Humana

Methodology

Humana's Medicare Advantage focus creates earnings tied to government reimbursement rates and medical cost trends in senior populations. The company's concentration in Medicare provides growth from aging demographics but reimbursement risk. This calculation works reasonably when normalizing for medical loss ratio fluctuations, though Medicare Advantage rate changes and healthcare utilization patterns create year-to-year earnings volatility.

Methodology

Humana typically shows moderate PEG ratios reflecting growth from Medicare Advantage enrollment expansion offset by concerns about rate adequacy and rising medical costs. The company's senior-focused strategy benefits from demographics but faces margin pressure. Compare to diversified managed care companies to assess whether Humana's Medicare concentration justifies valuations despite execution and regulatory risks.

Methodology

Humana does not pay dividends, prioritizing growth investments in Medicare Advantage capabilities, technology platforms, and provider relationships. Management focuses on expanding market position in senior healthcare. Total return depends entirely on Humana's ability to manage medical costs while growing membership in an increasingly competitive Medicare Advantage market.