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Aflac Inc (AFL) - Stock Analysis
Posted by: David Kerr (IP Logged)
Date: August 25, 2013 11:45AM
Aflac Inc (AFL) was founded in 1955 and is headquartered in Columbus, Georgia. The company currently operates in the United States and Japan. Aflac is the largest provider of supplemental insurance in the United States, and the top insurance company in Japan in terms of individual policies. The company consists of two branches, “Aflac U.S.” and “Aflac Japan”.
In 2012 Aflac Japan accounted for 77% of total revenues, which is a 2% increase from 2011. Aflac currently insures one in four Japanese households.
On July 26, 2013, Aflac announced a new agreement that is going to expand their partnership with Japan Post Holdings. This new agreement will increase the number of Japanese post offices that offer Aflac’s products from 1,000 locations to 20,000 locations.
AFL is currently trading close to its 52-week high and has a current P/E Ratio of 8.31 with a Forward P/E Ratio of 9.19. Aflac’s P/E Ratio is lower than 78% of other companies in the same industry. AFL also currently has an Operating Margin of 19.94%, which is higher than 100% of its peers. The company has a 24.24% Return on Equity as well, which is more efficient than 95% of its competitors. The fundamentals of the company look strong, and the dividend yield is impressive as well. AFL has a Dividend Yield of 2.34%, which is greater than 90% of its industry.
Aflac’s Revenue per Share has continued to grow over the past 10 years despite economic troubles. AFL’s total assets, as well as their total liabilities, have been increasing over the past 5 years.
AFL has brought earnings from $1.44 per share to $1.62 per share since Q3 of 2010. Out of the 12 reported quarters, the company has had a positive earnings 10 times, and a missed earnings estimate two times. Below is a chart displaying share price from earnings announcements in Q3 of 2010 to current.
The below chart represents Aflac’s growth in share price since January of 1990 to current.
Analysts and Gurus
Thomson Reuters currently ranks AFL as “Positive” and Standard & Poor’s give it 5 stars. MarketEdge suggests a “Long” position, and SmartConsensus currently rates the company as a “Buy” as well.
What I Like To Look For
Market Cap: $27.8 billion
P/E Ratio: 8.31
Forward P/E Ratio: 9.19
P/B Ratio: 2.10
PEG Ratio: 0.4
Revenue: Average revenue growth of 9.9% over the last 10 years, and 5.4% over the last 12 months.
EBITDA: Average EBITDA growth of 12.1% over the last 10 years, and 30.5% over the last 12 months.
Earnings: Average earnings growth of 14.2% over the last 5 years.
Peter Lynch Chart (10 Year):
Disclosure: No current position held at the time of writing.
Disclaimer: The opinions and ideas in this article are for informational and educational purposes only. They are not a recommendation to buy or sell any stock at any given time. As always, it is imperative for each individual investor to do their own due diligence and perform their own research on any and all stocks before making an investment decision.
Stocks Discussed: AFL,