Financial Services / Insurance - Life

Aflac Incorporated (AFL)

$113.63
+1.36%
$57.2B
Market Cap
12.8
P/E Ratio
0.62
Beta
2.17%
Dividend Yield
Piotroski 2/9Altman Z 1.3 DistressROIC−WACC -5.1%

Quantitative Summary

Deterministic

At 12.8x earnings — a 33% discount to the sector average of 19.2x — AFL is in the lower valuation range. Below-average fundamentals indicated by Piotroski score of 2/9; Altman Z of 1.3 falls in the academic distress zone.

Generated deterministically from quant metrics and financial statements. Not a recommendation.

Algorithmic Teardown

AI-Generated

The fundamental economics of this insurer reveal a significant capital efficiency gap, where the return on invested capital trails the cost of equity by 5.0%, indicating value destruction at the margin despite a robust 21.0% net margin. This elevated profitability is primarily driven by high financial leverage rather than operational momentum or asset velocity; while margins remain strong, the 0.15x asset turnover and negative spread suggest earnings are propped up by a 3.95x equity multiplier amid shrinking revenue streams that contracted 9.3% year-over-year. Compounding these structural concerns is a deteriorating financial health profile, evidenced by a low Piotroski F-Score of 2/9 and an Altman Z-Score of 1.3, which flags potential distress risks inconsistent with the company's historical stability metrics.

Valuation multiples currently sit at 16.2x earnings, trading below both its own historical trajectory and the sector average of 18.4x, suggesting the market has already priced in significant downside pressure regarding growth prospects. However, this discount may not fully reflect the underlying capital allocation challenges if implied DCF models fail to bridge the widening gap between returns generated and costs required. The stock exhibits a clear value tilt with an HML factor of 0.722, yet it lacks momentum support from profitability factors which remain neutral at 0.046.

Risk-adjusted performance data further complicates the investment case, as the security has underperformed its peer group by nearly 11% annually according to Fama-French alpha metrics. This negative outperformance is reinforced by substantial insider activity showing $37 million in net selling over the last ninety days, a signal often interpreted by algorithms as a lack of confidence from management regarding near-term valuation or operational hurdles. The convergence of negative capital spread, declining top-line growth, and adverse risk factors presents a complex picture where current pricing may offer safety but lacks clear catalysts for alpha generation.

Generated by LLM from quantitative data inputs. May contain inaccuracies. Not investment advice.

Valuation Context

12.8x
AFL P/E
19.2x
Sector Avg
40.1x
5Y Avg P/E
-33%
vs Sector

Currently trading 59% below its 5-year average P/E of 40.1x.

Price Chart with Moving Averages

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SMA 50 SMA 200

Technical Setup

AI Generated

Aflac Incorporated currently trades at $117.86 within the Financial Services sector, presenting a scenario where price action must be weighed against inherent market risks rather than isolated data points. The specific absence of drawdown metrics or volatility figures in the provided dataset prevents a definitive quantification of recent momentum stability; consequently, any assessment of whether current trends are structural or fragile relies heavily on external fundamental backdrops not included here. Without concrete measures of price fluctuation ranges or significant pullbacks from recent highs, it remains technically ambiguous to determine if the asset is exhibiting resilient strength or merely temporary consolidation before a potential correction. The sector classification suggests exposure to broader economic cycles that often amplify volatility during periods of shifting interest rates or changing consumer health expenditure patterns. While the current price level offers a snapshot of valuation relative to history, interpreting this single data point as an indicator of future risk dynamics is inherently limited. The interplay between the stock's specific technical configuration and its fundamental environment dictates whether observed movements represent sustainable growth phases or precarious rallies susceptible to sudden reversals. Stakeholders must evaluate how external macroeconomic factors might interact with these unknown volatility parameters before forming conclusions about the asset's trajectory, as the provided information alone does not reveal the depth of recent corrections or the intensity of price swings that define risk profiles in financial services equities.

RSI (14)
SMA 50
SMA 200

Quant Health Deep Dive

2/9
Piotroski F-Score
Weak — below-average operational and profitability metrics
1.3
Altman Z-Score
Distress Zone — below 1.8 threshold per academic model. Thresholds: >3 safe, 1.8–3 grey, <1.8 distress.

Profitability & Value Creation

21.0%
Net Margin
3.2%
ROIC
8.3%
WACC
ROIC − WACC Spread: -5.1%— Negative spread.
-9.3%
Revenue Growth (YoY)
-33.0%
Earnings Growth (YoY)

DuPont Analysis — ROE Decomposition

Breaking down Return on Equity to see how the company generates its ROE — efficiency, margins, or leverage.

21.0%
Net Profit Margin
NI ÷ Revenue
×
0.15x
Asset Turnover
Revenue ÷ Assets
×
3.95x
Equity Multiplier
Assets ÷ Equity
=
12.4%
Return on Equity
⚠️ High equity multiplier — ROE is being amplified by leverage, not operational excellence.

Balance Sheet Health

2.95x
Debt / Equity
21.6x
Interest Coverage
0.4x
Net Debt / EBITDA
4.8B
EBITDA

Insider Activity (Last 90 Days)

Net Insider Flow
-$37M
Net Selling
0
Buy Transactions
23
Sale Transactions
2026-03-25JAPAN POST HOLDINGS CO., LTD.Sold 1/8 qtrsSale$2M
2026-03-25LAKE CHARLES D IISold 3/8 qtrsSale$536,365
2026-03-24JAPAN POST HOLDINGS CO., LTD.Sold 1/8 qtrsSale$1M
2026-03-23JAPAN POST HOLDINGS CO., LTD.Sold 1/8 qtrsSale$2M
2026-03-20JAPAN POST HOLDINGS CO., LTD.Sold 1/8 qtrsSale$2M

Open-market buys vs sells by company insiders. Source: yfinance.

Earnings Surprise History

Q4
✗ Miss
Est: $1.67
Act: $1.66
-0.8%
Q3
✓ Beat
Est: $1.71
Act: $1.78
+4.4%
Q2
✓ Beat
Est: $1.78
Act: $2.49
+40.2%
Q1
✗ Miss
Est: $1.69
Act: $1.57
-7.3%

EPS estimates vs actuals for the most recent reported quarters. Source: yfinance.

Dividend History

$0.6100
Latest Dividend
$2.32
2025 Total
+16.0%
YoY Growth
9 yrs
Consecutive Increases
Annual Dividends per Share
$0.42
2016
$0.87
2017
$1.04
2018
$1.08
2019
$1.12
2020
$1.32
2021
$1.60
2022
$1.68
2023
$2.00
2024
$2.32
2025
$1.22
2026
DateAmountChange
2026-05-20$0.61000.0%
2026-02-18$0.6100+5.2%
2025-11-19$0.58000.0%
2025-08-20$0.58000.0%
2025-05-21$0.58000.0%
2025-02-19$0.5800+16.0%
2024-11-20$0.50000.0%
2024-08-21$0.50000.0%
2024-05-21$0.50000.0%
2024-02-20$0.5000+19.0%
2023-11-14$0.42000.0%
2023-08-22$0.42000.0%
Stock Splits
2018-03-19: 2:12001-03-19: 2:11998-06-09: 2:11996-03-18: 1.5:11993-06-15: 1.25:11987-02-03: 2:11986-03-03: 1.333333:11985-06-04: 1.5:11984-10-22: 1.1:11983-12-14: 1.2:1

Dividend and split data from SEC filings and market data. Amounts are per share, not adjusted for splits. Source: yfinance.

Risk Profile

20.2%
Annual Volatility
0.29
Sharpe (1Y)
-12.3%
Max Drawdown (5Y)

Sharpe = risk-adjusted return (higher is better). Max drawdown = largest peak-to-trough decline. 1,200+ trading days.

Underwater (Drawdown from Peak)

How far below the all-time high the price has been over time. Deeper = more pain for holders.

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Rolling 60-Day Beta vs S&P 500 (VOO)

How the stock's sensitivity to market moves changes over time. β > 1 = more volatile than the market.

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Rolling Beta Market (β = 1.0)

Fama-French 5-Factor Exposure

Academic factor model decomposition — what's really driving this stock's returns.

0.65
Market β
Mkt-RF
-0.448
Size (SMB)
Large-cap tilt
+0.722
Value (HML)
Value tilt
+0.046
Profit (RMW)
Neutral
+0.414
Invest (CMA)
Conservative
Alpha (annual): -10.97%
R²: 36.3%of variance explained by 5 factors

Fama-French 5-Factor Model. Data: Kenneth French Data Library. Regression over 3 years of daily returns.

Fundamentals

14.8
Forward P/E
1.18
PEG Ratio
1.92
Price/Book
2M
Avg Volume
$119.81
52W High
$96.95
52W Low
73%
52W Range Position

Passive Flow Attribution

ETF Draft Effect
$7.5B
Tracked Passive Exposure
8
ETFs Holding AFL
0.12%
Avg Weight in ETFs
$6.4T
Total ETF AUM

When investors buy or sell ETFs like KIE or NOBL, the fund manager is mechanically forced to buy or sell AFL shares regardless of Aflac Incorporated's individual fundamentals. We estimate $7.5B of passive capital is structurally linked to AFL through 8 tracked ETFs. This substantial passive exposure means that ETF inflows and outflows — not company fundamentals — can dominate daily volume on this stock.

Passive exposure = Σ (ETF AUM × stock weight in ETF) across 8 tracked ETFs. Actual passive ownership is larger (includes mutual funds). Not investment advice.

ETF Contagion Visualizer

Simulate a price drop in Aflac Incorporated to visualize passive redemption contagion across ETFs and collateral stocks.

AFL Shock
-0%
Est. Passive Redemption
$0
Systemic Risk
STABLE
AFLEpicenterVTIETFVOOETFIVVETFBRK.BUnknownJPMHigh RiskJPMHigh RiskBRK.BUnknownVLow Risk
AFL Price Drop (%)0

If Aflac Incorporated (AFL) experiences a significant drawdown, ETF redemptions can create collateral selling pressure on co-held stocks. Our model identifies BERKSHIRE HATHAWAY INC CL B (BRK.B) as the most exposed collateral stock, sharing 1 ETFs with AFL. This is the "Passive Contagion" effect described in the Inelastic Market Hypothesis.

Contagion model based on shared ETF exposure and constituent weights across 35 tracked ETFs. Estimated selling pressure is a simplified model — actual impact depends on market liquidity, ETF redemption mechanics, and market-maker activity.

AFL Ownership Dynamics

Passive funds hold 1 in every 7 AFL shares, reducing daily market volatility.

Ticker
AFL
Total Shares
509M
ETF Lock-Up
13.4%
Display Mode
Total Float Impact
13.4%Locked Float

Aflac Incorporated (AFL) exerts measurable gravity on the passive index market, currently representing 1.9% of the KIE (KIE) and 1.4% of the ProShares S&P 500 Dividend Aristocrats ETF (NOBL). Across 35 tracked ETFs, approximately 68M shares (13.4% of float) are held by passive funds and rarely trade on the open market. This level of passive ownership means index rebalances can create outsized volume events.

Float lock-up computed from 35 ETFs tracked by SecuritiesDB. Actual passive ownership is higher (includes mutual funds, pension funds, etc.).

AFL Institutional Volume Profile

252-day volume distribution by price level. The Point of Control (POC) marks the price where the most institutional volume transacted — an implicit support/resistance floor.

TICKER
AFL
PRICE
$113.63
FLOOR (POC)
$109.44
STRENGTH
High
$96$97$98$100$1017%$102$103$105$1066%$10712%$1089%$109POC 14%$1119%$112$1137%$113.63$114$116$117$118$119
Focus Zone
Point of Control (POC) Support (below price) Resistance (above price) Current Price

The highest-volume price zone for Aflac Incorporated over the past year sits near $109.44 (14% of 252-day volume). The current price of $113.63 trades 3.8% above this institutional floor — a sign of upside momentum, though a pullback to the POC zone is a common reversion target. The highly concentrated volume profile (14% at POC) indicates strong consensus on fair value — institutional participants have repeatedly transacted near this price.

Volume Profile computed from 252 trading days of OHLCV data. Volume allocated to price bins proportionally based on daily high-low range. Not investment advice.

Fails-to-Deliver (FTD) History

SEC-reported settlement failures. Elevated FTDs can indicate high short-selling pressure, operational settlement issues, or naked shorting activity.

DateFailed SharesClose PriceNotional Value
2026-05-1293$115.48$10,739.64
2026-05-04500$112.88$56,440
2026-04-27589$114.62$67,511.18
2026-04-212$114.67$229.34
2026-04-15210$111.94$23,507.4
2026-04-01388$109.71$42,567.48
2026-03-3110$108.17$1,081.7
2026-03-2768$108.21$7,358.28
2026-03-2547$106.20$4,991.4
2026-03-232$106.22$212.44
2026-03-13204$109.63$22,364.52
2026-03-1282$109.33$8,965.06
2026-03-06572$111.04$63,514.88
2026-03-0458$112.43$6,520.94
2026-03-024$112.93$451.72
2026-02-261$112.44$112.44
2026-02-1813,880$115.42$1.6M
2026-02-1258$116.25$6,742.5
2026-02-09287$117.15$33,622.05
2026-02-067$117.47$822.29
2026-01-284,089$108.38$443,165.82
2026-01-2016$109.51$1,752.16
2025-12-18100$110.50$11,050
2025-12-01107$110.31$11,803.17
2025-11-254,449$110.38$491,080.62
2025-11-2028$109.40$3,063.2
2025-11-198,300$111.76$927,608
2025-11-07480$113.70$54,576
2025-10-2930$106.68$3,200.4
2025-10-224,794$108.18$518,614.92

Source: SEC Regulation SHO FTD data. Data is reported with a ~30 day delay. High FTD quantities relative to average daily volume may indicate settlement stress.

Price Correlations

Statistical correlation of daily returns with other stocks. High correlations indicate stocks that move together; negative correlations can offer diversification.

Peer252-Day (1Y)126-Day (6M)Direction
WTGXXNaNNaN
HIG0.7010.688High co-movement
TRV0.6760.670Moderate
L0.6570.610Moderate
ACGL0.6510.642Moderate
MMC0.6250.524Moderate
ALL0.6160.600Moderate
CINF0.6130.587Moderate
WRB0.5990.523Moderate
CB0.5910.530Moderate

Pearson correlation of daily log returns. 252d ≈ 1 trading year. Computed from price history. Not investment advice.

Compare AFL to Peers

Quant metrics computed deterministically from financial statements and price data. Updated: 2026-06-02.

SecuritiesDB provides programmatic data aggregation for informational purposes only. None of the metrics, summaries, or algorithmic flags constitute a recommendation to buy or sell any security.