A Business at a Glance
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AFLAC INC
AFL
$67.1B
Mkt Cap
$125.60
+1.01%
AFLAC INC (AFL) has a current P/E ratio of 18.4, compared to its historical median P/E of 9.8. The stock is currently considered Expensive based on its historical valuation range.
AFLAC INC (AFL) has a 5-year average return on invested capital (ROIC) of 15.6%. This indicates strong capital allocation and a potential competitive advantage.
AFLAC INC (AFL) has a market capitalization of $64.1B. It is classified as a large-cap stock.
Yes, AFLAC INC (AFL) pays a dividend with a trailing twelve-month yield of 1.87%. The company also returns capital through share buybacks, with a buyback yield of 5.66%.
Based on historical P/E analysis, AFLAC INC (AFL) appears expensive. The current P/E of 18.4 is 87% above its historical median of 9.8. The estimated fair value CAGR (P/E method) is 10.1%.
AFLAC INC (AFL) operates in the Accident & Health Insurance industry, within the Financials sector.
AFLAC INC (AFL) reported annual revenue of $17.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Aflac operates a specialized insurance business focused on supplemental health and life insurance products across two primary segments: Aflac Japan and Aflac U.S. In Japan, the company offers cancer insurance (including the recently launched Miraito product), medical insurance (Anshin Palette), and savings products (Tsumitasu), sold through a network of agents and increasingly through direct-to-consumer channels; the Japan segment generates earned premiums that have been declining modestly as lapses exceed new sales, though strong new product sales are expected to stabilize this trend. In the U.S., Aflac provides group disability, group life, dental, vision, and voluntary benefits to employers and employees, with sales concentrated in the lower end of the 3%-6% growth range and distributed through brokers and agents. The company's business model is built on persistency-based recurring premiums with relatively stable lapse rates around 92%-94%, supported by a strong balance sheet with unencumbered liquidity exceeding $3 billion and leverage maintained within a 20%-25% target range; the company holds approximately 63%-65% of its debt in yen, creating natural hedges against currency movements. Aflac has expanded its reinsurance franchise through Aflac Re Bermuda, which assumed a block of whole life annuities from Japan Post Insurance, positioning the company to selectively target reinsurance opportunities in the Japan market. The company's competitive positioning rests on its focus on narrow, specialized insurance niches in both markets, a double-A credit rating that attracts reinsurance counterparties, and operational scale in cancer and supplemental health insurance where claims experience has consistently run below long-term expectations.
【新商品牽引の成長転換】 Management expects Aflac Japan's earned premium decline to moderate from the current -1% to -2% range as strong new product sales, particularly from the Miraito cancer insurance and upcoming medical product launches, eventually offset lapse activity and stabilize the in-force block. The U.S. segment is anticipated to maintain net earned premium growth in the lower end of the 3%-6% range, with benefit ratios expected to remain in the 48%-52% range as favorable underwriting experience on cancer and disability blocks continues, though management acknowledges this favorable experience may normalize over time. Management remains confident in the Japan benefit ratio guidance of 60%-63% for 2026, supported by underlying experience trends, mix of business dynamics, and the lower net premium ratio established in prior periods. The company plans to be selective in expanding its reinsurance franchise through Aflac Re Bermuda, targeting up to 10% of Japan in-force business over the medium term, with management noting this will be material to the company over time. Capital deployment will continue to prioritize shareholder returns while maintaining financial flexibility, with the company holding substantial unencumbered liquidity and managing leverage within its target range despite ongoing yen-dollar exchange rate volatility.
| Metric | Target | Period |
|---|---|---|
| Japan benefit ratio | 60%-63% | FY2026 |
| Japan underlying earned premium | -1% to -2% | FY2026 |
| Japan expense ratio | 20%-23% | FY2026 |
| Japan pre-tax profit margin | 33%-36% | FY2026 |
| U.S. net earned premium growth | lower end of 3%-6% | FY2026 |
| U.S. benefit ratio | 48%-52% | FY2026 |
| U.S. expense ratio | 36%-39% | FY2026 |
| U.S. pre-tax profit margin | 17%-20% | FY2026 |
| Japan 2026 sales | equivalent to 2025 level (JPY 74 billion) | FY2026 |
Japan benefit ratio (FY2026): “we still feel very confident with the outlook range that we gave at the beginning of the year of 60%-63% for the Japan benefit ratio”
Japan underlying earned premium (FY2026): “For Aflac Japan, we expect underlying earned premiums to decline 1%-2% in 2026.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q1 FY2025 Earnings Call, Q4 FY2024 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 18.1B | 17.2B | 18.9B | 18.7B | 19.1B | 21.6B |
| Net Income | 4.6B | 3.6B | 5.4B | 4.7B | 4.4B | 4.2B |
| EPS | $8.89 | $6.82 | $9.63 | $7.78 | $6.93 | $6.25 |
| Free Cash Flow | 0 | 2.6B | 2.7B | 3.2B | 3.9B | 5.1B |
| ROIC | 0.0% | 11.0% | 18.2% | 17.2% | 18.0% | 13.6% |
| Gross Margin | - | 26.4% | 33.9% | 28.1% | 25.4% | 24.2% |
| Debt/Equity | 0.26 | 0.18 | 0.22 | 0.27 | 0.30 | 0.47 |
| Dividends/Share | $2.34 | $2.35 | $2.08 | $1.76 | $1.62 | $1.32 |
| Operating Income | 0 | 4.5B | 6.4B | 5.3B | 4.2B | 4.9B |
| Operating Margin | 0.0% | 26.4% | 33.9% | 28.1% | 21.7% | 22.9% |
| ROE | 15.5% | 13.1% | 22.6% | 22.1% | 23.8% | 16.7% |
| Shares Outstanding | 511M | 535M | 565M | 599M | 638M | 677M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 22.7B | 20.9B | 22.6B | 21.7B | 21.8B | 22.3B | 22.1B | 21.6B | 19.1B | 18.7B | 18.9B | 17.2B | 18.1B |
| Gross Margin | 19.8% | 18.5% | 18.0% | 18.5% | 18.3% | 19.9% | 18.8% | 24.2% | 25.4% | 28.1% | 33.9% | 26.4% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 2.3B | 2.6B | 2.8B | 2.8B | 3.0B | 3.1B | 3.4B | 3.5B | 3.2B | 3.2B | 3.0B | 3.3B | 3.2B |
| EBIT | 4.3B | 4.0B | 4.1B | 4.1B | 4.4B | 4.5B | 4.4B | 4.9B | 4.2B | 5.3B | 6.4B | 4.5B | 0 |
| Op. Margin | 18.7% | 19.2% | 18.2% | 18.9% | 20.0% | 20.0% | 19.9% | 22.9% | 21.7% | 28.1% | 33.9% | 26.4% | 0.0% |
| Net Income | 3.0B | 2.5B | 2.7B | 4.6B | 2.9B | 3.3B | 4.8B | 4.2B | 4.4B | 4.7B | 5.4B | 3.6B | 4.6B |
| Net Margin | 13.0% | 12.1% | 11.8% | 21.2% | 13.4% | 14.8% | 21.6% | 19.6% | 23.1% | 24.9% | 28.8% | 21.2% | 25.6% |
| Non-Recurring | 0 | 0 | 0 | 0 | 0 | 13M | 49M | 20M | 25M | 0 | 0 | 6.0M | 6.0M |
| Returns on Capital | |||||||||||||
| ROIC | 15.0% | 11.8% | 11.6% | 17.2% | 10.3% | 10.7% | 13.1% | 13.6% | 18.0% | 17.2% | 18.2% | 11.0% | 0.0% |
| ROE | 17.9% | 14.1% | 13.9% | 20.4% | 12.2% | 12.6% | 15.3% | 16.7% | 23.8% | 22.1% | 22.6% | 13.1% | 15.5% |
| ROA | 2.4% | 2.1% | 2.1% | 3.4% | 2.1% | 2.3% | 3.0% | 2.6% | 3.1% | 3.6% | 4.5% | 3.1% | 4.0% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 6.5B | 6.8B | 6.0B | 6.1B | 6.0B | 5.5B | 6.0B | 5.1B | 3.9B | 3.2B | 2.7B | 2.6B | 2.9B |
| Free Cash Flow | 6.5B | 6.8B | 6.0B | 6.1B | 6.0B | 5.5B | 6.0B | 5.1B | 3.9B | 3.2B | 2.7B | 2.6B | 0 |
| Owner Earnings | 6.5B | 6.7B | 5.9B | 6.1B | 6.0B | 5.4B | 5.9B | 5.0B | 3.8B | 3.1B | 2.7B | 2.5B | 2.2B |
| CapEx | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Maint. CapEx | 55M | 50M | 54M | 53M | 49M | 41M | 41M | 45M | 45M | 39M | 40M | 36M | 693M |
| Growth CapEx | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0 |
| D&A | 55M | 50M | 54M | 53M | 49M | 41M | 41M | 45M | 45M | 39M | 40M | 36M | 693M |
| CapEx/OCF | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 654M | 656M | 658M | 661M | 793M | 771M | 769M | 855M | 979M | 966M | 1.1B | 1.2B | 1.2B |
| Dividend Yield | 3.1% | 3.2% | 1.5% | 1.3% | 2.7% | 2.4% | 3.1% | 2.6% | 2.7% | 2.4% | 2.1% | 2.1% | 1.9% |
| Share Buybacks | 1.2B | 1.3B | 1.4B | 1.4B | 1.3B | 1.6B | 1.5B | 2.3B | 2.4B | 2.8B | 2.8B | 3.5B | 3.6B |
| Buyback Yield | 11.2% | 12.8% | 6.1% | 4.7% | 4.4% | 4.8% | 5.5% | 6.4% | 5.7% | 6.0% | 4.9% | 6.0% | 5.7% |
| Stock-Based Comp | 1.1M | 1.6M | 3.1M | 3.3M | 1.8M | 1.8M | 1.7M | 1.7M | 1.3M | 1.3M | 1.4M | 1.1M | 1.0M |
| Debt Repayment | 335M | 1.3B | 610M | 1.2B | 550M | 0 | 350M | 700M | 1.4B | 0 | 194M | 84M | 84M |
| Balance Sheet | |||||||||||||
| Net Debt | 409M | 319M | 360M | -82.5B | -81.5B | -89.6B | -103.1B | -95.8B | -73.7B | -71.6B | -65.8B | -65.2B | -61.0B |
| Cash & Equiv. | 4.7B | 4.3B | 4.9B | 3.5B | 4.3B | 4.9B | 5.1B | 5.1B | 3.9B | 4.3B | 6.2B | 6.2B | 68.9B |
| Long-Term Debt | 3.1B | 3.6B | 4.1B | 4.4B | 4.5B | 4.7B | 5.8B | 5.8B | 6.0B | 6.0B | 5.7B | 5.2B | 400M |
| Debt/Equity | 0.29 | 0.28 | 0.26 | 0.22 | 0.25 | 0.23 | 0.24 | 0.47 | 0.30 | 0.27 | 0.22 | 0.18 | 0.26 |
| Interest Coverage | 13.4 | 13.8 | 15.4 | 17.0 | 19.6 | 19.6 | 18.2 | 20.7 | 18.4 | 27.0 | 32.6 | 2.0 | 2.0 |
| Equity | 18.3B | 17.7B | 20.5B | 24.6B | 23.5B | 29.0B | 33.6B | 17.0B | 20.1B | 22.0B | 26.1B | 29.5B | 30.0B |
| Total Assets | 119.7B | 118.3B | 129.8B | 137.2B | 140.4B | 152.8B | 165.1B | 157.5B | 131.7B | 126.7B | 117.6B | 116.5B | 116.3B |
| Total Liabilities | 101.4B | 100.5B | 109.3B | 112.6B | 116.9B | 123.8B | 131.5B | 124.3B | 111.6B | 104.7B | 91.5B | 87.0B | 86.3B |
| Intangibles | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Retained Earnings | 22.2B | 24.0B | 26.0B | 29.9B | 31.8B | 34.3B | 38.0B | 41.4B | 44.4B | 48.0B | 52.3B | 54.7B | 55.7B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 3.25 | 2.93 | 1.61 | 2.89 | 3.77 | 4.43 | 6.67 | 6.25 | 6.93 | 7.78 | 9.63 | 6.82 | 8.89 |
| Owner EPS | 7.15 | 7.77 | 3.58 | 3.80 | 7.70 | 7.26 | 8.26 | 7.39 | 6.01 | 5.26 | 4.72 | 4.71 | 4.39 |
| Book Value | 20.21 | 20.45 | 12.36 | 15.41 | 30.29 | 38.83 | 46.85 | 25.16 | 31.59 | 36.71 | 46.17 | 55.16 | 58.69 |
| Cash Flow/Share | 7.21 | 7.82 | 3.61 | 3.84 | 7.76 | 7.31 | 8.32 | 7.46 | 6.08 | 5.33 | 4.79 | 4.78 | 10.44 |
| Dividends/Share | 0.72 | 0.76 | 0.40 | 0.41 | 1.02 | 1.08 | 1.12 | 1.32 | 1.62 | 1.76 | 2.08 | 2.35 | 2.34 |
| Shares Out. | 908.0M | 866.0M | 1.7B | 1.6B | 774.5M | 745.8M | 716.3M | 677.0M | 637.5M | 598.8M | 565.2M | 534.6M | 510.5M |
| Valuation | |||||||||||||
| P/E Ratio | 3.7 | 4.1 | 8.8 | 6.3 | 10.1 | 10.2 | 5.8 | 8.3 | 9.6 | 10.1 | 10.4 | 16.0 | 14.1 |
| P/FCF | 3.3 | 3.0 | 7.8 | 9.5 | 4.9 | 6.2 | 4.7 | 7.1 | 10.9 | 14.7 | 21.0 | 22.9 | N/A |
| EV/EBIT | 2.6 | 2.6 | 5.7 | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Price/Book | 0.6 | 0.6 | 1.1 | 1.2 | 1.3 | 1.2 | 0.8 | 1.1 | 2.1 | 2.1 | 2.2 | 2.0 | 2.1 |
| Price/Sales | 0.5 | 0.5 | 1.0 | 1.2 | 1.3 | 1.5 | 1.1 | 1.5 | 1.9 | 2.2 | 2.7 | 3.3 | 3.5 |
| FCF Yield | 60.7% | 65.9% | 25.7% | 21.1% | 20.5% | 16.1% | 21.4% | 14.1% | 9.1% | 6.8% | 4.8% | 4.4% | N/A |
| Market Cap | 10.8B | 10.3B | 23.3B | 29.0B | 29.4B | 33.8B | 27.9B | 35.9B | 42.4B | 46.8B | 56.9B | 58.4B | 64.1B |
| Avg. Price | 23.28 | 23.99 | 26.98 | 31.77 | 37.40 | 43.82 | 34.74 | 47.68 | 56.74 | 68.37 | 91.33 | 104.82 | 125.60 |
| Year-End Price | 23.76 | 23.75 | 28.14 | 36.38 | 37.93 | 45.34 | 38.89 | 53.07 | 66.54 | 78.23 | 100.62 | 109.32 | 125.60 |
AFLAC INC passes 3 of 9 quality checks, indicating weak fundamentals.
AFLAC INC trades at 18.4x trailing earnings, compared to its 15-year median P/E of 9.8x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 26.3x vs a median of 8.6x. The company's 5-year average ROIC is 15.6% with a gross margin of 27.6%. Total shareholder yield (dividends + buybacks) is 7.5%. At current prices, the estimated annualized return to fair value is -8.1%.
AFLAC INC (AFL) has a net profit margin of 21.2%. This is a strong margin indicating high profitability.
AFLAC INC (AFL) generated $2.6 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
AFLAC INC (AFL) has a debt-to-equity ratio of 0.18. This indicates a conservatively financed balance sheet.
AFLAC INC (AFL) reported earnings per share (EPS) of $6.82 in its most recent fiscal year.
AFLAC INC (AFL) has a return on equity (ROE) of 13.1%. This indicates moderate shareholder returns.
AFLAC INC (AFL) has a 5-year average gross margin of 27.6%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 19 years of financial data for AFLAC INC (AFL), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
AFLAC INC (AFL) has a book value per share of $55.16, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects Aflac Japan's earned premium decline to moderate from the current -1% to -2% range as strong new product sales, particularly from the Miraito cancer insurance and upcoming medical product launches, eventually offset lapse activity and stabilize the in-force block. The U.S. segment is anticipated to maintain net earned premium growth in the lower end of the 3%-6% range, with benefit ratios expected to remain in the 48%-52% range as favorable underwriting experience on cancer and disability blocks continues, though management acknowledges this favorable experience may normalize over time. Management remains confident in the Japan benefit ratio guidance of 60%-63% for 2026, supported by underlying experience trends, mix of business dynamics, and the lower net premium ratio established in prior periods. The company plans to be selective in expanding its reinsurance franchise through Aflac Re Bermuda, targeting up to 10% of Japan in-force business over the medium term, with management noting this will be material to the company over time. Capital deployment will continue to prioritize shareholder returns while maintaining financial flexibility, with the company holding substantial unencumbered liquidity and managing leverage within its target range despite ongoing yen-dollar exchange rate volatility.
Based on recent SEC filings and earnings calls, AFLAC INC (AFL) has provided the following forward guidance: Japan benefit ratio: 60%-63% (FY2026); Japan underlying earned premium: -1% to -2% (FY2026); Japan expense ratio: 20%-23% (FY2026); Japan pre-tax profit margin: 33%-36% (FY2026); U.S. net earned premium growth: lower end of 3%-6% (FY2026), plus 4 additional metrics.
Japan expense ratio (FY2026): “We also expect the expense ratio to be in the 20%-23% range.”
Japan pre-tax profit margin (FY2026): “the pre-tax profit margin to be in the 33%-36% range”
U.S. net earned premium growth (FY2026): “In the U.S., we continue to expect net earned premium growth to be in the lower end of the 3%-6% range.”
U.S. benefit ratio (FY2026): “We also expect the benefit ratio for 2026 to be in the 48%-52% range”
U.S. expense ratio (FY2026): “the expense ratio to be in the 36%-39% range”
U.S. pre-tax profit margin (FY2026): “we expect pre-tax profit margin for 2026 to be in a range of 17%-20%”