HUMANA INC (HUM) Stock Fundamental Analysis
USA - NYSE:HUM - US4448591028 - Common Stock
290.65 USD
-0.65 (-0.22%)
290.66 USD
0.01 (0%)
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. Finally HUM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year HUM was profitable.
HUM had a positive operating cash flow in the past year.
Each year in the past 5 years HUM has been profitable.
Each year in the past 5 years HUM had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.13%, HUM is in the better half of the industry, outperforming 65.35% of the companies in the same industry.
The Return On Equity of HUM (8.64%) is better than 69.31% of its industry peers.
HUM has a better Return On Invested Capital (6.01%) than 62.38% 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 9.28%.
| 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's Profit Margin of 1.28% is in line compared to the rest of the industry. HUM outperforms 59.41% of its industry peers.
In the last couple of years the Profit Margin of HUM has declined.
HUM has a Operating Margin of 2.87%. This is comparable to the rest of the industry: HUM outperforms 53.47% of its industry peers.
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
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HUM is destroying value.
HUM has less shares outstanding than it did 1 year ago.
HUM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HUM is higher compared to a year ago.
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.
HUM has a Debt to FCF ratio of 5.16. This is in the better half of the industry: HUM outperforms 67.33% of its industry peers.
A Debt/Equity ratio of 0.69 indicates that HUM is somewhat dependend on debt financing.
HUM has a Debt to Equity ratio (0.69) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.69 | ||
| Debt/FCF | 5.16 | ||
| Altman-Z | N/A |
ROIC/WACC0.75
WACC7.99%
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 by -9.19% in the last year.
Measured over the past years, HUM shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.92% on average per year.
Looking at the last year, HUM shows a quite strong growth in Revenue. The Revenue has grown by 9.88% 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)-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 16.62% on average over the next years. This is quite good.
Based on estimates for the next years, HUM will show a quite strong growth in Revenue. The Revenue will grow by 8.25% on average per year.
EPS Next Y6.49%
EPS Next 2Y-7.8%
EPS Next 3Y9.26%
EPS Next 5Y16.62%
Revenue Next Year9.68%
Revenue Next 2Y7.37%
Revenue Next 3Y7.26%
Revenue Next 5Y8.25%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 14.64, which 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 80.20% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of HUM to the average of the S&P500 Index (26.91), we can say HUM is valued slightly cheaper.
HUM is valuated rather expensively with a Price/Forward Earnings ratio of 21.12.
HUM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HUM is cheaper than 60.40% of the companies in the same industry.
HUM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.92.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 21.12 |
4.2 Price Multiples
76.24% of the companies in the same industry are more expensive than HUM, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HUM indicates a rather cheap valuation: HUM is cheaper than 80.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.33 | ||
| EV/EBITDA | 9.81 |
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)2.26
PEG (5Y)N/A
EPS Next 2Y-7.8%
EPS Next 3Y9.26%
5. Dividend
5.1 Amount
HUM has a Yearly Dividend Yield of 1.32%. 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 2.45. HUM pays more dividend than 86.14% of the companies in the same industry.
With a Dividend Yield of 1.32, HUM pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
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
HUM pays out 27.22% of its income as dividend. This is a sustainable payout ratio.
The dividend of HUM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP27.22%
EPS Next 2Y-7.8%
EPS Next 3Y9.26%
290.65
-0.65 (-0.22%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.29%
Inst Owner Change0.12%
Ins Owners0.13%
Ins Owner Change0.06%
Market Cap34.96B
Revenue(TTM)123.11B
Net Income(TTM)1.58B
Analysts70
Price Target301.97 (3.89%)
Short Float %3.4%
Short Ratio2.2
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.32% |
Yearly Dividend3.55
Dividend Growth(5Y)10.32%
DP27.22%
Div Incr Years0
Div Non Decr Years8
Ex-Date
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)-0.02%
PT rev (3m)1.43%
EPS NQ rev (1m)-0.99%
EPS NQ rev (3m)10.44%
EPS NY rev (1m)0.2%
EPS NY rev (3m)4.31%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.73%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)1.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.64 | ||
| Fwd PE | 21.12 | ||
| P/S | 0.28 | ||
| P/FCF | 14.33 | ||
| P/OCF | 11.92 | ||
| P/B | 1.92 | ||
| P/tB | 4.84 | ||
| EV/EBITDA | 9.81 |
EPS(TTM)19.85
EY6.83%
EPS(NY)13.76
Fwd EY4.73%
FCF(TTM)20.28
FCFY6.98%
OCF(TTM)24.38
OCFY8.39%
SpS1023.61
BVpS151.61
TBVpS60.04
PEG (NY)2.26
PEG (5Y)N/A
Graham Number260.22
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%
ROICexgc growth 3Y-14.61%
ROICexgc 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
WACC7.99%
ROIC/WACC0.75
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 Y6.49%
EPS Next 2Y-7.8%
EPS Next 3Y9.26%
EPS Next 5Y16.62%
Revenue 1Y (TTM)9.88%
Revenue growth 3Y12.34%
Revenue growth 5Y12.66%
Sales Q2Q%10.24%
Revenue Next Year9.68%
Revenue Next 2Y7.37%
Revenue Next 3Y7.26%
Revenue Next 5Y8.25%
EBIT growth 1Y-8.8%
EBIT growth 3Y-2.43%
EBIT growth 5Y-0.95%
EBIT Next Year33.4%
EBIT Next 3Y14.84%
EBIT Next 5Y14.56%
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 FAQ
What is the fundamental rating for HUM stock?
ChartMill assigns a fundamental rating of 4 / 10 to HUM.
What is the valuation status of HUMANA INC (HUM) stock?
ChartMill assigns a valuation rating of 5 / 10 to HUMANA INC (HUM). This can be considered as Fairly Valued.
What is the profitability of HUM stock?
HUMANA INC (HUM) has a profitability rating of 4 / 10.
What is the expected EPS growth for HUMANA INC (HUM) stock?
The Earnings per Share (EPS) of HUMANA INC (HUM) is expected to grow by 6.49% in the next year.
Can you provide the dividend sustainability for HUM stock?
The dividend rating of HUMANA INC (HUM) is 7 / 10 and the dividend payout ratio is 27.22%.