A Business at a Glance
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ITEM 1. BUSINESS Headquartered in Louisville, Kentucky, Humana Inc. and its subsidiaries, referred to throughout this document as “we,” “us,” “our,” the “Company” or “Humana,” is committed to putting health first – for our teammates, our customers, and our company. Through our Humana insurance services, and our CenterWell health care services, we make it easier for the millions of people we serve to achieve their best health – delivering the care and service they need, when they need it. These efforts are leading to a better quality of life for Medicare and Medicaid participants, families, individuals, military service personnel, and communities at large. As of December 31, 2025, we had approximately 15 million members in our medical benefit plans, as well as approximately 4.7 million members in our specialty products.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 129.7B | 129.7B | 117.8B | 106.4B | 92.9B | 83.1B |
| Net Income | 1.2B | 1.2B | 1.2B | 2.5B | 2.8B | 2.9B |
| EPS | $9.84 | $9.84 | $9.98 | $20.00 | $22.08 | $22.67 |
| Free Cash Flow | 375M | 375M | 2.4B | 3.0B | 3.5B | 946M |
| ROIC | 8.6% | 4.1% | 4.4% | 9.4% | 11.5% | 11.0% |
| Gross Margin | 2.1% | 2.1% | 2.2% | 3.8% | 4.1% | 3.8% |
| Debt/Equity | 0.70 | 0.70 | 0.75 | 0.81 | 0.86 | 0.90 |
| Dividends/Share | $3.56 | $3.54 | $3.54 | $3.44 | $3.06 | $2.73 |
| Operating Income | 2.7B | 2.7B | 2.6B | 4.0B | 3.8B | 3.1B |
| Operating Margin | 2.1% | 2.1% | 2.2% | 3.8% | 4.1% | 3.8% |
| ROE | 6.7% | 7.0% | 7.4% | 15.3% | 18.3% | 18.2% |
| Shares Outstanding | 121M | 121M | 121M | 124M | 127M | 129M |
HUMANA INC passes 4 of 9 quality checks, suggesting mixed fundamentals.
HUMANA INC trades at 20.1x trailing earnings, compared to its 15-year median P/E of 22.0x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 63.7x vs a median of 18.5x. The company's 5-year average ROIC is 8.1% with a gross margin of 3.2%. Total shareholder yield (dividends + buybacks) is 2.4%. At current prices, the estimated annualized return to fair value is -5.8%.
HUMANA INC (HUM) has a current P/E ratio of 20.1, compared to its historical median P/E of 22.0. The stock is currently considered Fair based on its historical valuation range.
HUMANA INC (HUM) has a 5-year average return on invested capital (ROIC) of 8.1%. This is below average and may indicate limited pricing power.
HUMANA INC (HUM) has a market capitalization of $23.9B. It is classified as a large-cap stock.
Yes, HUMANA INC (HUM) pays a dividend with a trailing twelve-month yield of 1.80%. The company also returns capital through share buybacks, with a buyback yield of 0.63%.
Based on historical P/E analysis, HUMANA INC (HUM) appears fair. The current P/E of 20.1 is 9% below its historical median of 22.0. The estimated fair value CAGR (P/E method) is -4.0%.
HUMANA INC (HUM) operates in the Hospital & Medical Service Plans industry, within the Financials sector.
HUMANA INC (HUM) reported annual revenue of $129.7 billion in its most recent fiscal year, based on SEC EDGAR filings.
HUMANA INC (HUM) has a net profit margin of 0.9%. This is a modest margin.
HUMANA INC (HUM) generated $375 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
HUMANA INC (HUM) has a debt-to-equity ratio of 0.70. This indicates moderate leverage.
HUMANA INC (HUM) reported earnings per share (EPS) of $9.84 in its most recent fiscal year.
HUMANA INC (HUM) has a return on equity (ROE) of 7.0%. This indicates moderate shareholder returns.
HUMANA INC (HUM) has a 5-year average gross margin of 3.2%. This lower margin is typical of capital-intensive or commodity businesses.
The Ledger Terminal provides 19 years of financial data for HUMANA INC (HUM), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
HUMANA INC (HUM) has a book value per share of $146.25, based on its most recent annual SEC filing.