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Aflac (NYSE:AFL) Piotroski F-Score

: 5 (As of Today)
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The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Aflac has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Aflac's Piotroski F-Score or its related term are showing as below:

AFL' s Piotroski F-Score Range Over the Past 10 Years
Min: 1   Med: 6   Max: 9
Current: 5

During the past 13 years, the highest Piotroski F-Score of Aflac was 9. The lowest was 1. And the median was 6.


Aflac Piotroski F-Score Historical Data

The historical data trend for Aflac's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Aflac Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 4.00 8.00 7.00 6.00

Aflac Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Piotroski F-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 5.00 5.00 5.00

Competitive Comparison

For the Insurance - Life subindustry, Aflac's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Aflac Piotroski F-Score Distribution

For the Insurance industry and Financial Services sector, Aflac's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Aflac's Piotroski F-Score falls in comparison to its industry or sector. The grey bar indicates the Piotroski F-Score's extreme value range as defined by GuruFocus.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep22) TTM:Last Year (Sep21) TTM:
Net Income was 1039 + 1032 + 1388 + 1596 = $5,055 Mil.
Cash Flow from Operations was 870 + 1260 + 510 + 1076 = $3,716 Mil.
Revenue was 5271 + 5180 + 5350 + 4827 = $20,628 Mil.
Average Total Assets from the begining of this year (Sep21)
to the end of this year (Sep22) was
(160597 + 157542 + 147046 + 135629 + 128100) / 5 = $145782.8 Mil.
Total Assets at the begining of this year (Sep21) was $160,597 Mil.
Long-Term Debt & Capital Lease Obligation was $7,518 Mil.
Total Assets was $128,100 Mil.
Total Liabilities was $103,948 Mil.
Net Income was 952 + 1293 + 1105 + 888 = $4,238 Mil.

Revenue was 5991 + 5793 + 5523 + 5263 = $22,570 Mil.
Average Total Assets from the begining of last year (Sep20)
to the end of last year (Sep21) was
(160955 + 165086 + 158157 + 161492 + 160597) / 5 = $161257.4 Mil.
Total Assets at the begining of last year (Sep20) was $160,955 Mil.
Long-Term Debt & Capital Lease Obligation was $8,066 Mil.
Total Assets was $160,597 Mil.
Total Liabilities was $127,045 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Aflac's current Net Income (TTM) was 5,055. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Aflac's current Cash Flow from Operations (TTM) was 3,716. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep21)
=5055/160597
=0.0314763

ROA (Last Year)=Net Income/Total Assets (Sep20)
=4238/160955
=0.02633034

Aflac's return on assets of this year was 0.0314763. Aflac's return on assets of last year was 0.02633034. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Aflac's current Net Income (TTM) was 5,055. Aflac's current Cash Flow from Operations (TTM) was 3,716. ==> 3,716 <= 5,055 ==> CFROA <= ROA ==> Score 0.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep21 to Sep22
=7518/145782.8
=0.05156987

Gearing (Last Year: Sep21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep20 to Sep21
=8066/161257.4
=0.05001941

Aflac's gearing of this year was 0.05156987. Aflac's gearing of last year was 0.05001941. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Sep22)=Total Assets/Total Liabilities
=128100/103948
=1.23234694

Current Ratio (Last Year: Sep21)=Total Assets/Total Liabilities
=160597/127045
=1.2640954

Aflac's current ratio of this year was 1.23234694. Aflac's current ratio of last year was 1.2640954. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Aflac's number of shares in issue this year was 631.946. Aflac's number of shares in issue last year was 671.925. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=5055/20628
=0.24505526

Net Margin (Last Year: TTM)=Net Income/Revenue
=4238/22570
=0.18777138

Aflac's net margin of this year was 0.24505526. Aflac's net margin of last year was 0.18777138. ==> This year's net margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep21)
=20628/160597
=0.12844574

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep20)
=22570/160955
=0.14022553

Aflac's asset turnover of this year was 0.12844574. Aflac's asset turnover of last year was 0.14022553. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+0+0+0+1+1+0
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Aflac has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Aflac  (NYSE:AFL) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Aflac Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Aflac's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Aflac (NYSE:AFL) Business Description

Aflac logo
Traded in Other Exchanges
Address
1932 Wynnton Road, Columbus, GA, USA, 31999
Aflac Inc offers supplemental health insurance and life insurance in the two largest insurance markets in the world, the U.S. and Japan. In addition to its cancer policies, the company has broadened its product offerings to include accidents, disability, and long-term-care insurance. It markets its products through independent distributors, selling most of its policies directly to consumers at their places of work.
Executives
Virgil Raynard Miller officer: President, Aflac U.S. 1932 WYNNTON ROAD, COLUMBUS GA 31999
Bradley Eugene Dyslin officer: Executive Vice President 1932 WYNNTON ROAD, COLUMBUS GA 31999
Arthur Reginald Collins director 3911 LORCOM LANE, ARLINGTON VA 22207
Nobuchika Mori director 1932 WYNNTON ROAD, COLUMBUS GA 31999
Georgette D. Kiser director 1001 PENNSYLVANIA AVENUE, NW, WASHINGTON DC 20004-2505
Steven Kent Beaver officer: SVP, CFO, Aflac US 1932 WYNNTON ROAD, COLUMBUS GA 31999
Richard Jr Williams officer: Executive V.P. 1932 WYNNTON RD, COLUMBUS GA 31999
Albert Riggieri officer: SVP, Corporate Actuary 1932 WYNNTON RD, COLUMBUS GA 31999
Katherine Rohrer director 1932 WYNNTON RD, COLUMBUS GA 31999
Masatoshi Koide officer: Deputy President, Aflac Japan 1932 WYNNTON RD, COLUMBUS GA 31999
Max Broden officer: Senior Vice President 1932 WYNNTON RD, COLUMBUS GA 31999
Karole Lloyd director 1932 WYNNTON ROAD, COLUMBUS GA 31999
Toshihiko Fukuzawa director 1932 WYNNTON RD, COLUMBUS GA 31999
James Todd Daniels officer: Sr. Vice President 1932 WYNNTON ROAD, COLUMBUS GA 31999
Frederick John Crawford officer: EVP, Chief Financial Officer AFLAC INCORPORATED, COLUMBUS GA 31999

Aflac (NYSE:AFL) Headlines

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