Humana Inc. Scores High on Shareholder Yield Investor Model

Humana Inc. earns a 60% rating in a fundamental report. This indicates moderate interest from investors based on the Shareholder Yield Investor strategy, which evaluates the return of cash to shareholders.

Date: 08-03-2025

AI Rating: 5

**Stock Rating Overview**
Humana Inc. (HUM) has received a rating of 60% based on its underlying fundamentals and stock valuation according to the Shareholder Yield Investor model. This strategy emphasizes the importance of companies returning cash to shareholders, typically through dividends, buybacks, and debt paydown. However, the rating suggests that while there is some interest, it falls short of the 80% threshold commonly associated with strong investor interest.

**Performance Metrics**
The report provides an overview of the company's performance metrics relative to the strategy's criteria:
- **Universe**: PASS
- **Net Payout Yield**: FAIL
- **Quality and Debt**: PASS
- **Valuation**: PASS
- **Relative Strength**: PASS
- **Shareholder Yield**: FAIL

**Key Observations**
While Humana Inc. scores well on metrics related to quality and debt, valuation, and relative strength, it notably fails to meet expectations in net payout yield and shareholder yield. The failure in these areas suggests that Humana may not be effectively returning cash to shareholders, which is a significant aspect for investors focused on share repurchase and dividends. This could deter potential investors looking for growth stocks that prioritize shareholder returns.

The overall rating of 60% and notable failures in two key areas suggest caution for investors. The current assessment reflects a balanced perspective that recognizes Humana's foundational strengths while highlighting critical shortcomings that could impact its attractiveness as an investment.

Stocks: HUM