HUM Fundamental Analysis - HUMANA INC

Fundamental Rating

We assign a fundamental rating of 4 out of 10 to HUM. HUM was compared to 101 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 has a correct valuation and a medium growth rate. HUM also has an excellent dividend rating.

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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.

Each year in the past 5 years HUM has been profitable.

HUM had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

HUM has a better Return On Assets (3.13%) than 66.34% of its industry peers.

HUM has a Return On Equity of 8.64%. This is in the better half of the industry: HUM outperforms 70.30% of its industry peers.

HUM has a Return On Invested Capital of 6.01%. This is in the better half of the industry: HUM outperforms 63.37% of its industry peers.

The Average Return On Invested Capital over the past 3 years for HUM is in line with the industry average of 9.19%.

		Industry Rank	Sector Rank
ROA	3.13%
ROE	8.64%
ROIC	6.01%

ROA(3y)4.8%

ROA(5y)6.13%

ROE(3y)13.67%

ROE(5y)16.75%

ROIC(3y)7.86%

ROIC(5y)8.6%

1.3 Margins

HUM has a Profit Margin (1.28%) which is in line with its industry peers.

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

HUM has a Operating Margin (2.87%) which 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	2.87%
PM (TTM)	1.28%
GM	N/A

OM growth 3Y-13.15%

OM growth 5Y-12.08%

PM growth 3Y-33.79%

PM growth 5Y-24.48%

GM growth 3YN/A

GM growth 5YN/A

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HUM is destroying value.

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

HUM has less shares outstanding than it did 5 years ago.

Compared to 1 year ago, HUM has a worse debt to assets ratio.

2.2 Solvency

HUM has a debt to FCF ratio of 5.16. This is a neutral value as HUM would need 5.16 years to pay back of all of its debts.

With a decent Debt to FCF ratio value of 5.16, HUM is doing good in the industry, outperforming 67.33% of the companies in the same industry.

A Debt/Equity ratio of 0.69 indicates that HUM is somewhat dependend on debt financing.

Looking at the Debt to Equity ratio, with a value of 0.69, HUM is in line with its industry, outperforming 52.48% of the companies in the same industry.

		Industry Rank	Sector Rank
Debt/Equity	0.69
Debt/FCF	5.16
Altman-Z	N/A

ROIC/WACC0.73

WACC8.22%

2.3 Liquidity

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

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for HUM have decreased by -9.19% in the last year.

HUM shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -1.92% yearly.

HUM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.88%.

Measured over the past years, HUM shows a quite strong growth in Revenue. The Revenue has been growing by 12.66% on average per year.

EPS 1Y (TTM)-9.19%

EPS 3Y-7.76%

EPS 5Y-1.92%

EPS Q2Q%-9.91%

Revenue 1Y (TTM)9.88%

Revenue growth 3Y12.34%

Revenue growth 5Y12.66%

Sales Q2Q%10.24%

3.2 Future

The Earnings Per Share is expected to grow by 16.81% 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 7.89% yearly.

EPS Next Y6.27%

EPS Next 2Y-7.85%

EPS Next 3Y9.35%

EPS Next 5Y16.81%

Revenue Next Year9.65%

Revenue Next 2Y7.11%

Revenue Next 3Y6.84%

Revenue Next 5Y7.89%

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 accelerating.

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 14.04 indicates a correct valuation of HUM.

Compared to the rest of the industry, the Price/Earnings ratio of HUM indicates a rather cheap valuation: HUM is cheaper than 81.19% of the companies listed in the same industry.

HUM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.43.

Based on the Price/Forward Earnings ratio of 20.28, the valuation of HUM can be described as rather expensive.

Based on the Price/Forward Earnings ratio, HUM is valued a bit cheaper than 60.40% of the companies in the same industry.

The average S&P500 Price/Forward Earnings ratio is at 22.87. HUM is around the same levels.

		Industry Rank	Sector Rank
PE	14.04
Fwd PE	20.28

4.2 Price Multiples

75.25% of the companies in the same industry are more expensive than HUM, based on the Enterprise Value to EBITDA ratio.

79.21% of the companies in the same industry are more expensive than HUM, based on the Price/Free Cash Flow ratio.

		Industry Rank	Sector Rank
P/FCF	13.74
EV/EBITDA	9.47

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates HUM does not grow enough to justify the current Price/Earnings ratio.

PEG (NY)2.24

PEG (5Y)N/A

EPS Next 2Y-7.85%

EPS Next 3Y9.35%

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5. Dividend

5.1 Amount

HUM has a Yearly Dividend Yield of 1.13%. Purely for dividend investing, there may be better candidates out there.

Compared to an average industry Dividend Yield of 2.48, HUM pays a better dividend. On top of this HUM pays more dividend than 86.14% of the companies listed in the same industry.

Compared to an average S&P500 Dividend Yield of 2.45, HUM's dividend is way lower than the S&P500 average.

		Industry Rank	Sector Rank
Dividend Yield	1.13%

5.2 History

The dividend of HUM is nicely growing with an annual growth rate of 10.32%!

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)10.32%

Div Incr Years0

Div Non Decr Years8

5.3 Sustainability

27.22% 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.

DP27.22%

EPS Next 2Y-7.85%

EPS Next 3Y9.35%

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HUMANA INC

NYSE:HUM (9/11/2025, 8:04:00 PM)

After market: 278.573 -0.15 (-0.05%)

278.72

+5.14 (+1.88%)

Chartmill FA Rating

GICS SectorHealth Care

GICS IndustryGroupHealth Care Equipment & Services

GICS IndustryHealth Care Providers & Services

Earnings (Last)07-30 2025-07-30/bmo

Earnings (Next)11-05 2025-11-05/amc

Inst Owners98.06%

Inst Owner Change-0.94%

Ins Owners0.13%

Ins Owner Change0.01%

Market Cap33.52B

Analysts70.32

Price Target294.74 (5.75%)

Short Float %4.39%

Short Ratio3.22

Dividend

		Industry Rank	Sector Rank
Dividend Yield	1.13%

Yearly Dividend3.55

Dividend Growth(5Y)10.32%

DP27.22%

Div Incr Years0

Div Non Decr Years8

Ex-Date09-26 2025-09-26 (0.885)

Surprises & Revisions

EPS beat(2)2

Avg EPS beat(2)9.37%

Min EPS beat(2)4.86%

Max EPS beat(2)13.88%

EPS beat(4)4

Avg EPS beat(4)10.23%

Min EPS beat(4)1.21%

Max EPS beat(4)20.98%

EPS beat(8)7

Avg EPS beat(8)-11.27%

EPS beat(12)11

Avg EPS beat(12)-5.94%

EPS beat(16)15

Avg EPS beat(16)-2.06%

Revenue beat(2)1

Avg Revenue beat(2)-0.39%

Min Revenue beat(2)-1.32%

Max Revenue beat(2)0.55%

Revenue beat(4)3

Avg Revenue beat(4)0.16%

Min Revenue beat(4)-1.32%

Max Revenue beat(4)1.18%

Revenue beat(8)6

Avg Revenue beat(8)0.48%

Revenue beat(12)6

Avg Revenue beat(12)-0.42%

Revenue beat(16)7

Avg Revenue beat(16)-0.51%

PT rev (1m)0.03%

PT rev (3m)-5.12%

EPS NQ rev (1m)0.48%

EPS NQ rev (3m)-11.67%

EPS NY rev (1m)4.1%

EPS NY rev (3m)4.13%

Revenue NQ rev (1m)0.63%

Revenue NQ rev (3m)2.55%

Revenue NY rev (1m)1.24%

Revenue NY rev (3m)1.22%

Valuation

		Industry Rank	Sector Rank
PE	14.04
Fwd PE	20.28
P/S	0.27
P/FCF	13.74
P/OCF	11.43
P/B	1.84
P/tB	4.64
EV/EBITDA	9.47

EPS(TTM)19.85

EY7.12%

EPS(NY)13.75

Fwd EY4.93%

FCF(TTM)20.28

FCFY7.28%

OCF(TTM)24.38

OCFY8.75%

SpS1023.61

BVpS151.61

TBVpS60.04

PEG (NY)2.24

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	3.13%
ROE	8.64%
ROCE	7.94%
ROIC	6.01%
ROICexc	6.61%
ROICexgc	13.55%
OM	2.87%
PM (TTM)	1.28%
GM	N/A
FCFM	1.98%

ROA(3y)4.8%

ROA(5y)6.13%

ROE(3y)13.67%

ROE(5y)16.75%

ROIC(3y)7.86%

ROIC(5y)8.6%

ROICexc(3y)8.87%

ROICexc(5y)9.81%

ROICexgc(3y)19.84%

ROICexgc(5y)21.44%

ROCE(3y)10.58%

ROCE(5y)11.53%

ROICexcg growth 3Y-14.61%

ROICexcg growth 5Y-10.55%

ROICexc growth 3Y-6.07%

ROICexc growth 5Y-12.53%

OM growth 3Y-13.15%

OM growth 5Y-12.08%

PM growth 3Y-33.79%

PM growth 5Y-24.48%

GM growth 3YN/A

GM growth 5YN/A

F-Score6

Asset Turnover2.44

Health

		Industry Rank	Sector Rank
Debt/Equity	0.69
Debt/FCF	5.16
Debt/EBITDA	2.83
Cap/Depr	54.24%
Cap/Sales	0.4%
Interest Coverage	5.64
Cash Conversion	65.98%
Profit Quality	154.76%
Current Ratio	N/A
Quick Ratio	N/A
Altman-Z	N/A

F-Score6

WACC8.22%

ROIC/WACC0.73

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)-9.19%

EPS 3Y-7.76%

EPS 5Y-1.92%

EPS Q2Q%-9.91%

EPS Next Y6.27%

EPS Next 2Y-7.85%

EPS Next 3Y9.35%

EPS Next 5Y16.81%

Revenue 1Y (TTM)9.88%

Revenue growth 3Y12.34%

Revenue growth 5Y12.66%

Sales Q2Q%10.24%

Revenue Next Year9.65%

Revenue Next 2Y7.11%

Revenue Next 3Y6.84%

Revenue Next 5Y7.89%

EBIT growth 1Y-8.8%

EBIT growth 3Y-2.43%

EBIT growth 5Y-0.95%

EBIT Next Year33.61%

EBIT Next 3Y15.01%

EBIT Next 5Y14.4%

FCF growth 1Y-79.94%

FCF growth 3Y36.22%

FCF growth 5Y-12.07%

OCF growth 1Y-77.77%

OCF growth 3Y9.45%

OCF growth 5Y-10.91%

HUMANA INC (HUM) Stock Fundamental Analysis

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