NYSE:HUM

Stock Analysis Report

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Executive Summary

Humana Inc., together with its subsidiaries, operates as a health and well-being company in the United States. More Details


Snowflake Analysis

Outstanding track record and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HUM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.06%

HUM

-1.1%

US Healthcare

-2.4%

US Market


1 Year Return

49.3%

HUM

18.6%

US Healthcare

18.2%

US Market

Return vs Industry: HUM exceeded the US Healthcare industry which returned 22.1% over the past year.

Return vs Market: HUM exceeded the US Market which returned 19.5% over the past year.


Shareholder returns

HUMIndustryMarket
7 Day0.06%-1.1%-2.4%
30 Day7.6%5.0%4.2%
90 Day7.6%2.9%6.3%
1 Year50.3%49.3%20.2%18.6%20.9%18.2%
3 Year79.5%75.7%31.7%26.1%41.2%31.8%
5 Year156.0%147.2%59.2%47.7%84.8%63.9%

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?

36.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HUM ($433.08) is trading below our estimate of fair value ($680.94)

Significantly Below Fair Value: HUM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: HUM is good value based on its PE Ratio (16.4x) compared to the US Healthcare industry average (23.6x).

PE vs Market: HUM is good value based on its PE Ratio (16.4x) compared to the US market (19x).


Price to Earnings Growth Ratio

PEG Ratio: HUM is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: HUM is overvalued based on its PB Ratio (4x) compared to the US Healthcare industry average (3.1x).


Next Steps

Future Growth

How is Humana forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

10.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HUM's forecast earnings growth (10% per year) is above the savings rate (2.2%).

Earnings vs Market: HUM's earnings (10% per year) are forecast to grow slower than the US market (22.1% per year).

High Growth Earnings: HUM's earnings are forecast to grow, but not significantly.

Revenue vs Market: HUM's revenue (8.5% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: HUM's revenue (8.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HUM's Return on Equity is forecast to be low in 3 years time (18.9%).


Next Steps

Past Performance

How has Humana performed over the past 5 years?

20.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HUM has high quality earnings.

Growing Profit Margin: HUM's current net profit margins (5%) are higher than last year (4.1%).


Past Earnings Growth Analysis

Earnings Trend: HUM's earnings have grown significantly by 20.8% per year over the past 5 years.

Accelerating Growth: HUM's earnings growth over the past year (39.8%) exceeds its 5-year average (20.8% per year).

Earnings vs Industry: HUM earnings growth over the past year (39.8%) exceeded the Healthcare industry 28%.


Return on Equity

High ROE: HUM's Return on Equity (24.3%) is considered high.


Next Steps

Financial Health

How is Humana's financial position?


Financial Position Analysis

Short Term Liabilities: HUM's short term assets ($27.9B) exceed its short term liabilities ($16.5B).

Long Term Liabilities: HUM's short term assets ($27.9B) exceed its long term liabilities ($7.6B).


Debt to Equity History and Analysis

Debt Level: HUM's debt to equity ratio (53%) is considered high.

Reducing Debt: HUM's debt to equity ratio has increased from 43.9% to 53% over the past 5 years.

Debt Coverage: HUM's debt is well covered by operating cash flow (85%).

Interest Coverage: HUM's interest payments on its debt are well covered by EBIT (18.7x coverage).


Balance Sheet


Next Steps

Dividend

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

0.58%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HUM's dividend (0.58%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: HUM's dividend (0.58%) is low compared to the top 25% of dividend payers in the US market (4.66%).


Stability and Growth of Payments

Stable Dividend: HUM is not paying a notable dividend for the US market, therefore no need to check if payments are stable.

Growing Dividend: HUM is not paying a notable dividend for the US market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: HUM is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HUM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Bruce Broussard (58 yo)

7.75yrs

Tenure

US$16,726,455

Compensation

Mr. Bruce Dale Broussard serves as the Member of Advisory Board of HealthQuest Capital. Mr. Bruce serves as the President and chief Executive Officer at Humana Insurance Company of Kentucky. Mr. Bruce serv ...


CEO Compensation Analysis

Compensation vs Market: Bruce's total compensation ($USD16.73M) is above average for companies of similar size in the US market ($USD11.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Bruce Broussard
President7.75yrsUS$16.73m0.068%
$ 39.1m
Brian Kane
Chief Financial Officer6.33yrsUS$5.38m0.028%
$ 16.0m
Timothy Huval
Chief Administrative Officer1yrUS$3.51m0.0062%
$ 3.5m
T. Wheatley
Segment President of Retail3.58yrsUS$3.84m0.0066%
$ 3.8m
William Fleming
Segment President of Clinical & Pharmacy Solutions3.58yrsUS$3.50m0.0055%
$ 3.2m
Cynthia Zipperle
Senior VP5.83yrsno data0.0031%
$ 1.8m
Sam Deshpande
Chief Technology & Risk Officer1yrno data0.0025%
$ 1.4m
Amy Smith
Vice President of Investor Relationsno datano datano data
Joseph Ventura
Chief Legal Officer1.67yrsno data0.0011%
$ 647.4k
Amy Fry
Senior Vice President of Corporate Communications1.67yrsno datano data
Vishal Agrawal
Chief Strategy & Corporate Development Officer1.83yrsno data0.00063%
$ 360.9k
Jennifer Bazante
Chief Marketing Officer1yrno datano data

1.8yrs

Average Tenure

52yo

Average Age

Experienced Management: HUM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Bruce Broussard
President7.75yrsUS$16.73m0.068%
$ 39.1m
Kurt Hilzinger
Independent Chairman of the Board6.75yrsUS$544.04k0.015%
$ 8.4m
Marissa Peterson
Independent Director12.17yrsUS$299.28k0.00059%
$ 338.0k
David Jones
Independent Director27.42yrsUS$427.41k0.063%
$ 36.0m
James O'Brien
Independent Director14.5yrsUS$338.54k0.00011%
$ 63.0k
William McDonald
Independent Director13yrsUS$322.84k0.0017%
$ 985.4k
Karen Katz
Independent Director1.08yrsUS$321.36k0.00045%
$ 257.8k
Frank D'Amelio
Independent Director17.08yrsUS$308.53k0.016%
$ 8.9m
Frank Bisignano
Independent Director3.17yrsUS$324.37k0.0014%
$ 807.8k
Wayne Alix Frederick
Independent Director0.67yrno datano data
John Garratt
Independent Director0.67yrno datano data
Raquel Bono
Independent Director0.083yrno datano data

7.3yrs

Average Tenure

61yo

Average Age

Experienced Board: HUM's board of directors are considered experienced (7.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Humana Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Humana Inc.
  • Ticker: HUM
  • Exchange: NYSE
  • Founded: 1961
  • Industry: Managed Health Care
  • Sector: Healthcare
  • Market Cap: US$57.293b
  • Shares outstanding: 132.29m
  • Website: https://www.humana.com

Number of Employees


Location

  • Humana Inc.
  • Humana Building
  • 500 West Main Street
  • Louisville
  • Kentucky
  • 40202
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HUMNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 1969
HUMDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1969
0J6ZLSE (London Stock Exchange)YesCommon StockGBUSDJul 1969
HUM *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1969
H1UM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 5 REPR 1 COMBRBRLJan 2020

Biography

Humana Inc., together with its subsidiaries, operates as a health and well-being company in the United States. It operates through Retail, Group and Specialty, and Healthcare Services segments. The company ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:40
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.