HUMHUM
US • —
$397.22
P/E
42.51
PEG
—
FCF Yield
—
Rev Growth YoY
+14.1% YoY
Gross Margin
—
Health Score
5/10
D/E Ratio
0.70
Confidence
MEDIUM
Business Snapshot
Humana Inc. is a health insurance company that primarily operates as a government-sponsored health benefits provider, offering Medicare Advantage, Medicare Part D prescription drug plans, and other health and wellness services. The company operates in the highly regulated U.S. managed healthcare market, where it competes as a major player alongside other large national insurers like UnitedHealth Group. The company's TTM net margin of 0.8% indicates it operates on exceptionally thin margins characteristic of the insurance industry, where pricing and medical cost management are critical.
Financial Health
The net margin (TTM) stands at 0.8%, which is a very thin profit margin typical of managed care companies and leaves little room for error in medical cost assumptions. The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.7x, but a current ratio of 0.01x signals a severe liquidity risk and suggests the company operates with minimal short-term asset coverage for its immediate liabilities...
Risk Assessment
- VALUATION — P/E of 42.51x is nearly double the sector average of 22x, a significant premium with no earnings growth to support it.
- EARNINGS QUALITY — Earnings declined 33.9% year-over-year, indicating a severe deterioration in bottom-line performance that contradicts the high P/E multiple.
- DEBT / LIQUIDITY — Current ratio of 0.01x is critically low, indicating the company has virtually no short-term assets to cover its current liabilities.
- FCF / CASH BURN — Free cash flow is unavailable for analysis, preventing an assessment of the company's ability to generate cash from operations.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
The net margin (TTM) stands at 0.8%, which is a very thin profit margin typical of managed care companies and leaves little room for error in medical cost assumptions. The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.7x, but a current ratio of 0.01x signals a severe liquidity risk and suggests the company operates with minimal short-term asset coverage for its immediate liabilities. Free cash flow data is unavailable, preventing a direct assessment of cash generation or the company's ability to self-fund operations or return capital to shareholders. Return on equity of 6.2% indicates a modest return on shareholders' equity, which is low relative to the sector and the company's leverage. Overall, the financial health is concerning due to the extremely low current ratio and thin net margin, suggesting limited financial flexibility and elevated operational risk for an investor.
- VALUATION — P/E of 42.51x is nearly double the sector average of 22x, a significant premium with no earnings growth to support it. - EARNINGS QUALITY — Earnings declined 33.9% year-over-year, indicating a severe deterioration in bottom-line performance that contradicts the high P/E multiple. - DEBT / LIQUIDITY — Current ratio of 0.01x is critically low, indicating the company has virtually no short-term assets to cover its current liabilities. - FCF / CASH BURN — Free cash flow is unavailable for analysis, preventing an assessment of the company's ability to generate cash from operations. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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