Humana Inc. - NYSE:HUM - Comprehensive analysis
We are removing Humana from our Best Ideas list after significantly lowering our fair value estimate since its initial inclusion in 2024. Our original thesis appears increasingly unlikely to materialize, particularly as the company's Medicare business faces heightened regulatory scrutiny. There is now Very High Uncertainty regarding its cash flows, especially in the intermediate term, as the firm works to revitalize its Medicare Advantage business following a surge in utilization that began in late 2023. Additionally, potential clawbacks of overpayments in this sector may arise as regulators aim to address overspending in this critical government program. These factors could negatively impact Humana's financial performance and future prospects.
Free evaluation through quantitative algorithms Humana Inc. - NYSE:HUM
Growth-Scoring Model Detail
Total Revenue Growth Over Prior Year | 10.7 | Market 76 Sector 65 |
Gross Profit Growth Over Prior Year | -4.91 | Market 12 Sector 15 |
EBITDA Growth Over Prior Year | -32.14 | Market 4 Sector 7 |
EBITA Growth Over Prior Year | -33.65 | Market 5 Sector 10 |
EBIT Growth Over Prior Year | -33.99 | Market 6 Sector 11 |
Earnings from Cont. Ops. Growth Over Prior Year | -51.13 | Market 7 Sector 11 |
Net Income Growth Over Prior Year | -51.51 | Market 8 Sector 11 |
Normalized Net Income Growth Over Prior Year | -46.58 | Market 4 Sector 6 |
Diluted EPS before Extra Growth Over Prior Year | -50.1 | Market 7 Sector 10 |
A/R Growth Over Prior Year | 32.9 | Market 96 Sector 86 |
Inventory Growth Over Prior Year | 0 | Market 66 Sector 48 |
PPE Net Growth Over Prior Year | -15.9 | Market 4 Sector 27 |
Total Assets Growth Over Prior Year | -1.25 | Market 28 Sector 46 |
Tangible Book Value Growth Over Prior Year | 5.62 | Market 44 Sector 59 |
Common Equity Growth Over Prior Year | 0.69 | Market 36 Sector 57 |
Cash from Ops. Growth Over Prior Year | -25.5 | Market 12 Sector 18 |
CAPEX Growth Over Prior Year | -42.73 | Market 3 Sector 27 |
Dividend per Share Growth Over Prior Year | 0 | Market 36 Sector 48 |
Levered Free Cash Flow Growth Over Prior Year | 0 | Market 0 Sector 0 |
Unlevered Free Cash Flow Growth Over Prior Year | 0 | Market 0 Sector 0 |
Profitability-Scoring Model Detail
Gross Margin % | 14.52 | Market 12 Sector 31 |
SG&A Margin % | 11.22 | Market 43 Sector 28 |
EBITDA Margin % | 2.85 | Market 3 Sector 61 |
EBITA Margin % | 2.63 | Market 10 Sector 64 |
EBIT Margin % | 2.58 | Market 5 Sector 65 |
Earnings from Cont. Ops Margin % | 1.03 | Market 6 Sector 72 |
Net Income Margin % | 1.02 | Market 6 Sector 72 |
Net Income Avail. for Common Margin % | 1.02 | Market 6 Sector 72 |
Normalized Net Income Margin % | 1.11 | Market 4 Sector 69 |
Levered Free Cash Flow Margin % | -1.11 | Market 12 Sector 30 |
Unlevered Free Cash Flow Margin % | -0.76 | Market 11 Sector 29 |
Return on Assets % | 4.07 | Market 38 Sector 81 |
Return on Capital % | 6.56 | Market 42 Sector 84 |
Return on Equity % | 7.41 | Market 19 Sector 81 |
Return on Common Equity % | 7.4 | Market 19 Sector 82 |
Total Asset Turnover | 2.52 | Market 98 Sector 99 |
