NYSE · Healthcare

Humana Inc.

HUM · Healthcare Plans

$237.96

▲ 4.33 (1.85%)

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Mr. Market is currently offering Humana Inc. at $237.96.

The business passes only 3 of 6 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability F

Net Income Margin 0.9%

Fin. Health F

Years to Pay Off Debt 10.4 yrs

Valuation F

Margin of Safety 0.0%

Price-to-Book 1.62x

Cash Flow C

Free Cash Flow $375M

CapEx % of Net Income 46.0%

Owner Earnings $2.6B

3/6

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Metric Explanations

What each dimension measures and where the thresholds come from.

Market Data

Market Cap $28.6B

Enterprise Value $20.5B

P/E (TTM) 25.40

Dividend Yield 1.52%

Exchange NYSE

Key Margins

Gross Profit N/A

Operating Margin N/A

Net Margin 0.9%

Company Info

Sector Healthcare

Industry Healthcare Plans

Employees 67060

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Humana Inc. at $237.96.

The business passes only 3 of 6 of Graham's defensive criteria — well below his required standard.

At $237.96, the stock trades at a 32% premium to its Graham Number of $180.45. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Humana Inc.

Humana Inc. provides medical and specialty insurance products in the United States. It operates in two segments, Insurance and CenterWell. The Insurance segment offers individual Medicare Advantage products, including health insurance benefits, including wellness programs, chronic care management, and care coordination; individual Medicare stand-alone prescription drug products (PDP); group Medicare advantage and Medicare stand-alone PDP; Medicare supplements; specialty and ancillary insurance comprising dental, vision, life and disability; and administrative services to arrange health care services for active-duty and retired military personnel and dependents, as well as pharmacy benefit managers. Its CenterWell segment operates full-service, value-based senior focused primary care centers under the Conviva Senior Primary Care and CenterWell Senior Primary Care brands; a management services organization; CenterWell Home Health, a home health provider; and OneHome, which manages post-acute patient needs, as well as provides pharmacy and hospice solutions. The company was formerly known as Extendicare Inc. and changed its name to Humana Inc. in April 1974. Humana Inc. was founded in 1961 and is headquartered in Louisville, Kentucky.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022
Gross Profit %	N/A •	N/A	N/A	N/A
Operating Margin %	N/A •	N/A	N/A	N/A
Net Income %	0.9% ▼	1.0%	2.3%	3.0%
Diluted EPS	9.84 ▼	9.98	20.00	22.08

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$48.9B	$46.5B	$47.1B	$43.1B	N/A
Total Debt	$12.4B ↑	$11.7B	$11.7B	$11.1B	N/A
Working Capital	N/A •	N/A	N/A	N/A	N/A
Years to Pay Debt	10.41	9.71	4.68	3.97	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$375M ▼	$2.4B	$3.0B	$3.5B	N/A
Owner Earnings	$2.6B	$2.8B	$4.4B	$4.8B	N/A
CapEx % of Net Income	46.0%	47.6%	40.3%	40.5%	N/A

Income Statement

	2025	2024	2023	2022
Tax Effect Of Unusual Items	-11,658	0	0	50,615
Tax Rate For Calcs	0	0	0	0
Total Unusual Items	-67,000	0	0	237,000
Total Unusual Items Excluding Goodwill	-67,000	0	0	237,000
Net Income From Continuing Operation Net Minority Interest	1,188,000	1,207,000	2,489,000	2,806,000
Reconciled Depreciation	824,000	968,000	917,000	845,000
EBIT	2,186,000	2,381,000	3,876,000	3,969,000
Net Interest Income	-631,000	-660,000	-493,000	-401,000
Interest Expense	631,000	660,000	493,000	401,000
Normalized Income	1,243,342	1,207,000	2,489,000	2,619,615
Net Income From Continuing And Discontinued Operation	1,188,000	1,207,000	2,489,000	2,806,000
Total Expenses	128,109,000	116,040,000	102,991,000	89,302,000
Diluted Average Shares	120,826	120,869	124,441	127,094
Basic Average Shares	120,454	120,571	123,866	126,419
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	1,188,000	1,207,000	2,489,000	2,806,000
Net Income Common Stockholders	1,188,000	1,207,000	2,489,000	2,806,000
Net Income	1,188,000	1,207,000	2,489,000	2,806,000
Minority Interests	-15,000	-7,000	5,000	4,000
Net Income Including Noncontrolling Interests	1,203,000	1,214,000	2,484,000	2,802,000
Net Income Continuous Operations	1,203,000	1,214,000	2,484,000	2,802,000
Earnings From Equity Interest Net Of Tax	-102,000	-94,000	-63,000	-4,000
Tax Provision	250,000	413,000	836,000	762,000
Pretax Income	1,555,000	1,721,000	3,383,000	3,568,000
Special Income Charges	-67,000	0	0	237,000
Other Special Charges	67,000			-237,000
Net Non Operating Interest Income Expense	-631,000	-660,000	-493,000	-401,000
Interest Expense Non Operating	631,000	660,000	493,000	401,000
Other Operating Expenses	15,901,000	13,877,000	13,325,000	12,739,000
Depreciation And Amortization In Income Statement	698,000	839,000	779,000	709,000
Total Revenue	129,664,000	117,761,000	106,374,000	92,870,000
Operating Revenue	129,664,000	117,761,000	106,374,000	92,870,000
Loss Adjustment Expense	110,812,000	100,664,000	88,394,000	75,690,000
Net Policyholder Benefits And Claims	110,812,000	100,664,000	88,394,000	75,690,000

Balance Sheet

	2025	2024	2023	2022	2021
Treasury Shares Number	78,128	78,077	76,466	73,692
Ordinary Shares Number	120,591	120,642	122,224	124,975
Share Issued	198,719	198,719	198,690	198,667
Net Debt	8,169,000	9,500,000	6,962,000	6,065,000
Total Debt	12,369,000	11,721,000	11,656,000	11,126,000
Tangible Book Value	6,843,000	5,302,000	5,019,000	4,404,000
Invested Capital	30,026,000	28,096,000	27,918,000	26,437,000
Net Tangible Assets	6,843,000	5,302,000	5,019,000	4,404,000
Common Stock Equity	17,657,000	16,375,000	16,262,000	15,311,000
Total Capitalization	30,026,000	27,519,000	26,475,000	23,246,000
Total Equity Gross Minority Interest	17,737,000	16,445,000	16,318,000	15,370,000
Minority Interest	80,000	70,000	56,000	59,000
Stockholders Equity	17,657,000	16,375,000	16,262,000	15,311,000
Gains Losses Not Affecting Retained Earnings	-633,000	-1,067,000	-999,000	-1,304,000
Other Equity Adjustments	-633,000	-1,067,000	-999,000	-1,304,000
Treasury Stock	14,418,000	14,371,000	13,658,000	12,156,000
Retained Earnings	29,075,000	28,317,000	27,540,000	25,492,000
Additional Paid In Capital	3,600,000	3,463,000	3,346,000	3,246,000
Capital Stock	33,000	33,000	33,000	33,000
Common Stock	33,000	33,000	33,000	33,000
Total Liabilities Net Minority Interest	31,172,000	30,034,000	30,747,000	27,685,000
Non Current Deferred Liabilities	356,000	260,000	266,000	286,000
Non Current Deferred Revenue	356,000	260,000	266,000	286,000
Long Term Debt And Capital Lease Obligation	12,369,000	11,144,000	10,213,000	7,935,000
Long Term Debt	12,369,000	11,144,000	10,213,000	7,935,000
Current Debt And Capital Lease Obligation	0	577,000	1,443,000	3,191,000
Current Debt	0	577,000	1,443,000	3,191,000
Other Current Borrowings			0	500,000	326,000
Commercial Paper		0	871,000	595,000	955,000
Current Notes Payable	0	577,000	572,000	2,096,000
Payables And Accrued Expenses	15,990,000	16,102,000	17,163,000	14,800,000
Payables	15,990,000	16,102,000	17,163,000	14,800,000
Other Payable	306,000	403,000	353,000	298,000
Accounts Payable	15,684,000	15,699,000	16,810,000	14,502,000
Total Assets	48,909,000	46,479,000	47,065,000	43,055,000
Investments And Advances	16,834,000	19,332,000	17,748,000	15,010,000
Long Term Equity Investment	638,000	697,000	740,000	749,000
Investments In Other Ventures Under Equity Method	638,000	697,000	740,000	749,000
Goodwill And Other Intangible Assets	10,814,000	11,073,000	11,243,000	10,907,000
Other Intangible Assets	1,128,000	1,442,000	1,693,000	1,765,000
Goodwill	9,686,000	9,631,000	9,550,000	9,142,000
Net PPE	2,231,000	2,532,000	3,030,000	3,221,000
Receivables	3,270,000	2,704,000	2,035,000	1,674,000
Accounts Receivable	3,270,000	2,704,000	2,035,000	1,674,000
Cash Cash Equivalents And Short Term Investments	19,903,000	20,435,000	21,320,000	18,942,000
Other Short Term Investments	15,703,000	18,214,000	16,626,000	13,881,000
Cash And Cash Equivalents	4,200,000	2,221,000	4,694,000	5,061,000

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	375,000	2,391,000	2,977,000	3,450,000
Repurchase Of Capital Stock	-151,000	-817,000	-1,573,000	-2,096,000
Repayment Of Debt	-1,050,000	-2,014,000	-2,432,000	-3,376,000
Issuance Of Debt	1,481,000	2,282,000	2,910,000	1,982,000
Capital Expenditure	-546,000	-575,000	-1,004,000	-1,137,000
Interest Paid Supplemental Data	628,000	584,000	394,000	354,000
Income Tax Paid Supplemental Data	231,000	506,000	903,000	758,000
End Cash Position	4,200,000	2,221,000	4,694,000	5,061,000
Beginning Cash Position	2,221,000	4,694,000	5,061,000	3,394,000
Changes In Cash	1,979,000	-2,473,000	-367,000	1,667,000
Financing Cash Flow	-1,215,000	-2,487,000	-856,000	-1,914,000
Cash Flow From Continuing Financing Activities	-1,215,000	-2,487,000	-856,000	-1,914,000
Net Other Financing Charges	-1,285,000	-1,925,000	670,000	1,968,000
Proceeds From Stock Option Exercised					21,000
Cash Dividends Paid	-430,000	-431,000	-431,000	-392,000
Common Stock Dividend Paid	-430,000	-431,000	-431,000	-392,000
Net Common Stock Issuance	-151,000	-817,000	-1,573,000	-2,096,000
Common Stock Payments	-151,000	-817,000	-1,573,000	-2,096,000
Net Issuance Payments Of Debt	431,000	268,000	478,000	-1,394,000
Net Short Term Debt Issuance	-102,000	-857,000	266,000	-376,000
Short Term Debt Payments	-102,000	-907,000	-100,000	-376,000
Short Term Debt Issuance	0	50,000	366,000	0
Net Long Term Debt Issuance	533,000	1,125,000	212,000	-1,018,000
Long Term Debt Payments	-948,000	-1,107,000	-2,332,000	-3,000,000
Long Term Debt Issuance	1,481,000	2,232,000	2,544,000	1,982,000
Investing Cash Flow	2,273,000	-2,952,000	-3,492,000	-1,006,000
Cash Flow From Continuing Investing Activities	2,273,000	-2,952,000	-3,492,000	-1,006,000
Net Other Investing Changes	-220,000	-468,000
Net Investment Purchase And Sale	2,982,000	-1,827,000	-2,465,000	-2,250,000
Sale Of Investment	9,422,000	6,358,000	5,087,000	3,799,000
Purchase Of Investment	-6,440,000	-8,185,000	-7,552,000	-6,049,000
Net Business Purchase And Sale	34,000	-89,000	-233,000	2,364,000
Sale Of Business	115,000	0	0	2,701,000
Purchase Of Business	-81,000	-89,000	-233,000	-337,000
Net PPE Purchase And Sale	-523,000	-568,000	-794,000	-1,120,000
Sale Of PPE	23,000	7,000	210,000	17,000
Purchase Of PPE	-546,000	-575,000	-1,004,000	-1,137,000
Operating Cash Flow	921,000	2,966,000	3,981,000	4,587,000
Cash Flow From Continuing Operating Activities	921,000	2,966,000	3,981,000	4,587,000
Change In Working Capital	-1,797,000	154,000	81,000	534,000
Change In Other Working Capital	96,000	-6,000	-20,000	32,000
Change In Other Current Liabilities	1,322,000	-373,000	841,000	44,000
Change In Other Current Assets	-2,173,000	1,003,000	-1,318,000	-463,000
Change In Payables And Accrued Expense	-472,000	199,000	915,000	975,000
Change In Payable	-472,000	199,000	915,000	975,000
Change In Account Payable	-472,000	199,000	915,000	975,000
Change In Receivables	-570,000	-669,000	-337,000	-54,000
Other Non Cash Items		108,000	113,000	70,000	40,000
Stock Based Compensation	241,000	207,000	175,000	216,000
Asset Impairment Charge	156,000	437,000	261,000	248,000
Deferred Tax	75,000	-192,000	-167,000	-100,000
Deferred Income Tax	75,000	-192,000	-167,000	-100,000
Depreciation And Amortization	824,000	968,000	917,000	845,000
Amortization Cash Flow	51,000	60,000	67,000	96,000
Amortization Of Intangibles	51,000	60,000	67,000	96,000
Depreciation	773,000	908,000	850,000	749,000
Operating Gains Losses	219,000	70,000	117,000	-28,000
Earnings Losses From Equity Investments	102,000	94,000	63,000	4,000
Gain Loss On Investment Securities	50,000	-24,000	54,000	205,000
Gain Loss On Sale Of Business	67,000	0	0	-237,000
Net Income From Continuing Operations	1,203,000	1,214,000	2,484,000	2,802,000

These metrics estimate what Humana Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$180.45

Margin of Safety

Market Cap ÷ Company Value

1.69

P/B Ratio

1.62

Warren's Owner Earnings

$2.6B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/6 — Speculative Investor

✅ Adequate Size

$129.7B

vs > $1.5B revenue

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

✅ Dividend Record

1.52%

vs Uninterrupted dividends

❌ Earnings Growth

-55.4% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

25.4x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

1.62x P/B (P/E×P/B: 41.1)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

N/A

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

N/A

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	46.0%	47.6%	40.3%	40.5%	N/A
Repurchase of Capital Stock	-$151M	-$817M	-$1.6B	-$2.1B	N/A
Free Cash Flow	$375M ▼	$2.4B ▼	$3.0B ▼	$3.5B •	N/A •
Warren's Owner Earnings	$2.6B	$2.8B	$4.4B	$4.8B	N/A

Peers & Industry

No auto-detected peers for Healthcare Plans. You can manually compare HUM against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

0.17%

Low — management has little skin in the game

Return on Equity (ROE)

6.7%

Weak — poor returns on equity

Return on Assets (ROA)

2.4%

Fair — average asset utilization

Share Buybacks (Latest Year)

$151M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+5.5% YoY

Debt is roughly stable

Leadership Team

James Rechtin

President, CEO & Director

Age 54

Pay: $4,888,934

0.412% of net income

Celeste Marie Mellet

Chief Financial Officer

Age 48

Pay: $8,271,538

0.696% of net income

Sanjay Shetty ,

President of CenterWell

Age 51

Pay: $2,092,624

0.176% of net income

Lisa Stoner

Vice President of Investor Relations

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	11.88%	14,261,860
Dodge & Cox Inc.	9.40%	11,290,435
Blackrock Inc.	8.86%	10,632,797
Capital International Investors	4.85%	5,818,008
Pzena Investment Management LLC	4.56%	5,470,982
State Street Corporation	4.55%	5,462,549
JPMORGAN CHASE & CO	3.83%	4,601,331
Massachusetts Financial Services Co.	3.75%	4,496,775

Risk Analysis

Beta (Market Risk)

0.68

Low volatility — more stable than the market

Short Interest

5.1% of float

Moderate short interest

Debt-to-Equity

0.77x

Conservative balance sheet — low financial risk

Current Ratio

1.77x

Adequate liquidity

52-Week Price Range

Low: $163.11 Current: $237.96 High: $315.35

Currently at 49% of 52-week range

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