(HUM) Humana - Overview
Sector: Healthcare | Industry: Healthcare Plans | Exchange: NYSE (USA) | Market Cap: 36.973m USD | Total Return: 37.3% in 12m
Avg Turnover: 498M
EPS Trend: -81.0%
Qual. Beats: 0
Rev. Trend: 99.5%
Qual. Beats: 0
Warnings
No concerns identified
Tailwinds
Supp Ema8, Supp Ema20, Idiosyncratic Leader, Confidence
Humana Inc. is a Louisville-based managed healthcare company primarily focused on the Medicare market. The company operates through two distinct segments: Insurance and CenterWell. The Insurance division provides Medicare Advantage, prescription drug plans, and supplemental insurance, alongside administrative services for military personnel. The CenterWell segment utilizes a value-based care model, integrating primary care centers, home health services, and pharmacy solutions to manage patient outcomes directly.
The managed care sector relies heavily on government reimbursement rates, as Medicare Advantage accounts for the vast majority of Humanas premium revenue. By shifting toward a value-based model, the company aims to lower long-term costs by improving the health quality of its senior member base rather than relying solely on fee-for-service volume. Further metrics on Humana’s capital allocation and valuation are available on ValueRay for deeper analysis.
Founded in 1961, the company has evolved from a nursing home operator into one of the largest private health insurers in the United States. Its current strategy emphasizes the integration of clinical services with insurance coverage to capture more of the healthcare delivery value chain.
- Medicare Advantage star ratings volatility impacts federal bonus payments and member retention
- Rising medical loss ratios driven by increased senior healthcare utilization compress margins
- Federal reimbursement rate updates from CMS dictate annual revenue growth and profitability
- Expansion of CenterWell primary care clinics improves internal value-based care outcomes
- Regulatory changes to Medicare risk adjustment models threaten long-term earnings per share growth
| Net Income: 1.13b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.02 > 0.02 and ΔFCF/TA -2.37 > 1.0 |
| NWC/Revenue: 4.14% < 20% (prev -2.98%; Δ 7.12% < -1%) |
| CFO/TA 0.03 > 3% & CFO 1.84b > Net Income 1.13b |
| Net Debt (-7.97b) to EBITDA (2.85b): -2.80 < 3 |
| Current Ratio: 1.26 > 1.5 & < 3 |
| Outstanding Shares: last quarter (120.7m) vs 12m ago -0.09% < -2% |
| Gross Margin: 14.01% > 18% (prev 0.15%; Δ 1.39k% > 0.5%) |
| Asset Turnover: 258.4% > 50% (prev 236.1%; Δ 22.22% > 0%) |
| Interest Coverage Ratio: 3.08 > 6 (EBITDA TTM 2.85b / Interest Expense TTM 664.0m) |
| A: 0.10 (Total Current Assets 27.2b - Total Current Liabilities 21.5b) / Total Assets 55.3b |
| B: 0.55 (Retained Earnings 30.2b / Total Assets 55.3b) |
| C: 0.04 (EBIT TTM 2.05b / Avg Total Assets 53.1b) |
| D: 0.80 (Book Value of Equity 29.5b / Total Liabilities 36.6b) |
| Altman-Z'' = 3.56 = A |
| DSRI: 1.03 (Receivables 5.22b/4.46b, Revenue 137b/120b) |
| GMI: 1.08 (GM 14.01% / 15.12%) |
| AQI: 0.60 (AQ_t 0.47 / AQ_t-1 0.78) |
| SGI: 1.14 (Revenue 137b / 120b) |
| TATA: -0.01 (NI 1.13b - CFO 1.84b) / TA 55.3b) |
| Beneish M = -3.08 (Cap -4..+1) = AA |
As of May 28, 2026, the stock is trading at USD 306.27 with a total of 704,749 shares traded.
Over the past week, the price has changed by -1.38%,
over one month by +36.96%,
over three months by +61.55% and
over the past year by +37.29%.
Humana has received a consensus analysts rating of 3.58. Therefore, it is recommended to hold HUM.
- StrongBuy: 6
- Buy: 3
- Hold: 17
- Sell: 0
- StrongSell: 0
| Analysts Target Price | 262.5 | -14.3% |
P/E Trailing = 32.9006
P/E Forward = 33.7838
P/S = 0.2695
P/B = 1.9899
P/EG = 1.7444
Revenue TTM = 137b USD
EBIT TTM = 2.05b USD
EBITDA TTM = 2.85b USD
Long Term Debt = 12.3b USD (from longTermDebt, last quarter)
Short Term Debt = 1.72b USD (from shortTermDebt, last quarter)
Debt = 14.0b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -7.97b USD (calculated: Debt 14.0b - CCE 22.0b)
Enterprise Value = 29.0b USD (37.0b + Debt 14.0b - CCE 22.0b)
Interest Coverage Ratio = 3.08 (Ebit TTM 2.05b / Interest Expense TTM 664.0m)
EV/FCF = 22.80x (Enterprise Value 29.0b / FCF TTM 1.27b)
FCF Yield = 4.39% (FCF TTM 1.27b / Enterprise Value 29.0b)
FCF Margin = 0.93% (FCF TTM 1.27b / Revenue TTM 137b)
Net Margin = 0.82% (Net Income TTM 1.13b / Revenue TTM 137b)
Gross Margin = 14.01% ((Revenue TTM 137b - Cost of Revenue TTM 118b) / Revenue TTM)
Gross Margin QoQ = 14.98% (prev 11.67%)
Tobins Q-Ratio = 0.52 (Enterprise Value 29.0b / Total Assets 55.3b)
Interest Expense / Debt = 4.75% (Interest Expense 664.0m / Debt 14.0b)
Taxrate = 25.02% (395.0m / 1.58b)
NOPAT = 1.54b (EBIT 2.05b * (1 - 25.02%))
Current Ratio = 1.26 (Total Current Assets 27.2b / Total Current Liabilities 21.5b)
Debt / Equity = 0.75 (Debt 14.0b / totalStockholderEquity, last quarter 18.6b)
Debt / EBITDA = -2.80 (Net Debt -7.97b / EBITDA 2.85b)
Debt / FCF = -6.27 (Net Debt -7.97b / FCF TTM 1.27b)
Total Stockholder Equity = 18.2b (last 4 quarters mean from totalStockholderEquity)
RoA = 2.13% (Net Income 1.13b / Total Assets 55.3b)
RoE = 6.19% (Net Income TTM 1.13b / Total Stockholder Equity 18.2b)
RoCE = 6.71% (EBIT 2.05b / Capital Employed (Equity 18.2b + L.T.Debt 12.3b))
RoIC = 4.35% (NOPAT 1.54b / Invested Capital 35.3b)
WACC = 6.61% (E(37.0b)/V(51.0b) * Re(7.77%) + D(14.0b)/V(51.0b) * Rd(4.75%) * (1-Tc(0.25)))
Discount Rate = 7.77% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -50.60 | Cagr: -0.66%
[DCF] Terminal Value 73.10% ; FCFF base≈1.72b ; Y1≈1.50b ; Y5≈1.22b
[DCF] Fair Price = 228.9 (EV 19.5b - Net Debt -7.97b = Equity 27.5b / Shares 120.1m; r=8.35% [WACC [floored]]; 5y FCF grow -15.0% → 2.50% )
EPS Correlation: -81.00 | EPS CAGR: -17.29% | SUE: 0.19 | # QB: 0
Revenue Correlation: 99.54 | Revenue CAGR: 11.51% | SUE: 0.69 | # QB: 0
EPS current Quarter (2026-06-30): EPS=6.78 | Chg30d=+51.77% | Revisions=+76% | Analysts=24
EPS next Quarter (2026-09-30): EPS=-0.15 | Chg30d=-129.92% | Revisions=-52% | Analysts=24
EPS current Year (2026-12-31): EPS=8.84 | Chg30d=+1.46% | Revisions=+4% | GrowthEPS=-48.4% | GrowthRev=+25.3%
EPS next Year (2027-12-31): EPS=15.48 | Chg30d=+2.94% | Revisions=+39% | GrowthEPS=+75.1% | GrowthRev=+5.0%
[Analyst] Revisions Ratio: +76%