Logo image of HUM

HUMANA INC (HUM) Stock Fundamental Analysis

NYSE:HUM - New York Stock Exchange, Inc. - US4448591028 - Common Stock - Currency: USD

296.91  +2.68 (+0.91%)

After market: 296.91 0 (0%)

Fundamental Rating

4

Taking everything into account, HUM scores 4 out of 10 in our fundamental rating. HUM was compared to 109 industry peers in the Health Care Providers & Services industry. There are concerns on the financial health of HUM while its profitability can be described as average. HUM has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

Quickly go to:

4

1. Profitability

1.1 Basic Checks

HUM had positive earnings in the past year.
HUM had a negative operating cash flow in the past year.
Each year in the past 5 years HUM has been profitable.
In the past 5 years HUM always reported a positive cash flow from operatings.
HUM Yearly Net Income VS EBIT VS OCF VS FCFHUM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B 5B

1.2 Ratios

HUM has a better Return On Assets (2.72%) than 67.59% of its industry peers.
Looking at the Return On Equity, with a value of 7.74%, HUM is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
The Return On Invested Capital of HUM (6.22%) is better than 69.44% of its industry peers.
HUM had an Average Return On Invested Capital over the past 3 years of 8.25%. This is in line with the industry average of 8.15%.
Industry RankSector Rank
ROA 2.72%
ROE 7.74%
ROIC 6.22%
ROA(3y)6.14%
ROA(5y)7.47%
ROE(3y)17.29%
ROE(5y)19.78%
ROIC(3y)8.25%
ROIC(5y)9.55%
HUM Yearly ROA, ROE, ROICHUM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

1.3 Margins

Looking at the Profit Margin, with a value of 1.18%, HUM is in the better half of the industry, outperforming 62.04% of the companies in the same industry.
In the last couple of years the Profit Margin of HUM has declined.
HUM has a Operating Margin (3.00%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HUM has declined.
Industry RankSector Rank
OM 3%
PM (TTM) 1.18%
GM N/A
OM growth 3Y-12.77%
OM growth 5Y-4.67%
PM growth 3Y-18.76%
PM growth 5Y-4.58%
GM growth 3YN/A
GM growth 5YN/A
HUM Yearly Profit, Operating, Gross MarginsHUM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2 4 6

More info and screens

2

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HUM is still creating some value.
Compared to 1 year ago, HUM has less shares outstanding
Compared to 5 years ago, HUM has less shares outstanding
Compared to 1 year ago, HUM has an improved debt to assets ratio.
HUM Yearly Shares OutstandingHUM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M
HUM Yearly Total Debt VS Total AssetsHUM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 10B 20B 30B 40B

2.2 Solvency

A Debt/Equity ratio of 0.68 indicates that HUM is somewhat dependend on debt financing.
HUM has a Debt to Equity ratio of 0.68. This is comparable to the rest of the industry: HUM outperforms 49.07% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF N/A
Altman-Z N/A
ROIC/WACC0.82
WACC7.59%
HUM Yearly LT Debt VS Equity VS FCFHUM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B 15B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
HUM Yearly Current Assets VS Current LiabilitesHUM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2B 4B 6B 8B

More info and screens

4

3. Growth

3.1 Past

The earnings per share for HUM have decreased strongly by -34.20% in the last year.
The Earnings Per Share has been growing by 12.30% on average over the past years. This is quite good.
The Revenue has grown by 12.37% in the past year. This is quite good.
Measured over the past years, HUM shows a quite strong growth in Revenue. The Revenue has been growing by 13.33% on average per year.
EPS 1Y (TTM)-34.2%
EPS 3Y11.52%
EPS 5Y12.3%
EPS Q2Q%-46.53%
Revenue 1Y (TTM)12.37%
Revenue growth 3Y11.3%
Revenue growth 5Y13.33%
Sales Q2Q%14.78%

3.2 Future

HUM is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.36% yearly.
The Revenue is expected to grow by 4.65% on average over the next years.
EPS Next Y-37.24%
EPS Next 2Y-18.83%
EPS Next 3Y-17.98%
EPS Next 5Y6.36%
Revenue Next Year13.06%
Revenue Next 2Y7.39%
Revenue Next 3Y5.02%
Revenue Next 5Y4.65%

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
HUM Yearly Revenue VS EstimatesHUM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 50B 100B 150B
HUM Yearly EPS VS EstimatesHUM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 20 40 60

More info and screens

4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 16.28, which indicates a correct valuation of HUM.
HUM's Price/Earnings ratio is rather cheap when compared to the industry. HUM is cheaper than 80.56% of the companies in the same industry.
When comparing the Price/Earnings ratio of HUM to the average of the S&P500 Index (28.51), we can say HUM is valued slightly cheaper.
With a Price/Forward Earnings ratio of 17.34, HUM is valued on the expensive side.
Based on the Price/Forward Earnings ratio, HUM is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 93.88, HUM is valued rather cheaply.
Industry RankSector Rank
PE 16.28
Fwd PE 17.34
HUM Price Earnings VS Forward Price EarningsHUM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HUM is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 9.81
HUM Per share dataHUM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 200 400 600 800

4.3 Compensation for Growth

HUM's earnings are expected to decrease with -17.98% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.32
EPS Next 2Y-18.83%
EPS Next 3Y-17.98%

More info and screens

6

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.20%, HUM has a reasonable but not impressive dividend return.
HUM's Dividend Yield is rather good when compared to the industry average which is at 2.85. HUM pays more dividend than 84.26% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.27, HUM's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.2%

5.2 History

The dividend of HUM is nicely growing with an annual growth rate of 12.51%!
HUM has been paying a dividend for at least 10 years, so it has a reliable track record.
As HUM did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)12.51%
Div Incr Years7
Div Non Decr Years8
HUM Yearly Dividends per shareHUM Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 2 3

5.3 Sustainability

31.94% of the earnings are spent on dividend by HUM. This is a low number and sustainable payout ratio.
HUM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP31.94%
EPS Next 2Y-18.83%
EPS Next 3Y-17.98%
HUM Yearly Income VS Free CF VS DividendHUM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B
HUM Dividend Payout.HUM Dividend Payout, showing the Payout Ratio.HUM Dividend Payout.PayoutRetained Earnings

More info and screens

HUMANA INC

NYSE:HUM (1/30/2025, 8:04:00 PM)

After market: 296.91 0 (0%)

296.91

+2.68 (+0.91%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)10-30 2024-10-30/bmo
Earnings (Next)02-11 2025-02-11/amc
Inst Owners96.21%
Inst Owner Change-1.34%
Ins Owners0.14%
Ins Owner Change0.74%
Market Cap35.75B
Analysts69.03
Price Target291.36 (-1.87%)
Short Float %4.65%
Short Ratio3.07
Dividend
Industry RankSector Rank
Dividend Yield 1.2%
Yearly Dividend3.49
Dividend Growth(5Y)12.51%
DP31.94%
Div Incr Years7
Div Non Decr Years8
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)19.42%
Min EPS beat(2)17.85%
Max EPS beat(2)20.98%
EPS beat(4)3
Avg EPS beat(4)-29.42%
Min EPS beat(4)-173.5%
Max EPS beat(4)20.98%
EPS beat(8)7
Avg EPS beat(8)-12.46%
EPS beat(12)11
Avg EPS beat(12)-4.64%
EPS beat(16)14
Avg EPS beat(16)-2.61%
Revenue beat(2)2
Avg Revenue beat(2)1.6%
Min Revenue beat(2)1.18%
Max Revenue beat(2)2.01%
Revenue beat(4)4
Avg Revenue beat(4)1.36%
Min Revenue beat(4)0.25%
Max Revenue beat(4)2.01%
Revenue beat(8)4
Avg Revenue beat(8)-0.46%
Revenue beat(12)5
Avg Revenue beat(12)-0.46%
Revenue beat(16)6
Avg Revenue beat(16)-0.48%
PT rev (1m)-1.43%
PT rev (3m)-2.84%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-167.69%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.6%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.26%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.71%
Valuation
Industry RankSector Rank
PE 16.28
Fwd PE 17.34
P/S 0.31
P/FCF N/A
P/OCF N/A
P/B 2.04
P/tB 5.65
EV/EBITDA 9.81
EPS(TTM)18.24
EY6.14%
EPS(NY)17.12
Fwd EY5.77%
FCF(TTM)-36.08
FCFYN/A
OCF(TTM)-30.23
OCFYN/A
SpS955.15
BVpS145.88
TBVpS52.53
PEG (NY)N/A
PEG (5Y)1.32
Profitability
Industry RankSector Rank
ROA 2.72%
ROE 7.74%
ROCE 8.08%
ROIC 6.22%
ROICexc 7.06%
ROICexgc 14.97%
OM 3%
PM (TTM) 1.18%
GM N/A
FCFM N/A
ROA(3y)6.14%
ROA(5y)7.47%
ROE(3y)17.29%
ROE(5y)19.78%
ROIC(3y)8.25%
ROIC(5y)9.55%
ROICexc(3y)9.38%
ROICexc(5y)11.12%
ROICexgc(3y)22.57%
ROICexgc(5y)23.6%
ROCE(3y)10.93%
ROCE(5y)12.63%
ROICexcg growth 3Y-7.01%
ROICexcg growth 5Y-0.05%
ROICexc growth 3Y-12.81%
ROICexc growth 5Y-3.81%
OM growth 3Y-12.77%
OM growth 5Y-4.67%
PM growth 3Y-18.76%
PM growth 5Y-4.58%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover2.3
Health
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF N/A
Debt/EBITDA 2.69
Cap/Depr 72.88%
Cap/Sales 0.61%
Interest Coverage 7
Cash Conversion N/A
Profit Quality N/A
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score4
WACC7.59%
ROIC/WACC0.82
Cap/Depr(3y)142.2%
Cap/Depr(5y)142.22%
Cap/Sales(3y)1.24%
Cap/Sales(5y)1.22%
Profit Quality(3y)91.81%
Profit Quality(5y)116.46%
High Growth Momentum
Growth
EPS 1Y (TTM)-34.2%
EPS 3Y11.52%
EPS 5Y12.3%
EPS Q2Q%-46.53%
EPS Next Y-37.24%
EPS Next 2Y-18.83%
EPS Next 3Y-17.98%
EPS Next 5Y6.36%
Revenue 1Y (TTM)12.37%
Revenue growth 3Y11.3%
Revenue growth 5Y13.33%
Sales Q2Q%14.78%
Revenue Next Year13.06%
Revenue Next 2Y7.39%
Revenue Next 3Y5.02%
Revenue Next 5Y4.65%
EBIT growth 1Y-24.56%
EBIT growth 3Y-2.92%
EBIT growth 5Y8.03%
EBIT Next Year-13.82%
EBIT Next 3Y-6.58%
EBIT Next 5Y8.87%
FCF growth 1Y-151.81%
FCF growth 3Y-13.97%
FCF growth 5Y13.78%
OCF growth 1Y-137.85%
OCF growth 3Y-10.96%
OCF growth 5Y12.87%