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Humana Inc. (HUM) Stock Overview

Market Cap: $20.07B

Humana Inc. provides medical and specialty insurance products in the United States. It operates in two segments, Insurance and CenterWell.

Mar 19, 2026$166.45

1Y -37.7%

Rewards

★Dividend yield of 2.13% with a consistent or growing payout over the past 4 years.
★Trailing P/E of 16.9x is 30% below the historical average of 24.3x — potentially undervalued relative to its own history.
★Altman Z-Score of 4.08 indicates very low bankruptcy risk — the company is firmly in the safe zone.

Risks

⚠Gross margin of 14.5% is low, suggesting a competitive or commodity-like market with limited pricing power.
⚠FCF yield of 6.6% suggests reasonable valuation assuming continued moderate growth.
⚠Free cash flow has declined at a 52.3% CAGR over the past 4 years — a concerning trend.

HUM Key Valuation Metrics

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Free Cash Flow

$1.32B

FCF Yield

6.58%

Trailing P/E

16.92

Forward P/E

10.89

ROIC

-5.92%

ROE

6.70%

Gross Margin

14.54%

PEG Ratio

N/A

Debt / Equity

0.75

Interest Coverage

N/A

Net Debt / EBITDA

-1.86

Dividend Yield

2.13%

HUM Historical Fundamentals

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Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

HUM $1 Retained Earnings Test

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Market Value

$-9.22

created per $1 retained

Market Cap Declined

Earning Power

$-5.00

created per $1 retained

Earning Power Declined

Σ Retained

$3.59B

Δ Market Cap

$-33.12B

Δ Earning Power

$-17.98B

Buffett's "$1 Test": For every $1 retained, how much value did management create?
Market Value = market's verdict (mood-sensitive) · Earning Power = owner earnings / discount rate (mood-independent)

HUM Discounted Cash Flow (DCF) Analysis

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78.4% Margin of Safety

Price is 78.4% below estimated fair value

Current Price: $166.45

Strongly undervalued

Fairly valued

Strongly overvalued

Fair Value: $771.21

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Parameter	Min (Bear)Value	BaseValue	Max (Bull)Value
Initial Cash Flow
Growth Rate (Yr 1-5)	%	%	%
Growth Rate (Yr 6-10)	%	%	%
Terminal Growth Rate	%	%	%
Discount Rate	%	%	%
	Bear Case $389.35 Implied EV: $40.32B	Base Case $771.21 Implied EV: $86.37B	Bull Case $1287.30 Implied EV: $148.61B

Reverse DCF — Market-Implied Growth

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What growth rate is the market pricing in at $166?

-0.1%

Market-Implied Owner Earnings Growth

Standard FCF implies -1.6%

The market implies -0.1% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding -1.6%, reflecting heavy growth investment.

HUM Economic Moat Score

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39/100

No Moat

70+ Wide · 40-69 Narrow · <40 None

No durable moat detected, though revenue predictability shows some competitive positioning. The business lacks consistent evidence of sustainable advantages.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

HUM Forensic Accounting

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-2.27

Unlikely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

HUM Management & Board

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Mr. James A. Rechtin M.B.A.

President, CEO & Director · Age 54

$4.89M

total pay

Ms. Celeste Marie Mellet

Chief Financial Officer · Age 48

$8.27M

total pay

Mr. Japan A. Mehta

Chief Information Officer · Age 44

$5.66M

total pay

Ms. Michelle A. O'Hara

Chief Human Resources Officer · Age 48

$4.08M

total pay

Dr. Sanjay K. Shetty M.B.A., M.D.

President of CenterWell · Age 51

$2.09M

total pay

Mr. John-Paul William Felter

Senior VP, Chief Accounting Officer & Controller · Age 41

Ms. Lisa M. Stoner

Vice President of Investor Relations

Mr. Joseph C. Ventura

Chief Legal Officer · Age 48

$840,359

total pay

Mr. Bruce Dale Broussard

Strategic Advisor · Age 63

$4.06M

total pay

Mr. George Renaudin II

$948,925

@ $256.26 · 2024-12-31

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

HUM Investment Checklist & Notes

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Do I understand this business?

Does it have a durable competitive advantage (moat)?

Is management honest and competent?

Is management allocating capital rationally?

Is the price reasonable (margin of safety)?

Is this within my circle of competence?

Auto-saved • Last updated: 3/20/2026, 4:31:48 AM

Humana Inc. (HUM) Stock Overview

Rewards

Risks

HUM Key Valuation Metrics

HUM Historical Fundamentals

HUM $1 Retained Earnings Test

HUM Discounted Cash Flow (DCF) Analysis

Reverse DCF — Market-Implied Growth

HUM Economic Moat Score

HUM Forensic Accounting

M-Score Trend

HUM Management & Board

HUM Ownership

HUM Insider Buying Activity

HUM Insider Selling Activity

HUM 🎭 Mr. Market's Mood

HUM ⚖️ Buffett Signal

Compare HUM

HUM Investment Checklist & Notes

HUM Insider Buying Activity

HUM Insider Selling Activity

HUM Investment Checklist & Notes