AFLNEUTRAL

AFL Return on Equity (ROE) Analysis

12.4%

Higher than 47% of Financial Services sector peers

Updated 2065h ago·SEC filings & market data

Key Takeaway

Aflac’s Return on Equity (ROE) of 12.4% measures how much profit the company generates from each dollar of shareholders’ equity — in simple terms, how efficiently it uses investor money to earn income.

Sector Performance

47th percentile

AFL

12.4%

Sector Median

13.4%

Sector Avg

17.9%

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Deep Analysis

This sits below the Financial Services sector median of 13.9%, placing the company at the 45th percentile among its peers, meaning roughly half of competitors have a higher ROE. Both the year-over-year and quarter-over-quarter changes are reported as N/A, and there is no trend data available for the last eight quarters, so we cannot assess whether the metric is improving or deteriorating. With a below-median ROE and no visible trend, the combination suggests a neutral to slightly cautious risk profile: the company is not outperforming its sector on profitability, but without a trend we cannot determine if this underperformance is persistent or temporary. This metric supports the overall CAUTIOUS verdict, as the ROE is below the sector median and lacks directional momentum to indicate a turnaround.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about AFL?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does AFL's Return on Equity (ROE) compare to its sector?

AFL's Return on Equity (ROE) of 12.4% compares to a Financial Services sector median of 13.4%, placing it in the 47th percentile.

Who are AFL's closest peers by Return on Equity (ROE)?

The closest Financial Services peers by Return on Equity (ROE) include: PFG (13.4%), HDB (13.8%), SPGI (13.9%), AIZ (14.9%), IBN (16.4%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.