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HUMANA INC (HUM) Stock Fundamental Analysis

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

234.96  +3.22 (+1.39%)

After market: 234.96 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to HUM. HUM was compared to 102 industry peers in the Health Care Providers & Services industry. There are concerns on the financial health of HUM while its profitability can be described as average. HUM is not valued too expensively and it also shows a decent growth rate. Finally 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.
HUM had a positive operating cash flow in the past year.
HUM had positive earnings in each of the past 5 years.
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's Return On Assets of 3.36% is fine compared to the rest of the industry. HUM outperforms 67.65% of its industry peers.
With a decent Return On Equity value of 9.63%, HUM is doing good in the industry, outperforming 72.55% of the companies in the same industry.
The Return On Invested Capital of HUM (6.12%) is better than 62.75% 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 9.62%.
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

With a Profit Margin value of 1.42%, HUM perfoms like the industry average, outperforming 56.86% of the companies in the same industry.
HUM's Profit Margin has declined in the last couple of years.
HUM's Operating Margin of 3.01% is in line compared to the rest of the industry. HUM outperforms 52.94% of its industry peers.
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

HUM has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
HUM has less shares outstanding than it did 1 year ago.
The number of shares outstanding for HUM has been reduced compared to 5 years ago.
Compared to 1 year ago, HUM has a worse debt to assets ratio.
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

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 61.76% of the companies in the same industry.
A Debt/Equity ratio of 0.72 indicates that HUM is somewhat dependend on debt financing.
The Debt to Equity ratio of HUM (0.72) is comparable to the rest of the industry.
Industry RankSector Rank
Debt/Equity 0.72
Debt/FCF 5.59
Altman-Z N/A
ROIC/WACC0.79
WACC7.71%
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

HUM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.84%.
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 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

HUM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 19.06% yearly.
The Revenue is expected to grow by 7.93% on average over the next years.
EPS Next Y2.06%
EPS Next 2Y-4.13%
EPS Next 3Y10.74%
EPS Next 5Y19.06%
Revenue Next Year8.32%
Revenue Next 2Y5.53%
Revenue Next 3Y6.64%
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.
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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6

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 11.44, the valuation of HUM can be described as very reasonable.
Based on the Price/Earnings ratio, HUM is valued cheaper than 86.27% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.60, HUM is valued rather cheaply.
A Price/Forward Earnings ratio of 15.79 indicates a correct valuation of HUM.
Based on the Price/Forward Earnings ratio, HUM is valued a bit cheaper than 74.51% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.39. HUM is valued slightly cheaper when compared to this.
Industry RankSector Rank
PE 11.44
Fwd PE 15.79
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

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HUM indicates a rather cheap valuation: HUM is cheaper than 80.39% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HUM is valued cheaper than 82.35% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.91
EV/EBITDA 8.12
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)5.57
PEG (5Y)N/A
EPS Next 2Y-4.13%
EPS Next 3Y10.74%

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5. Dividend

5.1 Amount

HUM has a Yearly Dividend Yield of 1.56%.
HUM's Dividend Yield is rather good when compared to the industry average which is at 2.46. HUM pays more dividend than 87.25% of the companies in the same industry.
HUM's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
Industry RankSector Rank
Dividend Yield 1.56%

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
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.
The dividend of HUM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP25.15%
EPS Next 2Y-4.13%
EPS Next 3Y10.74%
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 (6/12/2025, 8:04:00 PM)

After market: 234.96 0 (0%)

234.96

+3.22 (+1.39%)

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/amc
Inst Owners97.76%
Inst Owner Change-1.36%
Ins Owners0.12%
Ins Owner Change5.99%
Market Cap28.36B
Analysts70.32
Price Target310.65 (32.21%)
Short Float %2.86%
Short Ratio1.87
Dividend
Industry RankSector Rank
Dividend Yield 1.56%
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)-0.3%
PT rev (3m)3.62%
EPS NQ rev (1m)-2.14%
EPS NQ rev (3m)-4.57%
EPS NY rev (1m)-0.06%
EPS NY rev (3m)-0.32%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)1.35%
Valuation
Industry RankSector Rank
PE 11.44
Fwd PE 15.79
P/S 0.24
P/FCF 11.91
P/OCF 9.87
P/B 1.6
P/tB 4.24
EV/EBITDA 8.12
EPS(TTM)20.54
EY8.74%
EPS(NY)14.88
Fwd EY6.33%
FCF(TTM)19.73
FCFY8.4%
OCF(TTM)23.81
OCFY10.13%
SpS996.45
BVpS147.08
TBVpS55.46
PEG (NY)5.57
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
WACC7.71%
ROIC/WACC0.79
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 Y2.06%
EPS Next 2Y-4.13%
EPS Next 3Y10.74%
EPS Next 5Y19.06%
Revenue 1Y (TTM)10.09%
Revenue growth 3Y12.34%
Revenue growth 5Y12.66%
Sales Q2Q%9.48%
Revenue Next Year8.32%
Revenue Next 2Y5.53%
Revenue Next 3Y6.64%
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%