Aflac Incorporated Stock Fair Value Calculation – Truist Securities Analyst Raises Price Target for Aflac Stock Despite Maintaining ‘Hold’ Rating
August 11, 2023
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Aflac Incorporated ($NYSE:AFL) (AFL) is a leading provider of supplemental insurance in the United States and Japan. The company has a long history of delivering quality services and products to its customers. On August 3, 2023, Mark Hughes, an analyst at Truist Securities, kept his Hold rating on Aflac stock but raised his price target for the company. Hughes believes that Aflac’s financial performance has been good despite a difficult operating environment. He also appreciates the company’s focus on cost containment and digital transformation initiatives. He expects the company to continue to benefit from its strong balance sheet and long-term strategy to drive shareholder value.
Additionally, Hughes cites improved underwriting trends and the potential for a higher dividend payout as key factors that could positively impact Aflac’s stock price over the near-term. He also notes that rising interest rates may provide a boost to the company’s earnings. Overall, Hughes remains confident about the long-term prospects for Aflac stock. He believes continued focus on digital transformation initiatives, cost containment measures, and an attractive dividend yield will help to support the company’s stock price in the long term.
Market Price
Despite this, AFLAC stock experienced a slight decrease in the market, opening at $77.4 and closing at $76.8, a 0.3% decrease from the prior closing price of $77.0. This slight decrease in stock price may be due to investor skepticism of the analyst’s opinion or simply a result of market fluctuation. AFLAC INCORPORATED continues to face many challenges in the financial industry, so investors should monitor the stock closely and adjust accordingly. 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 Stock Fair Value Calculation
At GoodWhale, we recently conducted an analysis of AFLAC INCORPORATED’s wellbeing. With our proprietary Valuation Line, we have been able to calculate the fair value of AFLAC INCORPORATED share to be around $68.0. Currently, AFLAC INCORPORATED stock is traded at $76.8, a price that is slightly overvalued by 12.9%. This can be seen as an indication that the market is relatively bullish on AFLAC INCORPORATED. More…
Peers
Aflac Inc is one of the leading providers of supplemental insurance in the United States. The company offers a wide range of insurance products, including cancer, critical illness, and Accident insurance. Aflac Inc’s competitors include Pekin Life Insurance Co, PT Asuransi Jiwa Sinarmas MSIG Tbk, FarGlory Life Insurance Co Ltd.
– Pekin Life Insurance Co ($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
Investors in Aflac Incorporated have received an update on the company from Truist Securities analyst Mark Hughes. Although the rating remains at Hold, Hughes has raised the price target for the stock. This suggests that the stock may be a good buy for investors looking for a long-term investment.
The update is a positive sign for Aflac, as it is an indicator of strong market performance and potential for future growth. It is important for investors to consider all factors when making an investment decision, such as the current market environment and Aflac’s financial performance.
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