OM:HUM

Stock Analysis Report

Executive Summary

Humana AB (publ), together with its subsidiaries, provides individual and family care services for children, adolescents, and adults in Sweden, Norway, Denmark, and Finland.

Snowflake

Fundamentals

Undervalued with reasonable growth potential.

Share Price & News

How has Humana's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.2%

HUM

0.7%

SE Healthcare

2.1%

SE Market


1 Year Return

6.9%

HUM

-9.5%

SE Healthcare

12.1%

SE Market

Return vs Industry: HUM exceeded the Swedish Healthcare industry which returned -9.5% over the past year.

Return vs Market: HUM underperformed the Swedish Market which returned 12.1% over the past year.


Shareholder returns

HUMIndustryMarket
7 Day3.2%0.7%2.1%
30 Day10.2%0.5%1.6%
90 Day4.9%5.8%3.8%
1 Year8.2%6.9%-8.2%-9.5%16.8%12.1%
3 Year-21.8%-24.1%-19.0%-22.9%32.3%12.4%
5 Yearn/a149.5%112.8%62.9%28.4%

Price Volatility Vs. Market

How volatile is Humana's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Humana undervalued compared to its fair value and its price relative to the market?

24.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: HUM (SEK57.3) is trading below our estimate of fair value (SEK75.35)

Significantly Undervalued: HUM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: HUM is good value based on its PE Ratio (15.5x) compared to the Healthcare industry average (26.7x).

PE vs Market: HUM is good value based on its PE Ratio (15.5x) compared to the Swedish market (16.9x).


Price to Earnings Growth Ratio

Low PEG Ratio: HUM is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: HUM is good value based on its PB Ratio (1.4x) compared to the SE Healthcare industry average (1.4x).


Next Steps

Future Growth

How is Humana forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

22.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HUM's forecast earnings growth (22.5% per year) is above the savings rate (0.4%).

Earnings vs Market: HUM's earnings (22.5% per year) are forecast to grow faster than the Swedish market (9.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: HUM's revenue (7.2% per year) is forecast to grow faster than the Swedish market (4.5% per year).

High Growth Revenue: HUM's revenue (7.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: HUM's Return on Equity is forecast to be low in 3 years time (11.8%).


Next Steps

Past Performance

How has Humana performed over the past 5 years?

37.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: HUM's earnings have grown significantly by 37.3% per year over the past 5 years.

Accelerating Growth: HUM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HUM had negative earnings growth (-0.5%) over the past year, making it difficult to compare to the Healthcare industry average (-15.7%).


Return on Equity

High ROE: HUM's Return on Equity (9%) is considered low.


Return on Assets

ROA vs Industry: HUM's Return on Assets is below or equal to the Healthcare industry average last year.


Return on Capital Employed

ROCE Improving: HUM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Humana's financial position?


Financial Position Analysis

Short Term Liabilities: HUM's short term assets (SEK1.9B) do not cover its short term liabilities (SEK2.4B)

Long Term Liabilities: HUM's short term assets (1.9B) do not cover its long term liabilities (3.6B)


Debt to Equity History and Analysis

Debt Level: HUM's debt to equity ratio (110.8%) is considered high

Reducing Debt: HUM's debt to equity ratio has reduced from 126.7% to 110.8% over the past 5 years.

Debt Coverage: HUM's debt is not well covered by operating cash flow (17.2%).

Interest Coverage: HUM's interest payments on its debt are well covered by EBIT (4.7x coverage).


Balance Sheet

Inventory Level: HUM has a high level of physical assets or inventory.

Debt Coverage by Assets: HUM's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

What is Humana's current dividend yield, its reliability and sustainability?

1.22%

Current Dividend Yield


Dividend Yield vs Market

company1.2%marketbottom25%1.8%markettop25%4.6%industryaverage1.7%forecastin3Years2.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: HUM's dividend (1.22%) isn’t notable compared to the bottom 25% of dividend payers in the Swedish market (1.81%).

High Dividend: HUM's dividend (1.22%) is low compared to the top 25% of dividend payers in the Swedish market (4.65%).

Stable Dividend: Whilst dividend payments have been stable, HUM has been paying a dividend for less than 10 years.

Growing Dividend: HUM's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19%), HUM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HUM's dividends in 3 years are forecast to be well covered by earnings (27.4% payout ratio).


Next Steps

Management

What is the CEO of Humana's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Rasmus Nerman (41yo)

4.8yrs

Tenure

kr3,604,000

Compensation

Mr. Rasmus Nerman has been Chief Executive Officer and President of Humana AB since 2015. Mr. Nerman served as Deputy Chief Executive Officer of Humana. He served as Business Area Manager in Humana Individ ...


CEO Compensation Analysis

Compensation vs. Market: Rasmus's total compensation ($USD0.00) is too low to compare against companies of similar size in the Swedish market ($USD516.69K).

Compensation vs Earnings: Rasmus's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.8yrs

Average Tenure

51yo

Average Age

Experienced Management: HUM's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

56yo

Average Age

Experienced Board: HUM's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: HUM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

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Chief Executive Officer
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Ownership Breakdown


Management Team

  • Claus Forum (54yo)

    Sales Director

    • Tenure: 0.8yrs
  • Rasmus Nerman (41yo)

    CEO & President

    • Tenure: 4.8yrs
    • Compensation: kr3.60m
  • Ulf Bonnevier (55yo)

    Deputy CEO & CFO

    • Tenure: 7.8yrs
  • Helena Pharmanson (53yo)

    Director of Marketing & Communication

    • Tenure: 9.8yrs
  • Anna Skablova (49yo)

    Director of Human Resource

    • Tenure: 2.8yrs
  • Johanna Rastad (39yo)

    Head of Business Development

    • Tenure: 1.8yrs
  • Anna Sönne

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Per Granath (65yo)

    Director

    • Tenure: 13.8yrs
    • Compensation: kr242.00k
  • Fredrik Strömholm (54yo)

    Director

    • Tenure: 0.4yrs
  • Sören Mellstig (68yo)

    Chair of the Board

    • Tenure: 0.4yrs
  • Lloyd Perry (54yo)

    Director

    • Tenure: 11.8yrs
  • Kirsi Komi (56yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: kr155.00k
  • Magdalena Gerger (55yo)

    Director

    • Tenure: 0.4yrs
  • Monica Lingegård (57yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: kr249.00k

Company Information

Humana AB (publ)'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Humana AB (publ)
  • Ticker: HUM
  • Exchange: OM
  • Founded: 2001
  • Industry: Health Care Facilities
  • Sector: Healthcare
  • Market Cap: kr3.045b
  • Shares outstanding: 53.14m
  • Website: https://www.humana.se

Number of Employees


Location

  • Humana AB (publ)
  • Warfvinges väg 39
  • 7th floor
  • Stockholm
  • Stockholm County
  • 112 51
  • Sweden

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HUMOM (OMX Nordic Exchange Stockholm)YesOrdinary B SharesSESEKMar 2016
47HDB (Deutsche Boerse AG)YesOrdinary B SharesDEEURMar 2016
HUMSBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary B SharesGBSEKMar 2016
0RF7LSE (London Stock Exchange)YesOrdinary B SharesGBSEKMar 2016

Biography

Humana AB (publ), together with its subsidiaries, provides individual and family care services for children, adolescents, and adults in Sweden, Norway, Denmark, and Finland. The company operates through fo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:27
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.