Market Cap
US$49.2b
Last Updated
2020/02/19 23:56 UTC
Data Sources
Company Financials +
Executive Summary
Humana Inc., together with its subsidiaries, operates as a health and well-being company in the United States.
Rewards
Risk Analysis
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
1.2%
HUM
0.9%
US Healthcare
0.5%
US Market
1 Year Return
22.5%
HUM
14.4%
US Healthcare
20.3%
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
| HUM | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.2% | 0.9% | 0.5% |
| 30 Day | 3.3% | 2.2% | 2.0% |
| 90 Day | 11.8% | 8.7% | 9.4% |
| 1 Year | 23.5%22.5% | 16.0%14.4% | 22.8%20.3% |
| 3 Year | 88.0%84.0% | 52.5%45.6% | 50.1%40.4% |
| 5 Year | 136.8%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
1 day ago | Simply Wall St
Is It Too Late To Consider Buying Humana Inc. (NYSE:HUM)?1 week ago | Simply Wall St
Humana Inc. Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year2 weeks ago | Simply Wall St
Humana Inc. (NYSE:HUM) Earns Among The Best Returns In Its IndustryValuation
Is Humana undervalued compared to its fair value and its price relative to the market?
49.0%
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?
8.4%
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?
17.1%
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
Dividend
What is Humana's current dividend yield, its reliability and sustainability?
0.58%
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
Management
How experienced are the management team and are they aligned to shareholders interests?
1.1yrs
Average management tenure
CEO
Bruce Broussard (57yo)
7.1yrs
Tenure
US$16,312,517
Compensation
Mr. Bruce Dale Broussard serves as the Member of Advisory Board of HealthQuest Capital. Mr. Bruce serves as the President and chief Executive Officer at Humana Insurance Company of Kentucky. Mr. Bruce serv ...
CEO Compensation Analysis
Compensation vs Market: Bruce's total compensation ($USD16.31M) 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7.1yrs | US$16.31m | 0.068% $33.6m | |
| Chief Financial Officer | 5.7yrs | US$5.01m | 0.017% $8.3m | |
| Chief Administrative Officer | 0.3yrs | US$3.31m | 0.0060% $3.0m | |
| Segment President of Clinical & Pharmacy Solutions | 2.9yrs | US$3.16m | 0.0047% $2.3m | |
| 0.2yrs | US$3.20m | 0.0074% $3.6m | ||
| Senior VP | 5.2yrs | no data | 0.0014% $668.6k | |
| Chief Technology & Risk Officer | 0.3yrs | no data | 0.0019% $938.9k | |
| Vice President of Investor Relations | 0yrs | no data | no data | |
| Chief Legal Officer & Corporate Secretary | 1.1yrs | no data | 0.00077% $378.5k | |
| Senior Vice President of Corporate Communications | 1yrs | no data | no data |
1.1yrs
Average Tenure
53.5yo
Average Age
Experienced Management: HUM's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 7.1yrs | US$16.31m | 0.068% $33.6m | |
| Independent Chairman of the Board | 6.1yrs | US$543.86k | 0.015% $7.2m | |
| Independent Director | 11.5yrs | US$296.57k | 0.0015% $752.1k | |
| Independent Director | 26.8yrs | US$323.44k | 0.067% $32.9m | |
| Independent Director | 13.8yrs | US$347.17k | 0.00011% $54.1k | |
| Independent Director | 12.3yrs | US$323.03k | 0.0017% $845.5k | |
| Independent Director | 0.4yrs | no data | no data | |
| Independent Director | 16.4yrs | US$306.66k | 0.016% $7.7m | |
| Independent Director | 2.5yrs | US$323.02k | 0.0014% $698.1k | |
| Independent Director | 14.8yrs | US$331.24k | 0.0018% $904.5k |
11.9yrs
Average Tenure
60.5yo
Average Age
Experienced Board: HUM's board of directors are seasoned and experienced ( 11.9 years average tenure).
Ownership
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
Location
- Humana Inc.
- Humana Building
- 500 West Main Street
- Louisville
- Kentucky
- 40202
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| HUM | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jul 1969 |
| HUM | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jul 1969 |
| 0J6Z | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Jul 1969 |
| HUM * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jul 1969 |
| H1UM34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 5 REPR 1 COM | BR | BRL | Jan 2020 |
Biography
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 23:56 |
| End of Day Share Price | 2020/02/19 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.