HUMANA INC (HUM) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:HUM - US4448591028 - Common Stock
274.74 USD
+6.29 (+2.34%)
274.517 USD
-0.22 (-0.08%)
Taking everything into account, HUM scores 4 out of 10 in our fundamental rating. HUM was compared to 100 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 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.
In the past year HUM had a positive cash flow from operations.
HUM had positive earnings in each of the past 5 years.
HUM had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
HUM's Return On Assets of 2.60% is fine compared to the rest of the industry. HUM outperforms 62.00% of its industry peers.
HUM has a Return On Equity of 6.97%. This is in the better half of the industry: HUM outperforms 63.00% of its industry peers.
HUM has a Return On Invested Capital of 5.89%. This is in the better half of the industry: HUM outperforms 62.00% of its industry peers.
HUM had an Average Return On Invested Capital over the past 3 years of 7.86%. This is in line with the industry average of 9.44%.
| 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 of 1.02%. This is comparable to the rest of the industry: HUM outperforms 55.00% of 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 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HUM is destroying value.
Compared to 1 year ago, HUM has less shares outstanding
Compared to 5 years ago, HUM has less shares outstanding
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.
With a Debt to FCF ratio value of 8.15, HUM perfoms like the industry average, outperforming 53.00% of the companies in the same industry.
A Debt/Equity ratio of 0.68 indicates that HUM is somewhat dependend on debt financing.
HUM's Debt to Equity ratio of 0.68 is in line compared to the rest of the industry. HUM outperforms 55.00% of 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.
Looking at the last year, HUM shows a quite strong growth in Revenue. The Revenue has grown by 9.87% 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)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 18.79% 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 8.32% on average per year.
EPS Next Y6.44%
EPS Next 2Y-12.74%
EPS Next 3Y6.68%
EPS Next 5Y18.79%
Revenue Next Year10.4%
Revenue Next 2Y11.09%
Revenue Next 3Y9.97%
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
A Price/Earnings ratio of 14.51 indicates a correct valuation of HUM.
Based on the Price/Earnings ratio, HUM is valued cheaper than 82.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.55. HUM is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 22.29, HUM is valued on the expensive side.
The rest of the industry has a similar Price/Forward Earnings ratio as HUM.
HUM's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 22.29 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HUM is valued a bit cheaper than 75.00% 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 67.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.36 | ||
| EV/EBITDA | 9.21 |
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-12.74%
EPS Next 3Y6.68%
5. Dividend
5.1 Amount
HUM has a Yearly Dividend Yield of 1.33%.
HUM's Dividend Yield is rather good when compared to the industry average which is at 0.57. HUM pays more dividend than 88.00% of the companies in the same industry.
HUM's Dividend Yield is slightly below the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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 33.23% 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.
DP33.23%
EPS Next 2Y-12.74%
EPS Next 3Y6.68%
274.74
+6.29 (+2.34%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners99.19%
Inst Owner Change1%
Ins Owners0.13%
Ins Owner Change0.2%
Market Cap33.04B
Revenue(TTM)126.36B
Net Income(TTM)1.29B
Analysts69.38
Price Target295.52 (7.56%)
Short Float %3.54%
Short Ratio2.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
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)-1.26%
PT rev (3m)-2.15%
EPS NQ rev (1m)-4.46%
EPS NQ rev (3m)-10.34%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)0.15%
Revenue NQ rev (1m)0.02%
Revenue NQ rev (3m)0.59%
Revenue NY rev (1m)0.87%
Revenue NY rev (3m)0.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 14.51 | ||
| Fwd PE | 22.29 | ||
| P/S | 0.26 | ||
| P/FCF | 21.36 | ||
| P/OCF | 16.16 | ||
| P/B | 1.78 | ||
| P/tB | 4.31 | ||
| EV/EBITDA | 9.21 |
EPS(TTM)18.93
EY6.89%
EPS(NY)12.33
Fwd EY4.49%
FCF(TTM)12.86
FCFY4.68%
OCF(TTM)17
OCFY6.19%
SpS1050.65
BVpS154
TBVpS63.8
PEG (NY)2.26
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 Y6.44%
EPS Next 2Y-12.74%
EPS Next 3Y6.68%
EPS Next 5Y18.79%
Revenue 1Y (TTM)9.87%
Revenue growth 3Y12.34%
Revenue growth 5Y12.66%
Sales Q2Q%11.43%
Revenue Next Year10.4%
Revenue Next 2Y11.09%
Revenue Next 3Y9.97%
Revenue Next 5Y8.32%
EBIT growth 1Y-0.98%
EBIT growth 3Y-2.43%
EBIT growth 5Y-0.95%
EBIT Next Year30.4%
EBIT Next 3Y12.29%
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 of HUMANA INC (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.
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 6.44% 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%.