Recent News
On September 30, 2025 Humana announced that Humana Healthy Horizons in Kentucky and its Wisconsin Medicaid plans earned four‑star NCQA ratings, with additional state-level improvements noted across Florida, South Carolina and Ohio. The recognition highlights recent Medicaid plan quality gains.
Technical Analysis
Directional indicators (ADX / DI+ / DI-): ADX at 27.27 signals a strong trend environment; DI‑ (29.10) shows past selling pressure but its decreasing trend aligns with DI+ (19.96) rising, indicating sellers have begun to relent and buyers are gaining directional influence. This shift makes a short‑term bullish tilt more likely to affect valuation convergence.
MACD: MACD sits at -5.38 and has been increasing, while the signal line reads -8.09; the MACD has crossed above its signal line, creating a near‑term bullish momentum signal that supports price strength toward short‑term valuation anchors despite the negative absolute MACD level.
MRO: The Momentum/Regression Oscillator reads -22.5 with a peak & reversal. The negative reading implies the market price remains below the target implied by momentum models and therefore carries potential for upward adjustment; the peak & reversal notation warns that recent momentum may have topped and requires confirmation.
RSI and short‑term moving averages: RSI at 46.23 and rising sits below overbought thresholds, leaving room to run. Price at $253.02 trades above the 12‑day EMA ($244.72) and above the 20‑day average ($238.40), but below the 50‑day ($262.53) and 200‑day ($257.48) averages; this structure favors an initial mean‑reversion lift toward the 200/50‑day bands if momentum sustains.
Breadth and volatility context: Bollinger positioning (price above the 1× upper band at $249.45 but inside the 2× band) and subdued 42‑day and 52‑week volatility (~3%) indicate moves can extend without extreme dispersion; 42‑day beta (0.84) and 52‑week beta (0.38) point to below‑market sensitivity, tempering the magnitude of any breakout.
Fundamental Analysis
Earnings: Reported adjusted EPS of $3.24 beat the $2.83 estimate by $0.41, a 14.49% EPS surprise. That beat provides immediate support to near‑term sentiment and helps explain momentum pickup seen in the MACD cross.
Profitability and margins: EBIT totaled $302,000,000 and EBIT margin stands at 0.93%. That EBIT margin sits below the industry peer mean of 6.06% and the industry peer median of 4.33%, and it declined both quarter‑over‑quarter (‑66.64%) and year‑over‑year (‑66.83%). Those margin contractions represent the principal fundamental constraint on valuation expansion.
Revenue and growth: Total revenue reached $32,649,000,000. Reported revenue growth for the period reads 0.81%, with quarter‑over‑quarter revenue down 6.17% and year‑over‑year revenue labeled at ‑266.53% in the supplied file; treat the QoQ and YoY percentage fields as the company’s stated short‑term dynamics. Near‑term top‑line momentum depends on retention and the company’s non‑MA channels such as Medicaid and CenterWell.
Cash flow and balance sheet: Free cash flow of $836,000,000 yields 2.53%, above the industry peer mean free cash flow yield of 1.42%, supporting the company’s capacity to fund strategic initiatives. Cash and short‑term investments total $22.124B against net debt of $7.219B; debt to assets sits at 25.36%, below the industry peer mean of 33.41%, while debt to equity stands at 0.68. Interest coverage reads 1.80, modestly below the industry peer mean of 2.01, leaving limited interest‑service cushion relative to some peers.
Returns and operating efficiency: Return on assets stands at 0.39% and return on equity at 1.05%, both below typical industry averages; asset turnover at 0.65 places Humana above the industry peer mean of 0.30, indicating revenue generation from assets remains relatively efficient even as margins compress.
Operational metrics: Cash conversion cycle ~10 days and receivables turnover ~9.08 reflect healthy working capital execution. Capital expenditure remains modest relative to depreciation (capex to revenue negative in the data), consistent with a primarily services‑based model.
Valuation: The current valuation as determined by WMDST values the stock as under‑valued. That view rests on a combination of above‑peer free cash flow yield and short‑term technical improvement offset by compressed EBIT margins and limited interest coverage; recovery of margins or sustained membership stability would be required to materially re‑rate fundamentals.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-11-05 |
| NEXT REPORT DATE: | 2026-02-04 |
| CASH FLOW | Begin Period Cash Flow | $ 4.0 B |
| Operating Cash Flow | $ 971.0 M | |
| Capital Expenditures | $ -135.00 M | |
| Change In Working Capital | $ 427.0 M | |
| Dividends Paid | $ -107.00 M | |
| Cash Flow Delta | $ 1.3 B | |
| End Period Cash Flow | $ 5.4 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 32.6 B | |
| Forward Revenue | $ 21.2 B | |
| COSTS | ||
| Cost Of Revenue | — | |
| Depreciation | $ 191.0 M | |
| Depreciation and Amortization | $ 204.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 32.5 B | |
| PROFITABILITY | ||
| Gross Profit | — | |
| EBITDA | — | |
| EBIT | $ 302.0 M | |
| Operating Income | — | |
| Interest Income | — | |
| Interest Expense | $ 168.0 M | |
| Net Interest Income | $ -168.00 M | |
| Income Before Tax | $ 134.0 M | |
| Tax Provision | $ -86.00 M | |
| Tax Rate | 21.0 % | |
| Net Income | $ 195.0 M | |
| Net Income From Continuing Operations | $ 194.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 2.83 | |
| EPS Actual | $ 3.24 | |
| EPS Difference | $ 0.41 | |
| EPS Surprise | 14.488 % | |
| Forward EPS | $ 4.21 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 49.7 B | |
| Intangible Assets | $ 9.6 B | |
| Net Tangible Assets | $ 8.9 B | |
| Total Current Assets | — | |
| Cash and Short-Term Investments | $ 22.1 B | |
| Cash | $ 5.4 B | |
| Net Receivables | $ 2.7 B | |
| Inventory | — | |
| Long-Term Investments | — | |
| LIABILITIES | ||
| Accounts Payable | $ 15.6 B | |
| Short-Term Debt | — | |
| Total Current Liabilities | — | |
| Net Debt | $ 7.2 B | |
| Total Debt | $ 12.6 B | |
| Total Liabilities | $ 31.1 B | |
| EQUITY | ||
| Total Equity | $ 18.5 B | |
| Retained Earnings | $ 30.0 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 154.00 | |
| Shares Outstanding | 120.273 M | |
| Revenue Per-Share | $ 271.46 | |
| VALUATION | Market Capitalization | $ 33.1 B |
| Enterprise Value | $ 23.5 B | |
| Enterprise Multiple | — | |
| Enterprise Multiple QoQ | — | |
| Enterprise Multiple YoY | — | |
| Enterprise Multiple IPRWA | — | |
| EV/R | 0.721 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.684 | |
| Asset To Liability | 1.597 | |
| Debt To Capital | 0.405 | |
| Debt To Assets | 0.254 | |
| Debt To Assets QoQ | 1.452 % | |
| Debt To Assets YoY | 1016.065 % | |
| Debt To Assets IPRWA | high: 0.956 mean: 0.334 median: 0.32 HUM: 0.254 low: 0.004 |
|
| Debt To Equity | 0.681 | |
| Debt To Equity QoQ | -1.391 % | |
| Debt To Equity YoY | 952.497 % | |
| Debt To Equity IPRWA | high: 2.466 median: 1.121 mean: 1.099 HUM: 0.681 low: -1.645 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.785 | |
| Price To Book QoQ | 3.076 % | |
| Price To Book YoY | -13.251 % | |
| Price To Book IPRWA | high: 27.592 mean: 3.787 median: 2.571 HUM: 1.785 low: -9.335 |
|
| Price To Earnings (P/E) | 84.83 | |
| Price To Earnings QoQ | 122.249 % | |
| Price To Earnings YoY | 17.585 % | |
| Price To Earnings IPRWA | high: 517.132 HUM: 84.83 mean: 78.184 median: 64.535 low: -80.57 |
|
| PE/G Ratio | -1.755 | |
| Price To Sales (P/S) | 1.012 | |
| Price To Sales QoQ | 3.867 % | |
| Price To Sales YoY | -17.635 % | |
| Price To Sales IPRWA | high: 28.774 mean: 6.715 median: 6.396 HUM: 1.012 low: 0.079 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 63.345 | |
| Forward PE/G | -1.311 | |
| Forward P/S | 1.56 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | -82.359 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.652 | |
| Asset Turnover Ratio QoQ | 2.025 % | |
| Asset Turnover Ratio YoY | 11.089 % | |
| Asset Turnover Ratio IPRWA | high: 0.945 HUM: 0.652 mean: 0.295 median: 0.291 low: 0.001 |
|
| Receivables Turnover | 9.084 | |
| Receivables Turnover Ratio QoQ | 25.699 % | |
| Receivables Turnover Ratio YoY | -3.678 % | |
| Receivables Turnover Ratio IPRWA | HUM: 9.084 high: 7.93 mean: 3.745 median: 2.82 low: 0.147 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 10.045 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 10.045 | |
| Cash Conversion Cycle Days QoQ | — | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 132.972 median: 15.133 mean: 11.668 HUM: 10.045 low: -85.326 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | — | |
| CapEx To Revenue | -0.004 | |
| CapEx To Depreciation | -0.707 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 31.1 B | |
| Net Invested Capital | $ 31.1 B | |
| Invested Capital | $ 31.1 B | |
| Net Tangible Assets | $ 8.9 B | |
| Net Working Capital | — | |
| LIQUIDITY | ||
| Cash Ratio | — | |
| Current Ratio | — | |
| Current Ratio QoQ | — | |
| Current Ratio YoY | — | |
| Current Ratio IPRWA | — | |
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | — | |
| Cost Of Debt | 1.054 % | |
| Interest Coverage Ratio | 1.798 | |
| Interest Coverage Ratio QoQ | -68.572 % | |
| Interest Coverage Ratio YoY | -62.951 % | |
| Interest Coverage Ratio IPRWA | high: 30.491 median: 2.168 mean: 2.009 HUM: 1.798 low: -59.14 |
|
| Operating Cash Flow Ratio | — | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | — | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 1.822 | |
| Dividend Payout Ratio | 0.549 | |
| Dividend Rate | $ 0.89 | |
| Dividend Yield | 0.003 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -1.267 % | |
| Revenue Growth | 0.806 % | |
| Revenue Growth QoQ | -6.17 % | |
| Revenue Growth YoY | -266.529 % | |
| Revenue Growth IPRWA | high: 14.194 % median: 3.999 % mean: 3.131 % HUM: 0.806 % low: -22.095 % |
|
| Earnings Growth | -48.325 % | |
| Earnings Growth QoQ | 5.387 % | |
| Earnings Growth YoY | 20.122 % | |
| Earnings Growth IPRWA | high: 131.373 % mean: -1.471 % median: -11.602 % HUM: -48.325 % low: -234.091 % |
|
| MARGINS | ||
| Gross Margin | — | |
| Gross Margin QoQ | — | |
| Gross Margin YoY | — | |
| Gross Margin IPRWA | — | |
| EBIT Margin | 0.925 % | |
| EBIT Margin QoQ | -66.643 % | |
| EBIT Margin YoY | -66.834 % | |
| EBIT Margin IPRWA | high: 32.526 % mean: 6.062 % median: 4.325 % HUM: 0.925 % low: -105.324 % |
|
| Return On Sales (ROS) | — | |
| Return On Sales QoQ | — | |
| Return On Sales YoY | — | |
| Return On Sales IPRWA | — | |
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 836.0 M | |
| Free Cash Flow Yield | 2.529 % | |
| Free Cash Flow Yield QoQ | -30.996 % | |
| Free Cash Flow Yield YoY | -47.114 % | |
| Free Cash Flow Yield IPRWA | high: 14.006 % HUM: 2.529 % mean: 1.417 % median: 1.231 % low: -24.179 % |
|
| Free Cash Growth | -27.744 % | |
| Free Cash Growth QoQ | -107.109 % | |
| Free Cash Growth YoY | -148.475 % | |
| Free Cash Growth IPRWA | high: 558.205 % mean: -4.036 % HUM: -27.744 % median: -48.314 % low: -423.827 % |
|
| Free Cash To Net Income | 4.287 | |
| Cash Flow Margin | 3.611 % | |
| Cash Flow To Earnings | 6.046 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | 0.39 % | |
| Return On Assets QoQ | -63.755 % | |
| Return On Assets YoY | -59.333 % | |
| Return On Assets IPRWA | high: 7.577 % median: 0.523 % HUM: 0.39 % mean: 0.318 % low: -22.496 % |
|
| Return On Capital Employed (ROCE) | — | |
| Return On Equity (ROE) | 0.011 | |
| Return On Equity QoQ | -64.771 % | |
| Return On Equity YoY | -61.471 % | |
| Return On Equity IPRWA | high: 0.378 mean: 0.015 median: 0.011 HUM: 0.011 low: -0.391 |
|
| DuPont ROE | 1.061 % | |
| Return On Invested Capital (ROIC) | 0.766 % | |
| Return On Invested Capital QoQ | -65.339 % | |
| Return On Invested Capital YoY | -128.434 % | |
| Return On Invested Capital IPRWA | high: 8.725 % HUM: 0.766 % median: 0.601 % mean: 0.593 % low: -22.633 % |
|