call highlights, tempered by technical analysis indicators suggesting bearish sentiment. Valuation is reasonable, and corporate events provide additional positive momentum.

Positive Factors

Revenue Growth

Strong revenue growth in Japan, especially in cancer insurance, indicates successful product offerings and market expansion, boosting long-term profitability.

Capital Deployment

Significant capital deployment for share repurchases and dividends reflects strong cash generation and commitment to shareholder returns, enhancing investor confidence.

Strong Profitability

Consistent earnings growth underscores robust profitability and efficient operations, supporting long-term financial health and competitive positioning.

Negative Factors

Expense Management Challenges

Rising expenses in the U.S. segment could pressure margins and profitability, necessitating improved cost management strategies to sustain long-term growth.

Reliance on Debt

High reliance on debt could limit financial flexibility and increase risk, especially if interest rates rise or market conditions worsen, impacting stability.

Decline in Japan Premiums

A decline in premiums in Japan may indicate market saturation or competitive pressures, potentially affecting future revenue growth and market share.

AFLAC Business Overview & Revenue Model

Company Description

Aflac Incorporated, through its subsidiaries, provides supplemental health and life insurance products. It operates through two segments, Aflac Japan and Aflac U.S. The Aflac Japan segment offers cancer, medical, nursing care income support, GIFT, and whole and term life insurance products, as well as WAYS and child endowment plans under saving type insurance products in Japan. The Aflac U.S. segment provides cancer, accident, short-term disability, critical illness, hospital indemnity, dental, vision, long-term care and disability, and term and whole life insurance products in the United States. It sells its products through sales associates, brokers, independent corporate agencies, individual agencies, and affiliated corporate agencies. The company was founded in 1955 and is based in Columbus, Georgia.

How the Company Makes Money

AFLAC generates revenue primarily through the sale of supplemental insurance policies. The company earns premiums from policyholders who pay for coverage, which contributes to its overall revenue stream. Additionally, AFLAC invests the premiums it collects in various financial instruments, generating investment income that further enhances its earnings. Key revenue streams include individual and group insurance policies, with significant contributions from both the U.S. and Japanese markets. The company has established partnerships with various employers and brokers to expand its reach and improve sales, and it benefits from a strong brand reputation that aids in customer retention and acquisition. Furthermore, AFLAC's ability to manage claims efficiently and maintain a low expense ratio supports its profitability.

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: Positive
• Last Price: 110.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AFL, the sentiment is Positive. The current price of 110.05 is above the 20-day moving average (MA) of 109.67, above the 50-day MA of 109.57, and above the 200-day MA of 105.83, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 50.90 is Neutral, neither overbought nor oversold. The STOCH value of 65.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AFL.

AFLAC Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRU	77 Outperform	$40.25B	15.76	8.36%	4.70%	-19.35%	-35.23%
PUK	73 Outperform	$39.08B	11.91	20.19%	1.50%	42.45%	304.26%
MET	71 Outperform	$53.75B	15.36	12.84%	2.76%	0.82%	7.18%
AFL	68 Neutral	$57.84B	14.39	15.58%	2.11%	2.31%	15.46%
GL	68 Neutral	$11.12B	10.11	22.28%	0.74%	3.73%	17.47%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
UNM	64 Neutral	$13.26B	15.44	8.35%	2.24%	1.80%	-44.44%

AFLAC Corporate Events

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.