HUMANA INC (HUM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HUM - US4448591028 - Common Stock
273.28 USD
-10.67 (-3.76%)
273.05 USD
-0.23 (-0.08%)
Overall HUM gets a fundamental rating of 4 out of 10. We evaluated HUM against 102 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. Finally HUM also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- HUM had positive earnings in the past year.
- HUM had a positive operating cash flow in the past year.
- 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
- With a decent Return On Assets value of 2.60%, HUM is doing good in the industry, outperforming 62.75% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 6.97%, HUM is in the better half of the industry, outperforming 63.73% of the companies in the same industry.
- HUM has a better Return On Invested Capital (5.89%) than 61.76% 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 9.21%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.6% | ||
| ROE | 6.97% | ||
| ROIC | 5.89% |
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 (1.02%) 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 (2.71%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of HUM has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.71% | ||
| PM (TTM) | 1.02% | ||
| 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.
- 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.
- The debt/assets ratio for HUM is higher compared to a year ago.
2.2 Solvency
- The Debt to FCF ratio of HUM is 8.15, which is on the high side as it means it would take HUM, 8.15 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of HUM (8.15) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.68 indicates that HUM is somewhat dependend on debt financing.
- The Debt to Equity ratio of HUM (0.68) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 8.15 | ||
| Altman-Z | N/A |
ROIC/WACC0.69
WACC8.5%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
- HUM shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.78%.
- The Earnings Per Share has been decreasing by -1.92% on average over the past years.
- Looking at the last year, HUM shows a quite strong growth in Revenue. The Revenue has grown by 9.87% in the last year.
- 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)3.78%
EPS 3Y-7.76%
EPS 5Y-1.92%
EPS Q2Q%-22.12%
Revenue 1Y (TTM)9.87%
Revenue growth 3Y12.34%
Revenue growth 5Y12.66%
Sales Q2Q%11.43%
3.2 Future
- HUM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.79% yearly.
- HUM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.32% yearly.
EPS Next Y6.41%
EPS Next 2Y-12.65%
EPS Next 3Y6.85%
EPS Next 5Y18.79%
Revenue Next Year10.43%
Revenue Next 2Y11.33%
Revenue Next 3Y10.19%
Revenue Next 5Y8.32%
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.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 14.44, which indicates a correct valuation of HUM.
- 83.33% of the companies in the same industry are more expensive than HUM, based on the Price/Earnings ratio.
- When comparing the Price/Earnings ratio of HUM to the average of the S&P500 Index (27.38), we can say HUM is valued slightly cheaper.
- A Price/Forward Earnings ratio of 22.12 indicates a rather expensive valuation of HUM.
- HUM's Price/Forward Earnings is on the same level as the industry average.
- HUM is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 22.12 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, HUM is valued a bit cheaper than 75.49% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, HUM is valued a bit cheaper than the industry average as 66.67% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.25 | ||
| EV/EBITDA | 9.35 |
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)2.25
PEG (5Y)N/A
EPS Next 2Y-12.65%
EPS Next 3Y6.85%
5. Dividend
5.1 Amount
- HUM has a Yearly Dividend Yield of 1.25%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.59, HUM pays a better dividend. On top of this HUM pays more dividend than 88.24% of the companies listed in the same industry.
- Compared to the average S&P500 Dividend Yield of 1.85, HUM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
5.2 History
- On average, the dividend of HUM grows each year by 10.32%, which is quite nice.
- 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)10.32%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
- HUM pays out 33.23% of its income as dividend. This is a sustainable payout ratio.
- HUM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP33.23%
EPS Next 2Y-12.65%
EPS Next 3Y6.85%
273.28
-10.67 (-3.76%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)11-05 2025-11-05/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners99.16%
Inst Owner Change-0.24%
Ins Owners0.14%
Ins Owner Change1.82%
Market Cap32.87B
Revenue(TTM)126.36B
Net Income(TTM)1.29B
Analysts70.63
Price Target294.79 (7.87%)
Short Float %4.02%
Short Ratio3.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
Yearly Dividend3.55
Dividend Growth(5Y)10.32%
DP33.23%
Div Incr Years0
Div Non Decr Years8
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.33%
Min EPS beat(2)4.86%
Max EPS beat(2)13.8%
EPS beat(4)4
Avg EPS beat(4)8.44%
Min EPS beat(4)1.21%
Max EPS beat(4)13.88%
EPS beat(8)7
Avg EPS beat(8)-10.49%
EPS beat(12)11
Avg EPS beat(12)-5.49%
EPS beat(16)15
Avg EPS beat(16)-1.37%
Revenue beat(2)2
Avg Revenue beat(2)0.76%
Min Revenue beat(2)0.55%
Max Revenue beat(2)0.98%
Revenue beat(4)3
Avg Revenue beat(4)0.11%
Min Revenue beat(4)-1.32%
Max Revenue beat(4)0.98%
Revenue beat(8)7
Avg Revenue beat(8)0.74%
Revenue beat(12)7
Avg Revenue beat(12)-0.27%
Revenue beat(16)8
Avg Revenue beat(16)-0.32%
PT rev (1m)-0.24%
PT rev (3m)-2.38%
EPS NQ rev (1m)0.57%
EPS NQ rev (3m)-10.5%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.08%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)0.66%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.44 | ||
| Fwd PE | 22.12 | ||
| P/S | 0.26 | ||
| P/FCF | 21.25 | ||
| P/OCF | 16.07 | ||
| P/B | 1.77 | ||
| P/tB | 4.28 | ||
| EV/EBITDA | 9.35 |
EPS(TTM)18.93
EY6.93%
EPS(NY)12.35
Fwd EY4.52%
FCF(TTM)12.86
FCFY4.71%
OCF(TTM)17
OCFY6.22%
SpS1050.65
BVpS154
TBVpS63.8
PEG (NY)2.25
PEG (5Y)N/A
Graham Number256.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.6% | ||
| ROE | 6.97% | ||
| ROCE | 7.78% | ||
| ROIC | 5.89% | ||
| ROICexc | 6.71% | ||
| ROICexgc | 15.24% | ||
| OM | 2.71% | ||
| PM (TTM) | 1.02% | ||
| GM | N/A | ||
| FCFM | 1.22% |
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 Turnover2.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 8.15 | ||
| Debt/EBITDA | 2.94 | ||
| Cap/Depr | 57.24% | ||
| Cap/Sales | 0.39% | ||
| Interest Coverage | 5.62 | ||
| Cash Conversion | 47.68% | ||
| Profit Quality | 119.83% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC8.5%
ROIC/WACC0.69
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)3.78%
EPS 3Y-7.76%
EPS 5Y-1.92%
EPS Q2Q%-22.12%
EPS Next Y6.41%
EPS Next 2Y-12.65%
EPS Next 3Y6.85%
EPS Next 5Y18.79%
Revenue 1Y (TTM)9.87%
Revenue growth 3Y12.34%
Revenue growth 5Y12.66%
Sales Q2Q%11.43%
Revenue Next Year10.43%
Revenue Next 2Y11.33%
Revenue Next 3Y10.19%
Revenue Next 5Y8.32%
EBIT growth 1Y-0.98%
EBIT growth 3Y-2.43%
EBIT growth 5Y-0.95%
EBIT Next Year30.37%
EBIT Next 3Y11.92%
EBIT Next 5Y14.57%
FCF growth 1Y-69.12%
FCF growth 3Y36.22%
FCF growth 5Y-12.07%
OCF growth 1Y-65.85%
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 for HUM stock?
ChartMill assigns a valuation rating of 4 / 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.
Can you provide the financial health for HUM stock?
The financial health rating of HUMANA INC (HUM) is 2 / 10.
How sustainable is the dividend of HUMANA INC (HUM) stock?
The dividend rating of HUMANA INC (HUM) is 7 / 10 and the dividend payout ratio is 33.23%.