HUMANA INC (HUM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HUM - US4448591028 - Common Stock
236.29 USD
+7.09 (+3.09%)
HUM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 101 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.
HUM had positive earnings in each of the past 5 years.
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 61.39% of the companies in the same industry.
HUM has a better Return On Equity (6.97%) than 64.36% of its industry peers.
HUM has a better Return On Invested Capital (5.89%) 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 9.27%.
| 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 comparable to the rest of the industry.
HUM's Profit Margin has declined in the last couple of years.
HUM has a Operating Margin (2.71%) 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 | 2.71% | ||
| 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
HUM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, HUM has less shares outstanding
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
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.
Looking at the Debt to FCF ratio, with a value of 8.15, HUM is in line with its industry, outperforming 52.48% of the companies in the same industry.
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 (0.68) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 8.15 | ||
| Altman-Z | N/A |
ROIC/WACC0.7
WACC8.39%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.78% over the past year.
The Earnings Per Share has been decreasing by -1.92% on average over the past years.
HUM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.87%.
HUM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.66% yearly.
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
Based on estimates for the next years, HUM will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.52% on average per year.
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 Y6.47%
EPS Next 2Y-8.35%
EPS Next 3Y8.7%
EPS Next 5Y17.52%
Revenue Next Year9.45%
Revenue Next 2Y7.45%
Revenue Next 3Y7.24%
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.
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
HUM is valuated correctly with a Price/Earnings ratio of 12.48.
Based on the Price/Earnings ratio, HUM is valued cheaply inside the industry as 86.14% of the companies are valued more expensively.
HUM is valuated cheaply when we compare the Price/Earnings ratio to 25.65, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 17.37 indicates a rather expensive valuation of HUM.
HUM's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. HUM is cheaper than 67.33% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HUM to the average of the S&P500 Index (34.45), we can say HUM is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 17.37 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HUM is valued a bit cheaper than 79.21% of the companies in the same industry.
HUM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. HUM is cheaper than 68.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.37 | ||
| EV/EBITDA | 8.11 |
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)1.93
PEG (5Y)N/A
EPS Next 2Y-8.35%
EPS Next 3Y8.7%
5. Dividend
5.1 Amount
HUM has a Yearly Dividend Yield of 1.59%.
The stock price of HUM dropped by -24.52% in the last 3 months. With lower prices the dividend yield is higher, but it may be a sign investors do not trust the long term dividend.
HUM's Dividend Yield is rather good when compared to the industry average which is at 2.60. HUM pays more dividend than 87.13% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.41, HUM is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
5.2 History
On average, the dividend of HUM grows each year by 10.32%, 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)10.32%
Div Incr Years0
Div Non Decr Years8
5.3 Sustainability
33.23% of the earnings are spent on dividend by HUM. This is a low number and sustainable payout ratio.
The dividend of HUM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP33.23%
EPS Next 2Y-8.35%
EPS Next 3Y8.7%
NYSE:HUM (11/25/2025, 1:35:01 PM)
236.29
+7.09 (+3.09%)
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 Change0.99%
Ins Owners0.13%
Ins Owner Change0.2%
Market Cap28.42B
Revenue(TTM)126.36B
Net Income(TTM)1.29B
Analysts69.09
Price Target293 (24%)
Short Float %3.23%
Short Ratio1.96
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.59% |
Yearly Dividend3.55
Dividend Growth(5Y)10.32%
DP33.23%
Div Incr Years0
Div Non Decr Years8
Ex-Date
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)-2.97%
PT rev (3m)-0.59%
EPS NQ rev (1m)-11.27%
EPS NQ rev (3m)-9.28%
EPS NY rev (1m)0%
EPS NY rev (3m)0.18%
Revenue NQ rev (1m)0.55%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.18%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.48 | ||
| Fwd PE | 17.37 | ||
| P/S | 0.22 | ||
| P/FCF | 18.37 | ||
| P/OCF | 13.9 | ||
| P/B | 1.53 | ||
| P/tB | 3.7 | ||
| EV/EBITDA | 8.11 |
EPS(TTM)18.93
EY8.01%
EPS(NY)13.6
Fwd EY5.76%
FCF(TTM)12.86
FCFY5.44%
OCF(TTM)17
OCFY7.2%
SpS1050.65
BVpS154
TBVpS63.8
PEG (NY)1.93
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
WACC8.39%
ROIC/WACC0.7
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 Y6.47%
EPS Next 2Y-8.35%
EPS Next 3Y8.7%
EPS Next 5Y17.52%
Revenue 1Y (TTM)9.87%
Revenue growth 3Y12.34%
Revenue growth 5Y12.66%
Sales Q2Q%11.43%
Revenue Next Year9.45%
Revenue Next 2Y7.45%
Revenue Next 3Y7.24%
Revenue Next 5Y8.25%
EBIT growth 1Y-0.98%
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-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 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 6.47% 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 33.23%.