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Humana

NYSE:HUM
Snowflake Description

Adequate balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HUM
NYSE
$33B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Humana Inc., together with its subsidiaries, operates as a health and well-being company in the United States. The last earnings update was 56 days ago. More info.


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  • Humana has significant price volatility in the past 3 months.
HUM Share Price and Events
7 Day Returns
-7.7%
NYSE:HUM
-7.2%
US Healthcare
0.8%
US Market
1 Year Returns
-18.4%
NYSE:HUM
-5.6%
US Healthcare
5.9%
US Market
HUM Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Humana (HUM) -7.7% -16% -18.6% -18.4% 38.8% 121.2%
US Healthcare -7.2% -7.9% -9.9% -5.6% 12.9% 61.6%
US Market 0.8% 2.6% 10.6% 5.9% 37.7% 45.5%
1 Year Return vs Industry and Market
  • HUM underperformed the Healthcare industry which returned -5.6% over the past year.
  • HUM underperformed the Market in United States of America which returned 5.9% over the past year.
Price Volatility
HUM
Industry
5yr Volatility vs Market

Value

 Is Humana undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Humana to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Humana.

NYSE:HUM Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:HUM
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Healthcare Unlevered Beta Simply Wall St/ S&P Global 0.72
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.716 (1 + (1- 21%) (19.11%))
0.882
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.88
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.882 * 5.96%)
7.99%

Discounted Cash Flow Calculation for NYSE:HUM using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Humana is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:HUM DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.99%)
2019 2,162.25 Analyst x4 2,002.32
2020 2,521.60 Analyst x5 2,162.37
2021 2,960.75 Analyst x4 2,351.16
2022 3,458.00 Analyst x2 2,542.91
2023 3,862.50 Analyst x2 2,630.28
2024 4,193.13 Est @ 8.56% 2,644.22
2025 4,478.72 Est @ 6.81% 2,615.42
2026 4,728.93 Est @ 5.59% 2,557.27
2027 4,952.59 Est @ 4.73% 2,480.12
2028 5,157.13 Est @ 4.13% 2,391.52
Present value of next 10 years cash flows $24,377.59
NYSE:HUM DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $5,157.13 × (1 + 2.73%) ÷ (7.99% – 2.73%)
$100,769.48
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $100,769.48 ÷ (1 + 7.99%)10
$46,730.00
NYSE:HUM Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $24,377.59 + $46,730.00
$71,107.58
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $71,107.58 / 135.64
$524.25
NYSE:HUM Discount to Share Price
Calculation Result
Value per share (USD) From above. $524.25
Current discount Discount to share price of $240.69
= -1 x ($240.69 - $524.25) / $524.25
54.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Humana is available for.
Intrinsic value
>50%
Share price is $240.69 vs Future cash flow value of $524.25
Current Discount Checks
For Humana to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Humana's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Humana's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Humana's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Humana's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:HUM PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $12.24
NYSE:HUM Share Price ** NYSE (2019-04-18) in USD $240.69
United States of America Healthcare Industry PE Ratio Median Figure of 53 Publicly-Listed Healthcare Companies 21.71x
United States of America Market PE Ratio Median Figure of 3,078 Publicly-Listed Companies 18.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Humana.

NYSE:HUM PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:HUM Share Price ÷ EPS (both in USD)

= 240.69 ÷ 12.24

19.66x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Humana is good value based on earnings compared to the US Healthcare industry average.
  • Humana is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Humana's expected growth come at a high price?
Raw Data
NYSE:HUM PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.66x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
14.3%per year
United States of America Healthcare Industry PEG Ratio Median Figure of 40 Publicly-Listed Healthcare Companies 1.5x
United States of America Market PEG Ratio Median Figure of 2,108 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

NYSE:HUM PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.66x ÷ 14.3%

1.37x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Humana is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Humana's assets?
Raw Data
NYSE:HUM PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $74.95
NYSE:HUM Share Price * NYSE (2019-04-18) in USD $240.69
United States of America Healthcare Industry PB Ratio Median Figure of 93 Publicly-Listed Healthcare Companies 2.32x
United States of America Market PB Ratio Median Figure of 5,172 Publicly-Listed Companies 1.93x
NYSE:HUM PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:HUM Share Price ÷ Book Value per Share (both in USD)

= 240.69 ÷ 74.95

3.21x

* Primary Listing of Humana.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Humana is overvalued based on assets compared to the US Healthcare industry average.
X
Value checks
We assess Humana's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Healthcare industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Healthcare industry average (and greater than 0)? (1 check)
  5. Humana has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Humana expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
14.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Humana expected to grow at an attractive rate?
  • Humana's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Humana's earnings growth is expected to exceed the United States of America market average.
  • Humana's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:HUM Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:HUM Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 14.3%
NYSE:HUM Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 8.7%
United States of America Healthcare Industry Earnings Growth Rate Market Cap Weighted Average 13.2%
United States of America Healthcare Industry Revenue Growth Rate Market Cap Weighted Average 7.2%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:HUM Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:HUM Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 5,506 3,773
2022-12-31 4,858 3,319
2021-12-31 74,051 3,612 2,829 5
2020-12-31 68,736 3,258 2,519 10
2019-12-31 63,179 2,812 2,298 10
NYSE:HUM Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 56,912 2,173 1,683
2018-09-30 55,933 -405 1,512
2018-06-30 55,009 3,513 1,367
2018-03-31 54,284 3,532 1,824
2017-12-31 53,767 4,051 2,448
2017-09-30 53,456 4,189 1,863
2017-06-30 53,868 5,829 1,814
2017-03-31 54,341 5,639 1,475
2016-12-31 54,379 1,936 614
2016-09-30 54,862 5,046 1,116
2016-06-30 54,531 1,575 980
2016-03-31 54,256 1,263 1,100

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Humana's earnings are expected to grow by 14.3% yearly, however this is not considered high growth (20% yearly).
  • Humana's revenue is expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:HUM Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Humana Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HUM Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 28.13 28.13 28.13 1.00
2022-12-31 24.63 24.63 24.63 1.00
2021-12-31 21.64 22.20 21.16 3.00
2020-12-31 18.91 20.04 18.27 10.00
2019-12-31 16.98 17.39 16.28 10.00
NYSE:HUM Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 12.24
2018-09-30 10.90
2018-06-30 9.74
2018-03-31 12.84
2017-12-31 16.94
2017-09-30 12.71
2017-06-30 12.27
2017-03-31 9.90
2016-12-31 4.11
2016-09-30 7.48
2016-06-30 6.57
2016-03-31 7.38

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Humana is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Humana's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Humana has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Humana performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Humana's growth in the last year to its industry (Healthcare).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Humana's year on year earnings growth rate has been positive over the past 5 years.
  • Humana's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Humana's 1-year earnings growth is negative, it can't be compared to the US Healthcare industry average.
Earnings and Revenue History
Humana's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Humana Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:HUM Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 56,912.00 1,683.00 7,525.00
2018-09-30 55,933.00 1,512.00 7,135.00
2018-06-30 55,009.00 1,367.00 6,923.00
2018-03-31 54,284.00 1,824.00 6,615.00
2017-12-31 53,767.00 2,448.00 6,419.00
2017-09-30 53,456.00 1,863.00 6,695.00
2017-06-30 53,868.00 1,814.00 6,746.00
2017-03-31 54,341.00 1,475.00 6,992.00
2016-12-31 54,379.00 614.00 7,173.00
2016-09-30 54,862.00 1,116.00 7,028.00
2016-06-30 54,531.00 980.00 6,966.00
2016-03-31 54,256.00 1,100.00 7,084.00
2015-12-31 54,289.00 1,276.00 7,295.00
2015-09-30 53,256.00 1,320.00 7,560.00
2015-06-30 52,131.00 1,296.00 7,781.00
2015-03-31 50,621.00 1,209.00 7,799.00
2014-12-31 48,500.00 1,147.00 7,639.00
2014-09-30 46,359.00 972.00 7,426.00
2014-06-30 44,440.00 1,050.00 7,068.00
2014-03-31 42,539.00 1,126.00 6,694.00
2013-12-31 41,313.00 1,231.00 6,355.00
2013-09-30 40,683.00 1,453.00 6,102.00
2013-06-30 40,015.00 1,511.00 5,970.00
2013-03-31 39,393.00 1,447.00 5,893.00
2012-12-31 39,126.00 1,222.00 5,830.00
2012-09-30 38,625.00 1,229.00 5,760.00
2012-06-30 38,275.00 1,248.00 5,713.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Humana has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Humana used its assets more efficiently than the US Healthcare industry average last year based on Return on Assets.
  • Humana has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Humana's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Healthcare industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Humana has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Humana's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Humana's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Humana is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Humana's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Humana's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Humana Company Filings, last reported 3 months ago.

NYSE:HUM Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 10,161.00 6,240.00 12,369.00
2018-09-30 10,593.00 5,371.00 13,837.00
2018-06-30 10,211.00 5,245.00 17,516.00
2018-03-31 10,081.00 5,294.00 18,597.00
2017-12-31 9,842.00 5,061.00 13,599.00
2017-09-30 11,211.00 5,101.00 18,487.00
2017-06-30 10,953.00 5,097.00 16,254.00
2017-03-31 10,234.00 5,428.00 16,630.00
2016-12-31 10,685.00 4,304.00 11,472.00
2016-09-30 11,285.00 4,275.00 14,098.00
2016-06-30 10,874.00 4,285.00 9,846.00
2016-03-31 10,525.00 4,350.00 10,539.00
2015-12-31 10,346.00 4,394.00 9,838.00
2015-09-30 10,353.00 4,129.00 9,020.00
2015-06-30 10,083.00 4,432.00 9,291.00
2015-03-31 10,044.00 4,112.00 9,546.00
2014-12-31 9,646.00 4,159.00 9,533.00
2014-09-30 10,125.00 4,605.00 10,793.00
2014-06-30 10,000.00 2,889.00 9,158.00
2014-03-31 9,725.00 2,865.00 9,910.00
2013-12-31 9,316.00 3,003.00 9,228.00
2013-09-30 9,606.00 2,876.00 9,517.00
2013-06-30 9,335.00 2,852.00 9,075.00
2013-03-31 9,164.00 2,898.00 9,539.00
2012-12-31 8,847.00 2,935.00 9,307.00
2012-09-30 8,691.00 1,893.00 9,421.00
2012-06-30 8,455.00 1,878.00 11,751.00
  • Humana's level of debt (61.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (32.2% vs 61.4% today).
  • Debt is well covered by operating cash flow (34.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 14.3x coverage).
X
Financial health checks
We assess Humana's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Humana has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0.91%
Current annual income from Humana dividends. Estimated to be 0.94% next year.
If you bought $2,000 of Humana shares you are expected to receive $18 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Humana's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.4%).
  • Humana's dividend is below the markets top 25% of dividend payers in United States of America (3.63%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:HUM Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
United States of America Healthcare Industry Average Dividend Yield Market Cap Weighted Average of 21 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2009 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:HUM Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 2.45 5.00
2020-12-31 2.29 8.00
2019-12-31 2.11 8.00
NYSE:HUM Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-02-21 2.200 0.806
2019-02-06 2.200 0.727
2018-11-02 2.000 0.661
2018-08-16 2.000 0.606
2018-04-19 2.000 0.660
2018-02-16 2.000 0.726
2018-02-07 2.000 0.751
2017-11-02 1.600 0.624
2017-08-17 1.600 0.645
2017-04-20 1.600 0.684
2017-02-14 1.600 0.757
2016-10-26 1.160 0.586
2016-08-25 1.160 0.660
2016-04-21 1.160 0.662
2016-02-18 1.160 0.650
2015-10-29 1.160 0.681
2015-08-27 1.160 0.638
2015-04-17 1.160 0.624
2015-02-18 1.120 0.657
2014-10-31 1.120 0.778
2014-08-27 1.120 0.862
2014-04-30 1.120 0.907
2014-02-19 1.080 0.976
2013-10-30 1.080 1.092
2013-08-22 1.080 1.143
2013-04-25 1.080 1.289
2013-02-27 1.040 1.451
2012-10-18 1.040 1.472
2012-08-24 1.040 1.452
2012-04-30 1.040 1.401
2012-02-24 1.000 1.136
2011-10-24 1.000 1.144
2011-08-19 1.000 1.345
2011-04-26 1.000 1.289

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Humana has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Humana only paid a dividend in the past 8 years.
Current Payout to shareholders
What portion of Humana's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (6.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be thoroughly covered by earnings (8.9x coverage).
X
Income/ dividend checks
We assess Humana's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Humana afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Humana has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Bruce Broussard
COMPENSATION $16,312,517
AGE 56
TENURE AS CEO 6.3 years
CEO Bio

Mr. Bruce Dale Broussard serves as the Member of Advisory Board of HealthQuest Capital. Mr. Bruce serves as the Member of Advisory Board at Flare Capital Management Company, LLC. Mr. Broussard has been the Chief Executive Officer and President of Humana Inc. since January 01, 2013. He serves as Chief Executive Officer, President, and Director at Humana Insurance Company. Under his leadership, Humana is creating an integrated care delivery model that is expected to drive lower costs, enhanced quality, improved outcomes and a better member experience. Prior to joining Humana, Mr. Broussard served as the Chief Executive Officer of McKesson Specialty/US Oncology, Inc. He served as the President of US Oncology Holdings Inc. since November 2005 and Chief Executive Officer since February 2008 and its Executive Chairman since September 1, 2009. He served as the President of US Oncology Research Inc. Mr. Broussard served as the Chief Executive Officer of US Oncology Inc. since February 1, 2008 and its Chairman of the Board since September 1, 2009. He served as the President of US Oncology Inc. since November 2005 and also served as its Head of Investor Relations. Mr. Broussard led the pharmaceutical distribution business and pharmaceutical services operations and responsible for the development, marketing and growth initiatives of US Oncology. He served as the Chief Financial Officer of US Oncology Holdings, Inc. from November 2005 to July 31, 2006. Mr. Broussard served as the Chief Financial Officer of US Oncology Inc. from August 2000 to July 31, 2006 and served as its Treasurer. He joined US Oncology in August 2000 with primary responsibility for financial and accounting activities, including financial reporting, treasury and taxation. Mr. Broussard served as Principal Accounting Officer of US Oncology Inc. and served as its Executive Vice President, Pharmaceutical Services since 2003. Prior to US Oncology, he served as the Chief Executive Officer of Harbor Dental, from December 1997 to July 2000. From January 1, 1996 to October 1997, he served as an Executive Vice President and Chief Financial Officer of Regency Health Services. From 1993 to 1996, he served as the Chief Financial Officer of Sun Healthcare Group, a healthcare provider. From 1990 to 1993, he served as Vice President and Treasurer for Continental Medical Systems, Inc. He has a wide range of executive leadership experience in publicly traded and private organizations within a variety of healthcare sectors, including oncology, pharmaceuticals, assisted living/senior housing, home care, physician practice management, surgical centers and dental networks. He has been a Director of Humana Inc. since January 01, 2013. He has been a Director of KeyCorp. since May 2015 and serves as a Director of The Healthcare Distribution Management Association. He served as a Director of US Oncology Holdings, Inc. since February 1, 2008 and US Oncology Inc. since February 1, 2008. He served as a Director of US Physical Therapy Inc. from 1999 to November 2011 and Sun Healthcare Group from 1993 to 1996. He is a Certified Public Accountant. Mr. Broussard holds a Bachelor of Business Arts from Texas A&M and an Master in Business Administration from the University of Houston.

CEO Compensation
  • Bruce's compensation has been consistent with company performance over the past year.
  • Bruce's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Humana management team in years:

5.3
Average Tenure
53.5
Average Age
  • The average tenure for the Humana management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Bruce Broussard

TITLE
President
COMPENSATION
$16M
AGE
56
TENURE
6.3 yrs

Brian Kane

TITLE
Chief Financial Officer
COMPENSATION
$5M
AGE
45
TENURE
4.8 yrs

Tim Huval

TITLE
Chief Human Resources Officer
COMPENSATION
$3M
AGE
52
TENURE
6.3 yrs

Jody Bilney

TITLE
Chief Consumer Officer
COMPENSATION
$3M
AGE
57
TENURE
6 yrs

William Fleming

TITLE
Segment President of Healthcare Services
COMPENSATION
$3M
AGE
50
TENURE
2.1 yrs

Cindy Zipperle

TITLE
Senior VP & Chief Accounting Officer
AGE
55
TENURE
4.3 yrs

Brian LeClaire

TITLE
Chief Information Officer
AGE
58
TENURE
5.3 yrs

Amy Smith

TITLE
Vice President of Investor Relations

Joe Ventura

TITLE
Chief Legal Officer & Corporate Secretary
AGE
41
TENURE
0.3 yrs

Tom Noland

TITLE
Senior Vice President of Corporate Communications
TENURE
19.6 yrs
Board of Directors Tenure

Average tenure and age of the Humana board of directors in years:

11.1
Average Tenure
60
Average Age
  • The average tenure for the Humana board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Kurt Hilzinger

TITLE
Chairman of the Board
COMPENSATION
$544K
AGE
57
TENURE
5.3 yrs

Bruce Broussard

TITLE
President
COMPENSATION
$16M
AGE
56
TENURE
6.3 yrs

Frank D'Amelio

TITLE
Independent Director
COMPENSATION
$307K
AGE
60
TENURE
15.6 yrs

David Jones

TITLE
Independent Director
COMPENSATION
$323K
AGE
60
TENURE
25.9 yrs

Webster Dunbar

TITLE
Independent Director
COMPENSATION
$331K
AGE
56
TENURE
14 yrs

Jim O’Brien

TITLE
Independent Director
COMPENSATION
$347K
AGE
64
TENURE
13 yrs

Bill McDonald

TITLE
Independent Director
COMPENSATION
$323K
AGE
61
TENURE
11.5 yrs

Marissa Peterson

TITLE
Independent Director
COMPENSATION
$297K
AGE
56
TENURE
10.7 yrs

Bill Mitchell

TITLE
Director
COMPENSATION
$313K
AGE
74
TENURE
10 yrs

David Nash

TITLE
Director
COMPENSATION
$306K
AGE
63
TENURE
9.3 yrs
Who owns this company?
Recent Insider Trading
  • Humana insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
27. Feb 19 Sell Jody Bilney Individual 25. Feb 19 25. Feb 19 -2,844 $307.34 $-874,061
27. Feb 19 Sell Christopher Hunter Individual 25. Feb 19 25. Feb 19 -1,146 $305.24 $-349,802
26. Feb 19 Sell Bruce Broussard Individual 22. Feb 19 22. Feb 19 -24,113 $310.65 $-7,490,691
21. Feb 19 Sell Roy Beveridge Individual 19. Feb 19 19. Feb 19 -1,193 $307.16 $-366,439
18. Dec 18 Sell William Fleming Individual 18. Dec 18 18. Dec 18 -1,986 $295.03 $-585,921
18. Dec 18 Sell Heidi Margulis Individual 18. Dec 18 18. Dec 18 -2,437 $296.22 $-721,883
13. Nov 18 Sell Roy Beveridge Individual 08. Nov 18 08. Nov 18 -4,622 $341.06 $-1,576,395
12. Sep 18 Sell Bruce Broussard Individual 10. Sep 18 10. Sep 18 -18,000 $328.66 $-5,915,878
17. Aug 18 Sell Elizabeth Bierbower Individual 16. Aug 18 16. Aug 18 -3,092 $330.00 $-1,020,360
06. Aug 18 Sell Cynthia Zipperle Individual 03. Aug 18 03. Aug 18 -4,886 $321.89 $-1,572,747
15. Jun 18 Sell Christopher Hunter Individual 13. Jun 18 13. Jun 18 -1,635 $305.99 $-500,291
14. Jun 18 Sell Cynthia Zipperle Individual 13. Jun 18 13. Jun 18 -1,000 $306.01 $-306,005
12. Jun 18 Sell Elizabeth Bierbower Individual 11. Jun 18 11. Jun 18 -2,498 $300.91 $-751,680
07. May 18 Sell Bruce Broussard Individual 03. May 18 03. May 18 -8,804 $286.17 $-2,519,420
X
Management checks
We assess Humana's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Humana has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should You Be Worried About Insider Transactions At Humana Inc. (NYSE:HUM)?

So shareholders might well want to know whether insiders have been buying or selling shares in Humana Inc. … Over the last year, we note insiders sold 78.26k shares worth US$25m. … It's not particularly great to see insiders were selling shares around current prices

Simply Wall St -

Should You Think About Buying Humana Inc. (NYSE:HUM) Now?

received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to $312.5 at one point, and dropping to the lows of $268.27. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether Humana's current trading price of $272.6 reflective of the actual value of the?

Simply Wall St -

What Are Analysts Saying About Humana Inc.'s (NYSE:HUM) Growth?

(NYSE:HUM) released its earnings announcement on 31 December 2018, … as a 36% increase in profits is expected in the upcoming year, … the past 5-year average growth rate of 11%.

Simply Wall St -

Will Humana Inc.'s (NYSE:HUM) Earnings Grow In The Years Ahead?

In December 2018, Humana Inc. … (NYSE:HUM) released its most recent earnings announcement, whicha … showed

Simply Wall St -

The Humana Share Price Has Gained 177%, So Why Not Pay It Some Attention?

One flawed but reasonable way to assess how sentiment around a company has changed, is to compare the earnings per share (EPS) with the share price. … During five years of share price growth, Humana achieved compound earnings per share (EPS) growth of 9.4% per year. … This EPS growth is slower than the share price growth of 23% per year, over the same period.

Simply Wall St -

Why Humana Inc.’s (NYSE:HUM) Return On Capital Employed Is Impressive

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Calculating The Intrinsic Value Of Humana Inc. (NYSE:HUM)

by taking the foreast future cash flows of the company and discounting them back to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

Is Humana Inc.'s (NYSE:HUM) Stock Available For A Good Price After Accounting For Growth?

(NYSE:HUM) is considered a high growth stock. … However its last closing price of $282.08 left investors wondering whether this growth has already been factored into the share price. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors.

Simply Wall St -

What Humana Inc.'s (NYSE:HUM) ROE Can Tell Us

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every $1 worth of shareholders' equity, it generated $0.14 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Now The Time To Look At Buying Humana Inc. (NYSE:HUM)?

saw significant share price movement during recent months on the NYSE, rising to highs of $353.98 and falling to the lows of $274.64. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … Let’s take a look at Humana’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Company Info

Description

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. 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.

Details
Name: Humana Inc.
HUM
Exchange: NYSE
Founded: 1961
$32,646,649,806
135,637,749
Website: http://www.humana.com
Address: Humana Inc.
Humana Building,
500 West Main Street,
Louisville,
Kentucky, 40202,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE HUM Common Stock New York Stock Exchange US USD 02. Jul 1969
DB HUM Common Stock Deutsche Boerse AG DE EUR 02. Jul 1969
LSE 0J6Z Common Stock London Stock Exchange GB USD 02. Jul 1969
BMV HUM * Common Stock Bolsa Mexicana de Valores MX MXN 02. Jul 1969
Number of employees
Current staff
Staff numbers
41,600
Humana employees.
Industry
Managed Health Care
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/18 23:36
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/02/21
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.