Compoundeer Logo
COMPOUNDEER
Uncovering Potential
RankingCompaniesDCF
HUM Logo

Humana Inc

HUM

Hospital & Medical Service Plans

Mkt Cap

$45.95B

PE

15.29

Debt

$11.73B

Cash

$15.15B

EV

$42.53B

FCF

$5.009B

Market Cap

$45.95B

P/E Ratio

15.29

Debt

$11.73B

Cash

$15.15B

EV

$42.53B

FCF

$5.009B
Charts data: {"Earnings":[{"time":"2014-12-30","value":1147000000},{"time":"2015-12-30","value":1276000000},{"time":"2016-12-30","value":614000000},{"time":"2017-12-30","value":2448000000},{"time":"2018-12-30","value":1683000000},{"time":"2019-12-30","value":2707000000},{"time":"2020-12-30","value":3367000000},{"time":"2021-12-30","value":2933000000},{"time":"2022-12-30","value":2802000000}],"Sales":[{"time":"2014-12-30","value":48500000000},{"time":"2015-12-30","value":54289000000},{"time":"2016-12-30","value":54379000000},{"time":"2017-12-30","value":53767000000},{"time":"2018-12-30","value":56912000000},{"time":"2019-12-30","value":64888000000},{"time":"2020-12-30","value":77155000000},{"time":"2021-12-30","value":83064000000},{"time":"2022-12-30","value":92870000000}],"Net Margins":[{"time":"2014-12-30","value":0.023649484536082475},{"time":"2015-12-30","value":0.02350384055701892},{"time":"2016-12-30","value":0.0112911234116111},{"time":"2017-12-30","value":0.04552978592817156},{"time":"2018-12-30","value":0.029571970761877987},{"time":"2019-12-30","value":0.04171803723338676},{"time":"2020-12-30","value":0.04363942712721146},{"time":"2021-12-30","value":0.03531012231532312},{"time":"2022-12-30","value":0.030171207063637344}],"Assets":[{"time":"2014-12-30","value":23466000000},{"time":"2015-12-30","value":24705000000},{"time":"2016-12-30","value":25396000000},{"time":"2017-12-30","value":27178000000},{"time":"2018-12-30","value":25413000000},{"time":"2019-12-30","value":29074000000},{"time":"2020-12-30","value":34969000000},{"time":"2021-12-30","value":44358000000},{"time":"2022-12-30","value":43055000000}],"Stockholders Equity":[{"time":"2014-12-30","value":9646000000},{"time":"2015-12-30","value":10346000000},{"time":"2016-12-30","value":10685000000},{"time":"2017-12-30","value":9842000000},{"time":"2018-12-30","value":10161000000},{"time":"2019-12-30","value":12037000000},{"time":"2020-12-30","value":13728000000},{"time":"2021-12-30","value":16103000000},{"time":"2022-12-30","value":15370000000}],"ROE":[{"time":"2014-12-30","value":0.11890939249429816},{"time":"2015-12-30","value":0.12333268896191765},{"time":"2016-12-30","value":0.057463734206832005},{"time":"2017-12-30","value":0.24872993294045925},{"time":"2018-12-30","value":0.16563330380868024},{"time":"2019-12-30","value":0.2248899227382238},{"time":"2020-12-30","value":0.24526515151515152},{"time":"2021-12-30","value":0.18213997391790349},{"time":"2022-12-30","value":0.1823031880286272}],"ROA":[{"time":"2014-12-30","value":0.10065626864399557},{"time":"2015-12-30","value":0.10592997368953654},{"time":"2016-12-30","value":0.06855410300834777},{"time":"2017-12-30","value":0.1568180145706086},{"time":"2018-12-30","value":0.12198481092354307},{"time":"2019-12-30","value":0.12719268074568343},{"time":"2020-12-30","value":0.14258343103892018},{"time":"2021-12-30","value":0.08296135984489833},{"time":"2022-12-30","value":0.09218441528277785}]}

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.

Sector

  • ALHC Logo

    ALHC

  • CI Logo

    CI

  • CLOV Logo

    CLOV

  • CNC Logo

    CNC

  • ELV Logo

    ELV

  • MOH Logo

    MOH

  • OSCR Logo

    OSCR

Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$5.009B$6.44B$8.11B$10B$12.07B$14.26B$16.46B$18.58B$20.48B$22.04B$23.14B$231.4B
DCF$5.6B$6.132B$6.576B$6.903B$7.088B$7.117B$6.984B$6.695B$6.265B$5.72B$57.2B
Value$122.3B

In the chart Earnings are multiplied by this value.

Earnings Growth 16%
Earnings Stability 70%


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.

Years12-201412-201512-201612-201712-201812-201912-202012-202112-2022TTM
Net Margin2.4%2.4%1.1%4.6%3%4.2%4.4%3.5%3%2.9%
ROA10%11%6.9%16%12%13%14%8.3%9.2%7.9%
ROE12%12%5.7%25%17%22%25%18%18%18%

What is the average Net Margin?

The average Net Margin over the past 5 years is +3.77%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -0.16%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +12.06%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -1.21%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +20.82%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.75%.


Safety & Stabiliy

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.

Years12-201412-201512-201612-201712-201812-201912-202012-202112-2022TTM
Debt FCF-11.942.901.403.891.251.4213.213.212.34
Debt Equity0.400.400.380.500.600.470.490.780.720.69
MIN
Graham Stability---100%100%100%100%100%93%93%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 2.34.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 1.06.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.93.


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.

Years12-201512-201712-201912-2021Trend
Revenue8%12%13%12%1.2%
Net Income12%2.7%1.2%-4.5%-7.7%
Stockholders Equity5.8%9.3%8.5%-4.6%0.82%
FCF39%-0.33%-8.6%270%2.5%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +11.55%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +1.25%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +2.74%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -7.69%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +9.32%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +0.82%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -0.33%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +2.48%.