Aflac (AFL)
Financials · $57.3B market cap · SEC CIK 0000004977
fundamentals score out of 100
Next reports on Nov 4, 2026, after the close, with analysts expecting $1.81 in earnings per share.
The case for AFL
- Cheap on earnings at 11.8×, well under the market's usual 20×.
- 27% of revenue drops through to net profit.
- Revenue growing 13.6% year over year.
- Earnings per share up 111.0%.
- A PEG of 0.11: a P/E of 11.8× is low for EPS growing 111%.
- Return on equity of 16%.
The case against
- Revenue has shrunk 5.0% a year over five years.
- Weakest against its peers: price/sales of 3.2× is higher than 68% of Financials companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Financials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 63 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 28 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 70 |
| Momentumhow the price has behaved lately | 47 |
| Stabilityhow violently it moves, what it owes and what it pays you | 86 |
- Its debt and cash flow are not scored, as for every company in the Financials sector: for banks, insurers and brokers, borrowing is the business.
- Each factor except momentum is half fixed thresholds, half rank among the 74 Financials companies.
Key numbers
| Price / earnings | 11.8× |
|---|---|
| Price / book | 1.97× |
| Price / sales | 3.2× |
| Revenue growth (YoY) | +13.6% |
| EPS growth (YoY) | +111.0% |
| Gross margin | — |
| Operating margin | 33% |
| Net margin | 27% |
| Return on equity | 16% |
| Debt / equity | 0.29× |
| Current ratio | 0.11 |
| Dividend yield | 2.41% |
| Beta | 0.57 |
| 52-week range | $105.43 – $130.22 |
| Position in that range | 37% of the way up |
| 3-month return | -0.3% |
| 1-year return | +6.6% |
Five years of financials, as filed
Pulled from Aflac's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $17.2B | $18.9B | $18.7B | $19.1B | $21.6B |
| Operating income | — | — | — | $4.2B | $4.9B |
| Net income | $3.6B | $5.4B | $4.7B | $4.4B | $4.2B |
| Operating cash flow | $2.6B | $2.7B | $3.2B | $3.9B | $5.1B |
| Total assets | $116B | $118B | $127B | $132B | $158B |
| Total liabilities | $87.0B | $91.5B | $105B | $112B | $124B |
| Shareholder equity | $29.5B | $26.1B | $22.0B | $20.1B | $17.0B |
| Cash | $6.2B | $6.2B | $4.3B | $3.9B | $5.1B |
| Operating margin | — | — | — | 21.7% | 22.9% |
| Net margin | 21.2% | 28.8% | 24.9% | 23.1% | 19.6% |
| Diluted shares | 535M | 565M | 599M | 638M | 677M |
Share count is down 21.0% over 4 years. Buybacks have been shrinking the pie.
What Aflac says it does
for a summary of each segment's products and distribution channels. Consistent with U.S. GAAP guidance for segment reporting, pretax adjusted earnings is the Company's U.S. GAAP measure of segment performance. The Company believes that a presentation of this measure is vitally important to an understanding of the underlying profitability drivers and trends of its business. Additional performance measures used to evaluate the financial condition and performance of the Company's segments are listed below. • Operating Ratios • New Annualized Premium Sales • New Money Yield • Return on Average Invested Assets • Portfolio Book Yield • Average Weekly Producer • Premium Persistency For additional information on the Company’s performance measures included in this MD&A, see the Glossary of Selected Terms found directly following Part IV. See Note 2 of the Notes to the Consolidated Financial Statements…
Risk factors AFL lists in its 10-K
- Adjusted net investment gains and losses
- Adjusted earnings excluding current period foreign currency impact
- Adjusted book value excluding foreign currency remeasurement
- Adjusted return on equity excluding foreign currency remeasurement
- U.S. dollar-denominated investment income excluding foreign currency impact
- Reconciliation of Net Earnings to Adjusted Earnings
- See reconciliation of net investment (gains) losses to adjusted net investment (gains) losses below
- Prior period foreign currency impact reflected as "N/A" to isolate change for current period only
- Reconciliation of Net Investment (Gains) Losses to Adjusted Net Investment (Gains) Losses
- Securities Transactions, Credit Losses and Changes in the Fair Value of Equity Securities
- Certain Derivative and Foreign Currency Activities
- Reconciliation of Book Value to Adjusted Book Value
- (Excluding Foreign Currency Remeasurement)
- Reconciliation of Return on Equity to Adjusted Return on Equity