A Business at a Glance
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HUMANA INC
HUM
$47.0B
Mkt Cap
$389.32
-1.31%
HUMANA INC (HUM) has a current P/E ratio of 39.6, compared to its historical median P/E of 22.0. The stock is currently considered Expensive based on its historical valuation range.
HUMANA INC (HUM) has a 5-year average return on invested capital (ROIC) of 8.4%. This is below average and may indicate limited pricing power.
HUMANA INC (HUM) has a market capitalization of $46.7B. It is classified as a large-cap stock.
Yes, HUMANA INC (HUM) pays a dividend with a trailing twelve-month yield of 0.92%. The company also returns capital through share buybacks, with a buyback yield of 0.53%.
Based on historical P/E analysis, HUMANA INC (HUM) appears expensive. The current P/E of 39.6 is 80% above its historical median of 22.0. The estimated fair value CAGR (P/E method) is -4.9%.
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., headquartered in Louisville, Kentucky, operates through two reportable segments—Insurance and CenterWell—serving approximately 15 million medical benefit plan members and 4.7 million specialty product members as of December 31, 2025. The Insurance segment comprises Medicare Advantage plans (individual and group), stand-alone prescription drug plans (PDPs), Medicaid contracts, and a pharmacy benefit manager (PBM) business, with 83% of total premiums and services revenue derived from federal government contracts, including 14% from individual Medicare Advantage contracts in Florida. The company's integrated care delivery model combines quality care, member engagement, and data analytics to transition providers from fee-for-service to value-based arrangements, offering HMO, PPO, POS, and specialty plans that generate revenue through fixed capitated payments from CMS and member premiums and cost-sharing. CenterWell provides adjacent health care services including primary care clinics, pharmacy solutions, and home health services to both Humana members and third parties, creating a vertically integrated platform designed to improve health outcomes while reducing costs. The company's competitive moat derives from its scale across Medicare and Medicaid, sophisticated risk-adjustment and data analytics capabilities, established provider networks spanning all 50 states, and the operational leverage from combining insurance with direct care delivery. Humana serves Medicare beneficiaries age 65 and over, disabled individuals, Medicaid participants, military service personnel, and families, with geographic diversification across all 50 states and particular strength in Florida, where it serves approximately 1.0 million individual Medicare Advantage members.
【Margin recovery through 2028】 Management expects to return to a sustainable individual Medicare Advantage margin of at least 3% by 2028, with progress anticipated in 2027 following a challenging 2026 marked by a "bonus year" Stars headwind that will depress margins to slightly below break-even. The company is pursuing benefit adjustments and geographic optimization in 2027 bids to support margin progression while managing membership growth of approximately 25% in 2026, which is expected to be accretive to the enterprise and unlock significant earnings potential by 2028. Clinical excellence efforts are progressing as anticipated, with Stars program improvements on track to return to top-quartile results in plan year 2028, supported by enhanced gap-closure initiatives and early indicators such as risk scores, hospital admits, and pharmacy claims running in line with or better than expectations. Operating cost reduction initiatives, including transformation efforts, outsourcing expansion, and process standardization, are expected to generate significant consolidated operating cost ratio improvement in 2026 and accelerating benefits in 2027 and 2028, while capital optimization has reduced funding requirements for membership growth by over $3 billion through 2026.
| Metric | Target | Period |
|---|---|---|
| Individual MA membership growth | approximately 25% | FY2026 |
| Individual MA margin (adjusted for Stars) | doubling year-over-year | FY2026 |
| Individual MA margin (total, including Stars headwind) | slightly below break-even | FY2026 |
| Sustainable individual MA margin target | at least 3% | PY2028 |
| Adjusted EPS | at least $9 | FY2026 |
Individual MA membership growth (FY2026): “When we look at full year 2026, we do anticipate individual MA membership growth of approximately 25%.”
Individual MA margin (adjusted for Stars) (FY2026): “we continue to anticipate doubling individual MA pre-tax margin in 2026, normalizing for stars, meaning if 95% of our members were in four-plus star plans consistent with 2025, we would see a doubling of individual MA margin in 2026.”
Individual MA margin (total, including Stars headwind) (FY2026): “after accounting for the 2026 Stars headwind, our initial guidance assumes individual MA margins are slightly below break-even.”
Sustainable individual MA margin target (PY2028): “we are approaching bids with a focus on returning to a sustainable margin of at least 3% in 2028”
Adjusted EPS (FY2026): “We expect full-year adjusted EPS of at least $9, with the anticipated year-over-year decline driven by the previously communicated bonus year 2026 Stars headwind net of mitigation.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 137.2B | 129.7B | 117.8B | 106.4B | 92.9B | 83.1B |
| Net Income | 1.1B | 1.2B | 1.2B | 2.5B | 2.8B | 2.9B |
| EPS | $12.03 | $9.84 | $9.98 | $20.00 | $22.08 | $22.67 |
| Free Cash Flow | 1.3B | 375M | 2.4B | 3.0B | 3.5B | 920M |
| ROIC | 17.9% | 4.1% | 4.5% | 9.8% | 11.0% | 12.6% |
| Gross Margin | - | 2.1% | 2.2% | 3.8% | 4.1% | 3.8% |
| Debt/Equity | 0.79 | 0.70 | 0.66 | 0.73 | 0.70 | 0.80 |
| Dividends/Share | $3.57 | $3.54 | $3.54 | $3.44 | $0.77 | $0.70 |
| Operating Income | 2.4B | 2.7B | 2.6B | 4.0B | 3.8B | 3.1B |
| Operating Margin | 1.8% | 2.1% | 2.2% | 3.8% | 4.1% | 3.8% |
| ROE | 6.1% | 7.0% | 7.4% | 15.8% | 17.9% | 19.7% |
| Shares Outstanding | 120M | 121M | 121M | 124M | 127M | 129M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 48.5B | 54.3B | 54.4B | 53.8B | 56.9B | 64.9B | 77.2B | 83.1B | 92.9B | 106.4B | 117.8B | 129.7B | 137.2B |
| Gross Margin | 4.9% | 4.3% | 3.2% | 7.9% | 5.4% | 4.9% | 6.5% | 3.8% | 4.1% | 3.8% | 2.2% | 2.1% | N/A |
| R&D | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| SG&A | 7.6B | 7.3B | 7.2B | 6.6B | 7.5B | 7.4B | 10.1B | 10.1B | 12.7B | 13.2B | 13.7B | 15.4B | 16.1B |
| EBIT | 2.4B | 2.3B | 1.7B | 4.3B | 3.1B | 3.2B | 5.0B | 3.1B | 3.8B | 4.0B | 2.6B | 2.7B | 2.4B |
| Op. Margin | 4.9% | 4.3% | 3.2% | 7.9% | 5.4% | 4.9% | 6.5% | 3.8% | 4.1% | 3.8% | 2.2% | 2.1% | 1.8% |
| Net Income | 1.1B | 1.3B | 614M | 2.4B | 1.7B | 2.7B | 3.4B | 2.9B | 2.8B | 2.5B | 1.2B | 1.2B | 1.1B |
| Net Margin | 2.4% | 2.4% | 1.1% | 4.6% | 3.0% | 4.2% | 4.4% | 3.5% | 3.0% | 2.3% | 1.0% | 0.9% | 0.8% |
| Non-Recurring | 0 | 270M | 0 | 148M | -786M | 47M | 0 | 0 | 237M | 0 | 0 | -67M | -67M |
| Returns on Capital | |||||||||||||
| ROIC | 9.0% | 9.2% | 4.3% | 16.8% | 11.5% | 17.2% | 18.3% | 12.6% | 11.0% | 9.8% | 4.5% | 4.1% | 17.9% |
| ROE | 12.1% | 12.8% | 5.8% | 23.9% | 16.8% | 24.4% | 26.1% | 19.7% | 17.9% | 15.8% | 7.4% | 7.0% | 6.1% |
| ROA | 5.2% | 5.3% | 2.5% | 9.3% | 6.4% | 9.9% | 10.5% | 7.4% | 6.4% | 5.5% | 2.6% | 2.5% | 2.0% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | 1.6B | 868M | 1.9B | 4.1B | 2.2B | 5.3B | 5.6B | 2.3B | 4.6B | 4.0B | 3.0B | 921M | 1.8B |
| Free Cash Flow | 1.1B | 345M | 1.4B | 3.5B | 1.6B | 4.5B | 4.7B | 920M | 3.5B | 3.0B | 2.4B | 375M | 1.3B |
| Owner Earnings | 1.2B | 405M | 1.4B | 3.5B | 1.6B | 4.5B | 4.8B | 1.5B | 3.7B | 3.0B | 1.9B | -18M | -1.7B |
| CapEx | 528M | 523M | 527M | 524M | 612M | 736M | 964M | 1.3B | 1.1B | 1.0B | 575M | 546M | 572M |
| Maint. CapEx | 328M | 354M | 388M | 410M | 444M | 575M | 616M | 596M | 709M | 779M | 839M | 698M | 3.3B |
| Growth CapEx | 200M | 169M | 139M | 114M | 168M | 161M | 348M | 746M | 428M | 225M | 0 | 0 | 0 |
| D&A | 328M | 354M | 388M | 410M | 444M | 575M | 616M | 596M | 709M | 779M | 839M | 698M | 3.3B |
| CapEx/OCF | 32.6% | 60.3% | 27.2% | 12.9% | 28.2% | 13.9% | 17.1% | 58.2% | 24.8% | 25.2% | 19.4% | 59.3% | 31.0% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 172M | 172M | 177M | 220M | 265M | 291M | 323M | 90M | 98M | 431M | 431M | 430M | 429M |
| Dividend Yield | 1.0% | 0.7% | 0.7% | 0.7% | 0.7% | 0.8% | 0.7% | 0.2% | 0.2% | 0.7% | 1.1% | 1.4% | 0.9% |
| Share Buybacks | 872M | 385M | 104M | 3.4B | 1.1B | 1.1B | 1.8B | 79M | 2.1B | 1.6B | 817M | 151M | 249M |
| Buyback Yield | 4.2% | 1.6% | 0.4% | 9.9% | 3.0% | 2.3% | 3.5% | 0.1% | 3.3% | 2.8% | 2.7% | 0.5% | 0.5% |
| Stock-Based Comp | 98M | 109M | 115M | 157M | 137M | 163M | 181M | 180M | 216M | 175M | 207M | 241M | 243M |
| Debt Repayment | 500M | 0 | 0 | 800M | 0 | 400M | 0 | 0 | 0 | 100M | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -5.7B | -5.7B | -7.4B | -11.4B | -5.0B | -9.7B | -10.3B | -3.7B | -8.2B | -9.5B | -9.6B | -7.5B | -7.3B |
| Cash & Equiv. | 1.9B | 2.6B | 3.9B | 4.0B | 2.3B | 4.1B | 4.7B | 3.4B | 5.1B | 4.7B | 2.2B | 4.2B | 22.0B |
| Long-Term Debt | 3.8B | 3.8B | 3.8B | 4.8B | 4.4B | 5.0B | 6.1B | 10.5B | 9.0B | 10.2B | 11.1B | 12.4B | 12.3B |
| Debt/Equity | 0.40 | 0.40 | 0.38 | 0.50 | 0.76 | 0.44 | 0.51 | 0.80 | 0.70 | 0.73 | 0.66 | 0.70 | 0.79 |
| Interest Coverage | 12.3 | 12.6 | 9.2 | 17.6 | 14.2 | 13.2 | 17.6 | 9.7 | 9.5 | 8.1 | 3.9 | 4.3 | 3.7 |
| Equity | 9.6B | 10.3B | 10.7B | 9.8B | 10.2B | 12.0B | 13.7B | 16.1B | 15.3B | 16.3B | 16.4B | 17.7B | 18.6B |
| Total Assets | 23.5B | 24.7B | 25.4B | 27.2B | 25.4B | 29.1B | 35.0B | 44.4B | 43.1B | 47.1B | 46.5B | 48.9B | 55.3B |
| Total Liabilities | 13.9B | 14.3B | 14.7B | 17.3B | 15.3B | 17.0B | 21.2B | 28.3B | 27.7B | 30.7B | 30.0B | 31.2B | 36.6B |
| Intangibles | 440M | 357M | 280M | 226M | 245M | 177M | 329M | 2.6B | 1.8B | 1.7B | 1.4B | 1.1B | 1.2B |
| Retained Earnings | 9.9B | 11.0B | 11.5B | 13.7B | 15.1B | 17.5B | 20.5B | 23.1B | 25.5B | 27.5B | 28.3B | 29.1B | 30.2B |
| Working Capital | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Assets | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Current Liabilities | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Per Share Data | |||||||||||||
| EPS | 7.36 | 8.44 | 4.07 | 16.81 | 12.16 | 20.10 | 25.31 | 22.67 | 22.08 | 20.00 | 9.98 | 9.84 | 12.03 |
| Owner EPS | 7.65 | 2.68 | 9.50 | 23.92 | 11.50 | 33.75 | 36.40 | 11.49 | 28.82 | 24.32 | 15.88 | -0.15 | -13.88 |
| Book Value | 61.90 | 68.43 | 70.83 | 67.58 | 73.42 | 89.38 | 103.19 | 124.29 | 120.48 | 130.67 | 135.40 | 146.25 | 154.75 |
| Cash Flow/Share | 10.38 | 5.74 | 12.83 | 27.82 | 15.70 | 39.23 | 42.39 | 17.48 | 36.09 | 31.99 | 24.52 | 7.63 | 36.63 |
| Dividends/Share | 1.11 | 1.15 | 1.16 | 1.49 | 1.90 | 2.15 | 2.43 | 0.70 | 0.77 | 3.44 | 3.54 | 3.54 | 3.57 |
| Shares Out. | 155.8M | 151.2M | 150.9M | 145.6M | 138.4M | 134.7M | 133.0M | 129.4M | 127.1M | 124.5M | 120.9M | 120.7M | 120.1M |
| Valuation | |||||||||||||
| P/E Ratio | 18.0 | 19.4 | 46.6 | 13.8 | 21.9 | 17.5 | 15.5 | 19.8 | 22.6 | 22.2 | 25.2 | 26.3 | 32.4 |
| P/FCF | 19.0 | 71.9 | 20.3 | 9.6 | 23.6 | 10.4 | 11.1 | 63.0 | 18.3 | 18.6 | 12.7 | 83.3 | 36.7 |
| EV/EBIT | 6.3 | 8.1 | 12.2 | 5.9 | 10.4 | 12.1 | 8.4 | 17.7 | 15.1 | 11.7 | 8.7 | 8.8 | 16.1 |
| Price/Book | 2.1 | 2.4 | 2.7 | 3.4 | 3.6 | 3.9 | 3.8 | 3.6 | 4.1 | 3.4 | 1.9 | 1.8 | 2.5 |
| Price/Sales | 0.4 | 0.5 | 0.5 | 0.6 | 0.7 | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 | 0.3 | 0.2 | 0.3 |
| FCF Yield | 5.3% | 1.4% | 4.9% | 10.4% | 4.2% | 9.6% | 9.0% | 1.6% | 5.5% | 5.4% | 7.9% | 1.2% | 2.7% |
| Market Cap | 20.7B | 24.8B | 28.6B | 33.9B | 36.8B | 47.3B | 52.0B | 57.9B | 63.3B | 55.3B | 30.4B | 31.2B | 46.7B |
| Avg. Price | 110.74 | 161.70 | 165.26 | 215.08 | 282.41 | 268.46 | 363.78 | 407.26 | 451.96 | 476.04 | 328.64 | 258.92 | 389.32 |
| Year-End Price | 132.76 | 164.11 | 189.70 | 232.81 | 265.72 | 351.44 | 391.22 | 447.84 | 497.97 | 444.31 | 251.24 | 258.83 | 389.32 |
HUMANA INC passes 2 of 9 quality checks, indicating weak fundamentals.
HUMANA INC trades at 39.6x trailing earnings, compared to its 15-year median P/E of 22.0x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 125.2x vs a median of 18.5x. The company's 5-year average ROIC is 8.4% with a gross margin of 3.2%. Total shareholder yield (dividends + buybacks) is 1.5%. At current prices, the estimated annualized return to fair value is -6.2%.
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.
Based on recent SEC filings and earnings disclosures, Management expects to return to a sustainable individual Medicare Advantage margin of at least 3% by 2028, with progress anticipated in 2027 following a challenging 2026 marked by a "bonus year" Stars headwind that will depress margins to slightly below break-even. The company is pursuing benefit adjustments and geographic optimization in 2027 bids to support margin progression while managing membership growth of approximately 25% in 2026, which is expected to be accretive to the enterprise and unlock significant earnings potential by 2028. Clinical excellence efforts are progressing as anticipated, with Stars program improvements on track to return to top-quartile results in plan year 2028, supported by enhanced gap-closure initiatives and early indicators such as risk scores, hospital admits, and pharmacy claims running in line with or better than expectations. Operating cost reduction initiatives, including transformation efforts, outsourcing expansion, and process standardization, are expected to generate significant consolidated operating cost ratio improvement in 2026 and accelerating benefits in 2027 and 2028, while capital optimization has reduced funding requirements for membership growth by over $3 billion through 2026.
Based on recent SEC filings and earnings calls, HUMANA INC (HUM) has provided the following forward guidance: Individual MA membership growth: approximately 25% (FY2026); Individual MA margin (adjusted for Stars): doubling year-over-year (FY2026); Individual MA margin (total, including Stars headwind): slightly below break-even (FY2026); Sustainable individual MA margin target: at least 3% (PY2028); Adjusted EPS: at least $9 (FY2026).