HUMANA INC (HUM) Stock Fundamental Analysis
NYSE:HUM - New York Stock Exchange, Inc. - US4448591028 - Common Stock - Currency: USD
Overall HUM gets a fundamental rating of 4 out of 10. We evaluated HUM against 103 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.
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
Looking at the Return On Assets, with a value of 3.36%, HUM is in the better half of the industry, outperforming 67.96% of the companies in the same industry.
HUM's Return On Equity of 9.63% is fine compared to the rest of the industry. HUM outperforms 72.82% of its industry peers.
HUM's Return On Invested Capital of 6.12% is fine compared to the rest of the industry. HUM outperforms 64.08% 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 9.70%.
| 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 (1.42%) which is in line with its industry peers.
HUM's Profit Margin has declined in the last couple of years.
HUM has a Operating Margin of 3.01%. This is comparable to the rest of the industry: HUM outperforms 53.40% of its industry peers.
HUM's Operating Margin has declined in the last couple of years.
| 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) just above the Cost of Capital (WACC), HUM is creating some value.
Compared to 1 year ago, HUM has less shares outstanding
Compared to 5 years ago, HUM has less shares outstanding
Compared to 1 year ago, HUM has a worse debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of HUM is 5.59, which is a neutral value as it means it would take HUM, 5.59 years of fcf income to pay off 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/WACC0.78
WACC7.82%
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.
Looking at the last year, HUM shows a quite strong growth in Revenue. The Revenue has grown by 10.09% 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)-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 16.04% on average per year.
Based on estimates for the next years, HUM will show a small growth in Revenue. The Revenue will grow by 7.93% on average per year.
EPS Next Y2.09%
EPS Next 2Y-6.25%
EPS Next 3Y10.57%
EPS Next 5Y16.04%
Revenue Next Year8.28%
Revenue Next 2Y5.7%
Revenue Next 3Y6.77%
Revenue Next 5Y7.93%
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
The Price/Earnings ratio is 11.44, which indicates a very decent valuation of HUM.
HUM's Price/Earnings ratio is rather cheap when compared to the industry. HUM is cheaper than 83.50% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.53, HUM is valued rather cheaply.
The Price/Forward Earnings ratio is 16.51, which indicates a correct valuation of HUM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HUM indicates a somewhat cheap valuation: HUM is cheaper than 70.87% of the companies listed in the same industry.
HUM is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.71, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.44 | ||
| Fwd PE | 16.51 |
4.2 Price Multiples
77.67% of the companies in the same industry are more expensive than HUM, based on the Enterprise Value to EBITDA ratio.
80.58% of the companies in the same industry are more expensive than HUM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.91 | ||
| 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)5.47
PEG (5Y)N/A
EPS Next 2Y-6.25%
EPS Next 3Y10.57%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.58%, HUM has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 2.59, 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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.
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-6.25%
EPS Next 3Y10.57%
NYSE:HUM (7/23/2025, 3:01:01 PM)
234.88
+3.76 (+1.63%)
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-0.57%
Ins Owners0.13%
Ins Owner Change5.57%
Market Cap28.35B
Analysts70.32
Price Target297.71 (26.75%)
Short Float %3.59%
Short Ratio2.53
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.58% |
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)-4.16%
PT rev (3m)-0.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.72%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)-0.02%
Revenue NQ rev (3m)0.58%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.44 | ||
| Fwd PE | 16.51 | ||
| P/S | 0.24 | ||
| P/FCF | 11.91 | ||
| P/OCF | 9.86 | ||
| P/B | 1.6 | ||
| P/tB | 4.24 | ||
| EV/EBITDA | 8.11 |
EPS(TTM)20.54
EY8.74%
EPS(NY)14.23
Fwd EY6.06%
FCF(TTM)19.73
FCFY8.4%
OCF(TTM)23.81
OCFY10.14%
SpS996.45
BVpS147.08
TBVpS55.46
PEG (NY)5.47
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
WACC7.82%
ROIC/WACC0.78
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-6.25%
EPS Next 3Y10.57%
EPS Next 5Y16.04%
Revenue 1Y (TTM)10.09%
Revenue growth 3Y12.34%
Revenue growth 5Y12.66%
Sales Q2Q%9.48%
Revenue Next Year8.28%
Revenue Next 2Y5.7%
Revenue Next 3Y6.77%
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%