NYSE: HUM · Managed Health Care
Humana
Humana, based in Louisville, Kentucky, is a health insurer focused on Medicare. At the end of 2025 it had about 15 million medical members and 4.7 million specialty-product members. Its Insurance segment ($123.8 billion of 2025 external revenue) sells Medicare Advantage, stand-alone Part D, Medicaid (state-based contracts) and military (TRICARE) plans plus a pharmacy benefit manager; individual Medicare Advantage alone was 70.3% of premiums and services revenue. Its CenterWell segment runs primary care, pharmacy and home health services, mostly for Humana's own members. 83% of 2025 premiums and services revenue came from federal government contracts. Revenue rose 10.1% to $129.7 billion in 2025, but higher medical costs cut net income to $1.19 billion (diluted EPS $9.84) from $3.37 billion in 2020. Lower Star Ratings for 2025 reduce its 2026 quality bonus payments from CMS, and Humana is appealing a court ruling against its challenge.
Last updated
Analysis last edited: October 25, 2026 · Financial data fetched: October 25, 2026 09:35 (SEC EDGAR) · Source 10-K filed: February 19, 2026
Built on10-K FY2025 · filed 2026-02-1910-Q (quarter ended 2026-09-30) · filed 2026-11-06Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
01
At a glanceFrom SEC data
Eight headline measures, each placed among the companies covered on this site.
- Revenue growthCAGRSmooths out year-to-year swings into "grew X% a year on average." Makes growth pace comparable across companies of very different sizes.
- 10.9%
- Operating marginOperating marginHow many cents of operating profit are left per dollar of revenue. Reflects pricing power and cost structure.
- 2.1%
- ROIC minus WACCROIC − WACC spreadThe difference between ROIC and WACC. Consistently positive implies value creation; consistently negative implies value destruction.
- -1.1 pts
- Net debt ÷ EBITDAEBITDAOperating income with D&A added back. A rough proxy for cash-generating power that’s less distorted by capital intensity, depreciation method, or financing/tax differences than net income.
- -2.2x
- Cash conversionOperating CF ÷ net income (cash conversion)How much of reported profit shows up as actual cash. 1x or higher means profit is backed by cash.
- 0.78x
- Dividend raisesDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year).
- 0 of 5
- P/E todayP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing.
- 41.8x
- Betaβ (beta)How much a stock moves, on average, for a 1% move in the overall market. Above 1 means more volatile than the market, which raises the return shareholders require. This site computes it from about 2.5 years (roughly 130 weeks) of weekly returns, built from Yahoo Finance daily prices, regressed against an S&P 500 ETF (SPY) as the market proxy, then applies the well-known long-run mean-reversion adjustment (0.67 × β + 0.33) as the WACC default.
- 0.91
Higher than 67% of 372 non-financial companies
Average yearly growth over the years shown
Higher than 8% of 311 non-financial companies
Latest fiscal year (FY2025)
Higher than 24% of 311 non-financial companies
Return on capital above (or below) its estimated cost
Higher than 3% of 304 non-financial companies
Below 0 means more cash than debt
Higher than 3% of 349 non-financial companies
Operating cash flow ÷ net income
Years the dividend per share rose, of the last 5
Latest close 2026-11-04; fiscal FY2025
Above 1 = moves more than the market
Each marker shows where this company sits among the non-financial companies covered on this site, not all listed companies (left = lowest, right = highest). A high position is not automatically good — for net debt ÷ EBITDA, higher means more debt. Details and formulas are in the sections below and in How to read this.
02
Valuation todayFrom SEC data
Price-based measures at the latest close, next to the same measures at the last fiscal year-end.
Share price$411.93close on 2026-11-04
Market cap$49.68B
- P/EP/EShare price ÷ EPS — how many years of current earnings the stock price represents. This site uses the period-end figure as reported in the filing. today
- 41.8x
- P/BP/BShare price ÷ book value per share. Below 1x means the market values the company below its accounting net worth. This site uses the closing price nearest the fiscal year-end and highlights sub-1x readings. today
- 2.8x
- EV/EBITDAEV/EBITDAEnterprise value (≈ market cap + interest-bearing debt − cash) as a multiple of EBITDA — roughly, "how many years of EBITDA to buy the whole company." Lower is generally viewed as cheaper, and it’s more comparable than P/E across companies with different debt loads or depreciation policies. This site excludes noncontrolling interests from the EV calculation. today
- 12.4x
- FCF yieldFree cash flow (FCF)Operating CF minus capital expenditures — cash generated by the business after funding its own investment, available for dividends, buybacks, acquisitions, or debt paydown. Acquisitions and securities purchases (also in investing CF) are not subtracted, so FCF can be positive in a year when total investing CF exceeds operating CF. today
- 0.8%
- Dividend yieldDividend per shareTotal annual dividend paid per share (sum of all declared payments for the year). today
- 0.9%
At FY2025 year-end: 26.0x
Earnings: fiscal FY2025
At FY2025 year-end: 1.7x
Book value at FY2025 year-end
At FY2025 year-end: 11.5x
EBITDA for FY2025
At FY2025 year-end: 1.2%
Free cash flow for FY2025
Dividends per share for FY2025
“Today” uses the latest closing price (2026-11-04, Yahoo Finance daily closing prices) and shares outstanding at the last fiscal year-end. The rest of this page — including the financial table and ROIC vs. WACC — uses fiscal year-end prices. These are reference figures, not a judgment of whether the stock is cheap or expensive.
03
What changed since last earningsFrom SEC data
The latest reported quarter against the same quarter a year earlier, the balance sheet against the previous quarter-end, and what management said in its latest earnings release.
Quarter ended Mar 31, 2026.
These figures are behind: a newer quarter was reported on Nov 6, 2026, but SEC's structured data doesn't include it yet. Read the release ↗
- Revenue$32.11B → $39.65B (vs. a year earlier)↑ +23.5%$32.11B → $39.65B (vs. a year earlier)
- Operating margin6.3% → 4.4% (vs. a year earlier)↓ −1.8 pts6.3% → 4.4% (vs. a year earlier)
- Net income$1.24B → $1.19B (vs. a year earlier)↓ −4.7%$1.24B → $1.19B (vs. a year earlier)
- Diluted EPS$10.30 → $9.83 (vs. a year earlier)↓ −4.6%$10.30 → $9.83 (vs. a year earlier)
- Cash$4.2B → $4.95B (vs. previous quarter-end)↑ +17.9%$4.2B → $4.95B (vs. previous quarter-end)
- Long-term debt$12.37B → $12.27B (vs. previous quarter-end)↓ −0.8%$12.37B → $12.27B (vs. previous quarter-end)
Source: Form 10-Q ↗ (SEC XBRL). Long-term debt is the tagged long-term debt figure and leaves out short-term borrowings.
From the earnings release of Jul 29, 2026.
Management outlook → Reaffirmed
Affirmed 2026 adjusted EPS guidance of at least $9.00. Source sentence
Affirms FY 2026 Adjusted EPS guidance of 'at least $9.00'; while revising GAAP EPS guidance to 'at least $6.52' from the previous estimate of 'at least $8.36'
Key changes
Q2 Insurance benefit ratio 91.2%. Source sentence
2Q26 Insurance segment GAAP benefit ratio of 91.2 percent, in line with management's guidance of 'slightly above 91 percent'; affirms full year (FY) 2026 Insurance segment benefit ratio guidance of 92.75 percent, plus or minus 25 basis points
Written by AI. A line appears only if its figures and direction match the quoted sentence, which an automatic check confirms. Companies' outlooks are their own and may not be met. Read the release ↗
04
Company profileFrom SEC dataShow
- Legal name
- HUMANA INC
- Headquarters
- LOUISVILLE, KY
- Incorporated in
- Delaware
- Fiscal year end
- 12/31
- Exchange & ticker
- NYSE: HUM
- Industry
- Managed Health Care
- CIK
- 49071
- Website
- https://www.humana.com/ ↗
Workforce (as of FY2025 year-end)
Employees
67,060
Source: Form 10-K (FY2025) cover page and business description
05
Earnings calendarFrom SEC dataShow
When the company reports each quarter: the quarter-end date, the day results were released, and when the 10-Q or 10-K was filed.
Next report
Q4 FY2026
Quarter end: December 2026. In past years, Q4 results were released 25–42 days after quarter end (Feb 11, 2026; Feb 11, 2025; Jan 25, 2024). No date has been announced in the sources this site uses.
Reporting pattern
- Fiscal year ends around December 31.
- Reports four times a year: three quarterly reports (10-Q) and an annual report (10-K) for Q4.
- Earnings releases came 24–42 days after quarter end over the last 12 quarters.
| Quarter | Quarter ended | Earnings release (8-K) | Report filed (10-Q / 10-K) |
|---|---|---|---|
| Q3 FY2026 | Sep 30, 2026 | Nov 6, 2026 (+37 days) | Nov 6, 2026 10-Q (+37 days) |
| Q2 FY2026 | Jun 30, 2026 | Jul 29, 2026 (+29 days) | Jul 29, 2026 10-Q (+29 days) |
| Q1 FY2026 | Mar 31, 2026 | Apr 29, 2026 (+29 days) | Apr 29, 2026 10-Q (+29 days) |
| Q4 FY2025 | Dec 31, 2025 | Feb 11, 2026 (+42 days) | Feb 19, 2026 10-K (+50 days) |
| Q3 FY2025 | Sep 30, 2025 | Nov 5, 2025 (+36 days) | Nov 5, 2025 10-Q (+36 days) |
| Q2 FY2025 | Jun 30, 2025 | Jul 30, 2025 (+30 days) | Jul 30, 2025 10-Q (+30 days) |
| Q1 FY2025 | Mar 31, 2025 | Apr 30, 2025 (+30 days) | Apr 30, 2025 10-Q (+30 days) |
| Q4 FY2024 | Dec 31, 2024 | Feb 11, 2025 (+42 days) | Feb 20, 2025 10-K (+51 days) |
| Q3 FY2024 | Sep 30, 2024 | Oct 30, 2024 (+30 days) | Oct 30, 2024 10-Q (+30 days) |
| Q2 FY2024 | Jun 30, 2024 | Jul 31, 2024 (+31 days) | Jul 31, 2024 10-Q (+31 days) |
| Q1 FY2024 | Mar 31, 2024 | Apr 24, 2024 (+24 days) | Apr 24, 2024 10-Q (+24 days) |
| Q4 FY2023 | Dec 31, 2023 | Jan 25, 2024 (+25 days) | Feb 15, 2024 10-K (+46 days) |
Source: SEC EDGAR filing history. Release dates are the dates the earnings release was furnished to the SEC on Form 8-K (Item 2.02), which is normally the day results are announced. For a quarter whose 10-Q or 10-K isn’t filed yet, the date is the latest Item 2.02 8-K since the previous report, which may be a preliminary or other results-related update. Fiscal years are labeled by the calendar year in which they end.
06
Flagship products & servicesSite analysis
Insurance
Medicare Advantage
Individual and group Medicare Advantage plans; individual MA was $90,403M of 2025 premiums (70.3% of consolidated premiums and services revenue).
Insurance
Medicare Part D and Medicare Supplement
Stand-alone prescription drug plans ($6,844M) and Medicare Supplement ($1,098M).
Insurance
State-based contracts and military services
Medicaid and dual-eligible plans under state contracts ($14,477M, about 10% of premiums and services revenue) and military services ($1,017M).
CenterWell
CenterWell primary care, pharmacy and home health
Primary care centers, pharmacy solutions and CenterWell Home Health, which the 10-K calls one of the nation’s largest home health providers (locations in 37 states).
From the Form 10-K, FY2025.
U.S., worldwide and country/regional share of flagship products/services
Only shares the company itself states (in its filings or press releases, sometimes citing a research firm) are shown. Scope and timing vary by figure — treat these as approximate.
CenterWell Home Health
U.S. home health
U.S. share
One of the largest
Company-disclosed“…CenterWell Home Health, one of the nation’s largest home health providers…”
Worldwide share
—
Not disclosed
07
Recent strategic focusSite analysis
Recent developments.
2025 results
Revenue $129,664M (+10.1%); income from operations $2,704M; diluted EPS $9.84.
Source: Form 10-K (FY2025)
Q2 2026
Revenue $40,867M versus $32,388M; net income attributable to Humana $694M versus $545M; diluted EPS $5.73.
Source: Form 10-Q (quarter ended 2026-06-30)
Star Ratings litigation
On October 14, 2025 the court rejected Humana’s challenge to its 2025 Star Ratings; Humana appealed to the Fifth Circuit.
Source: Form 10-Q (quarter ended 2026-06-30) — Legal Proceedings and Certain Regulatory Matters
Leadership
Insurance segment president George Renaudin to retire by Q3 2026.
Source: Form 8-K (2025-12-16) — Item 5.02 Insurance segment president to retire
Capex ÷ D&A (FY2025)
0.78x
Below depreciation — investment is being pared back
formulacapital expenditures ÷ depreciation & amortization
e.g.$546M ÷ $698M = 0.78x
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
M&A spend (6-year total)
$5.64B
Latest year: $81M
Cash-flow-statement spending on acquisitions, net of cash acquired
Where the money goes, over time
Unit: $M. Capex went from $964M in FY2020 to $546M in FY2025
- Capex
- M&A spend
formulacapital expenditures ÷ depreciation & amortization
termsCapital expenditures (capex) · Depreciation & amortization (D&A)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
08
Key figures at a glanceFrom SEC data
FY2020–FY2025, 6 years.
Revenue (FY2025)
$129.66B
As reported in the 10-K
Revenue CAGR (5 years)
+10.9%▲favorable
formula(last-period revenue ÷ first-period revenue) ^ (1 ÷ years) − 1
e.g.($129,664M ÷ $77,155M) ^ (1÷5) − 1 = 10.9%
termsCAGR · ^ (exponent) · Revenue (net sales)
Operating margin (FY2025)
2.1%▼caution
-4.4pt vs. 5 years ago
formulaoperating income ÷ revenue × 100
e.g.$2,704M ÷ $129,664M × 100 = 2.1%
ROE (FY2025)
7.0%
6-year average: 15.4%
As reported in the 10-K
P/B (FY2025 end)
1.75x
formulafiscal year-end closing price ÷ book value per share
e.g.$256.13 ÷ $146.42 = 1.75x
Period-end (fiscal year-end) value, not today's P/B
EV/EBITDA (FY2025 end)
11.5x
formula(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization)
e.g.($30,887M + $12,369M − $4,200M) ÷ ($2,704M + $698M) = 11.5x
termsEV/EBITDA · Market capitalization · Interest-bearing debt · EBITDA · Depreciation & amortization (D&A)
Period-end (fiscal year-end) value, not today's multiple
- ▲
Revenue grew +10.9% a year over 5 years (strong growth)
From $77.16B in FY2020 to $129.66B in FY2025. The annualized rate (CAGR) makes it possible to compare growth pace across companies of different sizes.
- ▼
Operating margin declined: 6.5% → 2.1%
How much operating profit is left per $100 of revenue. It moved -4.4 points over 5 years — pricing power, cost control, and product mix all show up here.
- ―
Equity ratio is 36.1% (a middling level)
The share of total assets funded by equity rather than debt. 50%+ is often read as low bankruptcy risk, though the right level varies by industry (real estate and leasing run lower, for instance).
- ▲
Free cash flow was positive in 6 of 6 years
Operating cash flow minus capital expenditures: the cash left over after funding the business’s own investment, available for dividends, buybacks, acquisitions, or debt paydown. A negative year can mean heavy investment, or weak core earnings — worth distinguishing.
- ▲
ROE averaged 15.4% over 6 years (latest: 7.0%)
How much profit was generated on shareholders’ equity. Roughly 10%+ is often cited as solid for a U.S. company, though this varies a lot by industry and capital intensity.
09
Business modelSite analysis
Business Model Canvas
The whole company in nine blocks. Left side: how it delivers (partners, activities, resources, costs). Right side: who it serves and how it earns. Every entry comes from the company’s filings shown on this page.
08 · who helps
Key partners
No partners or suppliers named in the filings.
07 · what it does
Key activities
- Insurance: Medicare Advantage, Part D, Medicare Supplement, Medicaid, specialty and military plans; PBM
- CenterWell: primary care, pharmacy solutions, home solutions
06 · what it draws on
Key resources
- About 67,060 associates
- Provider networks and owned CenterWell clinics, pharmacies and home health operations
- Medicare contracts with CMS renewed annually
02 · why customers buy
Value propositions
- Medicare Advantage plans plus owned primary care (CenterWell), pharmacy and home health.
04 · how it keeps them
Customer relationships
- Annual plan enrollment and ongoing care relationships through its clinics.
03 · how it reaches them
Channels
- Direct and broker sales to beneficiaries; contracts with CMS and state agencies.
01 · who it serves
Customer segments
- Medicare and Medicaid beneficiaries
- CMS and state Medicaid agencies; military service personnel (TRICARE)
09 · where money goes
Cost structure
FY2025, share of revenue ($129.66B)
- Selling, general & administrative11.9%
- Other operating costs (incl. cost of goods sold)86.0%
Operating profit left: 2.1% of revenue. Depreciation & amortization (inside the costs above): $698M. Capital spending: $546M.
Source: Form 10-K income statement and cash-flow statement (SEC XBRL).
05 · how money comes in
Revenue streams
- Individual Medicare Advantage premiums $90,403M
- State-based contracts and other $14,477M
- Group MA $9,014M; stand-alone PDP $6,844M
- CenterWell external revenue $4,816M (2025)
Value propositions, channels and customer relationships: Form 10-K (FY2025)
Collects premiums mainly from the federal government (CMS) to cover Medicare members, and runs owned primary care, pharmacy and home health operations that serve those members.
01 what it draws on
Inputs & resources
- About 67,060 associates
- Provider networks and owned CenterWell clinics, pharmacies and home health operations
- Medicare contracts with CMS renewed annually
02 what it does
Activities
- Insurance: Medicare Advantage, Part D, Medicare Supplement, Medicaid, specialty and military plans; PBM
- CenterWell: primary care, pharmacy solutions, home solutions
03 who it serves
Customers
- Medicare and Medicaid beneficiaries
- CMS and state Medicaid agencies; military service personnel (TRICARE)
04 how money comes in
How it earns
- Individual Medicare Advantage premiums $90,403M
- State-based contracts and other $14,477M
- Group MA $9,014M; stand-alone PDP $6,844M
- CenterWell external revenue $4,816M (2025)
How the business makes money
- 83% of 2025 premiums and services revenue came from federal government contracts; 14% from individual MA contracts in Florida.
- 2025 income from operations: Insurance $1,664M, CenterWell $1,339M, eliminations/corporate −$299M.
- Benefits expense $110.8B, up 10.1%.
Government & regulation around the business
Non-market factors from the company’s filings: what governments and regulators fund, buy, set, approve or restrict, and which part of the flow above each one touches.
Humana depends on CMS contracts for Medicare Advantage.
Government as customer
Government programs and contracts
All material Medicare Advantage contracts with CMS were renewed for 2026.
Supports and constrainsTouches: Customers · How it earnsSource: Form 10-K (FY2025)
Regulated prices & reimbursement
Government reimbursement
Changes to Medicare reimbursement rates could affect its primary care and home health businesses.
Constrains the businessTouches: How it earnsSource: Form 10-K (FY2025)
Revenue by segment (FY2025)
Unit: $M — bar length = revenue, (%) = share of total company revenue
Insurance
123,842 (96%)CenterWell
4,816 (4%)
Source: Form 10-K (FY2025) External revenues. CenterWell also had $17,657M of intersegment revenue (services to Humana members), eliminated in consolidation. Total revenues incl. investment income $129,664M.
10
Contract structureSite analysisShow
Short-term or spot sales carry different earnings quality than long-term or auto-renewing contracts — this shows how the company actually contracts with its customers.
11
Customers & suppliersSite analysis
Who the company sells to and buys from. Companies rarely name either, so named counterparties come only from the company's own filings and press releases; otherwise this lists the concentration figures the 10-K discloses.
Customers
Medicare, Medicaid and military beneficiaries; CMS and state agencies pay most premiums.
Named by the company
- Centers for Medicare and Medicaid Services (CMS) — Federal government contracts were about 83% of 2025 premiums and services revenue, including 14% from individual MA contracts in Florida.Form 10-K (FY2025)
Suppliers
Hospitals, physicians and other providers in Humana’s networks; drug manufacturers through the PBM.
Named by the company
No single supplier is named as material.
12
Competitors & peersSite analysis
Competitors the 10-K names, and the peer group the company itself chose in its proxy statement. Nothing here is this site's own pick.
Humana competes with other health plans, some more established with larger market share and greater resources; physician and practice management companies may compete directly, and its pharmacy competes with drugstores, retailers and mail-order pharmacies. The 10-K names no competitors.
Competitors named in the 10-K
The 10-K names no specific competitors.
Peer group the company chose
2025 compensation peer group (18 companies), from the proxy statement. Peers are companies the board considers comparable — for example when setting executive pay — not necessarily direct competitors.
Managed care, health care services and financial/insurance peers; Walgreens to be removed after going private in August 2025.
- Centenesite ↗
- CVS Healthsite ↗
- Elevance Healthsite ↗
- Molina Healthcaresite ↗
- The Cigna Groupsite ↗
- UnitedHealth Groupsite ↗
- Cencorasite ↗
- Cardinal Healthsite ↗
- DaVitasite ↗
- HCA Healthcaresite ↗
- Labcorpsite ↗
- McKessonsite ↗
- Walgreens Boots Alliancesite ↗
- Aflacsite ↗
- Allstatesite ↗
- MetLifesite ↗
- Progressivesite ↗
- Prudential Financialsite ↗
Company names link to this site’s analysis where one exists; “site ↗” opens the company’s own website.
13
Six years of financialsFrom SEC data
Each chart's axis holds a single unit (never mixing dollars, %, and $/share). The table's per-period header links to the filing the numbers came from.
Revenue over time
Unit: $M
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Profit over time (operating → net)
Unit: $M
- Operating income
- Pretax income
- Net income
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Margins over time
Unit: %
- Operating margin
- Net margin
formulaoperating income ÷ revenue × 100
formulanet income attributable to the company ÷ revenue × 100
Cash flow over time
Unit: $M (below zero = cash went out)
- Operating CF
- Investing CF
- Free CF
formulacash flow from operations − capital expenditures
termsFree cash flow (FCF) · Cash flow from operations (operating CF) · Capital expenditures (capex)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Financial stability & capital efficiency
Unit: %
- Equity ratio
- ROE
formulatotal equity ÷ total assets × 100 (as reported in the 10-K)
termsStockholders’ equity · Total assets
formulanet income ÷ average equity (beginning + ending, ÷2) × 100 (as reported in the 10-K)
termsNet income (attributable to the company) · Stockholders’ equity
Earnings per share (EPS) and dividend per share
Unit: $
- EPS
- Dividend per share
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
| Line item | FY202010-K on EDGAR ↗ | FY202110-K on EDGAR ↗ | FY202210-K on EDGAR ↗ | FY202310-K on EDGAR ↗ | FY202410-K on EDGAR ↗ | FY202510-K on EDGAR ↗ |
|---|---|---|---|---|---|---|
| Income statement ($M) | ||||||
| Revenue | 77,155 | 83,064 | 92,870 | 106,374 | 117,761 | 129,664 |
| Operating income | 4,986 | 3,148 | 3,800 | 4,013 | 2,562 | 2,704 |
| Pretax income | 4,674 | 3,419 | 3,564 | 3,325 | 1,620 | 1,438 |
| Net income (attributable) | 3,367 | 2,933 | 2,806 | 2,489 | 1,207 | 1,188 |
| Revenue growthcalc(this year’s revenue − last year’s revenue) ÷ last year’s revenue × 100 | — | 7.7% | 11.8% | 14.5% | 10.7% | 10.1% |
| Operating margincalcoperating income ÷ revenue × 100 | 6.5% | 3.8% | 4.1% | 3.8% | 2.2% | 2.1% |
| Net margincalcnet income attributable to the company ÷ revenue × 100 | 4.4% | 3.5% | 3.0% | 2.3% | 1.0% | 0.9% |
| Balance sheet ($M) | ||||||
| Total assets | 34,969 | 44,358 | 43,055 | 47,065 | 46,479 | 48,909 |
| Total equity | 13,728 | 16,103 | 15,370 | 16,318 | 16,445 | 17,737 |
| Interest-bearing debtSum of short- and long-term borrowings, notes/bonds payable | 6,060 | 10,541 | 9,034 | 10,213 | 11,144 | 12,369 |
| Equity ratio | 39.3% | 36.3% | 35.6% | 34.6% | 35.2% | 36.1% |
| ROE | 24.5% | 19.7% | 17.9% | 15.8% | 7.4% | 7.0% |
| Cash flow ($M) | ||||||
| Operating CF | 5,639 | 2,262 | 4,587 | 3,981 | 2,966 | 921 |
| Investing CF | -3,065 | -6,556 | -1,006 | -3,492 | -2,952 | 2,273 |
| Financing CF | -1,955 | 3,015 | -1,914 | -856 | -2,487 | -1,215 |
| Free cash flowcalccash flow from operations − capital expenditures | 4,675 | 920 | 3,450 | 2,977 | 2,391 | 375 |
| Cash and equivalents | 4,673 | 3,394 | 5,061 | 4,694 | 2,221 | 4,200 |
| Per share & other | ||||||
| EPS ($) | 25.31 | 22.67 | 22.08 | 20.00 | 9.98 | 9.84 |
| BVPS ($) | 106.53 | 124.84 | 122.51 | 133.05 | 135.73 | 146.42 |
| Dividend per share ($) | 2.43 | 2.73 | 3.06 | 3.44 | 3.54 | 3.54 |
| Payout ratiocalcdividend per share ÷ diluted EPS × 100 | 9.6% | 12.0% | 13.9% | 17.2% | 35.5% | 36.0% |
| P/E (x) | 16.2 | 20.5 | 23.2 | 22.9 | 25.4 | 26.0 |
| EV/EBITDA (x)calc(market cap + interest-bearing debt − cash and equivalents) ÷ (operating income + depreciation & amortization) | 9.8 | 17.9 | 15.1 | 12.8 | 11.6 | 11.5 |
| P/B (x)calcfiscal year-end closing price ÷ book value per share | 3.85 | 3.72 | 4.18 | 3.44 | 1.87 | 1.75 |
P/B and EV/EBITDA use each period’s period-end (fiscal year-end) figures, not the current share price. Figures without a "calc" tag are as reported in the Form 10-K (the consolidated financial statements and, for older years, earlier 10-Ks), pulled automatically from SEC EDGAR. Where a later filing restated a prior period, the restated figure is used.
Last 8 quarters
Three-month figures from 10-Q filings. Change is versus the same quarter a year earlier. Newest quarter on top.
| Quarter ended | Revenue | Operating income | Net income | Diluted EPS |
|---|---|---|---|---|
| 2026-03-31 | $39.65B+23.5% | $1.75B-12.9% | $1.19B-4.7% | $9.83 |
| 2025-12-31 † | $32.52B+11.3% | −$808M | −$796M | — |
| 2025-09-30 | $32.65B+11.1% | $400M-45.1% | $195M-59.4% | $1.62 |
| 2025-06-30 | $32.39B+9.6% | $1.1B-3.8% | $545M-19.7% | $4.51 |
| 2025-03-31 | $32.11B | $2.01B | $1.24B | $10.30 |
| 2024-12-31 † | $29.21B | −$543M | −$693M | — |
| 2024-09-30 | $29.4B | $728M | $480M | $3.98 |
| 2024-06-30 | $29.54B | $1.14B | $679M | $5.62 |
† Fourth quarter = the 10-K’s annual figure minus the first three quarters; quarterly EPS isn’t derived this way because share counts change during the year.
14
Is ROIC above WACC?From SEC data
ROIC (the return on money invested in the business) above WACC (the cost of raising that money) means the company is creating value. WACC is an estimate, so its assumptions can be adjusted below.
ROIC (FY2025)
7.2%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
e.g.$2,704M × (1 − 23.5%) ÷ $28,848M × 100 = 7.2%
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
WACC (this site’s estimate)
8.22%
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
e.g.Equity weight: $30.89B ÷ ($30.89B + $12.37B) = 71.4%
e.g.Debt weight: $12.37B ÷ ($30.89B + $12.37B) = 28.6%
e.g.WACC: 10.0% × 71.4% + 5.1% × (1 − 23.5%) × 28.6% = 8.22%
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
How firm is this? With the equity risk premium ±1 point and beta ±0.2, WACC runs 6.9%–9.8% and ROIC − WACC runs −2.6 to +0.2 points. The sign flips inside this range, so the result depends on the assumptions. This describes the latest year and does not predict future value creation.
WACC 8.22% is this site’s estimate under the assumptions below (not a figure the company has published)
- Risk-free rate
- 4.95% (10-year Treasury, 2026-11-03)
- β
- 0.91 (price-derived adjusted beta, but correlation with the market is low (R² 0.07), so reliability is limited)
- Equity risk premium
- 5.5%
- Cost of equity
- 9.96%
- Cost of debt
- 5.10%
- Tax rate
- 23.5% (effective rate, FY2023–FY2025)
- Capital structure (equity : debt)
- 71% : 29%
ROIC over time, vs. WACC
Unit: % — bars = each period's ROIC, horizontal line = latest WACC. Bars above the line are green, below are red
- ROIC (above WACC)
- ROIC (below WACC)
- WACC 8.22%
formulaoperating income × (1 − tax rate) ÷ invested capital × 100 *invested capital = interest-bearing debt + total equity (average of beginning/ending)
termsOperating income · Effective tax rate · Invested capital · Interest-bearing debt · Total equity
formulacost of equity × equity weight + cost of debt × (1 − tax rate) × debt weight
termsCost of equity · Equity weight (E/(D+E)) · Cost of debt · (1 − tax rate) · Debt weight (D/(D+E)) · Market capitalization
Try different WACC assumptions
β and the equity risk premium are estimates with a real range of plausible values — move the sliders to check whether ROIC > WACC still holds. The risk-free rate starts at the 10-year Treasury yield on 2026-11-03 (U.S. Treasury).
Initial β: 0.91 (price-derived adjusted beta. Raw β 0.86, R² 0.07, 130 weeks)
formula0.67 × β + 0.33 (β = the slope of weekly stock returns regressed on weekly market returns)
e.g.0.67 × 0.861 + 0.33 = 0.907
termsβ (beta)
Period 2024-05-10–2026-11-04, using S&P 500 ETF (SPY) as the market proxy. Source: Yahoo Finance price history.
formularisk-free rate + β × equity risk premium
e.g.5.0% + 0.91 × 5.5% = 10.0%
termsCAPM · Risk-free rate · β (beta) · Equity risk premium (market risk premium)
formulafiscal year-end closing price × shares outstanding (= market cap)
formulainterest expense ÷ interest-bearing debt × 100 (clamped to 0–10%; falls back to the risk-free rate if there’s no debt)
15
What the price implies (DCF)From SEC data
A company's value can be written as its free cash flow divided by (cost of capital − perpetual growth). Working that backwards from the market's valuation shows how much growth the share price assumed — compared here with the company's actual past growth.
Growth the price implies (price on 2026-11-04)
7.3%
Perpetual FCF growth: g = r − FCF ÷ EV = 8.2% − 0.9%
Past FCF growth (FY2020–FY2025)
-39.6%
Compound annual rate, 5 years
Past revenue growth (FY2020–FY2025)
+10.9%
Compound annual rate, 5 years
Inputs (FY2025): free cash flow $375M (operating CF − capex); enterprise value $42.14B = market cap $49.68B (latest close, 2026-11-04) + debt $12.37B − cash and short-term investments $19.9B; r = WACC of 8.2% using this page’s default assumptions (β 0.91, risk-free 5.0%, market premium 5.5%).
Three WACC scenarios
The same calculation under cautious, base and optimistic cost-of-capital assumptions (risk-free rate fixed at the 10-year Treasury yield). Pick one to load it into the sliders below.
Try your own assumptions
V = FCF ÷ (r − g). It starts at the implied growth rate, where the theoretical value equals today’s enterprise value.
Theoretical enterprise value
$41.67B
FCF $375M ÷ (8.2% − 7.3%)
Theoretical ÷ actual enterprise value
0.99x
Below 1x: these assumptions value the business below the market did
How sensitive the answer is
Theoretical ÷ actual enterprise value for each combination of r and g.
| g \ r | 6.2% | 7.2% | 8.2% | 9.2% | 10.2% |
|---|---|---|---|---|---|
| 0% | 0.14x | 0.12x | 0.11x | 0.10x | 0.09x |
| 2% | 0.21x | 0.17x | 0.14x | 0.12x | 0.11x |
| 4% | 0.40x | 0.28x | 0.21x | 0.17x | 0.14x |
| 6% | 4.45x | 0.74x | 0.40x | 0.28x | 0.21x |
| 8% | — | — | 4.45x | 0.74x | 0.40x |
A simplified model for seeing what the market price assumes, not a forecast or a target price. It treats free cash flow as growing at one constant rate forever; the result swings widely with small changes in r and g, and is undefined when g reaches r. Free cash flow here is operating cash flow minus capex, which is after interest — a full DCF of enterprise value would use cash flow before interest. Market cap uses the latest close (2026-11-04) × shares at fiscal year-end; free cash flow and WACC inputs are from the latest fiscal year.
16
Earnings qualityFrom SEC dataShow
The same reported profit can mean different things depending on whether it's backed by cash, driven by the core business, or the result of a one-off item. Four checks below.
- ✓
Operating CF ÷ net income: averages 1.49x
Profit is backed by cash coming in.
- ✓
Accrual ratio (latest): 0.6%
A small share of profit rests on accounting estimates.
- ✓
Core-earnings share (operating income ÷ pretax income): 188%
Most profit comes from core operations.
- ✓
Days sales outstanding: 5 → 8 days
No major slowdown in collecting on sales.
Operating CF vs. net income
Unit: $M — operating CF above net income means profit is backed by cash
- Operating CF
- Net income
formulacash flow from operations ÷ net income attributable to the company
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formula(net income − operating CF) ÷ average total assets × 100
termsNet income (attributable to the company) · Cash flow from operations (operating CF) · Total assets
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Profit bridge (FY2025)
Unit: $M — what moved profit from operating income to net income
- Profit (each stage)
- Pushed profit up
- Pushed profit down
formulaoperating income ÷ income before income taxes × 100
termsOperating income · Income before income taxes (pretax income)
Source: each period's Form 10-K (SEC EDGAR). Latest: filed 2026-02-19
Receivables & inventory days
Unit: days — days grow when receivables or inventory build up faster than sales
- Days sales outstanding
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
Worked examples (latest period)
formulacash flow from operations ÷ net income attributable to the company
e.g.$921M ÷ $1,188M = 0.78x
termsCash flow from operations (operating CF) · Net income (attributable to the company)
formulaoperating income ÷ income before income taxes × 100
e.g.$2,704M ÷ $1,438M × 100 = 188%
termsOperating income · Income before income taxes (pretax income)
formulaaverage receivables (opening + closing ÷ 2) ÷ revenue × 365
e.g.($2,704M + $3,270M) ÷ 2 ÷ $129,664M × 365 = 8 days
formulaaverage inventory (opening + closing ÷ 2) ÷ cost of revenue × 365
termsInventory · Cost of revenue (COGS)
17
Who holds the sharesFrom SEC dataShow
How much of the stock large institutional investors report owning on SEC Form 13F, how much the directors and executive officers hold (and how much of the vote they control), and roughly how much is left for individual investors. Shown next to beta so the holder mix can be read alongside how much the stock swings.
Institutions, insiders and everyone else, 13F holdings as of 2026-06-30
“Everyone else” is what remains after shares reported on Form 13F and shares held by directors and executive officers: mostly individual investors, plus non-insider families or foundations and smaller or foreign institutions. The figures have different dates and 13F reports count some shares twice — read it as an approximate split.
- Held by 13F filers
- 98.7%
- Directors & officers (shares)
- 0.2%
- Everyone else (est.)
- 1.1%
- Directors & officers (voting power)
- 0.2%
- Institutional-ownership rank
- 76 of 416
- Beta (adjusted)
- 0.91
individuals and other non-13F holders
no separate voting figure; shown as shares
1 = most institutional; 18% of covered companies have more
above 1 = swings more than the market
- 118.4M shares reported by 925 13F filers ÷ 120.1M shares outstanding on 2026-03-31. Option positions are excluded.
- Directors and executive officers as a group, from the proxy statement’s beneficial-ownership table; includes shares they can acquire within 60 days.
- A large “everyone else” share can still reflect a family, trust or foundation stake held outside the board; check the proxy statement’s 5% holders.
Sources: SEC Form 13F data set (holdings as of 2026-06-30) · Form DEF 14A filed 2026-03-06 (beneficial ownership table) · Form 10-Q cover page (shares outstanding as of 2026-03-31)
18
Strengths & weaknessesSite analysis
Strengths
1. Scale in Medicare
About 15 million medical members; Medicare products are about 86% of premiums and services revenue (H1 2026).
Evidence: Form 10-Q (quarter ended 2026-06-30)
2. Integrated care assets
CenterWell provides primary care, pharmacy and home health; $17.7B of 2025 revenue came from serving Humana’s own insurance members.
Evidence: Form 10-K (FY2025)
3. Revenue growth
Revenue rose from $77.2B (2020) to $129.7B (2025); Q2 2026 revenue $40.9B versus $32.4B.
Evidence: Form 10-Q (quarter ended 2026-06-30)
Weaknesses
1. Falling margins
Net income fell from $3.37B (2020) to $1.19B (2025) as benefits costs rose.
Evidence: Form 10-K (FY2025)
2. Dependence on one payer
83% of premiums and services revenue came from federal government contracts in 2025.
Evidence: Form 10-K (FY2025)
3. Star Ratings decline
Lower Star Ratings for 2025 reduce 2026 quality bonus payments; Humana lost its court challenge and has appealed.
Evidence: Form 10-K (FY2025)
19
What draws investors to itSite analysis
Why the stock can look attractive to investors — each point paired with what has to hold for it to stay true, and the opposing view. This is this site's analysis, not a recommendation to buy or sell.
P/E (FY2025)
26.0x
Price at fiscal year-end ÷ diluted EPS
Dividend yield (FY2025)
1.38%
Dividends per share ÷ fiscal year-end price
Payout ratio (FY2025)
36%
Dividends per share ÷ diluted EPS
FCF yield (FY2025)
1.2%
(Operating CF − capex) ÷ market cap
1. Medicare growth
Revenue grew strongly with Medicare membership.
- What has to hold
- Medical costs stabilize.
- The other side
- Profit per member has fallen since 2020.
Evidence: Form 10-K (FY2025)
2. Integrated care
CenterWell earns income from primary care, pharmacy and home health.
- What has to hold
- Value-based care improves costs.
- The other side
- Mostly serves Humana’s own members.
Evidence: Form 10-K (FY2025)
20
ResilienceSite analysisShow
How well the company could absorb a bad year: its financial buffer, how its revenue and profit held up in the worst year on record, and what the 10-K says about the business's exposure to shocks. Figures and filing statements only — no overall rating.
1. Financial buffer (FY2025)
Cash & short-term investments ÷ debt due within a year
No debt due
$19.9B vs. $0
Interest coverage (operating income ÷ interest expense)
4.3x
$2.7B vs. $631M
Free cash flow ÷ dividends paid
0.9x
$375M vs. $430M (FCF = operating CF − capex)
2. Worst year in the record, and the recovery
| Figure | Worst year-over-year change | Back to the prior level? |
|---|---|---|
| Revenue | No decline in the record | — |
| Operating income | -36.9% in FY2021 ($4.99B → $3.15B) | Not yet, as of FY2025 |
Covers only the 6 fiscal years on record (FY2020–FY2025), which may not include a full recession — the worst year here isn’t necessarily how the company would fare in a severe downturn.
3. Business resilience (from the 10-K)
Profitable every year
Net income stayed above $1.1B in every year 2020–2025, though it fell from $3.4B to $1.2B.
Source: Form 10-K (FY2025)
21
Legal & regulatory mattersSite analysisShow
Lawsuits, government investigations, enforcement actions and settlements the company discloses — where each stands, what is at stake, and what comes next. From the 10-K's Legal Proceedings and contingencies note, the latest 10-Q, and 8-Ks.
Humana is in several significant disputes with the federal government and shareholders, mostly over Medicare Advantage; it says outcomes could be substantial and cannot estimate losses.
6 open matters (3 flagged as major)
Final RADV Rule challenge
On appealRegulatory proceedingMajorHumana v. HHS
Humana sued HHS in 2023 claiming the Final RADV Rule (risk-adjustment audits) violates the APA. On September 25, 2025 the court vacated the rule; the government appealed to the Fifth Circuit (Humana v Kennedy).
Source: Form 10-Q (quarter ended 2026-06-30) — Legal Proceedings and Certain Regulatory Matters
2025 Star Ratings lawsuit
On appealRegulatory proceedingMajorHumana, Americans for Beneficiary Choice v. HHS, CMS
Humana challenged CMS’s administration of the 2025 Star Ratings; the court rejected the challenge on October 14, 2025 and Humana appealed to the Fifth Circuit. Lower ratings reduce 2026 quality bonus payments.
Source: Form 10-Q (quarter ended 2026-06-30) — Legal Proceedings and Certain Regulatory Matters
DOJ False Claims Act complaint (eHealth qui tam)
PendingEnforcement / sanctionMajorU.S. ex rel. Andrew Shea v. eHealth, Inc., et al.
DOJ intervened in part on May 1, 2025 in a qui tam suit alleging civil violations over non-commission payments Humana made to three call center broker partners and its marketing of MA plans to people under 65; seeks damages and penalties.
Source: Form 10-Q (quarter ended 2026-06-30) — Legal Proceedings and Certain Regulatory Matters
Securities class action and derivative suits
PendingClass actionShareholders v. Humana and officers/directors
In re Humana Inc. Securities Litigation alleges misleading statements July 2022–October 2024 about medical costs, Star Ratings and distribution relationships; parallel derivative suits allege breach of fiduciary duty.
Source: Form 10-Q (quarter ended 2026-06-30) — Legal Proceedings and Certain Regulatory Matters
DOJ risk adjustment information requests
PendingGovernment investigationU.S. Department of Justice
DOJ Civil Division has requested information about Medicare Part C risk adjustment practices; Humana is cooperating.
Source: Form 10-Q (quarter ended 2026-06-30) — Legal Proceedings and Certain Regulatory Matters
TCPA class action
PendingClass actionDavid Elliott v. Humana Inc.
A class was certified in David Elliott v Humana Inc. (Telephone Consumer Protection Act); the Sixth Circuit denied Humana’s petition to appeal on December 30, 2025.
Source: Form 10-Q (quarter ended 2026-06-30) — Legal Proceedings and Certain Regulatory Matters
Company statement: Other proceedings are described as ordinary-course and not expected to be material.
Based on Form 10-Q (quarter ended 2026-06-30) — Legal Proceedings and Certain Regulatory Matters, reviewed 2026-10-25. Routine ordinary-course claims are not listed. “Major” is this site’s judgment of which matters could materially affect results.
22
Risks (including geopolitical)Site analysis
Starting from the 10-K's Risk Factors section, organized by category — geopolitical, currency, raw materials, regulatory, disaster, and more — with impact and likelihood assessed by this site.
Risk map
Vertical = impact on results, horizontal = likelihood. Upper right = most severe. Numbers match the list below (placement is this site’s own assessment).
Likelihood →
"Company disclosure" vs. "this site’s assessment"
The description and mitigation for each risk are this site’s summary of the 10-K’s "Risk Factors" section. Impact and likelihood are this site’s own assessment, not the company’s — where the company discloses its own likelihood assessment, that is noted in the summary.
Impact is judged from how large the affected business is relative to total revenue/profit, and from the risk’s track record of moving results in the past. Likelihood is judged from the filing’s wording and the current business environment (already occurring, or recurring). See the rating criteria.
- 1Law & regulation
Medicare Advantage rates and rules
- Company disclosure (summarized from the 10-K)
- CMS sets MA rates, risk adjustment and Star Ratings; the Final RADV Rule (vacated by a district court) is on appeal at the Fifth Circuit.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood High
- 2Costs & inflation
Medical cost trends
- Company disclosure (summarized from the 10-K)
- Benefits expense rose 10.1% in 2025; higher utilization cuts margins.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood High
- 3Customer/supplier concentration
Government contracts
- Company disclosure (summarized from the 10-K)
- 83% of premiums and services revenue from federal contracts; 14% from individual MA contracts in Florida.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact High / Likelihood Med
- 4Law & regulation
Litigation and investigations
- Company disclosure (summarized from the 10-K)
- Securities class action, derivative suits, DOJ False Claims Act complaint over broker payments, and DOJ requests on risk adjustment practices.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood Med
- 5Competition & technology shift
Competition
- Company disclosure (summarized from the 10-K)
- Some competitors have larger market share and greater financial resources in some markets.
- Company’s stated mitigation
- Not stated in the filings.
- This site’s assessment
- Impact Med / Likelihood High
23
What changed in the risk factorsFrom SEC data
Paragraphs in the latest 10-K's Risk Factors that have little overlap with the year before, and paragraphs that were dropped.
New or substantially reworded (1)
it harder for us to conduct our business using AI/ML, require us to retrain our AI/ML, delete data produced by our AI/ML, or prevent or limit our use of AI/ML. Read more
Our use of AI/ML technologies could also result in additional compliance costs, regulatory investigations, actions, fines or penalties, and consumer or other lawsuits.
No longer in the text (1)
• Our military services business, which accounted for approximately 1% of our total premiums and services revenue for the year ended December 31, 2024, primarily consisted of the TRICARE T2017 East Region contract. Read more
We delivered services under the T2017 East Region contract from commencement on January 1, 2018 through expiration on December 31, 2024. The T2017 East Region contract comprised 32 states and approximately 6 million TRICARE beneficiaries. In December 2022, we were awarded the next generation of TRICARE Managed Care Support Contracts, or T-5, for the updated TRICARE East Region by the Defense Health Agency of the DoD. The T-5 East Region contract commenced on January 1, 2025 and comprises 24 states, and Washington D.C., and approximately 4.6 million beneficiaries. The transition period for the T-5 contract began in January 2024 and overlapped the final year of the T2017…
Matched automatically, quoted as filed, and may include rewording of an existing risk. Compares Item 1A of the 10-K filed Feb 19, 2026 ↗ with the 10-K filed Feb 20, 2025 ↗.
24
What to watch going forwardSite analysis
- 2027 Star Ratings and the Fifth Circuit appeal on 2025 Star Ratings.
- Medical cost trend and benefit ratio.
- Medicare Advantage membership growth.
- RADV rule appeal (Humana v Kennedy).
25
Source documentsShow
This page's financial figures come from the Form 10-Ks listed below. Check the original filings for full detail.
Other sources referenced in the analysis
Last updated
Analysis last edited: October 25, 2026 · Financial data fetched: October 25, 2026 09:35 (SEC EDGAR) · Source 10-K filed: February 19, 2026
Built on10-K FY2025 · filed 2026-02-19Proxy statement (2026)
Next update expectedAfter FY2026’s 10-K is filed (roughly 60–90 days after fiscal year end (sooner for larger filers)), financials and analysis will be refreshed.
This page is this site’s own analysis based on public information, and does not represent Humana’s views. It is not a recommendation to buy or sell any security, and this site does not guarantee the accuracy of any figure or statement here. Always verify against the original source documents before making an investment decision.