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Humana Piotroski F-Score

: 7 (As of Today)
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Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Humana has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Humana's Piotroski F-Score or its related term are showing as below:

HUM' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 9
Current: 7

During the past 13 years, the highest Piotroski F-Score of Humana was 9. The lowest was 3. And the median was 6.


Humana Piotroski F-Score Historical Data

The historical data trend for Humana's Piotroski F-Score 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
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 8.00 8.00 3.00

Humana Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Piotroski F-Score 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 5.00 3.00 3.00 5.00 7.00

Competitive Comparison

For the Healthcare Plans subindustry, Humana's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution

For the Healthcare Plans industry and Healthcare sector, Humana's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Humana's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Jun22) TTM:Last Year (Jun21) TTM:
Net Income was 1531 + -14 + 930 + 696 = $3,143 Mil.
Cash Flow from Operations was 2835 + -96 + 302 + 959 = $4,000 Mil.
Revenue was 20697 + 21054 + 23970 + 23662 = $89,383 Mil.
Average Total Assets from the begining of this year (Jun21)
to the end of this year (Jun22) was
(38070 + 45320 + 44358 + 46308 + 46820) / 5 = $44175.2 Mil.
Total Assets at the begining of this year (Jun21) was $38,070 Mil.
Long-Term Debt & Capital Lease Obligation was $11,290 Mil.
Total Assets was $46,820 Mil.
Total Liabilities was $31,310 Mil.
Net Income was 1340 + -274 + 828 + 588 = $2,482 Mil.

Revenue was 20075 + 19062 + 20668 + 20645 = $80,450 Mil.
Average Total Assets from the begining of last year (Jun20)
to the end of last year (Jun21) was
(38455 + 38477 + 34969 + 37415 + 38070) / 5 = $37477.2 Mil.
Total Assets at the begining of last year (Jun20) was $38,455 Mil.
Long-Term Debt & Capital Lease Obligation was $6,063 Mil.
Total Assets was $38,070 Mil.
Total Liabilities was $23,227 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Humana's current Net Income (TTM) was 3,143. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Humana's current Cash Flow from Operations (TTM) was 4,000. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jun21)
=3143/38070
=0.08255844

ROA (Last Year)=Net Income/Total Assets (Jun20)
=2482/38455
=0.06454297

Humana's return on assets of this year was 0.08255844. Humana's return on assets of last year was 0.06454297. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Humana's current Net Income (TTM) was 3,143. Humana's current Cash Flow from Operations (TTM) was 4,000. ==> 4,000 > 3,143 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jun22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun21 to Jun22
=11290/44175.2
=0.25557326

Gearing (Last Year: Jun21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jun20 to Jun21
=6063/37477.2
=0.16177836

Humana's gearing of this year was 0.25557326. Humana's gearing of last year was 0.16177836. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

* Note that for banks and insurance companies, there's no Total Current Assets and Total Current Liabilities reported. Thus, we use Total Assets and Total Liabilities to calculate current ratio for banks and insurance companies.

Current Ratio (This Year: Jun22)=Total Assets/Total Liabilities
=46820/31310
=1.49536889

Current Ratio (Last Year: Jun21)=Total Assets/Total Liabilities
=38070/23227
=1.63904077

Humana's current ratio of this year was 1.49536889. Humana's current ratio of last year was 1.63904077. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Humana's number of shares in issue this year was 127.084. Humana's number of shares in issue last year was 129.387. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

* Note that for banks and insurance companies, there's no Gross Profit reported. Thus, we use net income instead of gross profit and calculate Net Margin for this score.

Net Margin (This Year: TTM)=Net Income/Revenue
=3143/89383
=0.03516329

Net Margin (Last Year: TTM)=Net Income/Revenue
=2482/80450
=0.03085146

Humana's net margin of this year was 0.03516329. Humana's net margin of last year was 0.03085146. ==> This year's net margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jun21)
=89383/38070
=2.34785921

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jun20)
=80450/38455
=2.09205565

Humana's asset turnover of this year was 2.34785921. Humana's asset turnover of last year was 2.09205565. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+0+0+1+1+1
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Humana has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

Humana  (NYSE:HUM) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Humana Piotroski F-Score Related Terms

Thank you for viewing the detailed overview of Humana's Piotroski F-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Humana Business Description

Humana logo
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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