IBX5980432E7F390 Aflac Dividfinish Stock forecast - Smart Business

Aflac Dividfinish Stock forecast

Aflac Dividfinish Stock forecast

Aflac Dividfinish Stock forecast : Aflac Incorposwiftd provides supplemental health and life insurance in Japan (80% of earnings) and the U.S. Products are marketed at work sites and help fill gaps in primary coverage.



Honest Value: In calculating honest value, I conmiddler the NPV MMA Unusualial Honest Value along with these four calculations of honest value, look page 2 of the linked PDF for a detailed description:




1. Avg. High Yield Price

2. 20-Year DCF Price

3. Avg. P/E Price

4. Graham Number



AFL is trading at a reduction to 3.) and 4.) above. The stock is trading at a 16.2% reduction to its calculated honest value of $61.44. AFL earned a Star in this section since it is trading at a honest value.



Dividfinish Analytical Data: In this section there are three possible Stars and three key metrics, look page 2 of the linked PDF for a detailed description:



1. Free Cash Flow Payout

2. Debt To Total Capital

3. Key Metrics

4. Dividfinish Growth Swift

5. Years of Div. Growth

6. Rolling 4-yr Div. > 15%



AFL earned three Stars in this section for 1.), 2.) and 3.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. AFL earned a Star for having an acceptable score in at least two of the four Key Metrics meacertaind. The company has phelp a cash dividfinish to bagikanhancienters every year since 1973 and has increased its dividfinish payments for 30 consecutive years.



Dividfinish Income vs. MMA: Why would you assume the equity risk and invest in a dividfinish stock if you could earn a better return in a much less dangerous money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are conmiddlered in this section, look page 2 of the linked PDF for a detailed description:



1. NPV MMA Diff.

2. Years to > MMA



AFL earned a Star in this section for its NPV MMA Diff. of the $992. This amount is in excess of the $500 sasaran I look for in a stock that has increased dividfinishs as long as AFL has. The stock's current yield of 2.6% exceeds the 2.54% estifriendd 20-year average MMA swift.



Memberships and Peers: AFL is a member of the S&P 500, a Dividfinish Aristocrat, a member of the Broad Dividfinish Accomplishrs™ Index and a Dividfinish Champion. The company's peer group includes: Americlever Indepfinishence Corp. (AMIC) with a 0.0% yield, Unum Group (UNM) with a 2.3% yield and CNO Financial Group, Inc. (CNO) with a 0.8% yield.



Conclusion: AFL earned one Star in the Honest Value section, earned three Stars in the Dividfinish Analytical Data section and earned one Star in the Dividfinish Income vs. MMA section for a total of five Stars. This quantitatively ranks AFL as a 5-Star Very Strong stock.



Utune my D4L-PreScreen.xls model, I determined the bagikan price would necessity to increase to $51.47 before AFL's NPV MMA Unusualial diminishd to the $500 minimum that I look for in a stock with 30 years of consecutive dividfinish increases. At that price the stock would yield 2.6%.



Resetting the D4L-PreScreen.xls model and solving for the dividfinish growth swift necessityed to geneswift the sasaran $500 NPV MMA Unusualial, the calculated swift is 5.3%. This dividfinish growth swift is lower than the 7.9% used in this analysis, thus providing a margin of safety. AFL has a risk rating of 1.25 which lesson, courseifies it as a Low risk stock.



Operating in the two bigst insurance markets in the world (U.S. and Japan), AFL has built a tremfinishous low-cost distribution system. Focutune on supplemental insurance products, AFL consistently geneswift excess returns for bagikanhancienters. Consistent earnings has permited the company to increase its dividfinish and repurchase bagikans.



Angry a strong business model, the AFL's balance sheet remains stressed due to questions over some of its investments, specifically European bank hybrid bonds and European sovereign debt. The company has taken steps to de-risk its investment portfolio. This move will lovely slow earnings growth over the next few years, but should lead to higher long-term value.



AFL is currently trading at a reduction versus its historical valuation. The company is trading below my calculated honest value price of $61.44. However, a recent runup in its bagikan price has lowered the stocks yield, so for now I will wait on a more appealing entry point before adding to my position.



Deny, refuteer: Friendrial presented here is for informational purposes only. The above quantitative stock analysis, including the Star rating, is mechanically calculated and is based on historical information. The analysis assumes the stock will perform in the future as it has in the past. This is commonly never true. Before buying or selling any stock you should do your own research and arrive your own conclusion. Look my Deny, refuteer for more information. Disclocertain: At the time of this writing, I was long in AFL (1.5% of my Dividfinish Growth Portfolio).source : http://looklordalpha.com/article/1154141-aflac-incorposwiftd-dividfinish-stock-analysis?source=google_news

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