Humana Inc. [NYSE:HUM]: Analyst Rating and Earnings
Equities traders often pay a significant amount of attention to what top market analysts have to say about a potential stock investment. In regards to Humana Inc. [HUM], the most recent average analyst recommendation we can read comes from the fiscal quarter ending in December. On average, stock market experts give HUM an Outperform rating. Its stock price has been found in the range of 15.74 to 27.68. This is compared to its latest closing price of $293.76.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Humana Inc. [HUM] is sitting at 1.77. This is compared to 1 month ago, when its average rating was 1.86.
For the quarter ending in Dec-18 Humana Inc. [HUM] generated $14.17 billion in sales. That’s 1.33% higher than the average estimate of $13.98 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Keep your eyes on this company’s next financial results, which are scheduled to be made public on Wed 1 May (In 78 Days).
Fundamental Analysis of Humana Inc. [HUM]
Now let’s turn to look at profitability: with a current Operating Margin for Humana Inc. [HUM] sitting at +5.45, this company’s Net Margin is now 2.40%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is 20.01, and its Return on Invested Capital has reached 18.90%. Its Return on Equity is 16.83, and its Return on Assets is 6.36. These metrics suggest that this Humana Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Humana Inc. [HUM] has generated a Total Debt to Total Equity ratio of 59.73. Similarly, its Total Debt to Total Capital is 37.39, while its Total Debt to Total Assets stands at 23.88. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 43.06, and its Long-Term Debt to Total Capital is 26.96. This company has a healthy balance between its debt and its current holdings, suggesting it is a reliable investment due to its ability to leverage debt in an efficient way.
What about valuation? This company’s Enterprise Value to EBITDA is 12.31. The Enterprise Value to Sales for this firm is now 0.79, and its Total Debt to Enterprise Value stands at 0.13. Humana Inc. [HUM] has a Price to Book Ratio of 3.82, a Price to Cash Flow Ratio of 18.25 and P/E Ratio of 24.45. These metrics show that this company has a mixed appeal, and ROI could be a gain or a loss.
Similarly, this company’s Total Asset Turnover is 2.15. This publicly-traded organization’s liquidity data is also interesting: its Current Ratio is 1.37.
Let’s now turn our attention to trading performance: Humana Inc. [HUM] has 139.52M shares outstanding, amounting to a total market cap of $40.99B. Its stock price has been found in the range of 261.25 to 355.88. At its current price, it has moved by -16.49% from its 52-week high, and it has moved 13.76% from its 52-week low.
This stock’s Beta value is currently 0.98, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 47.39. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Humana Inc. [HUM] a Reliable Buy?
Shares of Humana Inc. [HUM], on the whole, present investors with both positive and negative signals. Wall Street analysts have mixed reviews when it comes to the 12-month price outlook, and this company’s financials show a combination of strengths and weaknesses. Based on the price performance, this investment is somewhat risky while presenting reasonable potential for ROI.