Humana Inc. (HUM) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Humana Inc.

Updated on October 12, 2026 · accounts published on July 29, 2026

Reading of October 9, 2026: Sales keep growing

Humana trades at a P/E of 40.8 over the last 12 months, 106 % above its ten-year median of 19.8 and the highest level of the decade.

• Is Humana expensive or cheap? At a P/E of 40.8, Humana trades 106 % above its ten-year median and 41 % above its sector, the highest in a decade.
• How is the business doing? Revenue grew 10 % over the last 12 months, but the operating margin is 1.4 %, against a 3.9 % average for 2014-2025.
• How strong is the balance sheet? Net debt was $77.77 per share in fiscal 2025, 18 % of the current price and 3.0× EBITDA, above the sector's 2.5× limit.
• Does Humana invest enough in R&D and turn profit into cash? Free cash flow was 32 % of net profit in fiscal 2025, far below the 90 % the health sector considers healthy.
• What to expect from the next earnings? Humana reports on November 6, 2026; analysts expect EPS of −$1.00 for the quarter, after 8 straight beats.

Is Humana expensive or cheap?

Over the last 12 months Humana trades at a P/E of 40.8. That is more than double its ten-year median of 19.8 and the highest weekly reading of the decade, which bottomed at 11.4. The median P/E across 217 health companies is 28.9, so Humana carries a 41 % premium to its sector. The yields agree: 5.0 % in earnings and only 1.6 % in free cash flow. The price explains part of the jump, up 50 % in a year and less than 1 % below its 52-week high of $431.03. Earnings explain the rest, because they have not kept pace.

How is the business doing?

Humana is selling more but keeping less. Revenue rose 10 % over the last 12 months while EPS slipped 1.4 %. The operating margin of 1.4 % sits well below the 3.9 % average of fiscal 2014-2025, and fiscal 2025, at 1.1 %, was the thinnest of those 12 years. The squeeze shows up in returns: ROIC of 4.5 % over the last 12 months is 1.7 points below the sector median of 6.2 %. ROIC has topped 10 % in only 2 of the last 10 fiscal years, and its worst year was 2025, at 3.1 %. With a 0.9 % net margin, there is little room for error.

How strong is the balance sheet?

Debt is manageable, though heavy relative to earnings. In fiscal 2025 net debt came to $77.77 per share ($112.64 of debt minus $34.87 of cash). That equals 18 % of the current price and 3.0× EBITDA, above the 2.5× the health sector treats as healthy. The cushion comes from elsewhere. Over the last 12 months debt-to-equity is 0.74, the current ratio is 1.74 and the Altman Z of 4.1 sits in the safe zone. A Piotroski score of 5 of 9 is middling. The dividend yields 0.8 %, and a 36 % payout in fiscal 2025 means it is comfortably covered.

Does Humana invest enough in R&D and turn profit into cash?

Health analysis leans on these tests because in drugmaking the R&D pipeline is the hidden asset and expiring patents wipe out revenue. Humana fails all seven. In fiscal 2025 R&D was 0.0 % of revenue and gross margin was 14.5 %, against benchmarks of 15 % and 70 % for branded pharma. Those two figures point to a model far from a drug lab. The tests that apply to any business are tougher. EPS fell 17.3 % a year over fiscal 2020-2025, against a healthy 8 % a year of growth. ROIC of 4.5 % trails the 12 % bar, and only 32 % of fiscal 2025 profit became free cash flow.

What to expect from the next earnings?

Humana reports on November 6, 2026, and analysts expect a loss of $1.00 per share for the quarter. Its record is strong: it has beaten EPS estimates in 8 of the last 8 quarters. The most recent beat came on July 29, 2026, with $7.61 against $7.27 expected, a 4.7 % surprise. Full-year expectations are steady. Over the last 27 days the 2026 EPS consensus barely moved, from $9.15 to $9.16 among 16 analysts. Of the 44 analysts covering Humana, 17 rate it a buy, 26 a hold and 1 a sell, a lukewarm stance for a P/E of 40.8.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.