HUMANA INC (HUM)
US4448591028 - Common Stock
Overall HUM gets a fundamental rating of 4 out of 10. We evaluated HUM against 113 industry peers in the Health Care Providers & Services industry. HUM has a medium profitability rating, but doesn't score so well on its financial health evaluation. HUM is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
HUM had positive earnings in the past year.
In the past year HUM has reported a negative cash flow from operations.
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.
1.2 Ratios
HUM has a better Return On Assets (2.72%) than 66.37% of its industry peers.
With a decent Return On Equity value of 7.74%, HUM is doing good in the industry, outperforming 71.68% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 6.22%, HUM is in the better half of the industry, outperforming 70.80% of the companies in the same industry.
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 8.01%.
| Industry Rank | Sector 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%
1.3 Margins
HUM has a Profit Margin of 1.18%. This is in the better half of the industry: HUM outperforms 64.60% of its industry peers.
In the last couple of years the Profit Margin of HUM has declined.
HUM has a Operating Margin of 3.00%. This is comparable to the rest of the industry: HUM outperforms 55.75% of its industry peers.
HUM's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
HUM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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.
2.2 Solvency
HUM has a Debt/Equity ratio of 0.68. This is a neutral value indicating HUM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.68, HUM perfoms like the industry average, outperforming 47.79% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.85
WACC7.27%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The earnings per share for HUM have decreased strongly by -34.20% in the last year.
Measured over the past years, HUM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.30% on average per year.
The Revenue has grown by 12.37% in the past year. This is quite good.
HUM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.33% yearly.
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
The Earnings Per Share is expected to grow by 9.33% on average over the next years. This is quite good.
HUM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.33% yearly.
EPS Next Y-37.19%
EPS Next 2Y-14.73%
EPS Next 3Y-10.75%
EPS Next 5Y9.33%
Revenue Next Year12.29%
Revenue Next 2Y6.35%
Revenue Next 3Y5.07%
Revenue Next 5Y7.33%
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.
4. Valuation
4.1 Price/Earnings Ratio
HUM is valuated correctly with a Price/Earnings ratio of 14.01.
Based on the Price/Earnings ratio, HUM is valued cheaper than 84.07% of the companies in the same industry.
HUM is valuated cheaply when we compare the Price/Earnings ratio to 30.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 13.52, which indicates a correct valuation of HUM.
Based on the Price/Forward Earnings ratio, HUM is valued cheaply inside the industry as 80.53% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.28, HUM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.01 | ||
| Fwd PE | 13.52 |
4.2 Price Multiples
HUM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HUM is cheaper than 82.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.89 |
4.3 Compensation for Growth
HUM's earnings are expected to decrease with -10.75% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.14
EPS Next 2Y-14.73%
EPS Next 3Y-10.75%
5. Dividend
5.1 Amount
HUM has a Yearly Dividend Yield of 1.36%. Purely for dividend investing, there may be better candidates out there.
The stock price of HUM dropped by -27.16% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
HUM's Dividend Yield is rather good when compared to the industry average which is at 3.02. HUM pays more dividend than 84.96% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.26, HUM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
5.2 History
On average, the dividend of HUM grows each year by 12.51%, which is quite nice.
HUM has been paying a dividend for at least 10 years, so it has a reliable track record.
HUM has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)12.51%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
31.94% of the earnings are spent on dividend by HUM. This is a low number and sustainable payout ratio.
The dividend of HUM is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP31.94%
EPS Next 2Y-14.73%
EPS Next 3Y-10.75%
HUMANA INC
NYSE:HUM (11/4/2024, 8:15:02 PM)
After market: 255.08 -0.47 (-0.18%)255.55
-5.16 (-1.98%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap30.77B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.36% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Revenue beat(2)
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PT rev (1m)
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EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.01 | ||
| Fwd PE | 13.52 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.72% | ||
| ROE | 7.74% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3% | ||
| PM (TTM) | 1.18% | ||
| GM | N/A | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-34.2%
EPS 3Y11.52%
EPS 5Y
EPS Q2Q%
EPS Next Y-37.19%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.37%
Revenue growth 3Y11.3%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y