AFLAC (AFL)
NYSE:AFL
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AFLAC
(NYSE:AFL)
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Rating:79Outperform
Price Target:
$133.00
â–²(16.14% Upside)
Action:ReiteratedDate:04/30/26
The score is driven primarily by solid financial quality and an attractive valuation (low P/E with a supportive dividend), reinforced by bullish technical trend signals. The main risks tempering the score are softer recent growth/earnings vs. 2024 and earnings-call headwinds, particularly Japan earned-premium pressure and investment-related volatility.
Positive Factors
Japan new-business momentum
Sustained double-digit new-business growth in Japan driven by targeted products and broad channel expansion strengthens long-term premium-generation potential in Aflac's largest market. Strong distribution traction reduces reliance on price or rate shifts to drive growth and supports future in-force recovery.
Negative Factors
Japan earned-premium pressure
Despite strong new sales, declines in earned premiums signal in-force attrition, paid-up migrations or reinsurance cessions that can depress long-term organic revenue. Continued earned-premium pressure requires sustained above-plan new sales to stabilize in-force trends and margin expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Japan new-business momentum
Sustained double-digit new-business growth in Japan driven by targeted products and broad channel expansion strengthens long-term premium-generation potential in Aflac's largest market. Strong distribution traction reduces reliance on price or rate shifts to drive growth and supports future in-force recovery.
Read all positive factors
AFLAC (AFL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$58.15B
Dividend Yield2.1%
Average Volume (3M)2.33M
Price to Earnings (P/E)13.8
Beta (1Y)0.46
Revenue Growth7.06%
EPS Growth37.42%
CountryUS
Employees12,694
SectorFinancial
Sector Strength70
IndustryInsurance - Life
Share Statistics
EPS (TTM)6.86
Shares Outstanding515,183,650
10 Day Avg. Volume2,089,695
30 Day Avg. Volume2,333,614
Financial Highlights & Ratios
PEG Ratio-0.55
Price to Book (P/B)1.98
Price to Sales (P/S)3.35
P/FCF Ratio22.88
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue3.50
Enterprise Value/Gross Profit9.04
Enterprise Value/Ebitda10.98
Forecast
1Y Price Target
$114.00Price Target Upside-0.45% Downside
Rating ConsensusHold
Number of Analyst Covering11
EPS Forecast (FY)7.24
Revenue Forecast (FY)$16.94B
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,...
How the Company Makes Money
Aflac makes money primarily through (1) insurance premiums it collects from policyholders and (2) investment income earned on the portfolio of assets it holds to support future policy benefits and claims.
1) Premiums and underwriting results
- Pr...
AFLAC Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
Overall the call portrayed a positive tone driven by very strong Japan new-business momentum (25.5% sales growth), solid U.S. premium growth and persistency, healthy capital/liquidity levels and continued shareholder returns. Offsetting items include pressure on earned premiums in Japan, some one-time reserve and investment-related volatility (charge-offs and real estate impairments), a weaker Corporate & Other quarter, and near-term impacts from reinsurance cessions. Management emphasized strategic execution (product, distribution, reinsurance expansion) and capital flexibility to manage these headwinds.Positive Updates
Strong Japan Sales Momentum
Aflac Japan delivered a 25.5% year-over-year increase in first-quarter sales, driven by new products including Onsen Tallett (medical) and Miraito (cancer insurance), and broad channel growth across agencies, alliance partners and banks.
Negative Updates
Japan Earned Premium Pressure
Japan net earned premiums declined 3.8% in yen terms for the quarter; underlying earned premiums (excluding reinsurance, paid-up policies and deferred profit liability) declined 1.3%, indicating ongoing headwinds to in-force premium despite strong new business sales.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Japan Sales Momentum
Aflac Japan delivered a 25.5% year-over-year increase in first-quarter sales, driven by new products including Onsen Tallett (medical) and Miraito (cancer insurance), and broad channel growth across agencies, alliance partners and banks.
Read all positive updates
Company Guidance
Management reiterated full‑year guidance of a Japan benefit ratio of 60–63% and a U.S. benefit ratio of 42–52%, and said it will maintain adjusted leverage in a 20–25% corridor (Q1 21.2%) with $3.4B of unencumbered liquidity (≈$2.4B above a $1.0B minimum); estimated regulatory ESR was ~227% (243% including USP) and combined RBC ≈560%. Q1 operating and capital metrics cited included: Japan sales +25.5%, Japan net earned premiums −3.8% (underlying −1.3%), Japan persistency 92.8%, Japan expense ratio 19.5%, Japan pretax margin 35%; U.S. sales +2.9%, U.S. net earned premium +3.5%, U.S. persistency 79.3%, U.S. benefit ratio 47.2%, U.S. expense ratio 38.3%, U.S. pretax margin 20.4%; adjusted EPS up ~6.6% YoY to $1.77 excl. FX, adjusted ROE 12.8% (16.4% excl. FX), adjusted book value per share +0.2% excl. FX. Capital deployment will remain tactical — Q1 returned $1.3B to shareholders (repurchases $1.0B, dividends $315M) — and management expects Japan sales roughly in line with 2025 (~JPY74B, with an internal aspiration nearer JPY80B) while noting ~JPY90B of annual new sales would be needed to reach flat earned‑premium growth.AFLAC Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
78
Positive
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 17.44B | 19.13B | 18.84B | 19.15B | 21.55B |
| Gross Profit | 6.79B | 6.82B | 18.84B | 19.15B | 21.55B |
| EBITDA | 5.53B | 6.42B | 5.26B | 4.87B | 5.21B |
| Net Income | 3.65B | 5.44B | 4.66B | 4.42B | 4.23B |
Balance Sheet | |||||
| Total Assets | 116.47B | 117.57B | 126.72B | 131.74B | 157.54B |
| Cash, Cash Equivalents and Short-Term Investments | 6.25B | 71.50B | 77.60B | 79.68B | 103.75B |
| Total Debt | 8.41B | 7.50B | 7.36B | 7.44B | 7.96B |
| Total Liabilities | 86.98B | 91.47B | 104.74B | 111.60B | 124.29B |
| Stockholders Equity | 29.49B | 26.10B | 21.98B | 20.14B | 33.25B |
Cash Flow | |||||
| Free Cash Flow | 2.56B | 2.71B | 3.19B | 3.88B | 5.05B |
| Operating Cash Flow | 2.56B | 2.71B | 3.19B | 3.88B | 5.05B |
| Investing Cash Flow | 1.56B | 2.78B | 817.00M | -1.54B | -2.38B |
| Financing Cash Flow | -4.07B | -3.49B | -3.72B | -3.55B | -2.74B |
AFLAC Technical Analysis
Positive
114.52
Price Trends
111.40
Positive
110.36
Positive
108.03
Positive
Market Momentum
0.97
Negative
64.35
Neutral
87.63
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 114.52 is above the 20-day moving average (MA) of 110.09, above the 50-day MA of 111.40, and above the 200-day MA of 108.03, indicating a bullish trend. The MACD of 0.97 indicates Negative momentum. The RSI at 64.35 is Neutral, neither overbought nor oversold. The STOCH value of 87.63 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AFL.
AFLAC Risk Analysis
AFLAC disclosed 28 risk factors in its most recent earnings report. AFLAC reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
AFLAC Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $11.98B | 10.08 | 20.92% | 0.74% | 3.96% | 18.84% | |
79 Outperform | $58.15B | 13.81 | 13.05% | 2.10% | 7.06% | 37.42% | |
74 Outperform | $12.92B | 12.91 | 7.01% | 2.22% | 4.19% | -45.74% | |
69 Neutral | $37.48B | 3.72 | 40.09% | 1.49% | 66.84% | 83.13% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | $34.30B | 11.10 | 11.44% | 4.73% | -13.68% | 33.89% | |
58 Neutral | $52.31B | 15.53 | 12.01% | 2.78% | 8.59% | -21.11% |
* Financial Sector Average
AFL
AFLAC
112.88
9.38
9.06%
MET
Metlife
80.23
5.06
6.72%
PRU
Prudential Financial
98.62
1.15
1.18%
PUK
Prudential
30.17
8.78
41.03%
GL
Globe Life
152.72
32.26
26.78%
UNM
Unum Group
80.84
4.03
5.25%
AFLAC Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Aflac Reports Strong Q1 2026 Revenue and Earnings
Positive
Apr 29, 2026
Aflac Incorporated on April 29, 2026 reported first-quarter 2026 revenue of $4.3 billion, up 27.9% year over year, with net earnings surging to $1.0 billion, or $1.98 per diluted share, from $29 million, or $0.05 per share, driven largely by a swi...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Aflac Reports Mixed Q4 Results, Boosts Shareholder Returns
Neutral
Feb 4, 2026
On February 4, 2026, Aflac reported that fourth-quarter 2025 total revenues fell to $4.9 billion from $5.4 billion a year earlier, with net earnings declining to $1.4 billion, or $2.64 per diluted share, from $1.9 billion, or $3.42 per share, larg...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.