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Humana Inc.
S&P 500
$45.5B
Market Cap
26.0
P/E
1.41
PEG
5.4%
ROCE
7.0%
ROE
D/E
2.1%
OPM
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🌏 Global Investor Returns
Currency-adjusted total returns for HUM including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
Shareholding
About

Humana Inc. provides medical and specialty insurance products in the United States.

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⭐ Superinvestors Holding HUM
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Manager Shares Value % of Fund Period
Stan Druckenmiller Duquesne Family Office 137.5K $23.8M 0.71% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
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🎙 Management Tone Mixed → Stable 4 quarters Full tone analysis in Intelligence →
Good quarter Investor Presentation One-Pager? Q1 2026
GAAP EPS
$9.83
-4.6% YoY
Adjusted EPS
$10.31
-11.0% YoY
Insurance Segment Benefit Ratio
89.4%
Slightly favorable vs guidance of just under 90%
What Went Right
  • New and returning Medicare Advantage members performing in line to better than expectations through April
  • CenterWell saw patient growth of 110,000 sequentially (22.5%) including MaxHealth acquisition
  • Progress on Stars: about 5% ahead of last year's gap closure pace per member on key HEDIS metrics
What to Watch
  • Medical cost trend continues to outpace program funding, requiring benefit adjustments for 2027
  • IBNR grew 35% sequentially, well above 22% membership growth, reflecting conservative reserving
  • Insurance Segment President George Renaudin retiring June 2026, leadership transition underway
Management Guidance
  • FY2026 Adjusted EPS guidance affirmed at at least $9.00
  • Insurance segment benefit ratio guidance affirmed at 92.75% ± 25 bps
  • Individual Medicare Advantage membership growth of approximately 25% over 2025
Investor Lens
The thesis is slightly stronger after this call. Humana delivered a solid Q1 with key operational metrics (member performance, Stars progress, CenterWell growth) tracking in line or ahead of plan. The company remains disciplined on pricing and is taking necessary benefit actions to close the funding gap, reinforcing the path to a 3% margin by 2028. However, the elevated IBNR and need for further benefit cuts in 2027 highlight ongoing margin pressure, keeping risk in view.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Solid Q1 with Adjusted EPS of $10.31, affirming full-year guidance
Revenue
Not explicitly discussed in the transcript. The earnings release tables show consolidated pretax results of $1,595 million (GAAP) and $1,670 million (adjusted). CenterWell and state-based contracts grew membership and patients.
Profitability
GAAP EPS came in at $9.83, while Adjusted EPS was $10.31, at the high end of management's guidance range. YoY declines reflect the Star Ratings headwind and prior-year one-time items.
Margins
Insurance segment GAAP benefit ratio was 89.4%, slightly favorable to guidance of 'just under 90%'. Full-year benefit ratio guidance remains at 92.75% ± 25 bps. CenterWell operating cost ratio was impacted by one-time items that are expected to reverse.
Balance Sheet
The company strengthened the balance sheet via $1 billion junior subordinated notes in March, mitigated over $3 billion in capital contribution requirements for 2026, and is pursuing non-core asset divestitures. No specific cash or debt figures were provided.
Key Risks
Medical cost trend outpacing CMS funding; IBNR growth of 35% signals conservative reserving and early-year uncertainty; need for benefit adjustments in 2027 to meet 2028 margin targets.
Outlook
Humana reiterated FY2026 adjusted EPS guidance of at least $9.00 and expects to double individual Medicare Advantage margin in 2026 adjusted for stars. Bids for 2027 will focus on returning to a sustainable 3% margin by 2028.
Generated by AI · Q1 2026 results · Not investment advice
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📊 Analysis Methodology

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
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