NYSE · Healthcare

Humana Inc.

HUM · Healthcare Plans

$360.65

▼ -1.35 (-0.37%)

Cached · 10 min

Overall Grade

Defensive

Enterprising

Profitability

F⤢

Net Income Margin 3.0%

Fin. Health

F⤢

Years to Pay Off Debt 11.8 yrs

Valuation

F⤢

Margin of Safety 0.0%

Price-to-Book 2.33x

Cash Flow

A⤢

Free Cash Flow $1.1B

CapEx % of Net Income 10.2%

Owner Earnings $1.5B

Cash Flow

Free Cash Flow $1.1B

Operating cash flow minus capital expenditures. Buffett's most important metric — cash a business actually generates for its owners after maintaining and growing its asset base. Consistently positive FCF is one of the strongest indicators of a durable, well-run business regardless of accounting profits.

CapEx % of Net Income 10.2%

Capital expenditure as a share of net income. Low CapEx signals a capital-light business that doesn't need heavy reinvestment to sustain earnings — Buffett's ideal. High CapEx is structurally necessary in manufacturing, airlines, telecoms, and semiconductors. For these industries, a high reading reflects the business model, not poor management.

Owner Earnings $1.5B

Net Income + Depreciation & Amortisation − Capital Expenditures. Buffett's preferred measure of a company's true annual earning power — what could theoretically be distributed to owners without impairing the business. More reliable than reported EPS because it accounts for the capital cost of maintaining the business.

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

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.

Metric Explanations

What each dimension measures and where the thresholds come from.

Market Data

Market Cap $43.3B

Enterprise Value $36.8B

P/E (TTM) 38.41

Dividend Yield 0.98%

Exchange NYSE

Key Margins

Gross Profit N/A

Operating Margin N/A

Net Margin 3.0%

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 $360.65.

The business passes only 2 of 5 of Graham's defensive criteria — well below his required standard.

At $360.65, the stock trades at a 95% premium to its Graham Number of $185.01. 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.

Showing Key Metrics

Income Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Gross Profit %	N/A•	N/A•	N/A
Operating Margin %	N/A•	N/A•	N/A
Net Income %	3.0%▲	-2.4%•	N/A
Diluted EPS	9.83•	N/A•	-5.76

Balance Sheet Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Total Assets	$55.3B	$48.9B	N/A
Total Debt	$14.0B▲	$12.4B•	N/A
Working Capital	N/A•	N/A•	N/A
Years to Pay Debt	11.80	-15.54	N/A

Cash Flow Highlights

Metric	Q1 2026	Q4 2025	Q4 2024
Free Cash Flow	$1.1B▲	-$1.9B•	N/A
Owner Earnings	$1.5B	-$400M	N/A
CapEx % of Net Income	10.2%	N/A	N/A

Income Statement

	2026	2025	2024
Tax Effect Of Unusual Items	0	-985
Tax Rate For Calcs	0	0
Total Unusual Items		-4,000
Total Unusual Items Excluding Goodwill		-4,000
Net Income From Continuing Operation Net Minority Interest	1,186,000	-796,000
Reconciled Depreciation	194,000	194,000
EBIT	1,788,000	-865,000
Net Interest Income	-193,000	-146,000
Interest Expense	193,000	146,000
Normalized Income	1,186,000	-792,985
Net Income From Continuing And Discontinued Operation	1,186,000	-796,000
Total Expenses	38,053,000	33,526,000
Diluted Average Shares	120,652		120,455
Basic Average Shares	120,332		120,455
Diluted EPS	0		0
Basic EPS	0		0
Diluted NI Availto Com Stockholders	1,186,000	-796,000
Net Income Common Stockholders	1,186,000	-796,000
Net Income	1,186,000	-796,000
Minority Interests	2,000	-20,000
Net Income Including Noncontrolling Interests	1,184,000	-776,000
Net Income Continuous Operations	1,184,000	-776,000
Earnings From Equity Interest Net Of Tax	-16,000	-14,000
Tax Provision	395,000	-249,000
Pretax Income	1,595,000	-1,011,000
Special Income Charges		-4,000
Other Special Charges		4,000
Net Non Operating Interest Income Expense	-193,000	-146,000
Interest Expense Non Operating	193,000	146,000
Other Operating Expenses	3,990,000	4,491,000
Depreciation And Amortization In Income Statement	163,000	164,000
Total Revenue	39,648,000	32,515,000
Operating Revenue	39,648,000	32,515,000
Loss Adjustment Expense	33,707,000
Net Policyholder Benefits And Claims	33,707,000	28,721,000

Balance Sheet

	2026	2025	2024
Treasury Shares Number	78,658	78,128
Ordinary Shares Number	120,062	120,591
Share Issued	198,720	198,719
Net Debt	9,042,000	8,169,000
Total Debt	13,993,000	12,369,000
Tangible Book Value	8,091,000	6,843,000
Invested Capital	32,573,000	30,026,000
Net Tangible Assets	8,091,000	6,843,000
Common Stock Equity	18,580,000	17,657,000
Total Capitalization	30,854,000	30,026,000
Total Equity Gross Minority Interest	18,646,000	17,737,000
Minority Interest	66,000	80,000
Stockholders Equity	18,580,000	17,657,000
Gains Losses Not Affecting Retained Earnings	-731,000	-633,000
Other Equity Adjustments	-731,000	-633,000
Treasury Stock	14,516,000	14,418,000
Retained Earnings	30,153,000	29,075,000
Additional Paid In Capital	3,641,000	3,600,000
Capital Stock	33,000	33,000
Common Stock	33,000	33,000
Total Liabilities Net Minority Interest	36,634,000	31,172,000
Non Current Deferred Liabilities	269,000	356,000
Non Current Deferred Revenue	269,000	356,000
Long Term Debt And Capital Lease Obligation	12,274,000	12,369,000
Long Term Debt	12,274,000	12,369,000
Current Debt And Capital Lease Obligation	1,719,000	0
Current Debt	1,719,000	0
Commercial Paper	700,000		0
Current Notes Payable	1,019,000	0
Payables And Accrued Expenses	19,519,000	15,990,000
Payables	19,519,000	15,990,000
Other Payable	297,000	306,000
Accounts Payable	19,222,000	15,684,000
Total Assets	55,280,000	48,909,000
Investments And Advances	18,273,000	16,834,000
Long Term Equity Investment	633,000	638,000
Investments In Other Ventures Under Equity Method	633,000	638,000
Goodwill And Other Intangible Assets	10,489,000	10,814,000
Other Intangible Assets		1,128,000	1,442,000
Goodwill	10,489,000	9,686,000
Net PPE	2,170,000	2,231,000
Receivables	5,218,000	3,270,000
Accounts Receivable	5,218,000	3,270,000
Cash Cash Equivalents And Short Term Investments	21,965,000	19,903,000
Other Short Term Investments	17,014,000	15,703,000
Cash And Cash Equivalents	4,951,000	4,200,000

Cash Flow

	2026	2025	2024
Free Cash Flow	1,133,000	-1,854,000
Repurchase Of Capital Stock	-107,000	-42,000
Repayment Of Debt	-10,000	-279,000
Issuance Of Debt	1,683,000	0
Capital Expenditure	-121,000	-202,000
Interest Paid Supplemental Data	142,000	188,000
Income Tax Paid Supplemental Data		80,000	0
End Cash Position	4,951,000	4,200,000
Beginning Cash Position	4,200,000	5,388,000
Changes In Cash	751,000	-1,188,000
Financing Cash Flow	2,050,000	-168,000
Cash Flow From Continuing Financing Activities	2,050,000	-168,000
Net Other Financing Charges	646,000	178,000
Cash Dividends Paid	-107,000	-109,000
Common Stock Dividend Paid	-107,000	-109,000
Net Common Stock Issuance	-107,000	-42,000
Common Stock Payments	-107,000	-42,000
Net Issuance Payments Of Debt	1,673,000	-274,000
Net Short Term Debt Issuance	693,000	-97,000
Short Term Debt Payments
Short Term Debt Issuance	693,000
Net Long Term Debt Issuance	980,000	-177,000
Long Term Debt Payments	-10,000	-177,000
Long Term Debt Issuance	990,000	0
Investing Cash Flow	-2,553,000	632,000
Cash Flow From Continuing Investing Activities	-2,553,000	632,000
Net Other Investing Changes	55,000	-79,000
Net Investment Purchase And Sale	-1,576,000	966,000
Sale Of Investment	1,318,000	2,208,000
Purchase Of Investment	-2,894,000	-1,242,000
Net Business Purchase And Sale	-911,000	-76,000
Purchase Of Business	-911,000	-76,000
Net PPE Purchase And Sale	-121,000	-179,000
Purchase Of PPE	-121,000	-202,000
Operating Cash Flow	1,254,000	-1,652,000
Cash Flow From Continuing Operating Activities	1,254,000	-1,652,000
Change In Working Capital	-215,000	-1,410,000
Change In Other Working Capital	-87,000	91,000
Change In Other Current Liabilities	452,000	5,000
Change In Other Current Assets	-1,390,000	-799,000
Change In Payables And Accrued Expense	2,724,000	-121,000
Change In Payable	2,724,000	-121,000
Change In Account Payable	2,724,000	-121,000
Change In Receivables	-1,914,000	-586,000
Other Non Cash Items	21,000		32,000
Stock Based Compensation	51,000	48,000
Asset Impairment Charge	2,000	110,000
Depreciation And Amortization	194,000	194,000
Amortization Cash Flow	11,000	8,000
Amortization Of Intangibles	11,000	8,000
Depreciation	183,000	186,000
Operating Gains Losses	17,000	134,000
Earnings Losses From Equity Investments	16,000	14,000
Gain Loss On Investment Securities	1,000	116,000
Gain Loss On Sale Of Business		4,000
Net Income From Continuing Operations	1,184,000	-776,000

📊 Quarterly mode — Graham Fair Value & 7 Criteria require annual data. Switch to Annual for full analysis.

Quarter vs Same Quarter Last Year

YoY strips seasonality

Revenue Growth (YoY)

Prior year: $32.1B ▲ $39.6B +23.5%

Revenue growth vs same quarter last year strips seasonality. Consistent double-digit growth is a Buffett hallmark.

Net Margin

Prior year: 3.9% ▼ 3.0% -0.9pp

Net margin can be distorted by one-time items, tax timing, or interest costs — compare to operating margin for signal quality.

Quarterly Health Checks

3 Graham/Buffett criteria that are valid and reliable on quarterly data

✅ Adequate Size

Graham required scale for resilience. Quarterly revenue × 4 gives an annualised proxy.

$39.6B/qtr (≈$158.6B ann.)

vs > $1.5B annualised revenue

✅ Free Cash Flow

Buffett's most important single metric. A positive FCF quarter means the business generated real cash for owners after maintaining its asset base.

$1.1B

vs Positive

Operating Cash Flow

$1.3B

Latest quarter · Buffett's cash reality check

ROIC

N/A

Based on latest annual operating income

Market Cap / Net Assets

2.3x

Net Assets: $18.6B

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

0.21%

Low — management has little skin in the game

Return on Equity (ROE)

6.4%

Weak — poor returns on equity

Return on Assets (ROA)

2.1%

Fair — average asset utilization

Share Buybacks (Latest Year)

$151M

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+13.1% YoY

Debt is growing — management is leveraging up

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

0.697% 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
Dodge & Cox Inc.	9.48%	11,380,673
Blackrock Inc.	8.49%	10,199,055
Vanguard Capital Management LLC	6.53%	7,838,762
Vanguard Portfolio Management LLC	4.84%	5,808,435
Pzena Investment Management LLC	4.56%	5,470,982
State Street Corporation	4.54%	5,452,992
Massachusetts Financial Services Co.	3.73%	4,482,370
Sessa Capital IM, L.P.	3.10%	3,727,740

Risk Analysis

Beta (Market Risk)

0.77

Low volatility — more stable than the market

Short Interest

5.8% 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: $360.65 High: $380.86

Currently at 91% of 52-week range