Humana (HUM) AI Stock Analysis

• Market Cap: $22.14B
• Dividend Yield: 1.38%
• Average Volume (3M): 2.33M
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.69
• Revenue Growth: 9.87%
• EPS Growth: -5.58%
• Country: US
• Employees: 65,680
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): -3.96
• Shares Outstanding: 120,273,070
• 10 Day Avg. Volume: 3,140,993
• 30 Day Avg. Volume: 2,334,175
• PEG Ratio: -0.51
• Price to Book (P/B): 1.87
• Price to Sales (P/S): 0.26
• P/FCF Ratio: 12.79
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 0.24
• Enterprise Value/Gross Profit: 0.24
• Enterprise Value/Ebitda: 9.48
• 1Y Price Target: $226.88
• Price Target Upside: 23.24% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 19
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $214.00 ▲(16.24% Upside)

Humana's overall stock score reflects solid financial performance and positive earnings call sentiment, despite technical and valuation challenges. The company's strategic initiatives and operational efficiency improvements are promising, but profitability and cash flow management need attention.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Operational Efficiency

Efforts to improve operational efficiency through AI and outsourcing can enhance profitability and competitiveness over time.

Strategic Partnerships

Strategic partnerships expand service offerings and customer base, enhancing competitive positioning and revenue potential.

Negative Factors

Profitability Challenges

Declining profit margins suggest rising costs or pricing pressures, which could impact long-term financial health if not addressed.

Cash Flow Concerns

Reduced free cash flow growth limits the company's ability to invest in growth opportunities and meet financial obligations.

Medicare Star Ratings

Challenges with Medicare Star Ratings can affect revenue from bonuses and signal quality issues, impacting competitive standing.

Humana Business Overview & Revenue Model

Company Description

Humana Inc., together with its subsidiaries, operates as a health and well-being company in the United States. It operates through three segments: Retail, Group and Specialty, and Healthcare Services. The company offers medical and supplemental benefit plans to individuals. It also has a contract with Centers for Medicare and Medicaid Services to administer the Limited Income Newly Eligible Transition prescription drug plan program; and contracts with various states to provide Medicaid, dual eligible, and long-term support services benefits. In addition, the company provides commercial fully insured medical and specialty health insurance benefits comprising dental, vision, and other supplemental health benefits; and administrative services only products to individuals and employer groups, as well as military services, such as TRICARE T2017 East Region contract. Further, it offers pharmacy solutions, provider services, and home solutions services, such as home health and other services to its health plan members, as well as to third parties. As of December 31, 2021, the company had approximately 17 million members in medical benefit plans, as well as approximately 5 million members in specialty products. Humana Inc. was founded in 1961 and is headquartered in Louisville, Kentucky.

How the Company Makes Money

Humana generates revenue primarily through its health insurance premiums, which are collected from members enrolled in its various health plans, including Medicare Advantage, Medicare Prescription Drug Plans, and employer-sponsored commercial plans. The company's revenue model is based on risk adjustment payments from the Centers for Medicare & Medicaid Services (CMS) for its Medicare Advantage plans, which compensates Humana for providing services to members with varying health risk profiles. Additional revenue streams include fees for administering Medicaid plans and revenues from its pharmacy services division, where it manages pharmacy benefits for members. Significant partnerships with healthcare providers and the integration of technology to enhance patient care and streamline operations also contribute to Humana's earnings by improving efficiency and member satisfaction.

Humana Financial Statement Overview

Summary

Humana demonstrates solid revenue growth and a stable balance sheet, but faces challenges in profitability and cash flow management. The company needs to focus on improving operational efficiency and cash flow generation to sustain its financial health.

Income Statement

Humana's income statement shows a consistent revenue growth trajectory, with a TTM revenue growth rate of 2.64%. However, the net profit margin has decreased to 1.02% in the TTM, indicating pressure on profitability. The gross profit margin remains strong at 23.12% in the TTM, but the EBIT and EBITDA margins have declined, suggesting increased operational costs.

Balance Sheet

The balance sheet reflects a stable financial position with a manageable debt-to-equity ratio of 0.68 in the TTM. Return on equity has improved to 9.02%, indicating efficient use of equity. However, the equity ratio suggests moderate leverage, which could pose risks if not managed carefully.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth by 36.57% in the TTM, which is a concern. The operating cash flow to net income ratio is 0.13, indicating adequate cash generation relative to net income. However, the free cash flow to net income ratio of 0.76 suggests potential challenges in maintaining cash reserves.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	126.36B	117.76B	106.37B	92.87B	83.06B	77.16B
Gross Profit	126.36B	117.76B	106.37B	92.87B	83.06B	77.16B
EBITDA	3.20B	3.35B	4.79B	4.81B	4.39B	5.50B
Net Income	1.29B	1.21B	2.49B	2.81B	2.93B	3.37B
Balance Sheet
Total Assets	49.72B	46.48B	47.06B	43.05B	44.36B	34.97B
Cash, Cash Equivalents and Short-Term Investments	22.12B	2.22B	4.69B	5.06B	3.39B	4.67B
Total Debt	12.64B	11.14B	10.21B	9.03B	10.54B	6.06B
Total Liabilities	31.14B	30.03B	30.75B	27.68B	28.25B	21.24B
Stockholders Equity	18.52B	16.38B	16.26B	15.31B	16.08B	13.73B
Cash Flow
Free Cash Flow	1.55B	2.39B	2.98B	3.45B	920.00M	4.67B
Operating Cash Flow	2.04B	2.97B	3.98B	4.59B	2.26B	5.64B
Investing Cash Flow	1.58B	-2.95B	-3.49B	-1.01B	-6.56B	-3.06B
Financing Cash Flow	-3.35B	-2.49B	-856.00M	-1.91B	3.02B	-1.96B

Humana Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 184.10
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HUM, the sentiment is Negative. The current price of 184.1 is below the 20-day moving average (MA) of 213.55, below the 50-day MA of 244.02, and below the 200-day MA of 252.11, indicating a bearish trend. The MACD of -20.97 indicates Positive momentum. The RSI at 28.65 is Positive, neither overbought nor oversold. The STOCH value of 36.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HUM.

Humana Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CI	72 Outperform	$77.85B	13.14	14.40%	2.21%	16.75%	113.48%
HUM	69 Neutral	$22.14B	18.71	6.98%	1.38%	9.87%	-5.58%
UNH	65 Neutral	$265.58B	22.15	―	2.69%	10.48%	24.25%
ELV	65 Neutral	$76.54B	13.76	13.29%	1.99%	11.96%	-11.11%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CNC	51 Neutral	$19.95B	-2.98	-28.79%	―	14.92%	-286.72%
MOH	48 Neutral	$6.97B	15.82	11.02%	―	13.71%	-18.02%

Humana Corporate Events

Humana Announces Leadership Changes Effective January 2026

On December 16, 2025, Humana announced the retirement of George Renaudin, Insurance Segment President, by Q3 2026 after a 29-year career. Aaron Martin will join as President of Medicare Advantage in January 2026 and succeed Renaudin as Insurance Segment President. John Barger will become President of Medicare Advantage. These leadership changes aim to strengthen Humana’s operations and continue its focus on value-based care and shareholder value creation.

The most recent analyst rating on (HUM) stock is a Hold with a $282.00 price target. To see the full list of analyst forecasts on Humana stock, see the HUM Stock Forecast page.

Humana Reaffirms Earnings Guidance for December 2025

Humana Inc. announced that its senior management will meet with investors and analysts throughout December 2025 to reaffirm its earnings guidance for the year. The company projects approximately $12.26 in diluted earnings per share and $17.00 in adjusted earnings per share for FY 2025. This guidance aligns with previous announcements and highlights the company’s focus on providing a comprehensive view of its core operating performance through both GAAP and non-GAAP measures. The reaffirmation of earnings guidance suggests stability in Humana’s financial outlook and operational strategies, potentially impacting stakeholder confidence and market positioning.

The most recent analyst rating on (HUM) stock is a Hold with a $234.00 price target. To see the full list of analyst forecasts on Humana stock, see the HUM Stock Forecast page.

Humana Updates Q3 2025 Financial Results and Guidance

Humana Inc. reported its financial results for the third quarter of 2025, with an EPS of $1.62 on a GAAP basis and $3.24 on an adjusted basis. The company updated its full-year 2025 GAAP EPS guidance to approximately $12.26, while affirming its adjusted EPS guidance of approximately $17.00. Humana also revised its Medicare Advantage membership decline forecast to a smaller decrease of approximately 425,000 members, citing stronger retention and sales. The company is advancing its long-term strategy with growth in CenterWell and Medicaid businesses, and is preparing for new program launches in early 2026.

The most recent analyst rating on (HUM) stock is a Buy with a $326.00 price target. To see the full list of analyst forecasts on Humana stock, see the HUM Stock Forecast page.