Hospital & Medical Service Plans
Humana Inc., together with its subsidiaries, operates as a health and well-being company in the United States. It operates through two segments, Insurance and CenterWell. The company offers medical and supplemental benefit plans to individuals. It also has a contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program; and contracts with various states to provide Medicaid, dual eligible, and long-term support services benefits. In addition, the company provides commercial fully insured medical and specialty health insurance benefits comprising dental, vision, life insurance, and other supplemental health benefits, as well as administrative services only products to individuals and employer groups; military services, such as TRICARE T2017 East Region contract; and engages in the operations of PBM business. Further, it offers pharmacy solutions, provider services, and home solutions services, such as home health and other services to its health plan members, as well as to third parties. Humana Inc. was founded in 1961 and is headquartered in Louisville, Kentucky.
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | 2.4% | 1.1% | 4.6% | 3% | 4.2% | 4.4% | 3.5% | 3% | 2.3% | 1.8% |
ROA | 11% | 6.9% | 16% | 12% | 13% | 14% | 8.3% | 9.2% | 8.5% | 7% |
ROE | 12% | 5.7% | 25% | 17% | 22% | 25% | 18% | 18% | 15% | 12% |
The average Net Margin over the past 5 years is +3.4%.
The trend of Net Margin over the past 5 years is -0.21%.
The average ROA over the past 5 years is +10.87%.
The trend of ROA over the past 5 years is -0.99%.
The average ROE over the past 5 years is +19.21%.
The trend of ROE over the past 5 years is -0.74%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 12-2015 | 12-2016 | 12-2017 | 12-2018 | 12-2019 | 12-2020 | 12-2021 | 12-2022 | 12-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Debt FCF | 11.94 | 2.90 | 1.40 | 3.89 | 1.25 | 1.42 | 13.21 | 3.21 | 3.92 | -4.08 |
Debt Equity | 0.40 | 0.38 | 0.50 | 0.60 | 0.47 | 0.49 | 0.78 | 0.72 | 0.71 | 0.82 |
MIN | ||||||||||
Graham Stability | - | - | 100% | 100% | 100% | 100% | 100% | 93% | 82% | 82% |
The Debt/FCF trailing twelve month is -4.08.
The trend of Debt/FCF over the past 5 years is 0.51.
Graham’s Stability measure stands at 0.82.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 12-2016 | 12-2018 | 12-2020 | 12-2022 | Trend |
---|---|---|---|---|---|
Revenue | 10% | 13% | 11% | 15% | 1.3% |
Net Income | 22% | 8.1% | -9.6% | -11% | -8.6% |
Stockholders Equity | 6.2% | 9.9% | 5.9% | 6.2% | 0.56% |
FCF | 11% | 14% | -14% | -14% | -5.2% |
The Revenue CAGR over the past 5 years is +13.33%.
The trend of Revenue growth rate over the past 5 years is +1.27%.
The Earnings CAGR over the past 5 years is +8.1%.
The trend of Earnings growth rate over the past 5 years is -8.59%.
The Equity CAGR over the past 5 years is +9.94%.
The trend of Equity growth rate over the past 5 years is +0.56%.
The FCF CAGR over the past 5 years is +13.78%.
The trend of FCF growth rate over the past 5 years is -5.17%.