Price to FCFE (P/FCFE)
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- Statement of Comprehensive Income
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
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Free Cash Flow to Equity (FCFE)
Humana Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
The financial data reveals fluctuations in the cash flow metrics over the five-year period ending December 31, 2023.
- Net Cash Provided by Operating Activities
- There was an initial increase from 5,284 million USD in 2019 to 5,639 million USD in 2020, indicating growth in operating cash generation. However, a significant decline occurred in 2021, falling sharply to 2,262 million USD. This was followed by a partial recovery in 2022, rising to 4,587 million USD, before decreasing again to 3,981 million USD in 2023. The overall trend indicates volatility with a peak in 2020 and a trough in 2021, suggesting external or operational challenges affected cash inflows during this period.
- Free Cash Flow to Equity (FCFE)
- FCFE followed a somewhat different pattern. It increased notably from 4,179 million USD in 2019 to 5,753 million USD in 2020, reflecting strong cash available to equity holders during that year. In 2021, FCFE decreased to 4,679 million USD but remained higher than the 2019 baseline. A pronounced drop occurred in 2022, with FCFE falling to 2,039 million USD, indicating reduced cash flow available to shareholders. In 2023, FCFE partially rebounded to 3,658 million USD, though it did not return to prior peaks. This trend mirrors the fluctuations seen in operating cash flows but shows somewhat less drastic variation.
Collectively, both cash flow measures illustrate that after strong performance in 2019 and 2020, the company faced significant challenges impacting cash generation and distribution in 2021 and 2022. Despite some recovery in 2023, cash flows have not fully normalized to earlier levels. These variations suggest the need for closer examination of operational efficiency and capital allocation during the periods of decline.
Price to FCFE Ratio, Current
Humana Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | |
| FCFE per share | |
| Current share price (P) | |
| Valuation Ratio | |
| P/FCFE | |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| Abbott Laboratories | |
| Elevance Health Inc. | |
| Intuitive Surgical Inc. | |
| Medtronic PLC | |
| UnitedHealth Group Inc. | |
| P/FCFE, Sector | |
| Health Care Equipment & Services | |
| P/FCFE, Industry | |
| Health Care | |
Based on: 10-K (reporting date: 2023-12-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Humana Inc., historical P/FCFE calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Free cash flow to equity (FCFE) (in millions)2 | ||||||
| FCFE per share3 | ||||||
| Share price1, 4 | ||||||
| Valuation Ratio | ||||||
| P/FCFE5 | ||||||
| Benchmarks | ||||||
| P/FCFE, Competitors6 | ||||||
| Abbott Laboratories | ||||||
| Elevance Health Inc. | ||||||
| Intuitive Surgical Inc. | ||||||
| Medtronic PLC | ||||||
| UnitedHealth Group Inc. | ||||||
| P/FCFE, Sector | ||||||
| Health Care Equipment & Services | ||||||
| P/FCFE, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).
1 Data adjusted for splits and stock dividends.
3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= ÷ =
4 Closing price as at the filing date of Humana Inc. Annual Report.
5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= ÷ =
6 Click competitor name to see calculations.
The analysis of the financial measures over the five-year period reveals several notable trends and fluctuations.
- Share Price
- The share price experienced an overall increase from 2019 through 2022, rising from $370.99 to a peak of $505.69. However, in 2023, the share price declined significantly to $363.98, falling below its 2019 level. This suggests a period of growth followed by a notable correction or downturn in the most recent year.
- Free Cash Flow to Equity (FCFE) per Share
- The FCFE per share showed variability during the analyzed period. It increased sharply from $31.63 in 2019 to a high of $44.64 in 2020. Then, it declined to $36.95 in 2021 and further dropped substantially to $16.32 in 2022. In 2023, FCFE per share recovered somewhat to $30.32, though it remained below the earlier highs. This pattern indicates a volatile cash flow performance, with a significant dip in 2022 followed by partial recovery.
- Price to FCFE (P/FCFE) Ratio
- The P/FCFE ratio fluctuated considerably over the period. Starting at 11.73 in 2019, it decreased to 8.47 in 2020, suggesting that the share price was relatively low compared to FCFE at that time. It then increased to 11.49 in 2021, followed by a sharp spike to 30.99 in 2022, implying that the share price was very high relative to cash flow, likely due to the significant drop in FCFE per share. In 2023, the ratio decreased sharply to 12.01, reflecting the combined effect of the reduction in share price and partial recovery of FCFE per share.
Overall, the data depict a company that saw strong share price appreciation and improving cash flows in the early years, followed by significant volatility marked by a sharp decrease in cash flow and a correction in share price in 2023. The dramatic rise and fall in the P/FCFE ratio highlight the changing market perception relative to the company’s cash-generating ability during this period.