GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Aflac's Interest Coverage for the quarter that ended in Mar. 2026 was 21.42.
Aflac's debt to revenue ratio for the quarter that ended in Mar. 2026 was 0.45.
Altman Z-Score does not apply to banks and insurance companies.
Aflac (WBO:AFL) Financial Strength Explanation
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Altman Z-Score does not apply to banks and insurance companies.
* 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.
Aflac (WBO:AFL) has a Financial Strength of 6 as of Mar. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Aflac and its competitors. This is 20% above median its historical median of 5.00. Over the past decade, Aflac's Financial Strength has ranged from 4.00 to 7.00.
Is Aflac's Financial Strength too high?
Aflac's current Financial Strength of 6 is 20% above median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 4.00 to a high of 7.00. Overall, Aflac has a GF Score™ of 74/100, reflecting its overall financial health beyond just this single metric.
How does Aflac's Financial Strength compare to MET and PRU?
Aflac's Financial Strength of 6 can be compared against companies in the Insurance industry. Historically, Aflac's own Financial Strength has ranged from 4.00 to 7.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for an Insurance company?
A good Financial Strength depends on the Insurance industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Aflac and its competitors. Aflac's current Financial Strength is 6, which is 20% above median its own 10-year median of 5.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Aflac stock overvalued right now?
Aflac (WBO:AFL) has a current Financial Strength of 6. The stock's GF Value™ is €95.51, compared to a current price of €103.70 — trading 8.6% above its estimated fair value. The current Financial Strength is 6, which is 20% above median its 10-year median of 5.00. Aflac's overall GF Score™ is 74/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Aflac (WBO:AFL), the current Financial Strength is 6 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Aflac (WBO:AFL) Overvalued in 2026?
Based on GuruFocus' analysis, Aflac stock appears to be overvalued.
The current stock price of €103.70 is trading 8.6% above its estimated GF Value™ of €95.51.
Key valuation signals for WBO:AFL:
Financial Strength: 6 (20% above median its 10-year median of 5.00)
GF Value™: €95.51 vs. price of €103.70 (8.6% above fair value)
No single metric tells the full story. See the WBO:AFL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Aflac Inc offers supplemental health insurance and life insurance in the United States and Japan. In addition to its cancer policies, the company has broadened its product offerings to include accident, dental and vision, disability, and long-term-care insurance. It markets its products through independent distributors, selling the majority of its policies directly to consumers at their places of work, and also reaches out to its customers outside of their worksite through digital mediums. The company has two reportable business segments: Aflac Japan, which generates the maximum revenue, and Aflac U.S.
74GF Score
Get the complete analysis for WBO:AFL
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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