Humana (HUM) AI Stock Analysis

• Market Cap: $27.57B
• Dividend Yield: 1.21%
• Average Volume (3M): 1.61M
• Price to Earnings (P/E): 21.5
• Beta (1Y): 0.56
• Revenue Growth: 9.87%
• EPS Growth: -5.58%
• Country: US
• Employees: 65,680
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Healthcare Plans
• EPS (TTM): 3.24
• Shares Outstanding: 120,273,070
• 10 Day Avg. Volume: 1,569,398
• 30 Day Avg. Volume: 1,607,260
• 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: 1.60
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 0.35
• Enterprise Value/Ebitda: 13.79
• 1Y Price Target: $293.20
• Price Target Upside: 27.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): 17.06
• Revenue Forecast (FY): $129.09B

• Rating: 63 Neutral
• Price Target: $238.00 ▲(3.84% Upside)

Humana's overall stock score reflects a mixed outlook. The company's strong earnings call and strategic initiatives are positive, but technical indicators and valuation suggest caution. Financial performance shows stable revenue growth but highlights challenges in profitability and cash flow management.

Positive Factors

Revenue Growth

Exceeding revenue expectations indicates strong market demand and effective strategic execution, supporting long-term growth potential.

Operational Efficiency

Investments in AI and outsourcing finance capabilities enhance operational efficiency, reducing costs and improving profitability over time.

Capital Allocation

Strategic asset sales and acquisitions improve capital allocation, enabling investments in core areas and enhancing long-term financial health.

Negative Factors

Profitability Challenges

Declining profit margins indicate rising operational costs, which could pressure long-term profitability if not addressed effectively.

Cash Flow Concerns

Reduced free cash flow growth limits financial flexibility, potentially impacting the company's ability to invest in growth opportunities.

Medicare Advantage Market Uncertainty

Uncertainty in Medicare Advantage growth forecasts could affect strategic planning and revenue projections, posing long-term risks.

Humana Business Overview & Revenue Model

Company Description

Humana Inc. is a leading health and well-being company based in the United States, primarily focused on health insurance products and services. Founded in 1961, the company operates in various sectors, including Medicare, Medicaid, and commercial health insurance. Humana offers a comprehensive range of services, such as health maintenance organization (HMO) plans, preferred provider organization (PPO) plans, and pharmacy services, aimed at improving the health outcomes of its members while managing costs for both consumers and healthcare providers.

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 shows solid revenue growth and a stable balance sheet, but faces challenges in profitability and cash flow management. The company needs to improve 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	20.43B	21.32B	18.94B	16.59B	17.23B
Total Debt	12.61B	11.72B	11.66B	11.13B	12.49B	6.66B
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: 229.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 229.2 is below the 20-day moving average (MA) of 249.86, below the 50-day MA of 264.00, and below the 200-day MA of 257.71, indicating a bearish trend. The MACD of -12.38 indicates Positive momentum. The RSI at 40.31 is Neutral, neither overbought nor oversold. The STOCH value of 43.07 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	$72.52B	11.98	14.65%	1.93%	16.75%	113.48%
ELV	68 Neutral	$73.25B	13.48	12.61%	1.93%	11.96%	-11.11%
UNH	67 Neutral	$289.01B	16.65	18.48%	2.66%	10.48%	24.25%
HUM	63 Neutral	$27.57B	21.48	7.15%	1.21%	9.87%	-5.58%
CNC	61 Neutral	$18.76B	―	-21.93%	―	14.92%	-286.72%
MOH	61 Neutral	$7.47B	9.01	19.71%	―	13.71%	-18.02%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Humana Corporate Events

Humana Reports Strong Q3 2025 Results Amid Strategic Growth

Humana Inc. is a leading health and well-being company that provides insurance services and healthcare solutions through its Humana and CenterWell brands, primarily serving Medicare and Medicaid beneficiaries. In its third-quarter 2025 financial results, Humana reported a GAAP earnings per share (EPS) of $1.62 and an adjusted EPS of $3.24, with year-to-date figures showing a GAAP EPS of $16.43 and an adjusted EPS of $21.10. The company updated its full-year 2025 GAAP EPS guidance to approximately $12.26, down from the previous estimate of $13.77, while maintaining its adjusted EPS guidance at approximately $17.00. Key highlights include a 91.1% insurance segment benefit ratio, aligning with expectations, and a revised Medicare Advantage membership decline forecast, now anticipating a reduction of approximately 425,000 members due to improved retention and sales. Humana is advancing its long-term strategy with growth in its CenterWell and Medicaid businesses, and is preparing for new program launches in Michigan, Illinois, and South Carolina. Looking ahead, Humana remains focused on executing its strategic initiatives and delivering value to its members and investors, despite challenges in the Medicare Advantage market and ongoing regulatory scrutiny.

Humana’s Earnings Call Highlights Strategic Growth Amid Challenges

Humana’s Earnings Call Reflects Positive Performance Amid Challenges

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.

Humana Projects Strong 2025 Earnings Amidst Star Ratings Challenge

Humana Inc. announced its preliminary 2026 Medicare Advantage Star Ratings, revealing that approximately 20% of its members are enrolled in plans rated 4 stars and above, with an average Star rating of 3.61. The company is executing a contract diversification strategy to improve future ratings and expects a higher percentage of members in top-rated plans by 2027. Despite not being satisfied with the 2026 ratings, Humana is confident in its operational improvements and strategic initiatives, anticipating a return to Top Quartile results for the 2027 Star Ratings. Additionally, Humana affirmed its 2025 earnings guidance, projecting approximately $13.77 in GAAP EPS and $17.00 in adjusted EPS, reflecting confidence in its core business operations and strategic planning.

The most recent analyst rating on (HUM) stock is a Hold with a $290.00 price target. To see the full list of analyst forecasts on Humana stock, see the HUM Stock Forecast page.

Humana Reaffirms 2025 Earnings Guidance in September Meeting

In September 2025, Humana Inc.’s senior management will meet with investors and analysts to reaffirm its earnings guidance for the fiscal year ending December 31, 2025. The company projects approximately $13.77 in diluted earnings per share and $17.00 in adjusted earnings per share, consistent with previous guidance. Humana emphasizes the use of adjusted EPS as a comprehensive measure for evaluating its core operating performance, aiding in planning and decision-making.

The most recent analyst rating on (HUM) stock is a Buy with a $325.00 price target. To see the full list of analyst forecasts on Humana stock, see the HUM Stock Forecast page.