Humana Inc

Health Care
Medical Specialities
www.humana.com

Earnings Score
Moat Score
Safety Score

Market Cap $33.91B
PE 25
Debt $13.02B
Cash $5.12B
EV $41.82B
FCF -$4.34B

Earnings

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Sales & Net Margins

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Earnings	$1.36B
EBIT	$2.76B
ROE	8%
ROA	6%
FCF	-$4.34B
Equity	$17.62B
Growth Stability	82%
PE	24.99
PEG	-2.44
PB	1.92
P/FCF	-7.81
P/S	0.29
Price/Cash	0.15
Debt/Equity	0.74
Debt/FCF	-3
Net Margins	2%
Op. Margins	2%
Earnings CAGR	10%
Sales Growth YoY	11%
Sales Growth QoQ	-0%
Sales CAGR	10%
FCF CAGR	6%
Equity CAGR	7%
Earnings Stability	0.36
Earnings Growth YoY	-42%
Earnings Growth QoQ	-29%
Earnings CAGR 5Y	-10%

Sales CAGR 5Y	12%
FCF CAGR 5Y	5%
Equity CAGR 5Y	6%
Earnings CAGR 3Y	12%
Sales CAGR 3Y	12%
FCF CAGR 3Y	19%
Equity CAGR 3Y	3%
Market Cap	$33.91B
Revenue	$115.01B
Dividend Yield	1%
Payout Ratio	32%
Assets	$50.01B
Total Debt	$13.02B
Cash	$5.12B
Shares Outstanding	120.37M
EV	41.82B
Earnings Score	22%
Moat Score	71%
Safety Score	64%
Final Score	52%
Working Capital	14.2B
Current Ratio	1.76
Shares Growth 3y	-2%
Equity Growth QoQ	5%
Equity Growth YoY	4%

Assets & ROA

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Stockholders Equity & ROE

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Humana is one of the largest private health insurers in the U.S. with a focus on administering Medicare Advantage plans. The firm has built a niche specializing in government-sponsored programs, with nearly all its medical membership stemming from individual and group Medicare Advantage, Medicaid, and the military's Tricare program. The firm is also a leader in stand-alone prescription drug plans for seniors enrolled in traditional fee-for-service Medicare. Humana offers employer-based plans primarily for small businesses along with specialty insurance offerings such as dental, vision, and life. Beyond medical insurance, the company provides other healthcare services, including primary-care services, at-home services, and pharmacy benefit management.

SEC Filings

Direct access to Humana Inc (HUM) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Humana Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Humana Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 10%

Stability 36%

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Humana Inc Discounted Cash Flow

Fully customizable DCF calculator online for Humana Inc.

Years

Calculation mode

= -$68B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	-$4.3B	-$4.6B	-$4.9B	-$5.2B	-$5.6B	-$5.9B	-$6.3B	-$6.7B	-$7.2B	-$7.6B	-$8.1B	-$81B
DCF		-$4.2B	-$4.1B	-$3.9B	-$3.8B	-$3.7B	-$3.6B	-$3.5B	-$3.3B	-$3.2B	-$3.1B	-$31B
Value	-$68B

Competitiveness and MOAT

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	2%	2%	1%	5%	3%	4%	4%	4%	3%	2%	2%
ROA	-	11%	7%	16%	12%	13%	14%	8%	9%	9%	6%
ROE	-	12%	6%	25%	17%	22%	25%	18%	18%	15%	8%

Bad Net Margins (2.14%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	11.94	2.9	1.4	3.89	1.25	1.42	13.21	3.21	3.92	-3
Debt over Equity	0.4	0.4	0.38	0.5	0.6	0.47	0.49	0.78	0.72	0.71	0.74
Growth Stability	-	-	-	100%	100%	100%	100%	100%	93%	82%	82%

Good Debt/FCF ratio (-3)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.74)

The company is not overleveraged and has a good balance between equity and debt.

Neutral Graham’s Stability (82%)

The company has a stability in its earnings that is not too good nor too bad.

Growth

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	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	12%	0%	-1%	6%	14%	19%	8%	12%	15%	12%
Earnings YoY growth	-	11%	-52%	299%	-31%	61%	24%	-13%	-4%	-11%	-10%
Equity YoY growth	-	7%	3%	-8%	3%	18%	14%	17%	-5%	6%	6%
FCF YoY growth	-	-68%	308%	150%	-56%	191%	3%	-80%	266%	-14%	5%