Stock Analysis Report

Executive Summary

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


Trading at 49% below its fair value

Earnings are forecast to grow 8.38% per year

Earnings grew by 60.8% over the past year

Risk Analysis

Has a high level of debt

Significant insider selling over the past 3 months

Snowflake Analysis

Outstanding track record with adequate balance sheet.

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




US Healthcare


US Market

1 Year Return




US Healthcare


US Market

Return vs Industry: HUM exceeded the US Healthcare industry which returned 14.4% over the past year.

Return vs Market: HUM exceeded the US Market which returned 20.3% over the past year.

Shareholder returns

7 Day1.2%0.9%0.5%
30 Day3.3%2.2%2.0%
90 Day11.8%8.7%9.4%
1 Year23.5%22.5%16.0%14.4%22.8%20.3%
3 Year88.0%84.0%52.5%45.6%50.1%40.4%
5 Year136.8%128.9%63.4%52.2%73.1%54.1%

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


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


Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: HUM ($378.52) is trading below our estimate of fair value ($741.63)

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 (18.7x) compared to the Healthcare industry average (29.1x).

PE vs Market: HUM is poor value based on its PE Ratio (18.7x) compared to the US market (18.3x).

Price to Earnings Growth Ratio

PEG Ratio: HUM is poor value based on its PEG Ratio (2.2x)

Price to Book Ratio

PB vs Industry: HUM is overvalued based on its PB Ratio (4.2x) 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 16 analysts?


Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: HUM's forecast earnings growth (8.4% per year) is above the savings rate (1.7%).

Earnings vs Market: HUM's earnings (8.4% per year) are forecast to grow slower than the US market (14.2% per year).

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

Revenue vs Market: HUM's revenue (9% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: HUM's revenue (9% 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 (19.2%).

Next Steps

Past Performance

How has Humana performed over the past 5 years?


Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HUM has high quality earnings.

Growing Profit Margin: HUM's current net profit margins (4.2%) are higher than last year (3%).

Past Earnings Growth Analysis

Earnings Trend: HUM's earnings have grown by 17.1% per year over the past 5 years.

Accelerating Growth: HUM's earnings growth over the past year (60.8%) exceeds its 5-year average (17.1% per year).

Earnings vs Industry: HUM earnings growth over the past year (60.8%) exceeded the Healthcare industry 11.1%.

Return on Equity

High ROE: HUM's Return on Equity (22.5%) is considered high.

Return on Assets

Return on Capital Employed

Next Steps

Financial Health

How is Humana's financial position?

Financial Position Analysis

Short Term Liabilities: HUM's short term assets ($19.9B) exceed its short term liabilities ($10.9B).

Long Term Liabilities: HUM's short term assets ($19.9B) exceed its long term liabilities ($6.1B).

Debt to Equity History and Analysis

Debt Level: HUM's debt to equity ratio (45.3%) is considered high.

Reducing Debt: HUM's debt to equity ratio has increased from 43.1% to 45.3% over the past 5 years.

Debt Coverage: HUM's debt is well covered by operating cash flow (97%).

Interest Coverage: HUM's interest payments on its debt are well covered by EBIT (13.4x coverage).

Balance Sheet

Inventory Level: HUM has a low level of unsold assets or inventory.

Debt Coverage by Assets: HUM's debt is covered by short term assets (assets are 3.7x debt).

Next Steps


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


Current Dividend Yield

Dividend Yield vs Market


Current dividend yield vs market & industry

Notable Dividend: HUM's dividend (0.58%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: HUM's dividend (0.58%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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


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


Average management tenure


Bruce Broussard (57yo)





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 ($USD16.31M) is above average for companies of similar size in the US market ($USD10.78M).

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

Leadership Team

Bruce Broussard
President7.1yrsUS$16.31m0.068% $33.6m
Brian Kane
Chief Financial Officer5.7yrsUS$5.01m0.017% $8.3m
Timothy Huval
Chief Administrative Officer0.3yrsUS$3.31m0.0060% $3.0m
William Fleming
Segment President of Clinical & Pharmacy Solutions2.9yrsUS$3.16m0.0047% $2.3m
Jody Bilney
0.2yrsUS$3.20m0.0074% $3.6m
Cynthia Zipperle
Senior VP5.2yrsno data0.0014% $668.6k
Sam Deshpande
Chief Technology & Risk Officer0.3yrsno data0.0019% $938.9k
Amy Smith
Vice President of Investor Relations0yrsno datano data
Joseph Ventura
Chief Legal Officer & Corporate Secretary1.1yrsno data0.00077% $378.5k
Amy Fry
Senior Vice President of Corporate Communications1yrsno datano data


Average Tenure


Average Age

Experienced Management: HUM's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.

Board Members

Bruce Broussard
President7.1yrsUS$16.31m0.068% $33.6m
Kurt Hilzinger
Independent Chairman of the Board6.1yrsUS$543.86k0.015% $7.2m
Marissa Peterson
Independent Director11.5yrsUS$296.57k0.0015% $752.1k
David Jones
Independent Director26.8yrsUS$323.44k0.067% $32.9m
James O'Brien
Independent Director13.8yrsUS$347.17k0.00011% $54.1k
William McDonald
Independent Director12.3yrsUS$323.03k0.0017% $845.5k
Karen Katz
Independent Director0.4yrsno datano data
Frank D'Amelio
Independent Director16.4yrsUS$306.66k0.016% $7.7m
Frank Bisignano
Independent Director2.5yrsUS$323.02k0.0014% $698.1k
Webster Dunbar
Independent Director14.8yrsUS$331.24k0.0018% $904.5k


Average Tenure


Average Age

Experienced Board: HUM's board of directors are seasoned and experienced ( 11.9 years average tenure).


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

Insider Trading Volume

Insider Buying: HUM insiders have sold more shares than they have bought 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$49.159b
  • Shares outstanding: 132.11m
  • Website: https://www.humana.com

Number of Employees


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


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


Humana Inc., together with its subsidiaries, operates as a health and well-being company in the United States. The company offers medical and supplemental benefit plans to individuals. It also has 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, and other supplemental health and voluntary insurance benefits; financial protection products; and administrative services only products to individuals and employer groups, as well as military services, such as TRICARE South Region contract. Further, it offers pharmacy solutions, provider services, predictive modeling and informatics services, and clinical care services, such as home health and other services to its health plan members, as well as to third parties. Humana Inc. has a strategic partnership with Microsoft Corporation for providing health care solutions to Humana members. As of December 31, 2018, the company had approximately 17 million members in medical benefit plans, as well as approximately 6 million members in specialty products. Humana Inc. was founded in 1961 and is headquartered in Louisville, Kentucky. 

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 23:56
End of Day Share Price2020/02/19 00:00
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.