Yahoo Movies Does Humana Inc.'s (NYSE:HUM) Past Performance Indicate A Stronger Future?
For investors, increase in profitability and industry-beating performance can be essential considerations in an investment. Below, I will examine Humana Inc.'s (NYSE:HUM) track record on a high level, to give you some insight into how the company has been performing against its long term trend and its industry peers.
See our latest analysis for Humana
Did HUM beat its long-term earnings growth trend and its industry?
HUM's trailing twelve-month earnings (from 31 March 2020) of US$2.6b has jumped 48% compared to the previous year.
Furthermore, this one-year growth rate has exceeded its 5-year annual growth average of 18%, indicating the rate at which HUM is growing has accelerated. How has it been able to do this? Let's take a look at whether it is solely because of industry tailwinds, or if Humana has experienced some company-specific growth.
In terms of returns from investment, Humana has invested its equity funds well leading to a 21% return on equity (ROE), above the sensible minimum of 20%. Furthermore, its return on assets (ROA) of 8.2% exceeds the US Healthcare industry of 4.6%, indicating Humana has used its assets more efficiently. And finally, its return on capital (ROC), which also accounts for Humana’s debt level, has increased over the past 3 years from 11% to 18%.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? You should continue to research Humana to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for HUM’s future growth? Take a look at our free research report of analyst consensus for HUM’s outlook.
Financial Health: Are HUM’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2020. This may not be consistent with full year annual report figures.
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