Fundamental Analysis of HUMANA INC(NYSE:HUM) stock

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to HUM. HUM was compared to 113 industry peers in the Health Care Providers & Services industry. While HUM is still in line with the averages on profitability rating, there are concerns on its financial health. HUM is valied quite expensively at the moment, while it does show a decent growth rate.

Quickly go to:

1. Profitability

1.1 Basic Checks

In the past year HUM was profitable.

HUM had a negative operating cash flow in the past year.

In the past 5 years HUM has always been profitable.

In the past 5 years HUM always reported a positive cash flow from operatings.

1.2 Ratios

HUM's Return On Assets of 2.72% is fine compared to the rest of the industry. HUM outperforms 69.03% of its industry peers.

The Return On Equity of HUM (7.74%) is better than 74.34% of its industry peers.

With a decent Return On Invested Capital value of 6.22%, HUM is doing good in the industry, outperforming 69.91% of the companies in the same industry.

Measured over the past 3 years, the Average Return On Invested Capital for HUM is in line with the industry average of 8.10%.

		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's Profit Margin of 1.18% is fine compared to the rest of the industry. HUM outperforms 63.72% of its industry peers.

In the last couple of years the Profit Margin of HUM has declined.

Looking at the Operating Margin, with a value of 3.00%, HUM is in line with its industry, outperforming 54.87% of the companies in the same industry.

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

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

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.

The number of shares outstanding for HUM has been reduced compared to 1 year ago.

The number of shares outstanding for HUM has been reduced compared to 5 years ago.

HUM has a better debt/assets ratio than last year.

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 (0.68) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.68
Debt/FCF	N/A
Altman-Z	N/A

ROIC/WACC0.83

WACC7.48%

2.3 Liquidity

		Industry Rank	Sector Rank
Current Ratio	N/A
Quick Ratio	N/A

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

HUM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.20%.

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

The Earnings Per Share is expected to grow by 9.33% on average over the next years. This is quite good.

Based on estimates for the next years, HUM will show a small growth in Revenue. The Revenue will grow by 7.33% on average per year.

EPS Next Y-37.18%

EPS Next 2Y-19.19%

EPS Next 3Y-17.9%

EPS Next 5Y9.33%

Revenue Next Year12.94%

Revenue Next 2Y7.36%

Revenue Next 3Y4.98%

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.

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

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 16.21, HUM is valued correctly.

Compared to the rest of the industry, the Price/Earnings ratio of HUM indicates a somewhat cheap valuation: HUM is cheaper than 79.65% of the companies listed in the same industry.

When comparing the Price/Earnings ratio of HUM to the average of the S&P500 Index (28.65), we can say HUM is valued slightly cheaper.

A Price/Forward Earnings ratio of 17.42 indicates a rather expensive valuation of HUM.

Compared to the rest of the industry, the Price/Forward Earnings ratio of HUM indicates a somewhat cheap valuation: HUM is cheaper than 70.80% of the companies listed in the same industry.

HUM's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.56.

		Industry Rank	Sector Rank
PE	16.21
Fwd PE	17.42

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, HUM is valued a bit cheaper than 77.88% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	N/A
EV/EBITDA	9.8

4.3 Compensation for Growth

A cheap valuation may be justified as HUM's earnings are expected to decrease with -17.90% in the coming years.

PEG (NY)N/A

PEG (5Y)1.32

EPS Next 2Y-19.19%

EPS Next 3Y-17.9%

More info and screens

Show best valued peers

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 1.25%, HUM has a reasonable but not impressive dividend return.

Compared to an average industry Dividend Yield of 3.16, HUM pays a better dividend. On top of this HUM pays more dividend than 83.19% of the companies listed in the same industry.

Compared to an average S&P500 Dividend Yield of 2.23, HUM's dividend is way lower than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	1.25%

5.2 History

The dividend of HUM is nicely growing with an annual growth rate of 12.51%!

HUM has paid a dividend for at least 10 years, which is 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.

HUM's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.

DP31.94%

EPS Next 2Y-19.19%

EPS Next 3Y-17.9%

More info and screens

Find the best dividend stocks

Show peers with best dividend

HUMANA INC

NYSE:HUM (11/21/2024, 4:33:42 PM)

After market: 295.71 0 (0%)

295.71

+1.74 (+0.59%)

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 Cap35.61B

Analysts

Price Target

Dividend

		Industry Rank	Sector Rank
Dividend Yield	1.25%

Dividend Growth(5Y)

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

Max EPS beat(2)

EPS beat(4)

Avg EPS beat(4)

Min EPS beat(4)

Max EPS beat(4)

EPS beat(8)

Avg EPS beat(8)

EPS beat(12)

Avg EPS beat(12)

EPS beat(16)

Avg EPS beat(16)

Revenue beat(2)

Avg Revenue beat(2)

Min Revenue beat(2)

Max Revenue beat(2)

Revenue beat(4)

Avg Revenue beat(4)

Min Revenue beat(4)

Max Revenue beat(4)

Revenue beat(8)

Avg Revenue beat(8)

Revenue beat(12)

Avg Revenue beat(12)

Revenue beat(16)

Avg Revenue beat(16)

PT rev (1m)

PT rev (3m)

EPS NQ rev (1m)

EPS NQ rev (3m)

EPS NY rev (1m)

EPS NY rev (3m)

Revenue NQ rev (1m)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

		Industry Rank	Sector Rank
PE	16.21
Fwd PE	17.42
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA

EPS(TTM)

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)N/A

PEG (5Y)1.32

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-37.18%

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

HUMANA INC (HUM)

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

5.2 History

5.3 Sustainability

More info and screens