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HUMANA INC (HUM) Stock Fundamental Analysis

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

261.54  -8.88 (-3.28%)

After market: 261.54 0 (0%)

Fundamental Rating

5

Taking everything into account, HUM scores 5 out of 10 in our fundamental rating. HUM was compared to 108 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 has a decent growth rate and is not valued too expensively. HUM also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year HUM was profitable.
In the past year HUM had a positive cash flow from operations.
HUM had positive earnings in each of the past 5 years.
Each year in the past 5 years HUM had a positive operating cash flow.
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 2024 1B 2B 3B 4B 5B

1.2 Ratios

With a decent Return On Assets value of 2.60%, HUM is doing good in the industry, outperforming 65.42% of the companies in the same industry.
HUM's Return On Equity of 7.37% is fine compared to the rest of the industry. HUM outperforms 70.09% of its industry peers.
HUM has a better Return On Invested Capital (5.33%) than 63.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HUM is in line with the industry average of 8.12%.
Industry RankSector Rank
ROA 2.6%
ROE 7.37%
ROIC 5.33%
ROA(3y)4.8%
ROA(5y)6.13%
ROE(3y)13.67%
ROE(5y)16.75%
ROIC(3y)7.81%
ROIC(5y)8.56%
HUM Yearly ROA, ROE, ROICHUM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

Looking at the Profit Margin, with a value of 1.02%, HUM is in the better half of the industry, outperforming 60.75% of the companies in the same industry.
HUM's Profit Margin has declined in the last couple of years.
HUM has a Operating Margin of 2.42%. This is comparable to the rest of the industry: HUM outperforms 50.47% of its industry peers.
HUM's Operating Margin has declined in the last couple of years.
Industry RankSector Rank
OM 2.42%
PM (TTM) 1.02%
GM N/A
OM growth 3Y-12.91%
OM growth 5Y-11.94%
PM growth 3Y-33.79%
PM growth 5Y-24.48%
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 2024 2 4 6

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HUM is destroying value.
The number of shares outstanding for HUM has been reduced compared to 1 year ago.
Compared to 5 years ago, HUM has less shares outstanding
HUM has a worse debt/assets ratio than last year.
HUM Yearly Shares OutstandingHUM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 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 2024 10B 20B 30B 40B

2.2 Solvency

HUM has a debt to FCF ratio of 4.90. This is a neutral value as HUM would need 4.90 years to pay back of all of its debts.
The Debt to FCF ratio of HUM (4.90) is better than 72.90% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that HUM is somewhat dependend on debt financing.
HUM has a Debt to Equity ratio (0.68) which is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF 4.9
Altman-Z N/A
ROIC/WACC0.66
WACC8.07%
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 2024 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 2024 2B 4B 6B 8B

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5

3. Growth

3.1 Past

HUM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -37.71%.
HUM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.92% yearly.
Looking at the last year, HUM shows a quite strong growth in Revenue. The Revenue has grown by 10.70% in the last year.
The Revenue has been growing by 12.66% on average over the past years. This is quite good.
EPS 1Y (TTM)-37.71%
EPS 3Y-7.76%
EPS 5Y-1.92%
EPS Q2Q%-1863.64%
Revenue 1Y (TTM)10.7%
Revenue growth 3Y12.34%
Revenue growth 5Y12.66%
Sales Q2Q%13.46%

3.2 Future

HUM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.61% yearly.
Based on estimates for the next years, HUM will show a small growth in Revenue. The Revenue will grow by 6.02% on average per year.
EPS Next Y2.39%
EPS Next 2Y-7.52%
EPS Next 3Y9.63%
EPS Next 5Y23.61%
Revenue Next Year6.43%
Revenue Next 2Y4.08%
Revenue Next 3Y5.25%
Revenue Next 5Y6.02%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
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

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5

4. Valuation

4.1 Price/Earnings Ratio

HUM is valuated correctly with a Price/Earnings ratio of 16.15.
Compared to the rest of the industry, the Price/Earnings ratio of HUM indicates a somewhat cheap valuation: HUM is cheaper than 76.64% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.75, HUM is valued a bit cheaper.
A Price/Forward Earnings ratio of 15.78 indicates a correct valuation of HUM.
71.96% of the companies in the same industry are more expensive than HUM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of HUM to the average of the S&P500 Index (22.44), we can say HUM is valued slightly cheaper.
Industry RankSector Rank
PE 16.15
Fwd PE 15.78
HUM Price Earnings VS Forward Price EarningsHUM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HUM is valued a bit cheaper than the industry average as 71.96% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HUM is valued cheaper than 83.18% of the companies in the same industry.
Industry RankSector Rank
P/FCF 13.2
EV/EBITDA 11.05
HUM Per share dataHUM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 200 400 600 800

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)6.77
PEG (5Y)N/A
EPS Next 2Y-7.52%
EPS Next 3Y9.63%

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7

5. Dividend

5.1 Amount

HUM has a Yearly Dividend Yield of 1.35%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.06, HUM pays a better dividend. On top of this HUM pays more dividend than 84.11% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, HUM's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 1.35%

5.2 History

On average, the dividend of HUM grows each year by 10.32%, which is quite nice.
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)10.32%
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 2025 1 2 3

5.3 Sustainability

35.71% of the earnings are spent on dividend by HUM. This is a low number and sustainable payout ratio.
HUM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP35.71%
EPS Next 2Y-7.52%
EPS Next 3Y9.63%
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 2024 1B 2B 3B 4B
HUM Dividend Payout.HUM Dividend Payout, showing the Payout Ratio.HUM Dividend Payout.PayoutRetained Earnings

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HUMANA INC

NYSE:HUM (3/3/2025, 8:04:00 PM)

After market: 261.54 0 (0%)

261.54

-8.88 (-3.28%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)02-11 2025-02-11/bmo
Earnings (Next)04-22 2025-04-22/amc
Inst Owners97.76%
Inst Owner Change3.78%
Ins Owners0.12%
Ins Owner Change5.94%
Market Cap31.55B
Analysts69.03
Price Target298.52 (14.14%)
Short Float %3.81%
Short Ratio2.6
Dividend
Industry RankSector Rank
Dividend Yield 1.35%
Yearly Dividend3.55
Dividend Growth(5Y)10.32%
DP35.71%
Div Incr Years7
Div Non Decr Years8
Ex-Date03-28 2025-03-28 (0.885)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.09%
Min EPS beat(2)1.21%
Max EPS beat(2)20.98%
EPS beat(4)4
Avg EPS beat(4)14.26%
Min EPS beat(4)1.21%
Max EPS beat(4)20.98%
EPS beat(8)7
Avg EPS beat(8)-13.54%
EPS beat(12)11
Avg EPS beat(12)-5.06%
EPS beat(16)14
Avg EPS beat(16)-2.77%
Revenue beat(2)2
Avg Revenue beat(2)0.72%
Min Revenue beat(2)0.25%
Max Revenue beat(2)1.18%
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)5
Avg Revenue beat(8)-0.27%
Revenue beat(12)6
Avg Revenue beat(12)-0.29%
Revenue beat(16)6
Avg Revenue beat(16)-0.49%
PT rev (1m)0.31%
PT rev (3m)1%
EPS NQ rev (1m)40.44%
EPS NQ rev (3m)38.09%
EPS NY rev (1m)-1.88%
EPS NY rev (3m)-3.19%
Revenue NQ rev (1m)3.98%
Revenue NQ rev (3m)4.25%
Revenue NY rev (1m)4.31%
Revenue NY rev (3m)4.36%
Valuation
Industry RankSector Rank
PE 16.15
Fwd PE 15.78
P/S 0.27
P/FCF 13.2
P/OCF 10.64
P/B 1.93
P/tB 5.95
EV/EBITDA 11.05
EPS(TTM)16.19
EY6.19%
EPS(NY)16.58
Fwd EY6.34%
FCF(TTM)19.82
FCFY7.58%
OCF(TTM)24.59
OCFY9.4%
SpS976.14
BVpS135.73
TBVpS43.94
PEG (NY)6.77
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 2.6%
ROE 7.37%
ROCE 7.04%
ROIC 5.33%
ROICexc 5.64%
ROICexgc 11.65%
OM 2.42%
PM (TTM) 1.02%
GM N/A
FCFM 2.03%
ROA(3y)4.8%
ROA(5y)6.13%
ROE(3y)13.67%
ROE(5y)16.75%
ROIC(3y)7.81%
ROIC(5y)8.56%
ROICexc(3y)8.81%
ROICexc(5y)9.77%
ROICexgc(3y)19.7%
ROICexgc(5y)21.36%
ROCE(3y)10.51%
ROCE(5y)11.49%
ROICexcg growth 3Y-14.38%
ROICexcg growth 5Y-10.4%
ROICexc growth 3Y-5.81%
ROICexc growth 5Y-12.39%
OM growth 3Y-12.91%
OM growth 5Y-11.94%
PM growth 3Y-33.79%
PM growth 5Y-24.48%
GM growth 3YN/A
GM growth 5YN/A
F-Score6
Asset Turnover2.53
Health
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF 4.9
Debt/EBITDA 2.92
Cap/Depr 59.4%
Cap/Sales 0.49%
Interest Coverage 4.87
Cash Conversion 77.81%
Profit Quality 198.09%
Current Ratio N/A
Quick Ratio N/A
Altman-Z N/A
F-Score6
WACC8.07%
ROIC/WACC0.66
Cap/Depr(3y)100.48%
Cap/Depr(5y)128.5%
Cap/Sales(3y)0.88%
Cap/Sales(5y)1.09%
Profit Quality(3y)147.09%
Profit Quality(5y)122.47%
High Growth Momentum
Growth
EPS 1Y (TTM)-37.71%
EPS 3Y-7.76%
EPS 5Y-1.92%
EPS Q2Q%-1863.64%
EPS Next Y2.39%
EPS Next 2Y-7.52%
EPS Next 3Y9.63%
EPS Next 5Y23.61%
Revenue 1Y (TTM)10.7%
Revenue growth 3Y12.34%
Revenue growth 5Y12.66%
Sales Q2Q%13.46%
Revenue Next Year6.43%
Revenue Next 2Y4.08%
Revenue Next 3Y5.25%
Revenue Next 5Y6.02%
EBIT growth 1Y-36.94%
EBIT growth 3Y-2.16%
EBIT growth 5Y-0.79%
EBIT Next Year28.05%
EBIT Next 3Y18.62%
EBIT Next 5Y20.39%
FCF growth 1Y-19.68%
FCF growth 3Y36.22%
FCF growth 5Y-12.07%
OCF growth 1Y-25.5%
OCF growth 3Y9.45%
OCF growth 5Y-10.91%