NYSE:HUM
HUMANA INC
A leading US healthcare services company offering Medicare Advantage, Medicaid, and prescription drug plans with over $4B in cash reserves.
Key Metrics
Investment Thesis
Bull Case
Investors may favor HUMANA for its dominant market position in Medicare Advantage which offers recurring revenue stability and potential for dividend growth supported by $430.0M in annual common share dividends. The company's extensive network of care partners provides a defensive moat against competitors while its strong cash balance allows for strategic acquisitions and capital expenditures of $546.0M to modernize infrastructure.
Bear Case
Concerns arise from the significant drop in net income over the last three years, suggesting margin compression under current regulatory or operational pressures that could persist. The massive scale of operating expenses at $126.96B leaves little room for error against rising healthcare costs, and the accumulated other comprehensive income loss of -$633.0M indicates potential volatility in equity value.
About HUMANA INC
HUMANA INC operates as a diversified healthcare services provider serving individuals across the United States through its Medicare Advantage plans, Prescription Drug Plans, and Medicaid programs. The company leverages a vast network of hospitals, physicians, and specialists to deliver integrated care while managing substantial cash reserves exceeding $4.20 billion. Its revenue has grown consistently from $92.87B in 2022 to $129.66B in 2025, reflecting expanding market share and enrollment.
Analysis
Management Discussion
Despite a slight decline in net income from $2.80B in 2022 to $1.20B in 2025, revenue has expanded robustly by over 40% over the period driven by organic growth and acquisitions totaling $81.0M recently. The company maintains a healthy liquidity position with cash flow from operations of $921.0M and ending cash of $4.20B, though operating expenses surged to $126.96B in 2025 indicating scale challenges.
Industry Overview
The US health insurance industry is characterized by high regulatory oversight, rapid medical cost inflation, and a shift toward value-based care models that reward outcomes over volume. As an integrated payer-provider entity, HUMANA navigates complex fee structures while competing with traditional insurers and self-insured employers to capture market share in the aging population.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $92.87B | $106.37B | $117.76B | $129.66B |
| Cost of Revenue | $0 | $0 | $0 | $0 |
| Gross Profit | $92.87B | $106.37B | $117.76B | $129.66B |
| Operating Expenses | $89.07B | $102.36B | $115.20B | $126.96B |
| Operating Income | $3.80B | $4.01B | $2.56B | $2.70B |
| G&A | $12.67B | $13.19B | $13.70B | $15.45B |
| Stock-Based Comp | $216.0M | $175.0M | $207.0M | $241.0M |
| D&A | — | $779.0M | $839.0M | $698.0M |
| Depreciation | $749.0M | $850.0M | $908.0M | $773.0M |
| Amortization | $81.0M | $67.0M | $60.0M | $51.0M |
| Other OpEx | $76.40B | $89.17B | $101.50B | $111.51B |
| Non-Operating Income | $-236.0M | $-693.0M | $-841.0M | $-1.27B |
| Interest Expense | $401.0M | $493.0M | — | — |
| Pre-Tax Income | $3.56B | $3.32B | $1.72B | $1.44B |
| Income Tax | $762.0M | $836.0M | $413.0M | $250.0M |
| Continuing Ops | $2.80B | $2.48B | $1.31B | $1.19B |
| Discontinued Ops | $0 | $0 | $-94.0M | $15.0M |
| Net Income | $2.80B | $2.48B | $1.21B | $1.20B |
| Minority Interest | $-4.0M | $-5.0M | $7.0M | $15.0M |
| Net to Common | $2.81B | $2.49B | $1.21B | $1.19B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $26.18B | $29.99B | $29.82B | $32.73B |
| Cash & Equivalents | $5.06B | $4.69B | $2.22B | $4.20B |
| Marketable Securities | $13.88B | $16.63B | $18.21B | $15.70B |
| Other Current Assets | $7.24B | $8.67B | $9.38B | $12.83B |
| Long-Term Assets | $16.87B | $17.08B | $16.66B | $16.18B |
| PP&E (Net) | $3.22B | $3.03B | $2.53B | $2.23B |
| Intangibles | $1.76B | $1.69B | $1.44B | $1.13B |
| Goodwill | $9.14B | $9.55B | $9.63B | $9.69B |
| Operating Leases | $515.0M | $510.0M | $445.0M | $485.0M |
| Other LT Assets | $1.48B | $1.56B | $1.92B | $2.01B |
| Total Assets | $43.05B | $47.06B | $46.48B | $48.91B |
| Current Liabilities | $17.18B | $18.87B | $16.94B | $16.35B |
| Current Leases | $152.0M | $149.0M | $130.0M | $126.0M |
| Deferred Revenue | $286.0M | $266.0M | $260.0M | $356.0M |
| Other Current Liab | $16.74B | $18.46B | $16.55B | $15.86B |
| Long-Term Liabilities | $10.51B | $11.88B | $13.10B | $14.83B |
| Long-Term Debt | $9.03B | $10.21B | $11.14B | $12.37B |
| LT Operating Leases | $456.0M | $444.0M | $392.0M | $418.0M |
| Other LT Liab | $1.02B | $1.22B | $1.56B | $2.04B |
| Total Liabilities | $27.68B | $30.75B | $30.03B | $31.17B |
| Shareholders' Equity | $15.37B | $16.32B | $16.45B | $17.74B |
| Retained Earnings | $25.49B | $27.54B | $28.32B | $29.07B |
| AOCI | $-1.30B | $-999.0M | $-1.07B | $-633.0M |
| Total L&E | $43.05B | $47.06B | $46.48B | $48.91B |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $2.80B | $2.48B | $1.21B | $1.20B |
| Non-Cash Adjustments | $245.0M | $-1.95B | $1.38B | $-4.31B |
| Working Capital Changes | $1.54B | $3.45B | $372.0M | $4.03B |
| Cash from Operations | $4.59B | $3.98B | $2.97B | $921.0M |
| Capital Expenditures | $1.12B | $1.00B | $575.0M | $546.0M |
| Cash from Investing | $-1.01B | $-3.49B | $-2.95B | $2.27B |
| Share Buybacks | $2.10B | $1.57B | $817.0M | $151.0M |
| Dividends Paid | $98.0M | $431.0M | $431.0M | $430.0M |
| Cash from Financing | $-1.91B | $-856.0M | $-2.49B | $-1.22B |
| FX Effect | $0 | $0 | $0 | $0 |
| Net Change in Cash | $1.67B | $-367.0M | $-2.47B | $1.98B |
| Beginning Cash | $3.39B | $5.06B | $4.69B | $2.22B |
| Ending Cash | $5.06B | $4.69B | $2.22B | $4.20B |
Frequently Asked Questions
How does HUMANA INC make money?
The primary revenue streams include Medicare Advantage plans providing comprehensive health coverage, Prescription Drug Plans serving dual eligibles and non-duals, Medicaid managed care programs for state-specific populations, and other integrated healthcare services such as dental and vision benefits.
What are the main risks for HUM?
Regulatory changes to Medicare Advantage reimbursement rates and benefit requirements could significantly impact margins, rising medical inflation and utilization rates may outpace premium growth, intense competition from other payers could pressure enrollment gains, and exposure to cyber threats remains critical given the sensitive nature of patient data.
What is HUM's competitive advantage?
HUMANA INC possesses a massive installed base of members creating high switching costs and predictable revenue flows, a proprietary data analytics platform that optimizes care delivery and cost management, and strong relationships with hospital networks that enhance referral patterns and service quality.
Related Companies
Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.