HORACE MANN EDUCATORS (HMN) Stock Fundamental Analysis
USA - NYSE:HMN - US4403271046 - Common Stock
44.25 USD
-0.46 (-1.03%)
44.25 USD
0 (0%)
HMN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 146 industry peers in the Insurance industry. HMN scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. HMN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally HMN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year HMN was profitable.
In the past year HMN had a positive cash flow from operations.
Of the past 5 years HMN 4 years were profitable.
HMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 0.95%, HMN is not doing good in the industry: 60.27% of the companies in the same industry are doing better.
HMN has a Return On Equity of 10.30%. This is comparable to the rest of the industry: HMN outperforms 51.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 10.3% | ||
| ROIC | N/A |
ROA(3y)0.34%
ROA(5y)0.6%
ROE(3y)3.86%
ROE(5y)5.39%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HMN's Profit Margin of 8.51% is in line compared to the rest of the industry. HMN outperforms 54.11% of its industry peers.
HMN's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 12.61%, HMN perfoms like the industry average, outperforming 54.79% of the companies in the same industry.
HMN's Operating Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.61% | ||
| PM (TTM) | 8.51% | ||
| GM | N/A |
OM growth 3Y-12.94%
OM growth 5Y-12.98%
PM growth 3Y-15.29%
PM growth 5Y-12.85%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
HMN does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, HMN has about the same amount of shares outstanding.
Compared to 5 years ago, HMN has less shares outstanding
Compared to 1 year ago, HMN has an improved debt to assets ratio.
2.2 Solvency
HMN has a debt to FCF ratio of 0.90. This is a very positive value and a sign of high solvency as it would only need 0.90 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.90, HMN is in the better half of the industry, outperforming 73.29% of the companies in the same industry.
A Debt/Equity ratio of 0.40 indicates that HMN is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.40, HMN is not doing good in the industry: 62.33% of the companies in the same industry are doing better.
Although HMN does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC7.89%
2.3 Liquidity
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | N/A | ||
| Quick Ratio | N/A |
3. Growth
3.1 Past
HMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 117.31%, which is quite impressive.
Measured over the past 5 years, HMN shows a small growth in Earnings Per Share. The EPS has been growing by 7.81% on average per year.
Looking at the last year, HMN shows a small growth in Revenue. The Revenue has grown by 5.76% in the last year.
The Revenue has been growing slightly by 2.09% on average over the past years.
EPS 1Y (TTM)117.31%
EPS 3Y-3.86%
EPS 5Y7.81%
EPS Q2Q%430%
Revenue 1Y (TTM)5.76%
Revenue growth 3Y5.8%
Revenue growth 5Y2.09%
Sales Q2Q%5.75%
3.2 Future
The Earnings Per Share is expected to grow by 17.78% on average over the next years. This is quite good.
HMN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.44% yearly.
EPS Next Y42.27%
EPS Next 2Y21.26%
EPS Next 3Y17.78%
EPS Next 5YN/A
Revenue Next Year5.98%
Revenue Next 2Y6.14%
Revenue Next 3Y5.44%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.79, the valuation of HMN can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of HMN indicates a somewhat cheap valuation: HMN is cheaper than 61.64% of the companies listed in the same industry.
HMN's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.51.
Based on the Price/Forward Earnings ratio of 9.43, the valuation of HMN can be described as reasonable.
HMN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of HMN to the average of the S&P500 Index (22.53), we can say HMN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.79 | ||
| Fwd PE | 9.43 |
4.2 Price Multiples
HMN's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, HMN is valued cheaply inside the industry as 82.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.95 | ||
| EV/EBITDA | 9.92 |
4.3 Compensation for Growth
HMN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as HMN's earnings are expected to grow with 17.78% in the coming years.
PEG (NY)0.23
PEG (5Y)1.25
EPS Next 2Y21.26%
EPS Next 3Y17.78%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.14%, HMN has a reasonable but not impressive dividend return.
HMN's Dividend Yield is a higher than the industry average which is at 3.34.
HMN's Dividend Yield is a higher than the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
5.2 History
The dividend of HMN has a limited annual growth rate of 3.32%.
HMN has paid a dividend for at least 10 years, which is a reliable track record.
HMN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.32%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
40.19% of the earnings are spent on dividend by HMN. This is a bit on the high side, but may be sustainable.
The dividend of HMN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.19%
EPS Next 2Y21.26%
EPS Next 3Y17.78%
44.25
-0.46 (-1.03%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners103.46%
Inst Owner Change-0.13%
Ins Owners1.24%
Ins Owner Change-1.36%
Market Cap1.80B
Revenue(TTM)1.65B
Net Income(TTM)140.10M
Analysts75
Price Target49.98 (12.95%)
Short Float %1.36%
Short Ratio2.68
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.14% |
Yearly Dividend1.36
Dividend Growth(5Y)3.32%
DP40.19%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)42.65%
Min EPS beat(2)9.22%
Max EPS beat(2)76.09%
EPS beat(4)4
Avg EPS beat(4)36.92%
Min EPS beat(4)4.57%
Max EPS beat(4)76.09%
EPS beat(8)7
Avg EPS beat(8)19.7%
EPS beat(12)9
Avg EPS beat(12)14.81%
EPS beat(16)12
Avg EPS beat(16)18.48%
Revenue beat(2)0
Avg Revenue beat(2)-2.95%
Min Revenue beat(2)-4.02%
Max Revenue beat(2)-1.87%
Revenue beat(4)0
Avg Revenue beat(4)-2.75%
Min Revenue beat(4)-4.02%
Max Revenue beat(4)-1.87%
Revenue beat(8)1
Avg Revenue beat(8)-2.3%
Revenue beat(12)1
Avg Revenue beat(12)-2.53%
Revenue beat(16)2
Avg Revenue beat(16)-2.21%
PT rev (1m)0%
PT rev (3m)4.26%
EPS NQ rev (1m)12.6%
EPS NQ rev (3m)7.3%
EPS NY rev (1m)1.71%
EPS NY rev (3m)12.84%
Revenue NQ rev (1m)0.22%
Revenue NQ rev (3m)0.45%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)-0.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.79 | ||
| Fwd PE | 9.43 | ||
| P/S | 1.09 | ||
| P/FCF | 2.95 | ||
| P/OCF | 2.95 | ||
| P/B | 1.32 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 9.92 |
EPS(TTM)4.52
EY10.21%
EPS(NY)4.69
Fwd EY10.6%
FCF(TTM)14.98
FCFY33.84%
OCF(TTM)14.98
OCFY33.84%
SpS40.47
BVpS33.42
TBVpS28.44
PEG (NY)0.23
PEG (5Y)1.25
Graham Number58.3
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.95% | ||
| ROE | 10.3% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 12.61% | ||
| PM (TTM) | 8.51% | ||
| GM | N/A | ||
| FCFM | 37% |
ROA(3y)0.34%
ROA(5y)0.6%
ROE(3y)3.86%
ROE(5y)5.39%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-12.94%
OM growth 5Y-12.98%
PM growth 3Y-15.29%
PM growth 5Y-12.85%
GM growth 3YN/A
GM growth 5YN/A
F-Score9
Asset Turnover0.11
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 0.9 | ||
| Debt/EBITDA | 2.33 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 6.18 | ||
| Cash Conversion | 259.69% | ||
| Profit Quality | 435.05% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC7.89%
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)117.31%
EPS 3Y-3.86%
EPS 5Y7.81%
EPS Q2Q%430%
EPS Next Y42.27%
EPS Next 2Y21.26%
EPS Next 3Y17.78%
EPS Next 5YN/A
Revenue 1Y (TTM)5.76%
Revenue growth 3Y5.8%
Revenue growth 5Y2.09%
Sales Q2Q%5.75%
Revenue Next Year5.98%
Revenue Next 2Y6.14%
Revenue Next 3Y5.44%
Revenue Next 5YN/A
EBIT growth 1Y60.63%
EBIT growth 3Y-7.88%
EBIT growth 5Y-11.16%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y148.37%
FCF growth 3Y30.19%
FCF growth 5Y28.79%
OCF growth 1Y148.37%
OCF growth 3Y30.19%
OCF growth 5Y28.79%
HORACE MANN EDUCATORS / HMN FAQ
What is the ChartMill fundamental rating of HORACE MANN EDUCATORS (HMN) stock?
ChartMill assigns a fundamental rating of 5 / 10 to HMN.
Can you provide the valuation status for HORACE MANN EDUCATORS?
ChartMill assigns a valuation rating of 7 / 10 to HORACE MANN EDUCATORS (HMN). This can be considered as Undervalued.
What is the profitability of HMN stock?
HORACE MANN EDUCATORS (HMN) has a profitability rating of 3 / 10.
What are the PE and PB ratios of HORACE MANN EDUCATORS (HMN) stock?
The Price/Earnings (PE) ratio for HORACE MANN EDUCATORS (HMN) is 9.79 and the Price/Book (PB) ratio is 1.32.
What is the financial health of HORACE MANN EDUCATORS (HMN) stock?
The financial health rating of HORACE MANN EDUCATORS (HMN) is 4 / 10.