HUMANA INC

HUM

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

About the company

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

Country: United StatesPrice: $386.87Market Cap: $46.5B

Investment snapshot

27%positive consensus

Scored 37d ago

Positive

BUY / PASS

Neutral / negative

2 / 9

NEUTRAL / FAIL

Median fair value

$180.05

-53.5% vs price

Models with upside

1 / 15

Positive margin of safety

Key risk

No clean pass — all 11 investors flag at least one valuation criterion

Framework analysis

Verdict	Meaning
BUY	Positive purchase signal: the framework's buy requirements are met.
PASS	The company clears the framework's checklist or screen, but the framework does not produce a buy signal. For valuation frameworks this often means margin of safety is missing, insufficient, or unavailable; some screen-only frameworks have no intrinsic-value BUY state.
NEUTRAL	Neither a positive nor negative conclusion. It does not mean to hold an existing position.
FAIL	The company does not clear the framework's requirements.
Ranked	Ranked strategies do not use PASS: selected cohort is BUY, outside the cohort is FAIL, and unranked is NEUTRAL.

Scored from 10-K37d ago

Metric	O'Shaughnessy Systematic Factor Composite	Buffett Quality Compounder	Lynch GARP	Pabrai Dhandho Framework	Akre Three-Legged Stool	Munger Quality Focus	Marks Risk-Aware Value	Schloss Asset-Value Discipline	Neff Low-P/E Total Return	Sleep Scale Economies Shared	Templeton Global Bargain Hunter	Ackman Activist Value	Dreman Contrarian Value	Piotroski F-Score	Graham Defensive Value
Verdict	FAIL	FAIL	FAIL	FAIL	FAIL	FAIL	FAIL	NEUTRAL	FAIL	NEUTRAL	FAIL	PASS	PASS	PASS	PASS
Score
Analysis
Intrinsic Value	N/A		N/A					N/A	N/A	N/A				N/A
Margin of Safety	N/A	-152.9%	N/A	-457.2%	+44.9%	-705.0%	-58.2%	N/A	N/A	N/A	-52.5%	-377.7%	-94.3%	N/A	-114.9%
Data As Of	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-25)	10-K (2026-08-24)	10-K (2026-08-24)	10-K (2026-08-23)	10-K (2026-08-23)	10-K (2026-08-23)	10-K (2026-08-23)	10-K (2026-08-23)	10-K (2026-08-23)

Where It Passes

Where It Falls Short

Valuation0% pass✓ 2✗ 22▾
No clean pass — all 11 investors flag at least one valuation criterion
Revenue / market capitalization+2.7911; #775/5203 (top 14.9%)
✗OshaughnessyTop 10% of eligible cross-section
Net income / market capitalization+2.56%; #2380/6251 (top 38.1%)
✗OshaughnessyTop 10% of eligible cross-section
(Operating cash flow - capex) / market capitalization+0.81%; #2407/4487 (top 53.6%)
✗OshaughnessyTop 10% of eligible cross-section
Trailing six-month price return through the evaluation date+123.12%; #280/6203 (top 4.5%)
✓OshaughnessyTop 10% of eligible cross-section
Basic earnings-growth PEG (dividends excluded)P/E 39.3x (growth N/A)
✗Lynch< 1.0 (ideally < 0.5)
P/E or FCF YieldP/E=39.3x, FCF Yield=0.8%
✗PabraiP/E < 15 or FCF Yield > 10%
Valuation ReasonablenessP/E=39.3x, OE Yield=2.9%
✗MungerP/E < 25 or Owner Earnings Yield > 5%
P/B or P/E vs. Historical AverageP/E=39.3x, P/B=2.6x
✗MarksP/E < 15 or P/B < 2.0
Discount to Intrinsic Value-94.3% (IV=$199.10 vs Price=$386.87)
✗Marks>= 20% below intrinsic value
Price / Book Value per Share2.64x
✗SchlossP/B <= 0.80x (app cutoff)✗Templeton< 1.5x✗Dreman< 1.2x
Price / Tangible Book Value per Share6.82x
✗SchlossP/TBV <= 1.00x (app cutoff)
Book Value per Share Change+37.4%
✓SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)
Price / Diluted EPS39.3x
✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)
(EPS CAGR % + Dividend Yield %) / P/E-0.41
✗Neff> 0.7 (Neff's published traditional edge)
Price / EPS39.3x
✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)✗Dreman< 12x
Price vs. Trailing Low223% of trailing low ($173.39)
✗Templeton<= 120% of trailing low (certified split-adjusted live window)
Price / FCF per Share124.4x
✗Ackman<= 25
Price / (CFO / Shares)50.7x
✗Dreman< 8x
Price / 3-yr avg EPS29.1x
✗Graham<= 15x
Price-to-Book Ratio2.6x
✗Graham<= 1.5x
P/E x P/B77.00
✗Graham<= 22.5
Profitability7% pass✓ 6✗ 22▾
13 of 14 flag HUM's profitability — Oshaughnessy, Buffett, Lynch +10 more
Net income / market capitalization+2.56%; #2380/6251 (top 38.1%)
✗OshaughnessyTop 10% of eligible cross-section
Net Income Positive (10+ years)27/28 years positive
✗BuffettPositive every year for 10+ years
ROE (up to 5-year arithmetic mean)13.2%
✗Buffett> 15% arithmetic mean (app rule)
Operating Margin (10-yr trend)2.1% (latest)
✓BuffettStable or rising over 10 years
Free Cash Flow Proxy$1.3B
✓BuffettPositive and growing
Earnings Variance (10-yr CoV)0.83
✗BuffettCoV < 0.3
Retained Earnings Effectiveness
✗Buffett$1 retained -> > $1 market value created
Basic earnings-growth PEG (dividends excluded)P/E 39.3x (growth N/A)
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR-17.2%
✗Lynch15-30% (Fast Grower); > 0% to pass
ROE6.7%
✗Lynch> 15%
Margin of SafetyP/E=39.3x, P/B=2.6x
✗PabraiP/B < 1.5 or P/E < 15
Return on Equity9.8% (3-yr avg)
✗AkreROE > 20% (3-year avg)
Discount to Intrinsic Value-94.3% (IV=$199.10 vs Price=$386.87)
✗Marks>= 20% below intrinsic value
Positive Net Income Frequency27/27 years positive
✓MarksPositive net income in >= 7 of last 10 years
Positive Diluted-EPS Years10/10 years positive
✓Schloss>= 70% positive over 5-10 observed years (app rule)
3-5 Year Diluted EPS CAGR-17.2% over 5 years
✗Neff7%-20% annualized
Revenue growth vs. gross and operating margin trendrevenue up, operating margin 3.8% -> 2.1%
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
5-Year EPS CAGR-17.2% CAGR over 5 years
✗Templeton> 0% (5-year EPS CAGR)
Operating Margin Trend3.8% (2023) -> 2.1% (2025)
✗TempletonNon-negative operating-margin trend over 3 years
Operating Income / Revenue2.1%
✗Ackman>= 15%
Net Income / Shareholders Equity6.7%
✗Ackman>= 15%
Pre-Tax Income / Revenue1.1%
✗Dreman>= 8%
Net Income / Shareholders' Equity6.7%
✗Dreman> 12%
Net Income / Total Assets2.43%
✓PiotroskiROA > 0
ROA Change YoY2.60% -> 2.43% (delta: -0.17%)
✗PiotroskiCurrent ROA > Prior ROA
(CFO / Total Assets) vs ROACFO/Assets=1.88%, ROA=2.43%
✗PiotroskiCFO/Assets > ROA
Positive EPS (10 years)26/28 years positive
✗GrahamPositive EPS every year for 10 years
EPS Growth (3-yr avg, 10-yr window)2358.0%
✓Graham>= 33% growth
Valuation models11% pass✓ 1✗ 8▾
Models split on HUM at $386.87 — fair values range $48.06–$702.02
Buffett fair value$153.00
✗Buffett-152.9% margin vs $386.87
Pabrai fair value$69.43
✗Pabrai-457.2% margin vs $386.87
Akre fair value$702.02
✓Akre+44.9% margin vs $386.87
Munger fair value$48.06
✗Munger-705.0% margin vs $386.87
Marks fair value$244.53
✗Marks-58.2% margin vs $386.87
Templeton fair value$253.71
✗Templeton-52.5% margin vs $386.87
Ackman fair value$80.99
✗Ackman-377.7% margin vs $386.87
Dreman fair value$199.10
✗Dreman-94.3% margin vs $386.87
Graham fair value$180.05
✗Graham-114.9% margin vs $386.87
Efficiency25% pass✓ 1✗ 4▾
3 of 4 flag HUM's efficiency — Akre, Munger and Sleep
ROIC (high and growing)FY2023: ROIC=11.4%; FY2024: ROIC=7.2%; FY2025: ROIC=7.1%
✗AkreLatest 3 consecutive FYs: ROIC > 15% in each
Reinvestment Rate x ROIC4.5% (RR=64% x ROIC=7.1%)
✗AkreReinvestment Rate * ROIC > 10%
Return on Invested Capital7.1%
✗Munger> 15%
ROIC (5-year)0/5 years above 12% (latest 7.1%)
✗SleepROIC > 12% in a majority of years
Revenue / Total Assets Change YoY2.53x -> 2.65x
✓PiotroskiImproved YoY
Verdicts31% pass✓ 4✗ 9▾
Split decision: 9 FAIL · 4 PASS · 2 NEUTRAL
Overall verdict
✗OshaughnessyFAIL (Rank #350/953 (Top 36.7%))✗BuffettFAIL (2/7)✗LynchFAIL (0/6)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MungerFAIL (1/4)✗MarksFAIL (3/5)•SchlossNEUTRAL (5/7)✗NeffFAIL (3/6)•SleepNEUTRAL (4/6)✗TempletonFAIL (3/8)✓AckmanPASS (4/9)✓DremanPASS (4/10)✓PiotroskiPASS (F-Score 4)✓GrahamPASS (3/7)
Growth38% pass✓ 6✗ 6▾
5 of 8 flag HUM's growth — Lynch, Neff, Sleep +2 more
Basic earnings-growth PEG (dividends excluded)P/E 39.3x (growth N/A)
✗Lynch< 1.0 (ideally < 0.5)
3-5 Year EPS CAGR-17.2%
✗Lynch15-30% (Fast Grower); > 0% to pass
Positive Net Income Frequency27/27 years positive
✓MarksPositive net income in >= 7 of last 10 years
3-5 Year Diluted EPS CAGR-17.2% over 5 years
✗Neff7%-20% annualized
Revenue growth vs. gross and operating margin trendrevenue up, operating margin 3.8% -> 2.1%
✗SleepRevenue rising; gross margin flat or falling; operating margin holding
5-year Revenue CAGR10.9%
✓SleepCAGR > 7%
5-Year EPS CAGR-17.2% CAGR over 5 years
✗Templeton> 0% (5-year EPS CAGR)
3yr Median Revenue Growth10.7%
✓Ackman>= 5%
Positive EPS Growth Frequency0/5 years with positive EPS growth
✗AckmanPositive EPS growth in >= 3 of last 5 years
EPS Growth Direction$0.54 (2000) -> $9.84 (2025)
✓DremanPositive over recent years
EPS CAGR12.3% CAGR over 25 years
✓Dreman> 5% annualized
EPS Growth (3-yr avg, 10-yr window)2358.0%
✓Graham>= 33% growth
Cash Flow40% pass✓ 5✗ 7▾
6 of 10 flag HUM's cash flow — Oshaughnessy, Lynch, Pabrai +3 more
(Operating cash flow - capex) / market capitalization+0.81%; #2407/4487 (top 53.6%)
✗OshaughnessyTop 10% of eligible cross-section
Free Cash Flow Proxy$1.3B
✓BuffettPositive and growing
FCF Positive and Growing$375.0M
✗LynchPositive and growing
P/E or FCF YieldP/E=39.3x, FCF Yield=0.8%
✗PabraiP/E < 15 or FCF Yield > 10%
FCF Positive18/18 years FCF positive
✓MarksPositive FCF in majority of recent years
Operating Cash Flow - Capital Expenditures$375.0M
✓Neff> $0 (app proxy for a strong fundamental case)
Positive Operating Cash Flow frequency28/28 years positive
✓SleepPositive OCF in >= 70% of available years
(OCF - CapEx) / Market Cap0.8%
✗Ackman>= 4%
Price / FCF per Share124.4x
✗Ackman<= 25
Price / (CFO / Shares)50.7x
✗Dreman< 8x
Operating Cash Flow$921.0M
✓PiotroskiCFO > 0
(CFO / Total Assets) vs ROACFO/Assets=1.88%, ROA=2.43%
✗PiotroskiCFO/Assets > ROA
Debt & Leverage50% pass✓ 6✗ 6▾
5 of 10 pass — Buffett, Lynch, Akre +2 more object
Debt/Equity & Interest CoverageD/E: 0.70, IC: 4.3x
✗BuffettD/E < 0.5 AND Interest Coverage > 5x
Total Debt / Equity0.70
✗Lynch< 0.33
Cash - Long-term Debt$-8.2B
✗LynchPositive preferred
Debt Levels0.70
✗AkreDebt/Equity < 0.3✗MungerDebt/Equity < 0.5
Interest Coverage & Debt/EBITDAIC=4.3x, D/EBITDA=3.6x
✓MarksInterest Coverage > 3x; Debt/EBITDA < 4x
Total Debt / Shareholders' Equity0.70x
✓SchlossD/E < 1.00x✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓Dreman< 0.8
Current Assets / Current Liabilities2.00x
✓SchlossCurrent ratio >= 1.50x (app cutoff)
Total Debt / Shareholders Equity0.70
✓Ackman<= 1.0
LT Debt / Total Assets Change23.98% -> 25.29%
✗PiotroskiDecreased YoY

Business & financials

Company Profile

Industry: Insurance

SIC Sector: Insurance Carriers

Size: Large Cap($46.5B)

Revenue: $129.7B+10.1% YoY

Net Income: $1.2B-1.6% YoY

Financial Snapshot

Operating Margin2.1%

Return on Equity6.7%

Debt / Equity0.70

Current Ratio2.00

EPS (Diluted)$9.84−1.4% 1y

Buybacks (1y)$151.0M

Buybacks (2y)$968.0M

Shares Retired0.0% / 0.7% 2y

Similar Companies

UNHUNITEDHEALTH GROUP INC

$336.5B

PGRPROGRESSIVE CORP/OH/

$122.2B

CILJFCHINA LIFE INSURANCE CO LTD

$107.4B

MRSHMARSH & MCLENNAN COMPANIES, INC.

$81.3B

Sector-adjusted criteria: Insurer

Insurers file unclassified balance sheets with no inventory or current accounts, so those criteria are omitted rather than failed for missing data. Return-on-invested-capital tests are omitted too: float funds the balance sheet but never appears in invested capital, and the portfolio it is invested in would be subtracted as spare cash. Debt tests are kept — an insurer’s borrowings are real leverage on top of underwriting.

Shareholder Return

Fiscal 2025

Retired 0.0% of shares last year, 0.7% over two.

Buybacks: $151.0M
Dividends: $430.0M

What drove EPS

A buyback raises earnings per share without the company earning more. This splits each year's change into the two.

FY22

−2.6% = −4.3% + 1.8%

FY23

−9.4% = −11.3% + 2.1%

FY24

−50.1% = −51.5% + 2.9%

FY25

−1.4% = −1.6% + 0.2%

Earnings Fewer shares More shares

The two parts do not sum exactly to the total — the difference is the cross-term, plus preferred capital where the company has any. It is left visible rather than distributed into the other two.

Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.

Company Financials

Annual data (10-K) · Last 5 years

Metric	FY 2025	FY 2024	FY 2023	FY 2022	FY 2021
Market Cap	$46.5B	$34.7Best.	$44.5Best.	$61.6Best.	$48.0Best.
Revenue	$129.7B↑10%	$117.8B↑11%	$106.4B↑15%	$92.9B↑12%	$83.1B
Operating Income	$2.7B↑6%	$2.6B↓36%	$4.0B↑6%	$3.8B↑21%	$3.1B
Net Income	$1.2B↓2%	$1.2B↓52%	$2.5B↓11%	$2.8B↓4%	$2.9B
EPS (Diluted)	$9.84↓1%	$9.98↓50%	$20.00↓9%	$22.08↓3%	$22.67
Gross Margin	—	—	—	—	—
Operating Margin	2.1%↓4%	2.2%↓42%	3.8%↓8%	4.1%↑8%	3.8%
ROE	6.7%↓9%	7.4%↓52%	15.3%↓16%	18.3%	18.2%
Total Debt	$12.4B↑6%	$11.7B↑1%	$11.7B↑5%	$11.1B↓11%	$12.5B
Shareholders' Equity	$17.7B↑8%	$16.4B↑1%	$16.3B↑6%	$15.3B↓5%	$16.1B
Current Ratio	2.00↑14%	1.76↑11%	1.59↑4%	1.52↓6%	1.62
Debt / Equity	0.70↓2%	0.72	0.72↓1%	0.73↓6%	0.78
Operating Cash Flow	$921.0M↓69%	$3.0B↓25%	$4.0B↓13%	$4.6B↑103%	$2.3B
Free Cash Flow	$375.0M↓84%	$2.4B↓20%	$3.0B↓14%	$3.5B↑275%	$920.0M

Score history

Historical Score Timeline

Industry peers

Industry Peers

Similar companies in Insurance

HUM vs Peers — Financial Grading

Revenue$129.7BTop 25%

Net Income$1.2BBottom 25%

ROE6.7%Bottom 25%

D/E0.70Median

Op. Margin2.1%Bottom 25%

Curr. Ratio2.00Top 25%

Company	Market Cap	Price	Revenue	Net Income	ROE	D/E	Op. Margin	Curr. Ratio	Graham	Buffett	Lynch	Piotroski	Dreman
UNITEDHEALTH GROUP INCUNH	$336.5B	$374.94	$447.6B	$12.1B	12.0%	0.78	4.2%	0.79	3/7	4/7	0/6	F-Score 6	3/10
PROGRESSIVE CORP/OH/PGR	$122.2B	$210.52	$87.7B	$11.3B	37.3%	0.23	—	—	2/7	2/7	5/6	F-Score 6	8/10
CHINA LIFE INSURANCE CO LTDCILJF	$107.4B	$3.80	—	—	—	—	—	—	3/7	1/7	3/6	F-Score 5	5/10
MARSH & MCLENNAN COMPANIES, INC.MRSH	$81.3B	$170.42	$27.0B	$4.2B	27.2%	1.28	23.1%	1.10	3/7	3/7	3/6	F-Score 6	5/10
Aon plcAON	$58.5B	$275.90	$17.2B	$3.7B	39.5%	1.63	25.3%	1.11	2/7	4/7	3/6	F-Score 6	3/10
AFLAC INCAFL	$57.0B	$113.66	$17.2B	$3.6B	12.4%	0.29	—	—	3/7	4/7	2/6	F-Score 4	4/10
SUN LIFE FINANCIAL INCSLF	$44.0B	$79.06	$30.6B	$2.6B	14.5%	0.33	—	—	3/7	3/7	2/6	F-Score 6	5/10
HARTFORD INSURANCE GROUP, INC.HIG	$34.8B	$125.85	$28.4B	$3.8B	20.2%	0.23	—	—	4/7	3/7	4/6	F-Score 7	8/10