Humana AB (HUM) AI Stock Analysis

• Market Cap: kr2.54B
• Dividend Yield: 2.04%
• Average Volume (3M): 120.62K
• Price to Earnings (P/E): 10.4
• Beta (1Y): 0.72
• Revenue Growth: 2.11%
• EPS Growth: 92.69%
• Country: SE
• Employees: 11,127
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Care Facilities
• EPS (TTM): 2.42
• Shares Outstanding: 51,826,057
• 10 Day Avg. Volume: 123,370
• 30 Day Avg. Volume: 120,620
• PEG Ratio: -0.56
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 0.17
• P/FCF Ratio: 2.06
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 4.94
• Revenue Forecast (FY): kr10.13B

• Rating: 71 Outperform
• Price Target: kr52.00 ▲(5.91% Upside)

Humana AB's overall stock score is driven by its strong valuation and positive technical indicators. While the financial performance is stable, challenges in revenue growth and cash flow generation, along with high leverage, are notable risks. The absence of earnings call and corporate events data means the score is primarily influenced by financial performance, technical analysis, and valuation.

Positive Factors

Cash Generation

Strong cash generation capabilities enhance financial flexibility, allowing Humana AB to invest in growth opportunities and manage debt effectively.

Cost Management

Effective cost management supports profitability and competitive pricing, enabling Humana AB to maintain market position and invest in strategic initiatives.

Operational Efficiency

Stable operational efficiency suggests that Humana AB can sustain its service quality and manage its resources effectively, contributing to long-term business stability.

Negative Factors

High Leverage

High leverage can increase financial risk, limiting Humana AB's ability to respond to market changes and invest in growth, potentially impacting long-term financial health.

Declining Revenue Growth

Declining revenue growth may indicate challenges in market expansion or product adoption, potentially affecting Humana AB's competitive position and future earnings.

Low Profitability

Limited profitability can constrain Humana AB's ability to reinvest in the business, affecting long-term growth prospects and shareholder returns.

Humana AB Business Overview & Revenue Model

Company Description

Humana AB (publ) provides individual and family care services for children and adults in Sweden, Finland, Norway, and Denmark. It operates through five segments: Individual & Family, Personal Assistance, Elderly Care, Finland, and Norway segments. The Individual & Family segment provides care and treatment for psychosocial disorders, mental illness, and functional impairment; residential care homes; interim and regular family-based care services; special service housing; outpatient care services; assisted living homes; and specially adapted housing for individuals with functional impairments and special education schools. The Personal Assistance segment offers care services and assistance to individuals with functional impairments. The Elderly Care segment provides elderly care home services. The Finland segment offers individual and family care for children, young people and families with psychiatric diagnoses or psychosocial disorders; special service housing for individuals with functional impairments; elderly care homes; and elderly day care services. The Norway segment provides individual and family care, personal assistance, and special service housing for individuals with functional impairments. The company was founded in 2001 and is headquartered in Stockholm, Sweden.

How the Company Makes Money

Humana AB generates revenue primarily through its health insurance offerings, which include premiums collected from policyholders for various health plans. Additionally, the company earns revenue from government contracts, particularly in the areas of public health and social care. Key revenue streams include individual and group insurance plans, long-term care services, and consultancy services related to health and wellness. The company has formed strategic partnerships with healthcare providers and other stakeholders in the health sector, which help enhance its service offerings and improve operational efficiencies, ultimately contributing to its earnings.

Humana AB Financial Statement Overview

Summary

Humana AB demonstrates stable financial health with strong cash flow generation and efficient cost management. However, high leverage and declining revenue growth are areas of concern. The company should focus on improving profitability and reducing debt to enhance financial stability.

Income Statement

Humana AB's income statement shows mixed results. The TTM gross profit margin is strong at 34.7%, indicating efficient cost management. However, the net profit margin is low at 2.04%, suggesting limited profitability. Revenue growth has declined by 25.9% in the TTM, which is a concern. EBIT and EBITDA margins are moderate, reflecting stable operational efficiency but with room for improvement.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.58, indicating significant leverage which could pose financial risks. Return on equity is modest at 6.77%, showing average profitability from shareholders' investments. The equity ratio is not explicitly calculated but suggests a balanced asset structure.

Cash Flow

Cash flow analysis is positive with a 19.88% growth in free cash flow, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 0.39, showing good cash conversion. The free cash flow to net income ratio of 0.85 suggests efficient cash utilization relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.22B	10.29B	9.65B	9.20B	8.19B	7.77B
Gross Profit	1.25B	896.00M	757.00M	9.14B	8.13B	7.39B
EBITDA	1.13B	1.05B	1.00B	901.00M	892.00M	842.00M
Net Income	237.00M	144.00M	176.00M	210.00M	276.00M	262.00M
Balance Sheet
Total Assets	9.50B	10.63B	10.03B	9.81B	9.00B	8.04B
Cash, Cash Equivalents and Short-Term Investments	298.00M	583.00M	675.00M	690.00M	695.00M	759.00M
Total Debt	4.51B	5.15B	5.02B	5.40B	4.92B	4.27B
Total Liabilities	6.19B	7.33B	7.10B	7.07B	6.45B	5.69B
Stockholders Equity	3.16B	3.16B	2.89B	2.74B	2.55B	2.35B
Cash Flow
Free Cash Flow	732.00M	869.00M	451.00M	442.00M	582.00M	528.00M
Operating Cash Flow	787.00M	869.00M	621.00M	633.00M	689.00M	661.00M
Investing Cash Flow	118.00M	-532.00M	-151.00M	-246.00M	-260.00M	-37.00M
Financing Cash Flow	-1.04B	-434.00M	-457.00M	-424.00M	-521.00M	-667.00M

Humana AB Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 49.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SE:HUM, the sentiment is Positive. The current price of 49.1 is above the 20-day moving average (MA) of 47.38, above the 50-day MA of 46.01, and above the 200-day MA of 41.11, indicating a bullish trend. The MACD of 0.74 indicates Negative momentum. The RSI at 62.85 is Neutral, neither overbought nor oversold. The STOCH value of 79.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SE:HUM.

Humana AB Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
HUM	71 Outperform	kr2.54B	10.44	7.53%	2.04%	2.11%	92.69%
ATT	71 Outperform	kr12.12B	18.29	―	1.49%	2.96%	73.50%
STIL	66 Neutral	kr1.68B	42.25	―	―	13.36%	-20.56%
AMBEA	65 Neutral	€11.11B	17.27	13.39%	1.57%	10.83%	16.24%
CARA	58 Neutral	kr1.88B	-235.78	―	―	―	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
XSPRAY	47 Neutral	kr1.23B	-5.06	-35.03%	―	―	25.14%

Humana AB Corporate Events

Humana AB Expands Share Repurchase Program

Humana AB has increased its holding of own shares to 2,611,036, representing 5% of the total shares, following a repurchase authorization from its 2025 annual general meeting. This strategic move may impact the company’s market positioning and shareholder value by consolidating ownership and potentially influencing stock price dynamics.

Humana AB’s Climate Targets Validated by SBTi

Humana AB has had its climate targets validated by the Science Based Targets initiative, aligning with the Paris Agreement to limit global warming. The company aims to reduce its greenhouse gas emissions significantly by 2030 and achieve net-zero emissions by 2050. This validation marks a significant milestone for Humana, reinforcing its commitment to sustainability and setting a precedent for other companies in the industry.

Humana AB Forms Nomination Committee for 2026 AGM

Humana AB has announced the formation of its Nomination Committee for the 2026 Annual General Meeting, comprising representatives from its four principal shareholders and the Chairman of the Board. This committee is tasked with preparing proposals for the AGM regarding board composition, remuneration, and other governance matters, reflecting Humana’s commitment to structured corporate governance and stakeholder engagement.