HUMANA INC (HUM) Stock Fundamental Analysis
NYSE:HUM - New York Stock Exchange, Inc. - US4448591028 - Common Stock - Currency: USD
Taking everything into account, HUM scores 4 out of 10 in our fundamental rating. HUM was compared to 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
In the past year HUM was profitable.
In the past year HUM had a positive cash flow from operations.
In the past 5 years HUM has always been profitable.
Each year in the past 5 years HUM had a positive operating cash flow.
1.2 Ratios
HUM has a better Return On Assets (3.36%) than 67.96% of its industry peers.
HUM has a better Return On Equity (9.63%) than 72.82% of its industry peers.
HUM has a better Return On Invested Capital (6.12%) than 63.11% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HUM is in line with the industry average of 9.62%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.36% | ||
| ROE | 9.63% | ||
| ROIC | 6.12% |
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 1.42%. This is comparable to the rest of the industry: HUM outperforms 57.28% of its industry peers.
HUM's Profit Margin has declined in the last couple of years.
HUM has a Operating Margin (3.01%) 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 | 3.01% | ||
| PM (TTM) | 1.42% | ||
| 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.
The number of shares outstanding for HUM has been reduced compared to 1 year ago.
Compared to 5 years ago, HUM has less shares outstanding
HUM has a worse debt/assets ratio than last year.
2.2 Solvency
HUM has a debt to FCF ratio of 5.59. This is a neutral value as HUM would need 5.59 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 5.59, HUM is doing good in the industry, outperforming 62.14% of the companies in the same industry.
HUM has a Debt/Equity ratio of 0.72. This is a neutral value indicating HUM is somewhat dependend on debt financing.
HUM has a Debt to Equity ratio (0.72) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 5.59 | ||
| Altman-Z | N/A |
ROIC/WACC0.77
WACC7.94%
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 strongly by -13.84% 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 10.09%.
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)-13.84%
EPS 3Y-7.76%
EPS 5Y-1.92%
EPS Q2Q%60.17%
Revenue 1Y (TTM)10.09%
Revenue growth 3Y12.34%
Revenue growth 5Y12.66%
Sales Q2Q%9.48%
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 19.06% on average per year.
HUM is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.93% yearly.
EPS Next Y2.09%
EPS Next 2Y-5.23%
EPS Next 3Y10.84%
EPS Next 5Y19.06%
Revenue Next Year8.31%
Revenue Next 2Y5.5%
Revenue Next 3Y6.66%
Revenue Next 5Y7.93%
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.
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
HUM is valuated reasonably with a Price/Earnings ratio of 11.67.
Based on the Price/Earnings ratio, HUM is valued cheaper than 85.44% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.35. HUM is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 16.48, HUM is valued correctly.
Based on the Price/Forward Earnings ratio, HUM is valued a bit cheaper than 71.84% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.19. HUM is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 16.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HUM is valued a bit cheaper than the industry average as 78.64% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, HUM is valued cheaper than 82.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.15 | ||
| EV/EBITDA | 8.33 |
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)5.59
PEG (5Y)N/A
EPS Next 2Y-5.23%
EPS Next 3Y10.84%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.45%, HUM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.43, HUM pays a better dividend. On top of this HUM pays more dividend than 87.38% of the companies listed in the same industry.
HUM's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
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.
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
25.15% 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.
DP25.15%
EPS Next 2Y-5.23%
EPS Next 3Y10.84%
239.62
-3.78 (-1.55%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)
Earnings (Next)
Inst Owners96.23%
Inst Owner Change-1.36%
Ins Owners0.13%
Ins Owner Change5.97%
Market Cap28.92B
Analysts70.32
Price Target299.61 (25.04%)
Short Float %3.28%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.45% |
Yearly Dividend3.55
Dividend Growth(5Y)10.32%
DP25.15%
Div Incr Years0
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.54%
Min EPS beat(2)1.21%
Max EPS beat(2)13.88%
EPS beat(4)4
Avg EPS beat(4)13.48%
Min EPS beat(4)1.21%
Max EPS beat(4)20.98%
EPS beat(8)7
Avg EPS beat(8)-11.83%
EPS beat(12)11
Avg EPS beat(12)-5.35%
EPS beat(16)14
Avg EPS beat(16)-2.37%
Revenue beat(2)1
Avg Revenue beat(2)-0.54%
Min Revenue beat(2)-1.32%
Max Revenue beat(2)0.25%
Revenue beat(4)3
Avg Revenue beat(4)0.53%
Min Revenue beat(4)-1.32%
Max Revenue beat(4)2.01%
Revenue beat(8)5
Avg Revenue beat(8)0.05%
Revenue beat(12)5
Avg Revenue beat(12)-0.48%
Revenue beat(16)6
Avg Revenue beat(16)-0.57%
PT rev (1m)-3.84%
PT rev (3m)-0.06%
EPS NQ rev (1m)-0.15%
EPS NQ rev (3m)-4.57%
EPS NY rev (1m)0.03%
EPS NY rev (3m)-0.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)1.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.67 | ||
| Fwd PE | 16.48 | ||
| P/S | 0.24 | ||
| P/FCF | 12.15 | ||
| P/OCF | 10.06 | ||
| P/B | 1.63 | ||
| P/tB | 4.32 | ||
| EV/EBITDA | 8.33 |
EPS(TTM)20.54
EY8.57%
EPS(NY)14.54
Fwd EY6.07%
FCF(TTM)19.73
FCFY8.23%
OCF(TTM)23.81
OCFY9.94%
SpS996.45
BVpS147.08
TBVpS55.46
PEG (NY)5.59
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.36% | ||
| ROE | 9.63% | ||
| ROCE | 8.09% | ||
| ROIC | 6.12% | ||
| ROICexc | 6.76% | ||
| ROICexgc | 13.94% | ||
| OM | 3.01% | ||
| PM (TTM) | 1.42% | ||
| 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 Turnover2.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 5.59 | ||
| Debt/EBITDA | 2.79 | ||
| Cap/Depr | 52.39% | ||
| Cap/Sales | 0.41% | ||
| Interest Coverage | 6.36 | ||
| Cash Conversion | 63.05% | ||
| Profit Quality | 139.24% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score6
WACC7.94%
ROIC/WACC0.77
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)-13.84%
EPS 3Y-7.76%
EPS 5Y-1.92%
EPS Q2Q%60.17%
EPS Next Y2.09%
EPS Next 2Y-5.23%
EPS Next 3Y10.84%
EPS Next 5Y19.06%
Revenue 1Y (TTM)10.09%
Revenue growth 3Y12.34%
Revenue growth 5Y12.66%
Sales Q2Q%9.48%
Revenue Next Year8.31%
Revenue Next 2Y5.5%
Revenue Next 3Y6.66%
Revenue Next 5Y7.93%
EBIT growth 1Y-11.93%
EBIT growth 3Y-2.43%
EBIT growth 5Y-0.95%
EBIT Next Year28.68%
EBIT Next 3Y16.15%
EBIT Next 5Y14.61%
FCF growth 1Y-76.01%
FCF growth 3Y36.22%
FCF growth 5Y-12.07%
OCF growth 1Y-73.81%
OCF growth 3Y9.45%
OCF growth 5Y-10.91%