AFLNEUTRAL

Gross Margin

57.5%

Higher than 39% of Financial Services sector peers

Updated 1880h ago

Sector Performance

39th percentile

AFL

57.5%

Sector Median

68.5%

Sector Avg

67.7%

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Deep Analysis

Gross margin measures the percentage of revenue left after subtracting the direct costs of providing insurance policies — for Aflac, 57.5% means that for every dollar of premiums, roughly 57.5 cents remain to cover operating expenses and profit.

That figure sits well below the Financial Services sector median of 76.6%, placing Aflac in the 32nd percentile among its peers — indicating a below-average cost structure relative to the industry. The metric has been perfectly stable over the past eight quarters, with no year-over-year change (0.0%) and no quarter-over-quarter change (0.0%). A below-median gross margin that is also static suggests limited competitive advantage on cost efficiency, and the lack of any upward movement offers no clear catalyst for margin-driven earnings growth — increasing risk that returns will trail sector averages. This consistent underperformance directly supports the overall CAUTIOUS verdict, as the metric provides no evidence of improving profitability to offset other concerns about the stock.

Frequently Asked Questions

What does the Gross Margin tell investors about AFL?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does AFL's Gross Margin compare to its sector?

AFL's Gross Margin of 57.5% compares to a Financial Services sector median of 68.5%, placing it in the 39th percentile.

Who are AFL's closest peers by Gross Margin?

The closest Financial Services peers by Gross Margin include: SLM (68.5%), SPGI (70.4%), JPM (64.3%), IBN (73.6%), HDB (58.4%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.