HORACE MANN EDUCATORS (HMN) Stock Fundamental Analysis
NYSE:HMN - New York Stock Exchange, Inc. - US4403271046 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to HMN. HMN was compared to 145 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 has a correct valuation and a medium growth rate. HMN also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
HMN had positive earnings in the past year.
HMN had a positive operating cash flow in the past year.
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
The Return On Assets of HMN (0.80%) is worse than 60.69% of its industry peers.
HMN has a Return On Equity (8.53%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 8.53% | ||
| 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
With a Profit Margin value of 7.06%, HMN perfoms like the industry average, outperforming 51.72% of the companies in the same industry.
HMN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 10.69%, HMN is in line with its industry, outperforming 50.34% of the companies in the same industry.
In the last couple of years the Operating Margin of HMN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.69% | ||
| PM (TTM) | 7.06% | ||
| 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.
The number of shares outstanding for HMN remains at a similar level compared to 1 year ago.
HMN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, HMN has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of HMN is 1.06, which is an excellent value as it means it would take HMN, only 1.06 years of fcf income to pay off all of its debts.
HMN has a better Debt to FCF ratio (1.06) than 63.45% of its industry peers.
A Debt/Equity ratio of 0.41 indicates that HMN is not too dependend on debt financing.
HMN's Debt to Equity ratio of 0.41 is on the low side compared to the rest of the industry. HMN is outperformed by 60.69% of its industry peers.
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 | 0.41 | ||
| Debt/FCF | 1.06 | ||
| Altman-Z | N/A |
ROIC/WACCN/A
WACC8.08%
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 91.62%, which is quite impressive.
HMN shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 7.81% yearly.
HMN shows a small growth in Revenue. In the last year, the Revenue has grown by 5.86%.
Measured over the past years, HMN shows a small growth in Revenue. The Revenue has been growing by 2.09% on average per year.
EPS 1Y (TTM)91.62%
EPS 3Y-3.86%
EPS 5Y7.81%
EPS Q2Q%78.33%
Revenue 1Y (TTM)5.86%
Revenue growth 3Y5.8%
Revenue growth 5Y2.09%
Sales Q2Q%7.88%
3.2 Future
The Earnings Per Share is expected to grow by 16.51% on average over the next years. This is quite good.
Based on estimates for the next years, HMN will show a small growth in Revenue. The Revenue will grow by 4.75% on average per year.
EPS Next Y26.09%
EPS Next 2Y18.2%
EPS Next 3Y16.51%
EPS Next 5YN/A
Revenue Next Year5.98%
Revenue Next 2Y5.84%
Revenue Next 3Y4.75%
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
HMN is valuated reasonably with a Price/Earnings ratio of 11.20.
Compared to the rest of the industry, the Price/Earnings ratio of HMN is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.51, HMN is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.19, the valuation of HMN can be described as very reasonable.
HMN's Price/Forward Earnings ratio is in line with the industry average.
HMN is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.2 | ||
| Fwd PE | 9.19 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as HMN.
Based on the Price/Free Cash Flow ratio, HMN is valued a bit cheaper than the industry average as 76.55% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.22 | ||
| EV/EBITDA | 10.94 |
4.3 Compensation for Growth
The 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 16.51% in the coming years.
PEG (NY)0.43
PEG (5Y)1.43
EPS Next 2Y18.2%
EPS Next 3Y16.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.45%, HMN has a reasonable but not impressive dividend return.
HMN's Dividend Yield is a higher than the industry average which is at 3.76.
Compared to an average S&P500 Dividend Yield of 2.35, HMN pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
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
48.82% of the earnings are spent on dividend by HMN. This is a bit on the high side, but may be sustainable.
HMN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP48.82%
EPS Next 2Y18.2%
EPS Next 3Y16.51%
40.98
+0.28 (+0.69%)
Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupInsurance
GICS IndustryInsurance
Earnings (Last)
Earnings (Next)
Inst Owners105.56%
Inst Owner Change0%
Ins Owners1.28%
Ins Owner Change3.46%
Market Cap1.67B
Analysts75
Price Target47.43 (15.74%)
Short Float %1.28%
Short Ratio1.73
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.45% |
Yearly Dividend1.36
Dividend Growth(5Y)3.32%
DP48.82%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)33.52%
Min EPS beat(2)9.22%
Max EPS beat(2)57.82%
EPS beat(4)4
Avg EPS beat(4)19.12%
Min EPS beat(4)4.57%
Max EPS beat(4)57.82%
EPS beat(8)7
Avg EPS beat(8)14.19%
EPS beat(12)9
Avg EPS beat(12)16.28%
EPS beat(16)12
Avg EPS beat(16)13.75%
Revenue beat(2)0
Avg Revenue beat(2)-2.54%
Min Revenue beat(2)-3.2%
Max Revenue beat(2)-1.87%
Revenue beat(4)0
Avg Revenue beat(4)-2.31%
Min Revenue beat(4)-3.2%
Max Revenue beat(4)-1.87%
Revenue beat(8)1
Avg Revenue beat(8)-2.27%
Revenue beat(12)1
Avg Revenue beat(12)-2.43%
Revenue beat(16)3
Avg Revenue beat(16)-1.82%
PT rev (1m)0%
PT rev (3m)3.33%
EPS NQ rev (1m)3.52%
EPS NQ rev (3m)3.78%
EPS NY rev (1m)1.63%
EPS NY rev (3m)4.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.02%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.88%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.2 | ||
| Fwd PE | 9.19 | ||
| P/S | 1.03 | ||
| P/FCF | 3.22 | ||
| P/OCF | 3.22 | ||
| P/B | 1.24 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 10.94 |
EPS(TTM)3.66
EY8.93%
EPS(NY)4.46
Fwd EY10.88%
FCF(TTM)12.71
FCFY31.02%
OCF(TTM)12.71
OCFY31.02%
SpS39.75
BVpS32.93
TBVpS27.86
PEG (NY)0.43
PEG (5Y)1.43
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 8.53% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | 10.69% | ||
| PM (TTM) | 7.06% | ||
| GM | N/A | ||
| FCFM | 31.98% |
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
ROICexcg growth 3YN/A
ROICexcg 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 | 0.41 | ||
| Debt/FCF | 1.06 | ||
| Debt/EBITDA | 2.73 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 5.57 | ||
| Cash Conversion | 259.07% | ||
| Profit Quality | 452.75% | ||
| Current Ratio | N/A | ||
| Quick Ratio | N/A | ||
| Altman-Z | N/A |
F-Score9
WACC8.08%
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)91.62%
EPS 3Y-3.86%
EPS 5Y7.81%
EPS Q2Q%78.33%
EPS Next Y26.09%
EPS Next 2Y18.2%
EPS Next 3Y16.51%
EPS Next 5YN/A
Revenue 1Y (TTM)5.86%
Revenue growth 3Y5.8%
Revenue growth 5Y2.09%
Sales Q2Q%7.88%
Revenue Next Year5.98%
Revenue Next 2Y5.84%
Revenue Next 3Y4.75%
Revenue Next 5YN/A
EBIT growth 1Y53.77%
EBIT growth 3Y-7.88%
EBIT growth 5Y-11.16%
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y219.61%
FCF growth 3Y30.19%
FCF growth 5Y28.79%
OCF growth 1Y219.61%
OCF growth 3Y30.19%
OCF growth 5Y28.79%