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Humana Earnings Yield (Joel Greenblatt) %

: 6.37% (As of Jun. 2022)
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Humana's Enterprise Value for the quarter that ended in Jun. 2022 was $67,325 Mil. Humana's EBIT for the trailing twelve months (TTM) ended in Jun. 2022 was $4,288 Mil. Humana's Earnings Yield (Joel Greenblatt) for the quarter that ended in Jun. 2022 was 6.37%.

The historical rank and industry rank for Humana's Earnings Yield (Joel Greenblatt) % or its related term are showing as below:

HUM' s Earnings Yield (Joel Greenblatt) % Range Over the Past 10 Years
Min: 4.79   Med: 9.23   Max: 24.87
Current: 6.02

During the past 13 years, the highest Earnings Yield (Joel Greenblatt) of Humana was 24.87%. The lowest was 4.79%. And the median was 9.23%.

HUM's Earnings Yield (Joel Greenblatt) % is ranked worse than
57.89% of 19 companies
in the Healthcare Plans industry
Industry Median: 6.41 vs HUM: 6.02

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

A better indicator of the attractiveness of an investment which takes growth into account is the Forward Rate of Return (Yacktman) %. Humana's Forward Rate of Return (Yacktman) % for the quarter that ended in Jun. 2022 was 15.40%. The Forward Rate of Return uses the normalized Free Cash Flow of the past seven years, and considers growth. The forward rate of return can be thought of as the return that investors buying the stock today can expect from it in the future.


Humana Earnings Yield (Joel Greenblatt) % Historical Data

The historical data trend for Humana's Earnings Yield (Joel Greenblatt) % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Humana Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Earnings Yield (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.12 5.34 7.36 8.85 5.32

Humana Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Earnings Yield (Joel Greenblatt) % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.53 5.60 5.32 6.11 6.37

Competitive Comparison

For the Healthcare Plans subindustry, Humana's Earnings Yield (Joel Greenblatt) %, along with its competitors' market caps and Earnings Yield (Joel Greenblatt) % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Humana Earnings Yield (Joel Greenblatt) % Distribution

For the Healthcare Plans industry and Healthcare sector, Humana's Earnings Yield (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Humana's Earnings Yield (Joel Greenblatt) % falls into.



Humana Earnings Yield (Joel Greenblatt) % Calculation

In his book, The Little That Beat the Market, hedge fund manager Joel Greenblatt defines Earnings Yield as operating income divided by enterprise value.

Humanas Earnings Yield (Joel Greenblatt) for the fiscal year that ended in Dec. 2021 is calculated as

Earnings Yield (Joel Greenblatt)=EBIT/Enterprise Value
=3680/69195.09572
=5.32 %

Humana's EBIT for the trailing twelve months (TTM) ended in Jun. 2022 adds up the quarterly data reported by the company within the most recent 12 months, which was $4,288 Mil.



Humana  (NYSE:HUM) Earnings Yield (Joel Greenblatt) % Explanation

Joel Greenblatt defines the earnings yield using the above equation because it more accurately reflects the company's profitability relative to its stock price. Items like interest payment and tax etc. are not directly related to the company's operational profitability.

Enterprise Value instead of market cap (share price) is used in the calculation because it is the real price stock and bond investors together pay for the company.


Be Aware

Joel Greenblatt's definition of earnings yield has the same problems the regular earnings yield does. It does not consider the growth of the company. It only looks at one-year's business operation. For cyclical companies, the earnings yield is usually highest at the peak of the business cycle. But these earnings are rarely sustainable.

Forward Rate of Return (Yacktman) % based on Don Yacktman's definition is a better measure of the expected rate of return for a stock.


Humana Earnings Yield (Joel Greenblatt) % Related Terms

Thank you for viewing the detailed overview of Humana's Earnings Yield (Joel Greenblatt) % provided by GuruFocus.com. Please click on the following links to see related term pages.


Humana Business Description

Humana logo
Industry
Address
500 West Main Street, Louisville, KY, USA, 40202
Humana is one of the largest private health insurers in the U.S. with a focus on administering Medicare Advantage plans. The firm has built a niche specializing in government-sponsored programs, with nearly all its medical membership stemming from individual and group Medicare Advantage, Medicaid, and the military's Tricare program. The firm is also a leader in stand-alone prescription drug plans for seniors enrolled in traditional fee-for-service Medicare. Humana offers employer-based plans primarily for small businesses along with specialty insurance offerings such as dental, vision, and life. Beyond medical insurance, the company provides other healthcare services, including primary-care services, at-home services, and pharmacy benefit management.
Executives
Koeberlein Michael A. officer: SVP, Chief Accting Off & Cont. 500 W MAIN ST. LOUISVILLE KY 40202
Agwunobi, M.d. Andrew C. officer: Seg. President, Home Solutions HUMANA INC. 500 W MAIN STREET LOUISVILLE KY 40202
Feinberg David T director 12525 CHADRON AVENUE HAWTHORNE CA 90250
Schick Susan D. officer: Seg Pres. Grp. & Military Bus. 500 W. MAIN ST. LOUISVILLE KY 40202
Mesquita Jorge S. director C/O KRAFT FOODS INC. THREE LAKES DRIVE NORTHFIELD IL 60093
Klevorn Marcy S director ONE AMERICAN ROAD DEARBORN MI 48126
Bono Raquel C. director 500 W MAIN ST. LOUISVILLE KY 40202
Frederick Wayne A.i. director 500 W MAIN ST. LOUISVILLE KY 40202
Garratt John W director 100 MISSION RIDGE GOODLETTSVILLE TN 37072
Katz Karen director
Diamond Susan M officer: Segment President, Home Bus. 500 W MAIN ST. LOUISVILLE KY 40202
Shrank William H officer: Chief Medical Officer 500 WEST MAIN ST LOUISVILLE KY 40202
Ventura Joseph C officer: Chief Legal Officer & Corp Sec 500 W MAIN STREET LOUISVILLE KY 40202
Agrawal Vishal officer: Chief Strategy Officer 500 W MAIN ST LOUISVILLE KY 40202
Cox Heather officer: Chief Digital & Analytics Off. 804 CARNEGIE CENTER PRINCETON NJ 08540

Humana Headlines

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