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Humana Inc HUM

Morningstar Rating
$385.32 −2.03 (0.52%)
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Company Report

Humana's Turnaround Timing and Trajectory Gets More Uncertain

Humana remains a top-tier medical insurer and pays US caregivers to provide services through an integrated and value-based approach while also making the insurance experience easy to navigate for end users. Perhaps not surprisingly, given its founding as a nursing home in the 1960s, Humana places a special focus on serving elderly people, especially in its top-tier position in Medicare Advantage plans. Given US demographic trends and the increasing penetration of Medicare Advantage plans in the eligible population, Humana remains at the forefront of one of the fastest-growing areas in US medical insurance.

Price vs Fair Value

HUM is trading within a range we consider fairly valued.
Price
$387.38
Fair Value
$715.00
Uncertainty
Medium
1-Star Price
$531.42
5-Star Price
$572.60
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

With its prowess in Medicare Advantage plans, Humana looks likely to benefit from strong demographic trends and increasing popularity of that program in the long run.

Bears

Healthcare policy changes may remain a key threat to private insurers like Humana until affordable, universal coverage is achieved in the US.

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News

Trading Information

Previous Close Price
$387.35
Day Range
$382.02386.95
52-Week Range
$299.23530.19
Bid/Ask
$385.29 / $385.57
Market Cap
$46.43 Bil
Volume/Avg
371,420 / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
16.25
Price/Sales
0.44
Dividend Yield (Trailing)
0.91%
Dividend Yield (Forward)
0.91%
Total Yield
5.62%

Company Profile

Humana is one of the largest private health insurers in the us with a focus on administering Medicare Advantage plans. The firm has built a niche specializing in government-sponsored programs, with nearly all its medical membership stemming from individual and group Medicare Advantage, Medicaid, and the military's Tricare program. The firm is also a leader in stand-alone prescription drug plans for seniors enrolled in traditional fee-for-service Medicare. Beyond medical insurance, the company provides other healthcare services, including primary-care services, at-home services, and pharmacy benefit management.
Sector
Healthcare
Industry
Healthcare Plans
Stock Style Box
Mid Value
Total Number of Employees
67,600

Competitors

Valuation

Metric
HUM
ELV
UNH
Price/Earnings (Normalized)
16.2514.1421.94
Price/Book Value
2.892.755.50
Price/Sales
0.440.681.38
Price/Cash Flow
13.9012.8318.68
Price/Earnings
HUM
ELV
UNH

Financial Strength

Metric
HUM
ELV
UNH
Quick Ratio
0.76
Current Ratio
0.85
Interest Coverage
6.169.077.53
Quick Ratio
HUM
ELV
UNH

Profitability

Metric
HUM
ELV
UNH
Return on Assets (Normalized)
5.46%7.50%8.58%
Return on Equity (Normalized)
17.15%20.90%28.44%
Return on Invested Capital (Normalized)
11.21%13.90%16.43%
Return on Assets
HUM
ELV
UNH
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Healthcare Plans Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
UnitedHealth Group Inc
UNH
WfsnzskysfXtmfbyz$520.3 Bil
Elevance Health Inc
ELV
FtdmzjbnHzgjt$116.0 Bil
The Cigna Group
CI
HsxmqfktSnpzhsk$95.4 Bil
CVS Health Corp
CVS
XmhzrglbzRxyhz$74.8 Bil
Centene Corp
CNC
ZfqvqxtjGmslf$35.3 Bil
Molina Healthcare Inc
MOH
Jplldh$16.9 Bil
Oscar Health Inc Class A
OSCR
Jtz$3.6 Bil
Alignment Healthcare Inc
ALHC
Lmysg$1.9 Bil
Clover Health Investments Corp Ordinary Shares - Class A
CLOV
Mvwqf$809.2 Mil

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