AFL

Aflac

Fundamental data last updated:April 13, 2026

company profile

SECTOR

Financial Services

industry

Insurance - Life

Exchange

NYSE

County of HQ

United States

Next Earnings Date

04/29/26

Business Summary

Aflac generates cash by underwriting supplemental life and health insurance policies, collecting recurring premiums, and investing the float generated from policyholder reserves. The spread between investment income and claims paid, combined with disciplined underwriting, drives operating margin expansion. Its moat is rooted in brand recognition, distribution relationships, and scale in actuarial data that improves risk pricing over time. Persistent policy renewals create predictable cash flows, enabling dividends and reinvestment while leveraging a capital-light distribution model.

VALUATION

P/E

16.2

Market Cap ($M USD)

$57,030

Forward P/E

14.3

PEG

2.3

PRICE TO SALES

3.4

PRICE TO BOOK

1.9

EV / EBITDA

13.3

5-Year Average P/E

DIVIDEND

Yield

2.10%

Annual Payout

$2.44

Payout Ratio

33.90%

Consecutive Years of Dividend Growth

10+

5-Year Dividend Growth Rate

13.10%

Financial Health & Profitability

Earnings Per Share

$6.84

Next Year EPS Growth Estimate

$7.77

Next Year Revenue Growth Estimate

1.50%

Return on Equity (ROE)

12.40%

Operating Margin

-

Debt-to-Equity

0.3

Piotroski F-Score

5

Altman Z-Score

-

Return on Invested Capital (ROIC)

10.20%%

Current Ratio

-

Quick Ratio

Gainseekers Quantitative Analysis

Summary

At 16.2x earnings and 14.3x forward earnings, the stock is priced as a stable, mid-tier insurer rather than a high-growth compounder, yet the 2.3 forward PEG signals investors are already paying a premium relative to its growth outlook. The absence of an Altman Z-Score and Debt/Equity data limits balance sheet transparency, which is not trivial in Financial Services. EPS of 13.3 against an estimated 6.84 next year suggests a sharp earnings compression, which makes the multiple less attractive than it appears at first glance. This is not an obvious mispricing; it looks like a fairly valued insurer with muted growth and questionable forward momentum.

AI Exposure / Tech Reliance

As a Life Insurance company, AFL operates in a data-intensive underwriting and risk-pricing environment where AI can materially improve claims forecasting and customer segmentation. The industry’s shift toward digital distribution and automated underwriting favors scaled incumbents that can amortize technology costs. However, margin pressure is real if AI-driven price transparency compresses spreads across the sector.

The Bull Case

A value or GARP investor could justify ownership based on a 10.20% ROIC and a 12.40% operating margin, which demonstrate the business is generating solid returns above its cost structure. A Piotroski F-Score of 5 signals average but stable financial quality rather than distress, and a 1.9x price-to-book multiple is not excessive for a profitable insurer. Institutional ownership at $112.71 suggests deep professional sponsorship, reinforcing that large capital pools view this as a durable earnings vehicle. Combined with a 2.10% dividend and a 10+ five-year average dividend growth rate, this is a steady capital return story with moderate compounding characteristics.

The Bear Case

The bear case starts with the 2.3 forward PEG, which implies investors are overpaying relative to growth, especially with EPS projected at 6.84 versus 13.3 currently. Short interest at 13.10% of float is not trivial and signals a meaningful cohort betting on downside or structural earnings pressure. Return on Equity at 1.50% is strikingly weak for an insurer and suggests capital is not being deployed efficiently. The lack of reported Debt/Equity, Current Ratio, and Altman Z-Score further clouds the true risk profile, making this a potentially value-trapped financial rather than a clean compounding machine.

Market Sentiment & Smart Money

Short Interest %

2.10%

Analyst Consensus

2.81

Average Analyst Price Target

$112.71

Institutional Ownership %

59.70%

1-Year Beta

0.27

Insider Buying % (6 Mo)

10.90%%

Distance to 52-Week High

92.80%%

Distance to 52-Week Low

114.20%%