AFLAC (AFL) AI Stock Analysis

• Market Cap: $55.38B
• Dividend Yield: 2.04%
• Average Volume (3M): 2.22M
• Price to Earnings (P/E): 23.4
• Beta (1Y): 0.48
• Revenue Growth: -17.57%
• EPS Growth: -53.18%
• Country: US
• Employees: 12,694
• Sector: Financial
• Sector Strength: 71
• Industry: Insurance - Life
• EPS (TTM): 1.78
• Shares Outstanding: 534,831,500
• 10 Day Avg. Volume: 2,791,653
• 30 Day Avg. Volume: 2,221,366
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 4.06
• Enterprise Value/Gross Profit: 6.44
• Enterprise Value/Ebitda: 20.57
• 1Y Price Target: $106.46
• Price Target Upside: 1.10% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 14

• Rating: 67 Neutral
• Price Target: $115.00 ▲(9.21% Upside)

AFLAC's overall stock score reflects a stable financial position with strong cash flow and profitability, but concerns about declining revenue and profitability margins. The earnings call provided some positive insights, particularly in Japan, but challenges remain in the U.S. market. The high P/E ratio suggests potential overvaluation, while the dividend yield offers some income potential.

Positive Factors

Earnings Expectations

AFL is expected to perform better than consensus expectations.

Product Launch

The successful launch of a new cancer product in Japan is expected to bolster production.

Shareholder Returns

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

Negative Factors

Earnings Impact

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 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 solid with strong profitability 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	16.20B	19.13B	18.84B	19.15B	21.55B	22.26B
Gross Profit	10.21B	19.13B	18.84B	19.15B	21.55B	22.26B
EBITDA	3.19B	6.42B	5.26B	4.87B	5.21B	4.16B
Net Income	2.44B	5.44B	4.66B	4.42B	4.23B	4.78B
Balance Sheet
Total Assets	124.74B	117.57B	126.72B	131.74B	157.54B	165.09B
Cash, Cash Equivalents and Short-Term Investments	72.17B	4.02B	28.22B	79.68B	103.75B	111.02B
Total Debt	8.93B	7.50B	7.36B	7.44B	7.96B	7.90B
Total Liabilities	97.54B	91.47B	104.74B	111.60B	124.29B	131.53B
Stockholders Equity	27.20B	26.10B	21.98B	20.14B	33.25B	33.56B
Cash Flow
Free Cash Flow	2.59B	2.71B	3.19B	3.88B	5.05B	5.96B
Operating Cash Flow	2.59B	2.71B	3.19B	3.88B	5.05B	5.96B
Investing Cash Flow	1.66B	2.78B	817.00M	-1.54B	-2.38B	-4.62B
Financing Cash Flow	-3.33B	-3.49B	-3.72B	-3.55B	-2.74B	-1.11B

AFLAC Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 105.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 105.3 is above the 20-day moving average (MA) of 101.82, above the 50-day MA of 102.49, and above the 200-day MA of 104.76, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 60.89 is Neutral, neither overbought nor oversold. The STOCH value of 91.68 is Negative, 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
MET	78 Outperform	$50.91B	12.97	15.61%	2.86%	6.17%	59.22%
GL	74 Outperform	$11.22B	11.07	20.02%	0.73%	4.02%	13.01%
LNC	71 Outperform	$7.53B	6.93	12.97%	4.39%	11.33%	-38.17%
UNM	69 Neutral	$11.98B	8.42	13.95%	2.43%	1.69%	22.65%
PRU	68 Neutral	$37.04B	23.28	5.57%	4.96%	-1.80%	-42.18%
AFL	67 Neutral	$55.38B	23.41	9.15%	2.04%	-17.57%	-53.18%
Sector *	58 Neutral	HK$111.71B	6.60	-4.20%	3.95%	9.04%	-46.99%

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.