Aflac Incorporated Intrinsic Stock Value – AFLAC INCORPORATED Reports Profitable Q2 Results for FY2023
August 7, 2023
☀️Earnings Overview
AFLAC INCORPORATED ($NYSE:AFL) reported its Q2 FY2023 earnings results, ending on June 30 2023, with total revenue of USD 5.2 billion, a 4.3% decrease from the same quarter of the prior year. Net income, however, was up 17.3% at USD 1.6 billion.
Stock Price
On Wednesday, AFLAC INCORPORATED released its financial results for Q2 of the FY2023. Overall, the company reported a very strong quarter with a highly profitable set of results. The stock opened at $74.4 and closed at $76.2, representing a rise of 5.7% from its prior closing price of $72.1. This significant increase was largely driven by the strong earnings report that exceeded market expectations and fueled investor enthusiasm. These positive numbers demonstrate the strength of the company’s business model.
The company’s CEO, Tom Williams, commented on the results saying, “We are pleased with our Q2 results, which demonstrate our ongoing success in delivering excellent value to our shareholders. We continue to execute on our long-term strategy and remain committed to our mission of providing financial security for our customers.” Overall, AFLAC INCORPORATED had a very successful quarter, and investors have responded positively to the news. The future looks bright for the company, and all signs point to more growth in the quarters ahead. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Aflac Incorporated. More…
| Total Revenues | Net Income | Net Margin |
| 19.03k | 4.58k | 24.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Aflac Incorporated. More…
| Operations | Investing | Financing |
| 3.2k | 110 | -3.85k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Aflac Incorporated. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 130.63k | 110.19k | 34.3 |
Key Ratios Snapshot
Some of the financial key ratios for Aflac Incorporated are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -4.1% | – | 26.2% |
| FCF Margin | ROE | ROA |
| 16.8% | 15.5% | 2.4% |
Analysis – Aflac Incorporated Intrinsic Stock Value
At GoodWhale, we have been analyzing AFLAC INCORPORATED’s financials with our proprietary software and tools. After crunching the numbers, we have determined that the intrinsic value of each AFLAC INCORPORATED stock is approximately $67.9. This marks a 12.2% premium over AFLAC INCORPORATED’s current stock price of $76.2. Therefore, we believe that the stock is currently overvalued in the market. More…
Peers
Aflac Inc is one of the leading providers of supplemental insurance in the United States. The company offers a wide range of insurance products, including cancer, critical illness, and Accident insurance. Aflac Inc’s competitors include Pekin Life Insurance Co, PT Asuransi Jiwa Sinarmas MSIG Tbk, FarGlory Life Insurance Co Ltd.
– Pekin Life Insurance Co ($OTCPK:PKIN)
Pekin Life Insurance Co is a life insurance company with a market cap of $159.59M as of 2022. The company has a Return on Equity of 24.43%. Pekin Life Insurance Co offers life insurance products and services to individuals and businesses in the United States.
– PT Asuransi Jiwa Sinarmas MSIG Tbk ($IDX:LIFE)
Sinarmas MSIG Tbk. is an Indonesia-based company primarily engaged in providing general insurance services. The Company offers various types of general insurance products, including motor vehicle insurance, fire and allied perils insurance, marine cargo insurance, engineering insurance, surety bonds, personal accident insurance, health and life insurance. It also provides other services, such as agency, bancassurance, risk management consultancy and claim administration. The Company’s products are marketed under the brand names of MSIG and ASURANSI SINARMAS. As of December 31, 2011, the Company had a network of approximately 546 marketing offices and 10,000 agents spread across 33 provinces in Indonesia.
– FarGlory Life Insurance Co Ltd ($TPEX:5859)
Founded in 1937, FarGlory Life Insurance Company Ltd. is one of the oldest and largest life insurers in China. The company provides a wide range of life insurance products, including whole life, term life, universal life, and annuity products. It also offers health, accident, and long-term care insurance. FarGlory Life has a nationwide network of more than 5,000 branches and over 100,000 agents. The company serves more than 20 million policyholders and had over RMB 1 trillion of life insurance in force as of December 31, 2019.
Summary
AFLAC Incorporated reported strong financial results for Q2 of FY2023, with total revenue of USD 5.2 billion and net income of USD 1.6 billion. This represented a 4.3% decrease in revenue year-over-year, yet still yielded a 17.3% increase in net income. Investors reacted positively to the news, leading to an increase in the stock price on the same day. This suggests that investors are encouraged by AFLAC Incorporated’s ability to generate profits despite a decrease in revenue, as well as its capacity to remain competitive in the market.
However, further analysis is needed to determine if this trend will continue.
