HUMANA INC (HUM)
US4448591028 - Common Stock
Taking everything into account, HUM scores 4 out of 10 in our fundamental rating. HUM was compared to 107 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
In the past year HUM was profitable.
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 Return On Assets of 2.72%. This is in the better half of the industry: HUM outperforms 66.98% of its industry peers.
The Return On Equity of HUM (7.74%) is better than 71.70% of its industry peers.
With a decent Return On Invested Capital value of 6.22%, HUM is doing good in the industry, outperforming 67.92% 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 8.15%.
| 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
With a decent Profit Margin value of 1.18%, HUM is doing good in the industry, outperforming 61.32% of the companies in the same industry.
HUM's Profit Margin has declined in the last couple of years.
The Operating Margin of HUM (3.00%) is comparable to the rest of the industry.
In the last couple of years the Operating Margin of HUM has declined.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HUM is still 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
HUM has a Debt/Equity ratio of 0.68. This is a neutral value indicating 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 49.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | N/A |
ROIC/WACC0.84
WACC7.44%
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.
HUM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.37%.
The Revenue has been growing by 13.33% on average over the past years. This is quite good.
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
Based on estimates for the next years, HUM will show a small growth in Earnings Per Share. The EPS will grow by 6.36% on average per year.
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 Year12.97%
Revenue Next 2Y7.36%
Revenue Next 3Y5.08%
Revenue Next 5Y4.65%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 13.94, which indicates a correct valuation of HUM.
HUM's Price/Earnings ratio is rather cheap when compared to the industry. HUM is cheaper than 81.13% of the companies in the same industry.
HUM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.18.
HUM is valuated correctly with a Price/Forward Earnings ratio of 14.85.
76.42% of the companies in the same industry are more expensive than HUM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.59, HUM is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 14.85 |
4.2 Price Multiples
HUM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HUM is cheaper than 79.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 8.75 |
4.3 Compensation for Growth
A cheap valuation may be justified as HUM's earnings are expected to decrease with -17.98% in the coming years.
PEG (NY)N/A
PEG (5Y)1.13
EPS Next 2Y-18.83%
EPS Next 3Y-17.98%
5. Dividend
5.1 Amount
HUM has a Yearly Dividend Yield of 1.38%. Purely for dividend investing, there may be better candidates out there.
HUM's Dividend Yield is rather good when compared to the industry average which is at 2.83. HUM pays more dividend than 83.96% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.30, HUM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
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.
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
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%
HUMANA INC
NYSE:HUM (12/30/2024, 8:21:07 PM)
After market: 253.42 -0.84 (-0.33%)254.26
-1.38 (-0.54%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.21%
Inst Owner Change-0.75%
Ins Owners0.14%
Ins Owner Change0.3%
Market Cap30.62B
Analysts69.03
Price Target291.36 (14.59%)
Short Float %3.77%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.38% |
Dividend Growth(5Y)12.51%
DP31.94%
Div Incr Years7
Div Non Decr Years8
Ex-Date
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)-27.13%
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)0.03%
Revenue NY rev (3m)0.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.94 | ||
| Fwd PE | 14.85 | ||
| P/S | 0.27 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 1.74 | ||
| P/tB | 4.84 | ||
| EV/EBITDA | 8.75 |
EPS(TTM)18.24
EY7.17%
EPS(NY)17.12
Fwd EY6.73%
FCF(TTM)-36.08
FCFYN/A
OCF(TTM)-30.23
OCFYN/A
SpS955.15
BVpS145.88
TBVpS52.53
PEG (NY)N/A
PEG (5Y)1.13
Profitability
| Industry Rank | Sector 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 Rank | Sector 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
WACC7.44%
ROIC/WACC0.84
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 Year12.97%
Revenue Next 2Y7.36%
Revenue Next 3Y5.08%
Revenue Next 5Y4.65%
EBIT growth 1Y-24.56%
EBIT growth 3Y-2.92%
EBIT growth 5Y8.03%
EBIT Next Year-13.84%
EBIT Next 3Y-6.71%
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%