HUMHumana
Is the business good?
The checks split: earnings fully cash-backed (0.9×), but margins compressing.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Operating profit is falling even as sales grow, costs are outrunning the top line.
Efficiency-driven, thin margins turned over fast (the retail model). ROE 7% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is HUM?
Humana earns 18% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 9.2 points above what the capital costs: growth creates value
- Operating margin
- 1.8%
Operating margin · Healthcare Plans median 2.0% · 12 months to Q1 2026
- Cash conversion
- 0.90×
Cash conversion · 1.13× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.16%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | 6.5% |
| FY2021 | 3.8% |
| FY2022 | 4.1% |
| FY2023 | 3.8% |
| FY2024 | 2.2% |
| FY2025 | 2.1% |
Details›
- Operating margin12 months to Q1 2026
- 1.8%
- Net margin12 months to Q1 2026
- 0.82%
- Free cash flow margin
- 0.93%
- Revenue, trailing twelve months
- $137.2B
- Free cash flow, trailing twelve months
- $1.27B
- Net income, trailing twelve months
- $1.13B
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 18%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.