Humana (HUM)
Health Care · $44.8B market cap · SEC CIK 0000049071
fundamentals score out of 100
Next reports on Nov 6, 2026, before the open, with analysts expecting $-1.01 in earnings per share.
The case for HUM
- Revenue growing 18.3% year over year.
- Has compounded revenue at 10.9% a year over five years.
- Moves less than the market (beta 0.69).
- Up 49.8% over the past year.
- Price/sales of 0.3× is lower than 90% of Health Care companies.
The case against
- Long-term debt of $12.4B would take 13 years of operating cash flow to repay.
- Pricey at 35.0× earnings, against a long-run market average nearer 20×.
- Return on equity of only 7%.
- Earnings per share fell 19.0%.
- Net margin of 0.9% leaves very little room for error.
- Only 32% of FY2025's $1.2B profit arrived as free cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Health Care companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 52 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 57 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 20 |
| Momentumhow the price has behaved lately | 75 |
| Stabilityhow violently it moves, what it owes and what it pays you | 26 |
- Each factor except momentum is half fixed thresholds, half rank among the 59 Health Care companies.
Key numbers
| Price / earnings | 35.0× |
|---|---|
| Price / book | 2.48× |
| Price / sales | 0.3× |
| Revenue growth (YoY) | +18.3% |
| EPS growth (YoY) | -19.0% |
| Gross margin | — |
| Operating margin | 2% |
| Net margin | 1% |
| Return on equity | 7% |
| Debt / equity | 0.74× |
| Current ratio | 0.01 |
| Dividend yield | 0.68% |
| Beta | 0.69 |
| 52-week range | $163.11 – $428.88 |
| Position in that range | 79% of the way up |
| 3-month return | +5.0% |
| 1-year return | +49.8% |
Five years of financials, as filed
Pulled from Humana's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $130B | $118B | $106B | $92.9B | $83.1B |
| Operating income | $2.7B | $2.6B | $4.0B | $3.8B | $3.1B |
| Net income | $1.2B | $1.2B | $2.5B | $2.8B | $2.9B |
| Operating cash flow | $921M | $3.0B | $4.0B | $4.6B | $2.3B |
| Capital expenditure | $546M | $575M | $1.0B | $1.1B | $1.3B |
| Total assets | $48.9B | $46.5B | $47.1B | $43.1B | $44.4B |
| Total liabilities | $31.2B | $30.0B | $30.7B | $27.7B | $28.3B |
| Shareholder equity | $17.7B | $16.4B | $16.3B | $15.3B | $16.1B |
| Cash | $4.2B | $2.2B | $4.7B | $5.1B | $3.4B |
| Long-term debt | $12.4B | $11.1B | $10.2B | $9.0B | $10.5B |
| Free cash flow | $375M | $2.4B | $3.0B | $3.5B | $920M |
| Operating margin | 2.1% | 2.2% | 3.8% | 4.1% | 3.8% |
| Net margin | 0.9% | 1.0% | 2.3% | 3.0% | 3.5% |
| Diluted shares | 121M | 121M | 124M | 127M | 129M |
Share count is down 6.6% over 4 years. Buybacks have been shrinking the pie.
What Humana says it does
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. During 2025, 83% of our total premiums and services revenue were derived from contracts with the federal government, including 14%…
Risk factors HUM lists in its 10-K
- As a government contractor, we are exposed to risks that may materially adversely affect our business or our willingness or ability to participate in government health care programs
- New Laws or Regulations, or Future Legislative, Judicial or Regulatory Changes
- Health Insurance Portability and Accountability Act (HIPAA) and the Health Information Technology for Economic and Clinical Health Act (HITECH Act)
- Corporate Practice of Medicine and Other Laws
- Anti-Kickback, Physician Self-Referral, and Other Fraud and Abuse Laws
- State Regulation of our Products and Services
- Any failure by us to manage acquisitions, divestitures and other significant transactions successfully may have a material adverse effect on our results of operations, financial position, and cash flows
- If we fail to develop and maintain satisfactory relationships with the providers of care to our members, our business may be adversely affected
- Our pharmacy solutions business is highly competitive and subjects us to regulations and distribution and supply chain risks in addition to those we face with our core health benefits businesses
- Changes in the prescription drug industry pricing benchmarks may adversely affect our financial performance
- Our ability to obtain funds from certain of our licensed subsidiaries is restricted by state insurance regulations
- Downgrades in our debt ratings, should they occur, may adversely affect our business, results of operations, and financial condition