Humana Inc. (HUM)

FairStock Score: 45/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns and trade at a discount to conservatively estimated value. Humana is a major Medicare-focused insurer with an integrated CenterWell care segment, but the numbers do not yet show a high-quality compounder. At the 2026-10-26 close of $417.22, FairStock calculates a P/E of 39.43 and P/B of 2.61; ROE is 6.89% and ROCE 3.90%, which are modest for a business carrying a debt-to-equity ratio of 0.76. The Graham Number is $195.16, so the price sits about 116% above that conservative value marker—no margin of safety. Free cash flow is $1.9B, a 3.9% FCF yield, which is respectable but not compelling against the multiple. The filed annual record is troubling: FY2023 diluted EPS was $20.00, FY2024 was $9.98, and FY2025 was $9.84, so per-share earnings have fallen. FairStock’s Lynch category is SLOW GROWER — Shrinking, citing profit -18.8% a year over five years and revenue 26.3%. A Piotroski F-score of 4/9 and Altman Z-score of 2.27 suggest financial strength is only middling. The latest quarter’s 1.70% net margin shows how thin insurance economics can be. There may be an essential product and a low beta of 0.74, but I would need evidence of durable underwriting margins and better returns on capital before calling this a bargain. At this price, the market is already paying for a recovery.

In plain English: Humana sells Medicare health insurance and runs care services through CenterWell. It generates cash, but profit margins and returns are thin, and per-share earnings in the filed annual figures fell from FY2023 to FY2025. At the 2026-10-26 price, the shares look expensive relative to earnings and book value.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · fiscal Q1 2025 10-Q (period ended 2025-03-31) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer