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HUMANA INC (HUM) Stock Fundamental Analysis

NYSE:HUM - New York Stock Exchange, Inc. - US4448591028 - Common Stock - Currency: USD

237.98  +8.77 (+3.83%)

After market: 239 +1.02 (+0.43%)

Fundamental Rating

4

HUM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 has a correct valuation and a medium growth rate. HUM also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

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4

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.
Each year in the past 5 years HUM has been profitable.
Each year in the past 5 years HUM had a positive operating cash flow.
HUM Yearly Net Income VS EBIT VS OCF VS FCFHUM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

1.2 Ratios

HUM has a better Return On Assets (3.36%) than 67.96% of its industry peers.
Looking at the Return On Equity, with a value of 9.63%, HUM is in the better half of the industry, outperforming 72.82% of the companies in the same industry.
The Return On Invested Capital of HUM (6.12%) is better 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 9.70%.
Industry RankSector 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%
HUM Yearly ROA, ROE, ROICHUM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20

1.3 Margins

HUM has a Profit Margin (1.42%) which is in line with its industry peers.
In the last couple of years the Profit Margin of HUM has declined.
With a Operating Margin value of 3.01%, HUM perfoms like the industry average, outperforming 53.40% of the companies in the same industry.
HUM's Operating Margin has declined in the last couple of years.
Industry RankSector 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
HUM Yearly Profit, Operating, Gross MarginsHUM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6

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3

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so HUM is still creating some value.
HUM has less shares outstanding than it did 1 year ago.
HUM has less shares outstanding than it did 5 years ago.
The debt/assets ratio for HUM is higher compared to a year ago.
HUM Yearly Shares OutstandingHUM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M
HUM Yearly Total Debt VS Total AssetsHUM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10B 20B 30B 40B

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 RankSector Rank
Debt/Equity 0.72
Debt/FCF 5.59
Altman-Z N/A
ROIC/WACC0.78
WACC7.85%
HUM Yearly LT Debt VS Equity VS FCFHUM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 5B 10B 15B

2.3 Liquidity

Industry RankSector Rank
Current Ratio N/A
Quick Ratio N/A
HUM Yearly Current Assets VS Current LiabilitesHUM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

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4

3. Growth

3.1 Past

The earnings per share for HUM have decreased strongly by -13.84% in the last year.
Measured over the past years, HUM shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.92% on average per year.
HUM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.09%.
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)-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.
The Revenue is expected to grow by 7.93% on average over the next years.
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

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.
HUM Yearly Revenue VS EstimatesHUM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 50B 100B 150B 200B
HUM Yearly EPS VS EstimatesHUM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 10 20 30 40

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5

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 11.59, the valuation of HUM can be described as reasonable.
Based on the Price/Earnings ratio, HUM is valued cheaply inside the industry as 83.50% of the companies are valued more expensively.
HUM is valuated cheaply when we compare the Price/Earnings ratio to 28.04, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 16.72 indicates a correct valuation of HUM.
Based on the Price/Forward Earnings ratio, HUM is valued a bit cheaper than 68.93% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 37.64. HUM is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 11.59
Fwd PE 16.72
HUM Price Earnings VS Forward Price EarningsHUM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

HUM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. HUM is cheaper than 73.79% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HUM indicates a somewhat cheap valuation: HUM is cheaper than 79.61% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 12.06
EV/EBITDA 8.29
HUM Per share dataHUM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 200 400 600 800

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)5.55
PEG (5Y)N/A
EPS Next 2Y-6.25%
EPS Next 3Y10.57%

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7

5. Dividend

5.1 Amount

HUM has a Yearly Dividend Yield of 1.54%.
Compared to an average industry Dividend Yield of 2.62, 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 2.31.
Industry RankSector Rank
Dividend Yield 1.54%

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.
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
HUM Yearly Dividends per shareHUM Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1 2 3

5.3 Sustainability

HUM pays out 25.15% 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.
DP25.15%
EPS Next 2Y-6.25%
EPS Next 3Y10.57%
HUM Yearly Income VS Free CF VS DividendHUM Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B
HUM Dividend Payout.HUM Dividend Payout, showing the Payout Ratio.HUM Dividend Payout.PayoutRetained Earnings

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HUMANA INC

NYSE:HUM (7/25/2025, 8:04:00 PM)

After market: 239 +1.02 (+0.43%)

237.98

+8.77 (+3.83%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Providers & Services
Earnings (Last)04-30 2025-04-30/bmo
Earnings (Next)07-30 2025-07-30/bmo
Inst Owners96.23%
Inst Owner Change0.44%
Ins Owners0.13%
Ins Owner Change5.57%
Market Cap28.72B
Analysts70.32
Price Target297.71 (25.1%)
Short Float %3.59%
Short Ratio2.53
Dividend
Industry RankSector Rank
Dividend Yield 1.54%
Yearly Dividend3.55
Dividend Growth(5Y)10.32%
DP25.15%
Div Incr Years0
Div Non Decr Years8
Ex-Date06-27 2025-06-27 (0.885)
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)-0.63%
PT rev (3m)-3.9%
EPS NQ rev (1m)0.27%
EPS NQ rev (3m)-4.46%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.03%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)0.6%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.4%
Valuation
Industry RankSector Rank
PE 11.59
Fwd PE 16.72
P/S 0.24
P/FCF 12.06
P/OCF 9.99
P/B 1.62
P/tB 4.29
EV/EBITDA 8.29
EPS(TTM)20.54
EY8.63%
EPS(NY)14.23
Fwd EY5.98%
FCF(TTM)19.73
FCFY8.29%
OCF(TTM)23.81
OCFY10.01%
SpS996.45
BVpS147.08
TBVpS55.46
PEG (NY)5.55
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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
WACC7.85%
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%