Humana Inc. (NYSE:HUM)

The data reveals several key trends in the financial performance and market valuation over the analyzed periods.

Share Price

The share price exhibits an overall upward trajectory from 50.86 US$ in early 2006 to a peak of 505.69 US$ in early 2023. However, the growth is not steady; notable declines are visible, such as a drop from 68.87 US$ in early 2008 to 40.54 US$ in early 2009, likely reflecting broader market conditions. After reaching the peak in 2023, there is a noticeable decrease to 363.98 US$ in early 2024, indicating a significant correction or market adjustment during the most recent year.

Operating Profit per Share (OPPS)

Operating profit per share generally increased during the period but with moderate fluctuations. It began at 2.82 US$ in 2006, rising sharply to 7.98 US$ in early 2008, before experiencing a decline to 6.36 US$ in early 2009. From that point, it mostly showed growth, reaching a substantial peak of 38.69 US$ in early 2021. Subsequently, the value decreased somewhat but remained relatively high, ending at 33.26 US$ in early 2024. This pattern indicates improving profitability with occasional downturns, potentially linked to economic cycles or company-specific factors.

Price to Operating Profit Ratio (P/OP)

The P/OP ratio demonstrates considerable variability over the years. Starting relatively high at 18.04 in 2006, it decreased substantially to a low of 4.52 in early 2010, suggesting that the share price was relatively inexpensive compared to operating profits at that time. From 2010 onward, the ratio exhibited fluctuations, with peaks such as 17.55 in early 2017 and elevated levels around 16-17 in the early 2020s, alongside lower points near 8-11 in mid-2010s and early 2024. The elevated P/OP ratios in recent years coincide with higher share prices relative to operating profit, potentially reflecting market optimism or expectations of future growth despite some increases and decreases in underlying profitability.

In summary, the company experienced strong overall growth in share price and operating profit per share over the analyzed period. However, fluctuations in these metrics, alongside notable variations in the P/OP ratio, suggest a dynamic market environment with episodes of pricing optimism and recalibration linked to changes in operating performance and broader economic influences.