Humana Inc
Exchange: NYSESector: HealthcareIndustry: Healthcare Plans
Humana Inc. is committed to putting health first – for our teammates, our customers, and our company. Through our Humana insurance services, and our CenterWell health care services, we make it easier for the millions of people we serve to achieve their best health – delivering the care and service they need, when they need it. These efforts are leading to a better quality of life for people with Medicare, Medicaid, families, individuals, military service personnel, and communities at large.
Did you know?
HUM's revenue grew at a 12.2% CAGR over the last 6 years.
Current Price
$196.21
-1.02%GoodMoat Value
$2397.41
1121.9% undervaluedProfile
Valuation (TTM)
Market Cap$23.60B
P/E19.86
EV$13.24B
P/B1.34
Shares Out120.27M
P/Sales0.18
Revenue$129.66B
EV/EBITDA5.66
Humana Inc (HUM) Stock Analysis
GoodMoat Analysis
Humana Inc is a major US health insurance provider currently trading at a significant discount to the GoodMoat target price. However, its low Moat Score and weak Quality Indicators, including thin margins and low returns, suggest it fails the initial gate for a durable, high-quality business under the framework.
Read full analysis
Humana Inc operates in the Healthcare Plans industry, providing health insurance and related services. Applying the GoodMoat Investment Framework, the company's competitive advantages appear limited. A systematic review of the 14 Moat criteria reveals few clear strengths; it may score points for potential regulatory barriers and scale in a specific niche, but it lacks the network effects, high switching costs, or proprietary technology typical of a wide-moat business. A Moat Score below 5 is likely, which fails the first gate of the Decision Framework. The Quality Indicators are also unfavourable. Key metrics like a 2.1% operating margin and 6.7% ROE are far below the high-return thresholds required for a 'High Quality' rating. The 0.9% profit margin and 1.9% FCF Yield further indicate low cash generation relative to its market cap. While revenue growth is solid at 11.3% YoY and the balance sheet shows moderate debt (Debt/Equity of 0.72), the overall quality profile is weak. On valuation, the current price of $173 is far below the platform's $2380.35 target, suggesting a massive theoretical margin of safety. However, the Decision Framework mandates passing the Moat & Quality Gate before valuation matters. Since Humana likely fails Step 1, the extreme valuation discrepancy cannot, by the framework's logic, make it a favourable candidate without first demonstrating a durable competitive advantage and stronger financial quality. Analysis based on data as of 2024-05-15.
Market Cap$23.60B
Current Price$196.21
P/E Ratio19.86
Forward P/E—
PEG Ratio1.34
EPS$9.84
Book Value$146.81
P/B Ratio1.34
HUM Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use -33.4% FCF growth (CAGR)
Cash vs Debt
Net Debt: 8.5B
Revenue
64.9B
FY19
77.2B
FY20
83.1B
FY21
92.9B
FY22
106.4B
FY23
117.8B
FY24
129.7B
FY25
Net Income
2.7B
FY19
3.4B
FY20
2.9B
FY21
2.8B
FY22
2.5B
FY23
1.2B
FY24
1.2B
FY25
HUM 52-Week Range
$162.82
$308.25
50-Day MA: $180.47200-Day MA: $239.53
Did you know?
HUM's revenue grew at a 12.2% CAGR over the last 6 years.
Humana Inc (HUM) Financial Summary
Humana Inc (HUM) is a Healthcare company in the Healthcare Plans industry, listed on NYSE. The stock currently trades at $196.21 with a market capitalization of $23.60B.
Key valuation metrics include a P/E ratio of 19.86, price-to-book ratio of 1.34, and EPS of $9.84. The company reports a profit margin of 0.9% and return on equity of 6.7%.
HUM Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $23.60B |
| P/E Ratio | 19.86 |
| EPS | $9.84 |
| P/B Ratio | 1.34 |
| P/S Ratio | 0.18 |
| EV/EBITDA | 5.66 |
| Dividend Yield | 1.82% |
| Profit Margin | 0.9% |
| Return on Equity | 6.7% |
| Debt/Equity | 0.72 |
HUM Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $64.89B | $2.71B |
| FY20 | $77.16B | $3.37B |
| FY21 | $83.06B | $2.93B |
| FY22 | $92.87B | $2.81B |
| FY23 | $106.37B | $2.49B |
| FY24 | $117.76B | $1.21B |
| FY25 | $129.66B | $1.19B |
Humana Inc (HUM) Valuation
Based on GoodMoat's DCF model, Humana Inc has a fair value estimate of $2397.41. At the current price of $196.21, the stock appears 91.8% undervalued relative to our intrinsic value estimate.
HUM Quality Indicators
Humana Inc maintains a profit margin of 0.9% and an operating margin of 2.1%. Return on equity stands at 6.7%. The current ratio is 2.00. Debt-to-equity ratio is 0.72.
About Humana Inc
Humana Inc. is committed to putting health first – for our teammates, our customers, and our company. Through our Humana insurance services, and our CenterWell health care services, we make it easier for the millions of people we serve to achieve their best health – delivering the care and service they need, when they need it. These efforts are leading to a better quality of life for people with Medicare, Medicaid, families, individuals, military service personnel, and communities at large.
HUM Free Cash Flow
Humana Inc generated $398.00M in trailing twelve-month free cash flow, representing an FCF yield of 1.69%. This low FCF yield may reflect heavy reinvestment or growth spending.
HUM Shares Outstanding
Humana Inc has 0.12 billion shares outstanding at a share price of $196.21, giving it a market capitalization of $23.60B.
HUM Recent Insider Trades
Recent insider transactions at Humana Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| Shetty Sanjay K (President, CenterWell) | BUY | 810 | $150016.05 |