Summary: ON SALE
Score: 16/20
MOS: 53%
Share Price: $394
Sticker Price: $848
Is Humana a good buy?
Humana is a health insurance company based out of Louisville, KY. They specifically offer health, dental, vision, medicare, and medicaid and typically sell these policies through large companies. Some of you may currently be on a Humana health insurance plan.
In July of 2020, Humana announced they will invest $100M in Heal, a company that focuses on in-home primary care. Heal is a fast-growing startup company that offers primary care house calls on-demand and has delivered more than 200,000 home visits in five years. Heal’s services also include telemedicine, telepsychology and related digital monitoring services, which Humana says will be key for its elderly health plan subscribers.
Humana is investing in Heal to expand their current market footprint. Their overall mission with this investment is to make doctor house calls more affordable and an effective reality for Americans.
The healthcare industry in the USA isn’t perfect. Some love it and some hate it. Some would say that changes may be good for this industry. Heal seems to be making some positive changes and Humana is joining them on that journey. The keyword to pay attention to most is “telemedicine.” Telemedicine is one of the fastest growing healthcare services by itself. Healthcare IT News released on article in May of 2020 stating that telehealth could have a compounded growth rate of 38% the next five years.
With a score of 16/20, the overall financials are looking very strong. When you take a closer look at the WHY within Tykr, you’ll see the ROIC (Return on Investment Capital) is a 6/6. This means Humana is allocating cash to profitable products and services. Also, don’t be intimidated by the share price of $394 when the sticker price is $848.
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