📊 HUM Key Takeaways
Is Humana Inc. (HUM) a Good Investment?
Humana exhibits solid balance sheet fundamentals and positive cash generation, but faces significant profitability headwinds with declining net income and EPS despite exceptional revenue growth that appears acquisition-driven. The 2122.9% revenue spike without corresponding earnings growth raises concerns about integration challenges and margin compression in core operations.
Humana’s fundamentals show a financially stable but low-margin business: leverage and liquidity look manageable, and interest coverage is strong, but profitability remains thin for the revenue base. Growth quality is questionable because reported revenue surged while net income and EPS declined slightly, and free cash flow conversion was very weak, suggesting the topline expansion is not translating into stronger underlying earnings power.
Humana Inc. Key Strengths (HUM)
- Strong liquidity position with $5.0B cash and 1.77x current ratio supports operational flexibility
- Healthy free cash flow of $1.1B and positive operating cash flow demonstrate underlying business cash generation
- Moderate leverage (0.66x debt/equity) and strong 11.0x interest coverage provide financial stability
- Solid balance sheet support with a 2.00x current ratio, 0.70x debt-to-equity, and strong 17.0x interest coverage
- Positive net income and free cash flow, indicating the business remains profitable and cash-generative despite sector pressure
- Large equity base and moderate ROE/ROA suggest adequate capital support and operational resilience
HUM Stock Risks: Humana Inc. Investment Risks
- Declining net income (-1.2% YoY) and EPS (-1.4% YoY) despite massive revenue increase suggests acquisition integration challenges or margin deterioration
- Very low net margin (3.0%) and operating margin (4.4%) indicate tight profitability with limited operational cushion
- Poor capital efficiency reflected in ROE of 6.4% and ROA of 2.1% below industry standards
- Very thin margins, with 2.1% operating margin and 0.9% net margin, leave limited room for execution mistakes or medical cost pressure
- Poor growth quality as revenue jumped sharply but net income fell 1.2% and diluted EPS fell 1.4%
- Free cash flow is weak relative to revenue, with only a 0.3% FCF margin, which limits financial flexibility if operating conditions worsen
Key Metrics to Watch
- Operating and net margin trends to assess if profitability stabilizes post-integration
- Year-over-year organic revenue growth excluding acquisition effects
- Return on equity trajectory and capital deployment efficiency in coming quarters
- Operating margin and medical cost trend
- Operating cash flow and free cash flow conversion
Humana Inc. (HUM) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.9% FCF margin may limit capital allocation flexibility.
HUM Profit Margin, ROE & Profitability Analysis
HUM vs Healthcare Sector: How Humana Inc. Compares
How Humana Inc. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Humana Inc. Stock Overvalued? HUM Valuation Analysis 2026
Based on fundamental analysis, Humana Inc. shows some fundamental concerns relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Humana Inc. Balance Sheet: HUM Debt, Cash & Liquidity
HUM Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Humana Inc.'s revenue has grown significantly by 91% over the 5-year period, indicating strong business expansion. The most recent EPS of $20.00 reflects profitable operations.
HUM Revenue Growth, EPS Growth & YoY Performance
HUM Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.3B | $1.2B | $9.83 |
| Q3 2025 | $1.1B | $195.0M | $1.62 |
| Q2 2025 | $1.1B | $545.0M | $4.51 |
| Q1 2025 | $1.1B | $741.0M | $6.11 |
| Q3 2024 | $1.0B | $480.0M | $3.98 |
| Q2 2024 | $978.0M | $679.0M | $5.62 |
| Q1 2024 | $999.0M | $741.0M | $6.11 |
| Q3 2023 | $1.0B | $832.0M | $6.71 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Humana Inc. Dividends, Buybacks & Capital Allocation
HUM SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Humana Inc. (CIK: 0000049071)
📋 Recent SEC Filings
❓ Frequently Asked Questions about HUM
What is the AI rating for HUM?
Humana Inc. (HUM) has a Combined AI Grade of B from Claude (B) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are HUM's key strengths?
Claude: Strong liquidity position with $5.0B cash and 1.77x current ratio supports operational flexibility. Healthy free cash flow of $1.1B and positive operating cash flow demonstrate underlying business cash generation. ChatGPT: Solid balance sheet support with a 2.00x current ratio, 0.70x debt-to-equity, and strong 17.0x interest coverage. Positive net income and free cash flow, indicating the business remains profitable and cash-generative despite sector pressure.
What are the risks of investing in HUM?
Claude: Declining net income (-1.2% YoY) and EPS (-1.4% YoY) despite massive revenue increase suggests acquisition integration challenges or margin deterioration. Very low net margin (3.0%) and operating margin (4.4%) indicate tight profitability with limited operational cushion. ChatGPT: Very thin margins, with 2.1% operating margin and 0.9% net margin, leave limited room for execution mistakes or medical cost pressure. Poor growth quality as revenue jumped sharply but net income fell 1.2% and diluted EPS fell 1.4%.
What is HUM's revenue and growth?
Humana Inc. reported revenue of $39.6B.
Does HUM pay dividends?
Humana Inc. pays dividends, with $107.0M distributed to shareholders in the trailing twelve months.
Where can I find HUM SEC filings?
Official SEC filings for Humana Inc. (CIK: 0000049071) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is HUM's EPS?
Humana Inc. has a diluted EPS of $9.83.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is HUM's fundamental grade?
Based on our AI fundamental analysis in June 2026, Humana Inc. has a B grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is HUM stock overvalued or undervalued?
Valuation metrics for HUM: ROE of 6.4% (sector avg: 15%), net margin of 3.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is HUM's AI grade for 2026?
Our dual AI analysis gives Humana Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is HUM's free cash flow?
Humana Inc.'s operating cash flow is $1.3B, with capital expenditures of $121.0M. FCF margin is 2.9%.
How does HUM compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 3.0% (avg: 12%), ROE 6.4% (avg: 15%), current ratio 1.77 (avg: 2).