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ZYBERNO

Stock Report

Updated Aug 28, 2026

Aflac Incorporated (AFL)

Financial Services • NYSE

$116.58

Aflac Incorporated is an American insurance company headquartered in Columbus, Georgia, and the largest provider of supplemental insurance in the United States and Japan. Founded in 1955, Aflac operates through Aflac Japan and Aflac U.S. segments, providing supplemental health and life insurance products that pay cash benefits directly to policyholders to help with out-of-pocket costs not covered by major medical insurance. The company's products include cancer insurance, accident insurance, short-term disability insurance, critical illness insurance, hospital indemnity insurance, dental insurance, vision insurance, and life insurance. With approximately 90% of Fortune 500 companies offering Aflac products and coverage for more than 50 million people worldwide, Aflac is particularly known for its voluntary insurance products sold at worksites, protecting one in four Japanese households and insuring over 60 million people globally through policies that provide cash benefits for medical expenses and lost income.

Professional Investment Analysis

ZYBERNO SCORE →

Is it a great business? Is it getting better?

35.0/100

WEAK BUSINESS

Aflac Incorporated (AFL) scores 35/100 — weak fundamentals with mixed indicators requiring careful analysis before acting.

📊 How is the Zyberno Score calculated? +

The Zyberno Score answers one question: "Is this a quality business worth owning?" It's a 0-100 investment grade that evaluates business fundamentals across four critical dimensions, based on principles from Warren Buffett, Benjamin Graham, Peter Lynch, and Charlie Munger.

The 4 Core Categories (25 points each):

1. PROFITABILITY (25 pts)

Metrics: ROE, ROIC, Net Margin, Operating Margin
Thresholds: ROE >20% excellent • ROIC >20% excellent • Net Margin >20% excellent • Operating Margin >25% excellent

2. FINANCIAL STRENGTH (25 pts)

Metrics: Debt-to-Equity, Current Ratio, Interest Coverage, Altman Z-Score
Thresholds: D/E <0.3 excellent • Current Ratio >2.5 excellent • Interest Coverage >10x excellent • Altman Z >3.0 safe

3. CASH FLOW QUALITY (25 pts)

Metrics: Free Cash Flow, OCF vs Net Income, FCF Margin
Thresholds: Positive & growing FCF excellent • OCF/NI >1.2x excellent (cash earnings exceed accounting)

4. GROWTH & CONSISTENCY (25 pts)

Metrics: Revenue Growth, Net Income Growth, FCF Growth, Piotroski F-Score
Thresholds: Growth via log-linear regression • Piotroski 8-9 excellent, 6-7 good

Score Interpretation:

75-100

GREAT BUSINESS

65-74

GOOD BUSINESS

50-64

AVERAGE BUSINESS

30-49

WEAK BUSINESS

0-29

POOR BUSINESS

→ View full AFL quality analysis & detailed breakdown

VALUATION SIGNAL

⚠

Business Model Limitation

Aflac Incorporated operates in the Insurance industry. Owner Earnings-based DCF analysis — the foundation of both the Margin of Safety and the Brina Gap — is not well-suited to companies whose business model is structurally built around leverage: banks, insurers, mortgage companies, and REITs. These businesses are typically valued using sector-specific metrics such as Price-to-Book, Price-to-FFO, or Net Asset Value. Treat these signals as directional only.

MARGIN OF SAFETY

Is this stock cheap or expensive relative to what the business has historically generated for owners?

Margin of Safety unavailable — insufficient data for the owner-earnings DCF.

BRINA GAP ↗

Is the market underestimating or overestimating what this business is capable of going forward?

+0.5%

Fairly Priced

💰 How is Margin of Safety calculated? +

Margin of Safety measures how much discount or premium you're paying relative to a stock's intrinsic value. It's Benjamin Graham's core principle: the larger the margin, the lower your downside risk.

Formula: (Intrinsic Value − Current Price) ÷ Intrinsic Value × 100%

How We Calculate Intrinsic Value (DCF Method):

Step 1: Calculate current Owner Earnings (OCF − Maintenance CapEx)

Step 2: Calculate company-specific growth rate using log-linear regression on 16 quarters of Owner Earnings

Step 3: Project 10 years forward using the calculated growth rate

Step 4: Discount each year's cash flow to present value using 10% discount rate

Step 5: Calculate terminal value using 3% perpetual growth rate

Step 6: Sum all discounted cash flows = Intrinsic Value

What The Percentages Mean:

+50% or more

EXCELLENT — Very undervalued

+25% to +50%

GOOD — Attractive discount

0% to +25%

FAIR — Reasonable value

0% to -25%

CAUTION — Slight premium

-25% or worse

POOR — Overvalued

"Price is what you pay, value is what you get." — Warren Buffett

→ View full AFL valuation analysis · → View full AFL Brina Gap analysis

📈 How is Brina Gap calculated? +

Brina Gap measures the difference between the growth a business can fundamentally sustain and the growth the market is already pricing in.

Formula: Fundamental Growth Rate − Market-Implied Growth Rate

The Two Components:

Fundamental Growth Rate = ROIC × Reinvestment Rate

What the business can sustainably grow at based on how much it reinvests and what return it earns on that capital. Grounded in historical financials.

Market-Implied Growth Rate = Reverse DCF

The growth rate the current Enterprise Value implicitly assumes. Calculated by back-solving a 10-year DCF model (10% WACC, 3% terminal growth) until the present value of projected cash flows equals EV.

What The Gap Means:

Gap > +5% Market Underestimates — potential upside

+2% to +5% Slight Underestimate

-2% to +2% Fairly Priced — market consensus matches fundamentals

-5% to -2% Slight Overestimate

Gap < -5% Market Overestimates — price embeds optimism fundamentals don't support

A positive gap (market underestimates) combined with a positive Margin of Safety is the strongest combined signal — the business is both cheap historically and forward economics are stronger than the price suggests.

Critical Financial Health Indicators

Return on Equity (Profitability):GOOD (16.4%)

Debt-to-Equity (Solvency Risk):EXCELLENT (0.01x)

Operating Margin (Operational Efficiency):EXCELLENT (32.0%)

Return on Capital (Capital Efficiency):GOOD (19.2%)

📊 Valuation Trilogy

Three interconnected metrics for complete valuation analysis

Click any metric for full methodology and detailed analysis

Zyberno's Verdict

Aflac Incorporated (AFL) stock report — Zyberno Score 35/100 (WEAK BUSINESS). Full financial analysis on Zyberno.

According to Zyberno's DCF model, Aflac Incorporated (AFL) shows a Brina Gap of +0.5%, which strengthens the case: based on the company's ROIC (19.2%) and reinvestment rate (-0.8%), the business can fundamentally grow at -0.1% — but the current enterprise value implies the market expects -0.6%.

DIVISION I: EXECUTIVE SUMMARY

A. Market Valuation

Market Price & Capitalization (2)

Current Price:116.58

Market Cap:$58.77B

Valuation Multiples (4)

P/E Ratio:

12.58x

📊 Click to view full AFL P/E analysis →

P/B Ratio:1.94x

P/S Ratio:3.25x

Peg Ratio:0.12x

Enterprise Metrics (2)

Enterprise Value:$53.43B

Ev Ebitda Ratio:9.18x

Price Action & Momentum (3)

12-1 Momentum:

+29.1% (58th pctile)

📈 Click to view full AFL Momentum analysis →

Momentum Percentile:58 / 100

% of 52-Week High:89.5%

B. Profitability Assessment

Return Metrics (7)

ROE:

16.4%

📊 Click to view full AFL ROE analysis →

ROA:4.1%

Roic:

19.2%

📊 Click to view full AFL ROIC analysis →

Reinvestment Rate:-0.8%

Fundamental Growth Rate (g):-0.1%

Market-Implied Growth Rate:-0.6%

Brina Gap:

0.5%

☷ Click to view full AFL Brina Gap analysis →

Margin Analysis (3)

Operating Margin Ttm:32.0%

Net Margin Ttm:26.9%

Ebitda Margin:32.2%

TTM Performance (2)

Operating Margin Ttm:32.0%

Net Margin Ttm:26.9%

Yield Metrics (2)

Earnings Yield:$7.95

Dividend Yield:2.1%

C. Log-Linear Regression Growth Trends

Earnings Surprise (SUE) (3)

Earnings Surprise (SUE):

+0.16

📊 Click to view full AFL Earnings Surprise analysis →

EPS Surprise vs Expected:21.5%

Latest Earnings Filed:2026-08-07

Revenue Growth (Linear) (1)

Revenue Growth Rate (Linear):-4.7%

Earnings Growth (Linear) (1)

Net Income Growth Rate (Linear):-2.7%

Cash Flow Growth (Linear) (1)

Operating Cash Flow Growth Rate (Linear):-7.3%

Operating Growth (Linear) (1)

Operating Income Growth Rate (Linear):-9.0%

D. Financial Stability

Liquidity Ratios (3)

Current Ratio:0.07x

Quick Ratio:0.07x

Cash Ratio:0.07x

Leverage Analysis (3)

Debt To Equity Ttm:0.01x

Debt-to-Equity Ratio:0.01x

Debt To Ebitda:0.13x

Coverage Ratios (2)

Interest Coverage Ratio:18.97x

Times Interest Earned:18.97

Capital Structure (4)

Working Capital:-79,529,000,000.00

Cash And Cash Equivalents:6,120,000,000.00

Long Term Debt:$77.00M

Net Debt:-$5.34B

DIVISION II: FINANCIAL STATEMENTS ANALYSIS

A. Income Statement Analysis

Revenue Components (2)

Revenue TTM: $18.07B

Linear Growth: -4.7%

📊 Click to view full AFL Revenue analysis & methodology →

Cost Of Revenue Ttm:$0.00

Profitability Breakdown (2)

$0.00

Operating income TTM: $5.79B

Linear Growth: -9.0%

📊 Click to view full AFL Operating Income analysis & methodology →

Bottom Line Performance (3)

Net income TTM: $4.86B

Linear Growth: -2.7%

📊 Click to view full AFL Net Income analysis & methodology →

Income Before Tax:$5.79B

Ebitda Ttm:5,822,000,000.00

Operating Expenses (5)

Operating Expenses:5,261,000,000.00

R And D Expense:0.00

Sga Expense:3,167,000,000.00

Income Tax Expense:$924.00M

Interest Expense:239,000,000.00

Expense Ratios (3)

R And D To Revenue Percentage:0.0%

Sga To Revenue Percentage:76.9%

Ebitda Margin:32.2%

B. Balance Sheet Analysis

Asset Composition (5)

Total Assets:$115.96B

Current Assets:$6.12B

Ppe Net:351,000,000.00

Goodwill:260,000,000.00

Intangible Assets:$0.00

Liability Structure (4)

Total Liabilities:85,649,000,000.00

Current Liabilities:85,649,000,000.00

Long Term Debt:$77.00M

Short Term Debt:$700.00M

Equity & Capital (3)

Equity:$30.31B

Retained Earnings:$56.22B

Common Stock:1,900,000,000.00

Working Capital Items (3)

Accounts Receivable:0.00

Inventory:0.00

Accounts Payable:0.00

Special Items (2)

Contract Liabilities:0.00

Stock Based Compensation:0.00

C. Cash Flow Analysis

Operating Activities (2)

Operating cash flow TTM: $2.93B

Linear Growth: -7.3%

$0.00

Investment Activities (1)

Investing Cash Flow:$244.00M

Financing Activities (3)

Financing Cash Flow:-$1.76B

Dividends Paid Ttm:1,204,000,000.00

Stock Repurchase:1,000,000,000.00

Capital Transactions (3)

Common Stock Issuance:0.00

Long Term Debt Issuance:$0.00

Long Term Debt Repayments:$0.00

DIVISION III: OPERATIONAL METRICS

A. Per Share Analysis

Earnings Per Share (3)

EPS (Basic TTM):9.30

Eps diluted TTM: $9.27

Linear Growth: -11.3%

📊 Click to view full AFL EPS analysis & methodology →

Earnings Per Share Ttm:$9.64

Revenue & Cash Per Share (2)

Sales Per Share Ttm:35.84

Operating Cash Flow Per Share:$5.07

Book Value & Capital (2)

Book Value Per Share:$60.13

Cash Per Share:12.14

Dividend Policy (1)

Dividend Payout Ratio:24.64x

B. Operational Efficiency

Asset Utilization (2)

Asset Turnover Ttm:0.15x

Working Capital Turnover Ttm:-999.00x

Receivables Management (2)

Receivables Turnover Ttm:-999.00x

Days Sales Outstanding Ttm:-999.00

Inventory Management (2)

Inventory Turnover Ttm:-999.00x

Days Inventory Outstanding Ttm:-999.00

Payables & Cash Cycle (2)

Days Payable Outstanding:-999.00

Cash Conversion Cycle:-999.00

C. Quality & Risk Metrics

Financial Quality Scores (2)

Financial Strength Score:60.00

Quality Score:75.00

Market Metrics (2)

Beta:0.00x

Volatility Category:unknown

DIVISION IV: INVESTMENT ANALYSIS

A. Value Investment Framework

Damodaran Growth Analysis (4)

Reinvestment Rate:-0.8%

Fundamental Growth Rate (g):-0.1%

Market-Implied Growth Rate:-0.6%

Brina Gap:

0.5%

☷ Click to view full AFL Brina Gap analysis →

B. Log-Linear Regression Growth Analysis

Growth Rates (Log-Linear Regression) (3)

Revenue Growth Rate (Linear):-4.7%

Net Income Growth Rate (Linear):-2.7%

Operating Income Growth Rate (Linear):-9.0%

Cash Flow Growth Rates (1)

Operating Cash Flow Growth Rate (Linear):-7.3%

Other Growth Rates (1)

Book Value Growth Rate (Linear):5.2%

C. Company Profile & Context

Corporate Information (6)

Symbol:AFL

Company Name:Aflac Incorporated

Sector:Financial Services

Industry:Insurance

Exchange:NYSE

Country:United States

Market Classification (3)

Market Cap Category:N/A

Price Category:high

Volume Category:N/A

Share Structure (3)

Shares Outstanding:504.12M

Shares Outstanding Basic:504.12M

Shares Outstanding Diluted:505.58M

Data Processing Info (3)

Processing Version:v3.0

Last Updated:2026-08-28 13:31:43 UTC

Data Timestamp:2026-08-28T13:31:43.585204