Home Sectors Healthcare Stock Valuation: Humana (NYSE: HUM)

Stock Valuation: Humana (NYSE: HUM)


Humana trades as part of the health care plans industry and is part of the healthcare sector. The company CEO is Bruce D. Broussard. Humana Inc is a health care company that offers insurance products and health and wellness services. Its segments include Retail, Employer Group and Healthcare Services.

Previous Intraday Trading Performance:

The HUM stock showed a previous change of 1.48% with an open at 259.77 and a close of 263.33. It reached an intraday high of 264.93 and a low of 259.77.

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The stock has a market cap of $35.6b with 135.0m shares outstanding, of which the float is 134.0m shares. Trading volume reached 2,329,683 shares compared to its average volume of 1,880,546 shares. Based on the current average volume and close price, the trading liquidity is good.

Historical Trading Performance:

Over the last five trading days, Humana shares returned 5.32% and in the past 30 trading days it returned 3.96%. Over three months, it changed -13.44%. In one year it has changed -9.70% and within that year its 52-week high was 355.88 and its 52-week low was 225.65. HUM stock is 16.70% above its 52 Week Low.

Our calculations show a 200 day moving average of 297.92 and a 50 day moving average of 257.17. Currently HUM stock is trading -11.61% below its 200 day moving average and may not be a good opportunity to buy as it may continue to trend down.

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The last annual fiscal EPS for the company was reported at 12.15 that ended on 31st of December 2018, which according to the previous close, that is a PE of 21.67. Based on 10 analyst estimates, the consensus EPS for the next quarter is 4.29. The TTM EPS is 14.55, which comes to a TTM PE of 18.10. Historically, the PE high was 65.20 and the PE low was 11.80. If the stock reached its PE low, that would represent a price of 171.67, which is a decrease of -34.81%.

Below was the last reported quarterly diluted earnings per share:

1stQtr of 2019 4.16
4thQtr of 2018 2.58
3rdQtr of 2018 4.65
2ndQtr of 2018 1.39
1stQtr of 2018 3.53

The dividend per share is currently 2.20, which is a dividend yield of 0.84%. Also, the payout ratio is 15.12%, therefore the dividend is safe according to our calculations.

Base on our calculations, the intrinsic value per share is 525.87, which means it is possibly undervalued and has a margin of safety of 49.92%.

Indicators to Watch:

Short-interest was 1,299,760, which was 0.96% of shares outstanding. The short-interest ratio or days-to-cover ratio was 1.01. This stock has some short interest, but it may be normal and no cause for concern if long the position.

The current calculated beta is 0.81.

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Fundamental Indicators:

Based on last reported financials, the company’s return on equity is 16.81%, return on assets is 5.69%, profit margin is 2.99%, price-to-sales is 0.60 and price-to-book is 3.28.

Company Scores:

All scores are out of six:
 3  :Valuation Score
 3  :Past Performance Score
 3  :Financial Strength Score
 2  :Future Growth Score
 2  :Dividend Score
 2  :Overall Score

John Jones
Worked for several Wall Street firms: Salomon Smith Barney, UBS, and Charles Schwab. Has developed skills and gained extensive experience over the years that is used today to uncover winning penny stocks.Also was an attorney for small businesses in Scottsdale, Arizona. That experience and understanding of law provides a unique perspective and edge in discovering quality companies in various industries.