Fact based stock research
Humana (NYSE:HUM)

US4448591028

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

Humana stock research in summary

humana.com

ANALYSIS: With an Obermatt Combined Rank of 86 (better than 86% compared with investment alternatives), Humana (Health Care Managed, USA) shares have much better financial characteristics than comparable stocks. Shares of Humana are a good value (attractively priced) with a consolidated Value Rank of 91 (better than 91% of alternatives), are safely financed (Safety Rank of 59, which means low debt burdens), but show below-average growth (Growth Rank of 19). ...read more

RECOMMENDATION: A Combined Rank of 86, is a strong buy recommendation based on Humana's financial characteristics. As the company Humana's key financial metrics exhibit good value (Obermatt Value Rank of 91) but low growth (Obermatt Growth Rank of 19) while being safely financed (Obermatt Safety Rank of 59), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 91% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	91
Growth Rank	19
Safety Rank	59
Combined Rank	86

Country	USA
Industry	Health Care Managed
Index	Employee Focus US, Human Rights, SDG 12, SDG 3, SDG 8, D.J. US Health Care, S&P 500
Size class	XX-Large

This stock has achievements: Top 10 Stock.

26-Dec-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Humana

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	34	72	79	91
GROWTH
GROWTH	22	67	43	19
SAFETY
SAFETY	61	59	59	59
SENTIMENT
SENTIMENT	n/a	31	84	^new
360° VIEW
360° VIEW	n/a	59	94	^new

Most recent update of the stock research: 26-Dec-2024. Financial reporting date used for calculating ranks: 30-Sep-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better Humana is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	34	72	79	91
GROWTH
GROWTH	22	67	43	19
SAFETY
SAFETY	61	59	59	59
COMBINED
COMBINED	28	86	86	86

Last update of combined financial performance: 10-Nov-2022. Stock analysis on combined financial performance: The higher the rank of Humana the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 91 (better than 91% compared with alternatives) for 2022, Humana shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Humana. Price-to-Sales is 87 which means that the stock price compared with what market professionals expect for future sales is lower than for 87% of comparable companies, indicating a good value for Humana's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 58% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 61. Compared with other companies in the same industry, dividend yields of Humana are expected to be higher than for 79% of all competitors (a Dividend Yield rank of 79). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 91, is a buy recommendation based on Humana's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Humana based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	68	76	72	87
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	26	49	62	58
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	20	45	30	61
DIVIDEND YIELD
DIVIDEND YIELD	26	73	67	79
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	34	72	79	91

Last update of Value Rank: 26-Dec-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Humana; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 19 (better than 19% compared with alternatives), Humana shows one of the most restricted growth dynamics in its industry. There is little momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for Humana. Only Capital Growth has a good rank of 84, which means that currently professionals expect the company to grow its invested capital more than 10% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 22 which means that currently professionals expect the company to grow less than 78% of its competitors. Profit Growth with a rank of 10 and Stock Returns with a rank of 15 are also low (below 85% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 19, is a sell recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for Humana is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	59	56	67	22
PROFIT GROWTH
PROFIT GROWTH	30	54	48	10
CAPITAL GROWTH
CAPITAL GROWTH	n/a	65	56	84
STOCK RETURNS
STOCK RETURNS	22	49	23	15
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	22	67	43	19

Last update of Growth Rank: 26-Dec-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Humana.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 59 (better than 59% compared with alternatives), the company Humana has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Humana is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Humana. Refinancing is at 67, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 67% of its competitors. Liquidity is also good at 74, meaning the company generates more profit to service its debt than 74% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 40, which means the company has an above-average debt-to-equity ratio. It has more debt than 60% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 59 (better than 59% compared with alternatives), Humana has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Humana could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Humana and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	41	58	32	40
REFINANCING
REFINANCING	73	67	67	67
LIQUIDITY
LIQUIDITY	46	87	73	74
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	61	59	59	59

Last update of Safety Rank: 10-Nov-2022. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Humana and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	47	62	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	50	53	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	25	96	^new
MARKET PULSE
MARKET PULSE	n/a	62	68	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	31	84	^new

Last update of Sentiment Rank: 26-Dec-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Humana.
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