AFLAC (AFL) AI Stock Analysis

• Market Cap: $57.54B
• Dividend Yield: 1.95%
• Average Volume (3M): 2.09M
• Price to Earnings (P/E): 16.6
• Beta (1Y): 0.40
• Revenue Growth: -12.66%
• EPS Growth: -29.30%
• Country: US
• Employees: 12,694
• Sector: Financial
• Sector Strength: 82
• Industry: Insurance - Life
• EPS (TTM): 1.66
• Shares Outstanding: 540,645,000
• 10 Day Avg. Volume: 1,927,643
• 30 Day Avg. Volume: 2,088,862
• PEG Ratio: -0.48
• Price to Book (P/B): 2.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 23.60
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 0.82
• Enterprise Value/Gross Profit: 4.42
• Enterprise Value/Ebitda: 2.78
• 1Y Price Target: $106.42
• Price Target Upside: 2.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 64 Neutral
• Price Target: $111.00 ▲( 7.20% Upside)

AFLAC's overall stock score reflects strong financial fundamentals and effective capital management, mitigated by challenges in revenue growth and investment income. The stable sales growth in key markets and solid capital returns are notable positives.

Positive Factors

Capital position

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

Sales growth

Sales increased 12.6% driven by Tsumitasu as well as initial sales from the new Miraito cancer product.

Shareholder returns

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

Negative Factors

Earnings performance

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

Sales performance

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, 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 makes money primarily through the sale of supplemental insurance products. The company generates revenue by collecting premiums from policyholders, which form the core of its income. Aflac's key revenue streams include premiums from its life and health insurance offerings, particularly in Japan and the United States. In Japan, Aflac is a leader in the cancer and medical insurance markets, while in the U.S., it focuses on individual and group insurance products. The company also invests the premiums received in a diversified portfolio of assets, which contributes to its income through investment gains. Partnerships with employers and brokers play a significant role in distributing Aflac's products, allowing the company to reach a broad customer base and enhance its sales channels. Aflac's financial strength is bolstered by its strategic risk management practices and its ability to adapt to changing market conditions.

AFLAC Financial Statement Overview

Summary

AFLAC exhibits strong profitability with robust operating margins and moderate leverage. However, challenges in sustaining revenue and free cash flow growth may affect future financial flexibility.

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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
17.09B	19.13B	18.84B	19.15B	21.55B	22.26B
	Gross Profit
13.64B	19.13B	18.84B	19.15B	21.55B	22.26B
	EBIT
4.39B	6.42B	5.26B	4.87B	5.21B	4.16B
	EBITDA
4.39B	6.42B	5.26B	4.87B	5.21B	4.16B
	Net Income Common Stockholders
3.59B	5.44B	4.66B	4.42B	4.23B	4.78B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
72.41B	6.23B	28.22B	79.68B	103.75B	111.02B
	Total Assets
120.26B	117.57B	126.72B	131.74B	157.54B	165.09B
	Total Debt
7.75B	7.50B	7.36B	7.44B	7.96B	7.90B
	Net Debt
2.52B	1.27B	3.06B	3.50B	2.90B	2.76B
	Total Liabilities
93.92B	91.47B	104.74B	111.60B	7.96B	7.90B
	Stockholders Equity
26.34B	26.10B	21.98B	20.14B	33.25B	33.56B
Cash Flow		Free Cash Flow
2.45B	2.71B	3.19B	3.88B	5.05B	5.96B
	Operating Cash Flow
2.45B	2.71B	3.19B	3.88B	5.05B	5.96B
	Investing Cash Flow
2.19B	2.78B	817.00M	-1.54B	-2.38B	-4.62B
	Financing Cash Flow
-4.49B	-3.49B	-3.72B	-3.55B	-2.74B	-1.11B

AFLAC Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 103.54
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 103.54 is below the 20-day moving average (MA) of 105.72, below the 50-day MA of 106.49, and below the 200-day MA of 106.03, indicating a bearish trend. The MACD of -0.49 indicates Positive momentum. The RSI at 42.74 is Neutral, neither overbought nor oversold. The STOCH value of 27.67 is Neutral, 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	79 Outperform	$54.29B	13.17	16.08%	2.71%	8.77%	110.90%
UNM	76 Outperform	$14.30B	9.67	14.68%	2.05%	1.69%	25.54%
GL	74 Outperform	$10.09B	9.94	20.47%	0.81%	5.41%	16.60%
PRU	71 Outperform	$38.22B	17.09	8.04%	4.96%	2.47%	6.88%
AFL	64 Neutral	$57.54B	16.61	14.41%	1.95%	-12.66%	-29.30%
LNC	64 Neutral	$5.85B	4.87	16.91%	5.30%	8.31%	-2.30%
Sector *	64 Neutral	$12.78B	9.87	7.67%	17015.06%	12.34%	-5.99%

AFLAC Corporate Events

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.