AFLAC INC (AFL) Stock Analysis
AFLAC INC (AFL) Stock Analysis
Analysis from 10-Q filed 2025-11-05. Data as of Q4 2025.
Overall Grade: F (Concerning)
AFLAC INC faces challenges in financial performance that warrant careful analysis.
| Metric | Value | Context |
|---|---|---|
| ROIC | N/A | Below expectations |
| FCF Margin | 14.9% | Healthy cash flow |
| Debt/Equity | 0.0x | Conservative leverage |
Investment Thesis: Healthy free cash flow margin of 14.9% provides financial flexibility for growth and shareholder returns.
Explore AFLAC INC: Earnings History | Filing Intelligence | ROIC Analysis
Profitability: AFLAC INC earns N/A ROIC
AFLAC INC's trailing-twelve-month ROIC of N/A (sector median: 7.3%). Source: 10-Q filed 2025-11-05.
| Metric | AFL | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | N/A | Red flag | Below sector median of 7.3% |
| Return on Equity (ROE) | 13.3% | Adequate | Moderate equity returns |
Cash Flow: AFLAC INC generates $2.6B FCF at 14.9% margin, positive NaN/8 quarters
AFLAC INC generated $2.6B in free cash flow (TTM), a 14.9% FCF margin, a margin that ranks Bottom 50% in Financials. FCF was positive in N/A of the last 8 quarters. Source: 10-Q filed 2025-11-05.
| Metric | AFL | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 14.9% | Good | Healthy cash generation |
| Free Cash Flow (TTM) | $2.6B | Good | Positive cash generation |
| OCF/Net Income | 0.7x | Adequate | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: AFLAC INC at 0.0x leverage
AFLAC INC's debt-to-equity ratio of 0.0x reflects conservative leverage. Source: 10-Q filed 2025-11-05.
| Metric | AFL | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Valuation: AFLAC INC trades at 16.0x earnings
AFLAC INC trades at a P/E of 16.0x. Free cash flow yield of 4.3% reflects market expectations for growth.
| Metric | AFL | Rating | Context |
|---|---|---|---|
| P/E Ratio | 16.0x | Adequate | Reasonable valuation |
| EV/Sales | 3.1x | Good | Growth premium priced in |
| FCF Yield | 4.3% | Good | Lower cash yield |
| Dividend Yield | 2.1% | Adequate | Growth focus over income |
Capital Allocation: AFLAC INC returns 8.1% shareholder yield
AFLAC INC's total shareholder yield is 8.1% (dividends 2.1% + buybacks 6.0%). Source: 10-Q filed 2025-11-05.
| Metric | AFL | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 8.1% | Excellent | Dividend + buyback yield combined |
| Buyback Yield | 6.0% | Good | Active share repurchases |
| Total Capital Returned (TTM) | $4.7B | Good | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Free Cash Flow Margin | 14.9% | Bottom 50% | 0.7x below |
| Return on Equity (ROE) | 13.3% | Top 50% | 1.3x above |
| P/E Ratio | 16.0x | N/A | - |
Financial Scorecard
| Metric | AFL | Rating | Sector Context |
|---|---|---|---|
| Free Cash Flow Margin | 14.9% | Good | Bottom 50% of sector (median: 21.7%) |
| Debt to Equity Ratio | 0.0% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 16.0x | Adequate | Fair value |
| Free Cash Flow Yield | 4.3% | Adequate | Moderate yield |
Frequently Asked Questions
Q: What is AFLAC INC's Return on Invested Capital (ROIC)?
AFLAC INC (AFL) has a trailing twelve-month Return on Invested Capital (ROIC) of N/A. This compares below the sector median of 7.3%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is AFLAC INC's Free Cash Flow Margin?
AFLAC INC (AFL) has a free cash flow margin of 14.9%, generating $2.6 billion in free cash flow over the trailing twelve months. A FCF margin between 10-20% represents healthy cash generation for most industries.
Q: Is AFLAC INC stock overvalued or undervalued?
AFLAC INC (AFL) trades at a P/E ratio of 16.0x, which is above the sector median of N/A. The EV/Sales multiple is 3.1x. Free cash flow yield is 4.3%, which is in line with market averages.
Q: Does AFLAC INC pay a dividend?
AFLAC INC (AFL) currently pays a dividend yield of 2.1%. Including share buybacks, the total shareholder yield is 8.1%. This yield is moderate, suggesting a balance between income and growth reinvestment.
Q: What is AFLAC INC's revenue and earnings growth?
AFLAC INC (AFL) declined revenue by 9.3% year-over-year. Earnings per share decreased by 28.5% compared to the prior year. Revenue decline may indicate market challenges or industry headwinds.
Q: Is AFLAC INC buying back stock?
AFLAC INC (AFL) repurchased $3.5 billion of stock over the trailing twelve months. This represents a buyback yield of 6.0%.
Q: How does AFLAC INC compare to competitors in Financials?
Compared to other companies in Financials, AFLAC INC (AFL) shows: ROIC of N/A is below the sector median of 7.3% (NaNx median). FCF margin of 14.9% trails the sector median of 21.7% (Bottom 41% of sector). These rankings are based on MetricDuck's analysis of all Financials companies with available SEC filings.
Q: What warning signs should I watch for with AFLAC INC?
AFLAC INC (AFL) shows no major financial warning signs based on current metrics. However, investors should always monitor: 1) Margin compression trends, 2) Cash flow consistency, 3) Debt levels relative to cash generation, and 4) Changes in competitive positioning.
Data Source: Data sourced from 10-Q filed 2025-11-05. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.