Stock Analysis on Net

Humana Inc. (NYSE:HUM)

Price to FCFE (P/FCFE)

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Free Cash Flow to Equity (FCFE)

Humana Inc., FCFE calculation

US$ in millions

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12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net income attributable to Humana 2,489 2,806 2,933 3,367 2,707
Net (income) loss attributable to noncontrolling interests (5) (4) 1
Net noncash charges 1,416 1,251 (116) 129 914
Changes in operating assets and liabilities, net of effect of businesses acquired and dispositions 81 534 (556) 2,143 1,663
Net cash provided by operating activities 3,981 4,587 2,262 5,639 5,284
Purchases of property and equipment (1,004) (1,137) (1,342) (964) (736)
Proceeds from sale of property and equipment 210 17 26
Proceeds from issuance of senior notes, net 2,544 1,982 2,984 1,088 987
Repayment of senior notes (1,832) (1,000) (400) (400)
Proceeds from issuance (repayments) of commercial paper, net 211 (376) 352 295 (360)
Proceeds from short-term borrowings 100
Repayment of short-term borrowings (100)
Proceeds from term loan 2,500 1,000
Repayment of term loan (500) (2,000) (2,078) (1,000) (650)
Debt issue costs (7) (6) (31)
Change in book overdraft 55 (28) 6 95 54
Free cash flow to equity (FCFE) 3,658 2,039 4,679 5,753 4,179

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).

Item Description The company
FCFE Free cash flow to equity is the cash flow available to Humana Inc. equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Humana Inc. FCFE decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Price to FCFE Ratio, Current

Humana Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 120,653,315
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 3,658
FCFE per share 30.32
Current share price (P) 349.50
Valuation Ratio
P/FCFE 11.53
Benchmarks
P/FCFE, Competitors1
Abbott Laboratories 76.20
Cigna Group 10.66
CVS Health Corp. 5.45
Danaher Corp. 52.68
Elevance Health Inc. 16.37
Intuitive Surgical Inc. 188.05
Medtronic PLC 28.98
UnitedHealth Group Inc. 15.17
P/FCFE, Sector
Health Care Equipment & Services 18.24
P/FCFE, Industry
Health Care 17.10

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

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
No. shares of common stock outstanding1 120,653,315 124,974,862 126,633,599 128,861,929 132,106,497
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 3,658 2,039 4,679 5,753 4,179
FCFE per share3 30.32 16.32 36.95 44.64 31.63
Share price1, 4 363.98 505.69 424.71 378.33 370.99
Valuation Ratio
P/FCFE5 12.01 30.99 11.49 8.47 11.73
Benchmarks
P/FCFE, Competitors6
Abbott Laboratories 76.56 26.11 24.52 38.42 53.19
Cigna Group 9.86 18.23 10.98 16.30 20.76
CVS Health Corp. 5.22 12.36 21.23 11.93 18.52
Danaher Corp. 53.08 32.04 20.75 44.62 6.88
Elevance Health Inc. 16.04 14.26 11.07 7.75 13.72
Intuitive Surgical Inc. 177.77 89.67 58.39 81.15 57.31
Medtronic PLC 29.20 19.71 38.91 23.06 26.62
UnitedHealth Group Inc. 15.33 12.57 20.11 13.93 13.90
P/FCFE, Sector
Health Care Equipment & Services 18.08 17.58 20.22 18.16 16.24
P/FCFE, Industry
Health Care 16.78 18.25 17.67 16.95 13.53

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.

2 See details »

3 2023 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 3,658,000,000 ÷ 120,653,315 = 30.32

4 Closing price as at the filing date of Humana Inc. Annual Report.

5 2023 Calculation
P/FCFE = Share price ÷ FCFE per share
= 363.98 ÷ 30.32 = 12.01

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Humana Inc. P/FCFE ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.