HUMCAUTIOUS

Return on Equity (ROE)

6.3%

Updated 606h ago

Sector Performance

25th percentile

HUM

6.3%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates for each dollar of shareholders' equity; a 6.3% ROE means HUM earns $0.063 for every $1 of equity.

This is well below the sector median of 13.8%, placing HUM in the 23rd percentile among its peers, indicating it is less efficient at generating profit from equity than most competitors. The year-over-year change is not available, but the quarter-over-quarter change shows a decline of 6.0% from the prior quarter’s 6.7% ROE. The combination of a low ROE relative to peers and a downward quarterly trend points to higher investment risk, as profitability is both weak and deteriorating. This metric contradicts the overall NEUTRAL verdict, because an ROE far below the sector median and falling suggests the stock may face headwinds that a neutral assessment does not fully capture.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about HUM?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are HUM's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.