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HumanaFRA:HUM +2.98%87 Return-on-Tangible-Equity is 63.91% as of Mar. 2026, which is 70% above its 10-year median of 37.58. GuruFocus rates FRA:HUM with a GF Score™ of 87/100 and a GF Value™ of €318.43 (Fairly Valued). The stock has 7 warning signs investors should review. Among 18 Healthcare Plans companies, Humana ranks worse than 55.56% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Humana's annualized net income for the quarter that ended in Mar. 2026 was €4,104 Mil. Humana's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €6,421 Mil. Therefore, Humana's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 63.91%.
The historical rank and industry rank for Humana's Return-on-Tangible-Equity or its related term are showing as below:
FRA:HUM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 8.86 Med: 37.58 Max: 83.1
Current: 13.93
During the past 13 years, Humana's highest Return-on-Tangible-Equity was 83.10%. The lowest was 8.86%. And the median was 37.58%.
FRA:HUM's Return-on-Tangible-Equity is ranked worse than 55.56% of 18
companies
in the Healthcare Plans industry
Industry Median: 14.115
vs FRA:HUM: 13.93
Humana (FRA:HUM) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Humana Return-on-Tangible-Equity Related Terms
Humana Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Humana's Return-on-Tangible-Equity 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.
FRA:HUM vs CNC, CI, MOH: Return-on-Tangible-Equity Comparison
For the Healthcare Plans subindustry, Humana's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Healthcare Plans Industry
For the Healthcare Plans industry and Healthcare sector, Humana's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Humana's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 63.91% mean?
Humana (FRA:HUM) has a Return-on-Tangible-Equity of 63.91% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Humana and its competitors. This is 70% above median its historical median of 37.58. Over the past decade, Humana's Return-on-Tangible-Equity has ranged from 8.86 to 83.10. According to the industry distribution chart, Humana ranks #10 out of 18 companies in the Healthcare Plans industry, placing it in the top 55.6%.
Is Humana's Return-on-Tangible-Equity too high?
Humana's current Return-on-Tangible-Equity of 63.91% is 70% above median its 10-year median of 37.58. Over the past 10 years, this metric has ranged from a low of 8.86 to a high of 83.10. The Healthcare Plans industry median Return-on-Tangible-Equity is 14.12. Humana's value of 63.91% is 352.8% above this industry median. Based on the distribution chart, Humana ranks #10 out of 18 companies in the Healthcare Plans industry, which is below the industry midpoint. Overall, Humana has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Humana's Return-on-Tangible-Equity compare to CNC and CI?
According to the Healthcare Plans industry distribution chart, Humana ranks #10 out of 18 companies for Return-on-Tangible-Equity. This places Humana in the lower half of its industry. The industry median Return-on-Tangible-Equity is 14.12. Humana's value of 63.91% is 352.8% above this benchmark. Historically, Humana's own Return-on-Tangible-Equity has ranged from 8.86 to 83.10 over the past decade. While the company's 10-year median is 37.58 vs. the industry median of 14.12, Humana has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Healthcare Plans company?
The median Return-on-Tangible-Equity among Healthcare Plans companies is 14.12, based on 18 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Humana's current Return-on-Tangible-Equity of 63.91% is 352.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Humana and its competitors. For the Healthcare Plans industry, the median Return-on-Tangible-Equity is 14.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Humana's current Return-on-Tangible-Equity is 63.91%, which is 70% above median its own 10-year median of 37.58. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Humana stock overvalued right now?
Based on GuruFocus' analysis, Humana (FRA:HUM) is currently considered Fairly Valued. The stock's GF Value™ is €318.43, compared to a current price of €346.00 — trading 8.7% above its estimated fair value. The current Return-on-Tangible-Equity is 63.91%, which is 70% above median its 10-year median of 37.58 and 352.8% above the Healthcare Plans industry median of 14.12. Humana's overall GF Score™ is 87/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Humana (FRA:HUM), the current Return-on-Tangible-Equity is 63.91% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Humana (FRA:HUM) Overvalued in 2026?
Based on GuruFocus' analysis, Humana stock appears to be overvalued.
The current stock price of €346.00 is trading 8.7% above its estimated GF Value™ of €318.43.
GuruFocus considers Humana to be Fairly Valued.
Key valuation signals for FRA:HUM:
Return-on-Tangible-Equity: 63.91% (70% above median its 10-year median of 37.58)
GF Value™: €318.43 vs. price of €346.00 (8.7% above fair value)
Industry Position: 352.8% above the Healthcare Plans median (#10 of 18)
No single metric tells the full story. See the FRA:HUM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Humana is one of the largest private health insurers in the US, and the firm has built a niche specializing in government-sponsored programs, with nearly all its medical membership stemming from Medicare, Medicaid, and the military's Tricare program. Beyond medical insurance, the company provides other healthcare services, including primary-care services, at-home services, and pharmacy benefit management.
87GF Score
Get the complete analysis for FRA:HUM
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